BUS 475 Final Exam # 100 Questions with ANSWERS # THE NEW EXAM!!! # 4th Set
BUS 475 Final Exam # 100 Questions with ANSWERS # THE NEW EXAM!!! # 4th Set fin571
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Date Created: 11/11/15
1 A welldesigned activitybased costing system starts with analyzing the activities performed to manufacture a product assigning manufacturing overhead costs for each activity cost pool to products computing the activity based overhead rate identifying the activity cost pools POP 2 quotGenerally acceptedquot in the phrase generally accepted accounting principles means that the principles have been approved for use by the managements of business firms have been approved by the Internal Revenue Service have substantial authoritative support are proven theories of accounting PCP 3 The income statement and balance sheet columns of Pine Company39s worksheet re ects the following totals Income Statement Balance Sheet Dr Cr Dr Cr Totals 58000 48000 34000 44000 The net income or loss for the period is not determinable 10000 loss 10000 income 48000 income 00 4 These are selected account balances on December 31 2008 Land location of the corporation39s office building 150000 Land held for future use 225000 Corporate Of ce Building 900000 Inventory 300000 Equipment 675000 Of ce Furniture 150000 Accumulated Depreciation 450000 What is the net amount of property plant and equipment that will appear on the balance sheet 1425000 1950000 2400000 1650000 POP 5 The rst 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 maior activities involved in the manufacture of speci c products D compute the activity based overhead rate per cost driver 6 Hess Inc sells a single product with a contribution margin of 12 per unit and xed costs of 74400 and sales for the current year of 100000 How much is Hess s break even point A 2133 units B 4600 units C 6200 units D 25600 7 Sam39s Used Cars uses the speci c identi cation method of costing inventory During March Sam purchased three cars for 6000 7500 and 9750 respectively During March two cars are sold for 9000 each Sam determines that at March 31 the 9750 car is still on hand What is Sam s gross pro t for March A 8250 B 5250 C 750 D 4500 8 These are selected account balances on December 31 2008 Land location of the corporation39s of ce building 100000 Land held for future use 150000 Corporate Of ce Building 600000 Inventory 200000 Equipment 450000 Of ce Furniture 100000 Accumulated Depreciation 300000 What is the net amount of property plant and equipment that will appear on the balance sheet A 950000 B 1300000 C 1600000 D 1100000 9 The income statement and balance sheet columns of Pine Company39s worksheet re ects the following totals Income Statement Balance Sheet Dr Cr Dr Cr Totals 58000 48000 34000 44000 Closing entries are necessary for permanent or real accounts only permanent accounts only both permanent and temporary accounts temporary accounts only POP 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 The western division s Vice president s salary Factorv ianitor Cost of landscaping the corporate office General corporate liability insurance 00 11 The cost of an asset and its fair market value are the same on the date of acquisition never the same the same when the asset is sold irrelevant when the asset is used by the business in its operations POP 12 One of Astro Company39s activity cost pools is machine setups with estimated overhead of 150000 Astro produces sparklers 400 setups and lighters 600 setups How much of the machine setup cost pool should be assigned to sparklers A 90000 B 150000 C 60 000 D 75000 13 The cost principle is the basis for preparing nancial statements because it is the most accurate measure of purchasing power a conservative value relevant and obiectivelv measured and verifiable an international accounting standard PCP 14 Which one of the following items is not generally used in preparing a statement of cash ows Additional information Adjusted trial balance Comparative balance sheets Current income statement 00 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 pro t maximizers they do not form a cartel and they take other firms39 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 world price absolute price relative price comparative price POP 18 A country39s 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 double the quantity supplied less than quantity supplied greater than quantitv supplied equal to quantity supplied PCP 20 If a binding price ceiling were imposed in the computer market the quality of computers would increase the supply of computers would decrease the demand for computers would increase a shortage of computers would develop PCP 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 opportunitv 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 out ow 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 US 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 balance of trade nancial and capital account current account government financial account POP 24 The balance of payment account is made up of a monetary account and a fiscal account an import account and an export account a current account and a financial and capital account an investment account and a consumption account PCP 25 The model of