BUS 475 Final Exam step-9
BUS 475 Final Exam step-9
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Date Created: 11/07/15
BUS 475 Final Exam QUESTIONS WITH ANSWERS 1) The cost principle requires that when assets are acquired, they be recorded at __________. A. list price B. selling price C. exchange price paid D. appraisal value 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 standards and rules that are recognized as a general guide for financial reporting are called __________. A. standards of financial reporting B. operating guidelines C. generally accepted accounting principles D. generally accepted accounting standards 4) 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. $750 C. $4,500 D. $5,250 5) 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. 6,200 units C. $25,600 D. 4,600 units 6) 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. Cost of landscaping the corporate office C. General corporate liability insurance D. Factory janitor 7) What is the preparation of reports for each level of responsibility in the company’s organization chart called? A. Master budgeting analysis B. Exception reporting C. Responsibility reporting D. Static reporting 8) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase? A. $6,000 B. $12,000 C. $28,000 D. $18,000 9) The cost of an asset and its fair market value are __________. A. never the same B. irrelevant when the asset is used by the business in its operations C. the same on the date of acquisition D. the same when the asset is sold 10) Which one of the following is a product cost? A. Indirect labor B. Sales person’s salaries C. Advertising costs D. Office salaries 11) What exists when budgeted costs exceed actual results? A. A budgeting error B. An unfavorable difference C. An excess profit D. A favorable difference 12) 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 accounts only B. both permanent and temporary accounts C. permanent or real accounts only D. temporary accounts only 13) Managerial accounting __________. A. is concerned with costing products B. pertains to the entity as a whole and is highly aggregated C. places emphasis on specialpurpose information D. is governed by generally accepted accounting principles 14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers? A. Beer B. Selling either results in the same additional income for the company C. It should sell an equal quantity of both D. Wine 15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________. A. saver who demands money from the financial system B. borrower who demands money from the financial system C. borrower who supplies money to the financial system D. saver who supplies money to the financial system 16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A, Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is __________. A. the value to Maurice of the option he would have chosen had Option B not been available B. $100 C. $300 D. the value to Maurice of Options A, C and D combined 17) A production possibilities frontier will be a straight line if __________. A. the economy is producing efficiently B. the economy is engaged in trade with at least one other economy C. increasing the production of one good by x units entails no opportunity cost in terms of the other good D. increasing the production of one good by x units entails a constant opportunity cost in terms of the other good 18) In economics, the cost of something is __________. A. what you give up to get it B. often impossible to quantify, even in principle C. the dollar amount of obtaining it D. always measured in units of time given up to get it 19) A tax on an imported good is called a __________. A. supply tax B. trade tax C. quota D. tariff 20) Which of the following statements about GDP is correct? A. GDP is to a nation’s economy as household income is to a household. B. GDP increases if the total population increases. C. GDP measures two things at once: the total income of everyone in the economy and the unemployment rate. D. Money continuously flows from households to government and then back to households, and GDP measures this flow of money. 21) In computing GDP, market prices are used to value final goods and services because __________. A. if market prices are out of line with how people value goods, the government sets price ceilings and price floors B. Market prices are not used in computing GDP C. market prices reflect the values of goods and services D. market prices do not change much over time, so it is easy to make comparisons between years 22) Which of the following statements about GDP is correct? A. Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process. B. Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production. C. Nominal GDP values production at current prices, whereas real GDP values production at constant prices. D. Nominal GDP values production at constant prices, whereas real GDP values production at current prices. 23) Which of the following is not correct? A. The U.S. debt perperson is large compared with average lifetime income. B. In 2005, the U.S. government had a deficit. C. A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth. D. Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so. 24) The part of the balance of payments account that lists all longterm flows of payments is called the: A. balance of trade. B. financial and capital account. C. government financial account. D. current account. 