BUS 475 Final Exam step-3
BUS 475 Final Exam step-3
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Date Created: 11/07/15
BUS 475 Final Exam QUESTIONS WITH ANSWERS 1) A welldesigned activitybased costing system starts with __________. A. analyzing the activities performed to manufacture a product B. assigning manufacturing overhead costs for each activity cost pool to products C. computing the activitybased overhead rate D. identifying the activitycost pools 2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________. A. have been approved for use by the managements of business firms B. have been approved by the Internal Revenue Service C. have substantial authoritative support D. are proven theories of accounting 3) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals $58,000 $48,000 $34,000 $44,000 The net income (or loss) for the period is __________. A. not determinable B. $10,000 loss C. $10,000 income D. $48,000 income 4) These are selected account balances on December 31, 2008. Land (location of the corporation's office building) $150,000 Land (held for future use) 225,000 Corporate Office Building 900,000 Inventory 300,000 Equipment 675,000 Office Furniture 150,000 Accumulated Depreciation 450,000 What is the net amount of property, plant, and equipment that will appear on the balance sheet? A. $1,425,000 B. $1,950,000 C. $2,400,000 D. $1,650,000 5) The first step in activitybased costing is to __________. A. identify the cost driver that has a strong correlation to the activity cost pool B. assign manufacturing overhead costs for each activity cost pool to products C. identify and classify the major activities involved in the manufacture of specific products D. compute the activitybased overhead rate per cost driver 6) Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’s break even point? A. 2,133 units B. 4,600 units C. 6,200 units D. $25,600 7) Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March? A. $8,250 B. $5,250 C. $750 D. $4,500 8) These are selected account balances on December 31, 2008. Land (location of the corporation's office building) $100,000 Land (held for future use) 150,000 Corporate Office Building 600,000 Inventory 200,000 Equipment 450,000 Office Furniture 100,000 Accumulated Depreciation 300,000 What is the net amount of property, plant, and equipment that will appear on the balance sheet? A. $950,000 B. $1,300,000 C. $1,600,000 D. $1,100,000 9) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals: Income Statement Balance Sheet Dr. Cr. Dr. Cr. Totals $58,000 $48,000 $34,000 $44,000 Closing entries are necessary for __________. A. permanent or real accounts only B. permanent accounts only C. both permanent and temporary accounts D. temporary accounts only 10) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead? A. The western division’s vice president’s salary B. Factory janitor C. Cost of landscaping the corporate office D. General corporate liability insurance 11) The cost of an asset and its fair market value are __________. A. the same on the date of acquisition B. never the same C. the same when the asset is sold D. irrelevant when the asset is used by the business in its operations 12) One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers? A. $90,000 B. $150,000 C. $60,000 D. $75,000 13) The cost principle is the basis for preparing financial statements because it is __________. A. the most accurate measure of purchasing power B. a conservative value C. relevant and objectively measured, and verifiable D. an international accounting standard 14) Which one of the following items is not generally used in preparing a statement of cash flows? A. Additional information B. Adjusted trial balance C. Comparative balance sheets D. Current income statement 15) To move the allocation of resources closer to the social optimum, policymakers should typically try to induce firms in an oligopoly to __________. A. cooperate rather than compete with each other B. collude with each other C. form various degrees of cartels D. compete rather than cooperate with each other 16) Assume oligopoly firms are profit maximizers, they do not form a cartel, and they take other firms' production levels as given. Then in equilibrium the output effect __________. A. can be larger or smaller than the price effect B. must dominate the price effect C. must be smaller than the price effect D. must balance with the price effect 17) The price of a good that prevails in a world market is called the A. world price. B. absolute price. C. relative price. D. comparative price. 18) A country's consumption possibilities frontier can be outside its production possibilities frontier if __________. A. the country imports more than it exports B. the country’s technology is superior to the technologies of other countries C. the citizens of the country have a greater desire to consume goods and services than do the citizens of other countries D. the country engages in trade 19) When, in a particular market, the law of demand and the law of supply both apply, the imposition of a binding price ceiling in that market causes quantity demanded to be __________. A. double the quantity supplied B. less than quantity supplied C. greater than quantity supplied D. equal to quantity supplied 20) If a binding price ceiling were imposed in the computer market, __________. A. the quality of computers would increase B. the supply of computers would decrease C. the demand for computers would increase D. a shortage of computers would develop 21) For a college student who wishes to calculate the true costs of going to college, the costs of room and board __________. A. plus the cost of tuition, equals the opportunity cost of going to college B. should be counted only to the extent that they are more expensive at college than elsewhere C. should be counted in full, regardless of the costs of eating and sleeping elsewhere D. usually exceed the opportunity cost of going to college 22) In the market for foreigncurrency exchange in the open economy macroeconomic model, the amount of net capital outflow represents the quantity of dollars __________. A. demanded for the purpose of importing foreign goods and services B. supplied for the purpose of buying assets abroad C. supplied for the purpose of selling assets domestically D. demanded for the purpose of buying U.S. net exports of goods and services 23) The part of the balance of payments account that records the amount of foreign currency the government buys or sells is the: A. balance of trade. B. financial and capital account. C. current account. D. government financial account. 24) The balance of payment account is made up of: A. a monetary account and a fiscal account. B. an import account and an export account. C. a current account and a financial and capital account. D. an investment account and a consumption account. 