aggregate demand and aggregate supply explains the relationship between real GDP and the price level unemployment and output the price and quantity of a particular good wages and employment POP 26 The openeconomy macroeconomic model includes A neither the market for loanable funds or the market for foreign currency exchange B only the market for foreign currency 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 Parallel team Project team Working group Work team Project group EDGE 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 oor 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 Diversitv E Selection 32 Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity behavioral assessment aptitude tests integrity evaluations intelligence tests work sampling WPCF 33 To be competitive in a global economy Europeans must increase their level of A Financial subsidy Philanthropic contributions Productivity Population density Espionage activity FEDS 34 Teams that operate separately from the regular work structure and exist temporarily are known as Transnational teams Management teams Self managed teams Self designing teams Parallel teams FUOPquot 35 A manager39s 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 nd out if a potential employee can do a job is using a performance simulation test using the interview process administering an IQ test having them spend a day in the office using a written test mbchS 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 start up 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 Less than 1 about 40 Less than 1 about 15 2 about 25 Less than 1 about 25 About 2 about 15 wpcwgt 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 Organic Six Sigma Oualitv Mechanistic ISO 9000 Total quality integration meow 40 is the process of working with people and resources to accomplish organizational goals Supervising Planning Decision making Controlling Management FUOPquot 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 US cities to estimate the relationship between Crime annual property crimes per 100000 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 bv 50 43 Sampling error can be reduced by none of the these affect sampling error increasing the sample size decreasing the sample size utilizing simple random samples 00 44 Use the following table to answer question PM 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 J BGHI 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 J BGHI demands a sample large enough to ensure an error of i 2 with 90 confidence What is the necessary sample size A 2401 B 609 C 1604 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 staf ng plans specifv production rates workforce levels and inventory holdings but do not account for capacity limitations because thev 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 Process variation was not zero as expected The engineers were underpaid for their work The engineering parameter for variance is unknown There was insufficient preliminarv samplingz POP 50 The oneworker multiple machines approach functions as a way to create uniform workstation loads a production bottleneck a oneperson production line a poka yoke device PCP 51 In an activityonnode AON network the nodes represent whereas the arcs represent precedence relationships time activities precedence relationships activities time events activities 00 52 While glancing over the sensitivity report you note that the stitching labor has a shadow price of 10 and a lower limit of 24 hours with an upper limit of 36 hours If your original right hand value for stitching labor was 30 hours you know that A you would lose 80 if one of your workers missed an entire 8 hour shift B you can send someone home 6 hours early and still pay them the 60 they would have earned while on the clock C the next worker that offers to work an extra 8 hours should receive at least 80 D you would be willing pay up to 60 for someone to work another 6 hours 53 The force behind globalization in was the amount of muscle horsepower wind power or steam power that a country could deploy None of these Globalization 20 Globalization 10 Globalization 30 PCP 54 In the phase of the decision making process managers test potential solutions on paper consideration design choice intelligence implementation FEEDS 55 A set of programs that enable the hardware to process data is A procedures B database C software D network E hardware 56 What is is not necessarily A Ethical legal B Unethical illegal C Ethical illegal D E Unethical legal Illegal unethical 57 The Global WebBased Platform enables individuals to do which of the following A all of these are true B produce and sell goods and services C exchange knowledge D access information services and entertainment E connect compute communicate collaborate and compete everywhere and all the time 58 The management cockpit best exempli es which type of system A Group decision support system B Functional area information system C Digital dashboard D Expert system E Decision support system 59 is the acquisition and ef cient use of resources in accomplishing organizational goals A Wisdom B Expertise C Strategic planning D Management control E Operational control 60 International Game Technology s new ERP system produced all of the following bene