25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________. A. the sacrifice ratio dilemma B. the monetary policy reaction lag C. the time inconsistency of policy D. inflation targeting 26) In general, the longest lag for __________. A. fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand B. both fiscal and monetary policy is the time it takes for policy to affect aggregate demand C. monetary policy is the time it takes to change policy, while for fiscal policy the longest lag is the time it takes for policy to affect aggregate demand D. both fiscal and monetary policy is the time it takes to change policy 27) Consider two items that might be included in GDP: (1) The estimated rental value of owneroccupied housing; and (2) purchases of newly constructed homes. How are these two items accounted for when GDP is calculated? A. Only item (2) is included in GDP and it is included in the investment component. B. Item (1) is included in the consumption component, while item (2) is included in the investment component. C. Item (1) is included in the investment component, while item (2) is included in the consumption component. D. Both item (1) and item (2) are included in the consumption component of GDP. 28) Managers will utilize __________ skills with increasing frequency as they rise within an organization. A. Professional B. Interpersonal and communication C. Technical D. Professional E. Conceptual and decision 29) Which of these represent skills that managers need? A. Interpersonal, quantitative, and professional B. Technical, interpersonal & communication and conceptual & decision making C. Professional, technical and interpersonal & communication D. Conceptual & decision making, professional and technical E. Interpersonal & communication, conceptual & decision making and professional 30) Building a dynamic organization is another way of describing which function of management? A. Staffing B. Organizing C. Leading D. Controlling E. Planning 31) 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. Anyone can start a business B. All entrepreneurs need venture capital in order to get started C. Successful entrepreneurs take very careful, calculated risks D. Entrepreneurs are their own bosses and completely independent E. Money should not be considered a startup ingredient 32) 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. Diversity B. Managerial ethics C. Recruiting D. Employment E. Selection 33) A manager's ability to stimulate people to be high performers is referred to as: A. Planning B. Supervising C. Controlling D. Organizing E. Leading 34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve total quality in all businesses for the benefit of both producers and consumers is: A. Total quality management B. Customerbased integration C. Computerintegrated manufacturing (CIM) D. Justintime control (JIT) E. ISO 9000 35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain: A. A strategic alliance B. A homogeneous workforce C. Positive working relationships with all employees D. A Learning advantage over their competition E. Larger, faster facilities 36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered: A. Technical skills B. Conceptual C. Professional skills D. Interpersonal/communication skills E. Diagnostic skills 37) The basic components of an effective sexual harassment policy include the following EXCEPT: A. To develop an organization wide policy on sexual harassment B. To establish a means for ongoing training C. To act immediately when employees complain of sexual harassment D. To establish a performance appraisal system E. To establish a formal complaint procedure 38) Teams that operate separately from the regular work structure and exist temporarily are known as: A. Management teams B. Transnational teams C. Selfmanaged teams D. Parallel teams E. Selfdesigning teams 39) 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. Goal Coordination B. Controlling C. Organizing D. Staffing E. Planning 40) As related to managing of human resources, diversity refers to: A. Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.) B. Differences in pay methods (such as hourly, salaried, overtime, hazardpay, commissioned, etc.) C. Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.) D. Differences in retention strategies (such as training, hiring, incentives, etc) E. Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.) 41) __________ is the process of working with people and resources to accomplish organizational goals. A. Controlling B. Decision making C. Planning D. Supervising E. Management 42) 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, the median is _____. A. 3 B. 3.5 C. 2.5 D. 2 43) Use the following table to answer question: P(S | W) is approximately _____. A. .40 B. .30 C. .12 D. .58 44) Use the following table to answer question: P(M A) is approximately _____. A. .50 B. .625 C. .125 D. .25 45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours. In determining the pvalue for reporting the study's findings, which of the following is true? A. The pvalue is equal to .05. B. The pvalue is greater than .05. C. The pvalue cannot be determined without specifying . D. The pvalue is less than .05. 46) 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. Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with Y = number of robberies in each city (thousands of robberies) and X = size of police force in each city (thousands of police)? A. High R2 (due to city size). B. Positive slope (due to city size). C. No correlation. D. Autocorrelation. 47) 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. Mode D. Median 48) Likely reasons for inaccurate control limits would include which of the following? A. Process variation was not zero, as expected. B. The engineering parameter for variance is unknown. C. There was insufficient preliminary sampling. D. The engineers were underpaid for their work. 49) You are faced with a linear programming objective function of: Max P = $20X + $30Y and constraints of: 3X + 4Y = 24 (Constraint A) 5X – Y = 18 (Constraint B) You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE? A. The most you would want to pay for an additional unit of A would be $7.50. B. You can change quantities of X and Y at no cost for Constraint B. C. For every additional unit of the objective function you create, the price of A rises by $7.50. D. For every additional unit of the objective function you create, you lose 0 units of B. 50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. Finally, A–E–C has a length of 20 days. Which one of the following statements is TRUE? A. The expected duration of this project is 25 + 15 + 20 = 60 days. B. A–D–C is the critical path. C. The expected duration of this project is 25 days. D. A–B–C has the most slack.
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