25) The model of aggregate demand and aggregate supply explains the relationship between __________. A. real GDP and the price level B. unemployment and output C. the price and quantity of a particular good D. wages and employment 26) The openeconomy macroeconomic model includes __________. A. neither the market for loanable funds or the market for foreigncurrency exchange B. only the market for foreigncurrency exchange C. only the market for loanable funds D. both the market for loanable funds and the market for foreigncurrency exchange 27) The principal lag for monetary policy __________. A. is the time it takes for policy to change spending. The principal lag for fiscal policy is the time it takes to implement it B. is the time it takes to implement policy. The principal lag for fiscal policy is the time it takes for policy to change spending C. and fiscal policy is the time it takes for policy to change spending D. and fiscal policy is the time it takes to implement policy 28) Which of the following best describes a mental image of a possible and desirable future state of the organization? A. Horizontal communication B. Vertical communication C. Vision D. Mission E. Leadership 29) Sebastian Stabilio just joined a team of people from throughout his organization whose primary task is to recommend valuable uses for the scrap generated in the manufacturing process. The team meets twice per week; otherwise members work within the usual organizational structure. The team, not permanent, which Sebastian has joined, would be considered a: A. Parallel team B. Project team C. Working group D. Work team E. Project group 30) An invisible barrier that makes it difficult for certain groups, such as minorities and women, to move beyond a certain level in the organizational hierarchy is referred to as the: A. Glass floor B. Job enlargement concept C. Glass ceiling D. Black box theory E. Job enrichment theory 31) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is: A. Managerial ethics B. Recruiting C. Employment D. Diversity E. Selection 32) Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity? A. behavioral assessment B. aptitude tests C. integrity evaluations D. intelligence tests E. work sampling 33) To be competitive in a global economy, Europeans must increase their level of: A. Financial subsidy B. Philanthropic contributions C. Productivity D. Population density E. Espionage activity 34) Teams that operate separately from the regular work structure and exist temporarily are known as: A. Transnational teams B. Management teams C. Selfmanaged teams D. Selfdesigning teams E. Parallel teams 35) A manager's ability to stimulate people to be high performers is referred to as: A. Supervising B. Planning C. Controlling D. Leading E. Organizing 36) The best way for an employer to find out if a potential employee can do a job is by __________. A. using a performance simulation test B. using the interview process C. administering an IQ test D. having them spend a day in the office E. using a written test 37) Your roommate is interested in starting a business and everybody has been giving him different information about being an entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true? A. All entrepreneurs need venture capital in order to get started B. Anyone can start a business C. Successful entrepreneurs take very careful, calculated risks D. Money should not be considered a startup ingredient E. Entrepreneurs are their own bosses and completely independent 38) One study found that manufacturing labor costs about _____ an hour in China, compared to _____ dollars in the United States. A. Less than $1; about 40 B. Less than $1; about 15 C. $2; about 25 D. Less than $1; about 25 E. About $2; about 15 39) One of the most important contributors to total quality management has been the introduction of statistical tools to analyze the causes of product defects in an approach called: A. Organic B. Six Sigma Quality C. Mechanistic D. ISO 9000 E. Total quality integration 40) __________ is the process of working with people and resources to accomplish organizational goals. A. Supervising B. Planning C. Decision making D. Controlling E. Management 41) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of: A. Staffing B. Planning C. Organizing D. Controlling E. Goal Coordination 42) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income. Assuming b1 is significant, if Income decreases by 1000 we would predict that Crime will __________. A. increase by 428 B. decrease by 50 C. increase by 500 D. increase by 50 43) Sampling error can be reduced by __________. A. none of the these affect sampling error B. increasing the sample size C. decreasing the sample size D. utilizing simple random samples 44) Use the following table to answer question: P(M A) is approximately _____. A. .25 B. .125 C. .625 D. .50 45) Use the following table to answer question: Are Service provider and county independent events? A. Insufficient information to determine B. Yes C. No 46) Twelve randomlychosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18. For this sample, which measure of central tendency is least representative of the “typical” student? A. Midrange B. Mean C. Median D. Mode 47) Jolly Blue Giant Health Insurance (JBGHI) is concerned about rising lab test costs and would like to know what proportion of the positive lab tests for prostate cancer are actually proven correct through subsequent biopsy. JBGHI demands a sample large enough to ensure an error of ± 2% with 90% confidence. What is the necessary sample size? A. 2,401 B. 609 C. 1,604 D. 1,692 48) Which one of the following statements concerning production and staffing plans is best? A. The impact of production and staffing plans cuts across several functional areas of the firm. B. Production and staffing plans specify production rates, workforce levels, and inventory holdings, but do not account for capacity limitations because they are aggregated. C. Production and staffing plans attempt to achieve several objectives, all of which must be consistent with one another. D. When production and staffing plans are made, aggregation can be performed only along two dimensions: products and time. 49) Likely reasons for inaccurate control limits would include which of the following? A. Process variation was not zero, as expected. B. The engineers were underpaid for their work. C. The engineering parameter for variance is unknown. D. There was insufficient preliminary sampling. 50) The oneworker, multiple machines approach functions as: A. a way to create uniform workstation loads. B. a production bottleneck. C. a oneperson production line. D. a pokayoke device.
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