ts except A Operations employees were able to access manufacturing process details at their workstations B The company gained exibility in manufacturing products C ERP system connected the company s global operations D Company was able to maintain its original business processes E Integrated the company s business functions 61 Which of the following are not provided by digital dashboards Exception reporting Key performance indicators Status access Transaction processing Drill down WPCW 62 provides users with a view of what is happening where addresses why it is happening Multidimensional data analysis data mining Multidimensional data analysis neural networks Data mining expert system Data mining multidimensional data analysis Multidimensional data analysis structured query language P1505 63 An increase in future value can be caused by an increase in the dividends paid rate of return original amount invested starting value annual interest rate and number of compounding periods FUOPquot 64 Your company is considering an investment in a project which would require an initial outlay of 300000 and produce expected cash ows in Years 1 through 5 of 87385 per year You have determined that the current aftertax cost of the firm s capital required rate of return for each source of financing is as follows Cost of debt 8 Cost of preferred stock 12 Cost of common stock 16 Longterm debt currently makes up 20 of the capital structure preferred stock 10 and common stock 70 What is the net present value of this project A 1568 B 463 C 1241 D 871 65 Disadvantages of using current liabilities as opposed to longterm debt include certainty of interest costs greater risk of illiquiditv and uncertaintv of interest costs decreased risk of liquidity uncertainty of future liabilities higher cash ow exposure WUOF 66 Bell Weather Inc has a beta of 125 The return on the market portfolio is 125 and the riskfree rate is 5 According to CAPM what is the required return on this stock A 1562 B 2062 C 1437 D 937 67 Dublin International Corporation s marginal tax rate is 40 It can issue threeyear bonds with a coupon rate of 85 and par value of 1000 The bonds can be sold now at a price of 93890 each The underwriters will charge 23 per bond in otation costs Determine the approximate aftertax cost of debt for Dublin International to use in a capital budgeting analysis A 92 B 51 C 85 D 60 68 Forward rates are quoted on financial statements in direct form and at a premium or discount by the FDIC in an indirect form daily WUOF 69 Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 12 of its par value Par value of TSP preferred stock is 100 per share If investors required rate of return on this stock is 15 what is the value of per share A 600 B 3750 C 1667 D 1500 70 Suppose you determine that the NPV of a project is 1525855 What does that mean A The project 5 IRR would have to be less that the firm 5 discount rate B In all cases investing in this project would be better than investing in a project that has an NPV of 850000 C Under all conditions the project s payback would be less than the profitability index D The project would add value to the firm 71 According to the hedging principle permanent assets should be financed with liabilities fixed permanent current spontaneous 00 72 Exchange rate risk A doesn t affect trades made in US Dollars B arises from the fact that the spot exchange rate on a future date is a random variable C applies only to certain types of domestic businesses D has been phased out due to recent international legislation 73 The common stockholders are most concerned with A the spread between the return generated on new investments and the investor s required rate of return B the percentage of pro ts retained C the size of the firm s beginning earnings per share D the risk of the investment 74 Which of the following is most consistent with the hedging principle in working capital management Fixed assets should be financed with short term notes payable Inventory should be financed with preferred stock Accounts receivable should be nanced with shortterm lines of credit Borrow on a oating rate basis to finance investments in permanent assets PCP 75 You hold a portfolio with the following securities Security Percent of Portfolio Beta Return X Corporation 20 135 14 Y Corporation 35 95 10 Z Corporation 45 75 8 Compute the expected return and beta for the portfolio 99 94 1067 102 99 102 344 94 POP 76 Economists39 economicbuyer theory assumes that consumers only want the cheapest price buvers logically compare choices in order to maximize their satisfaction demographic data are very useful for predicting consumer behavior consumers should purchase only low priced products consumers always make rational decisions WUOF 77 The statement quotOf course people will buy our producteach of its features is better than the competitionquot most closely re ects which consumer behavior concept EDGE the economicbuver theorv reference groups psychographics needs competitive advantage 78 The three basic tasks of ALL managers according to the text are EDGE planning implementation and control marketing production and finance planning staffing and evaluating execution feedback and control hiring training and compensating 79 A cluster analysis of the quottoothpaste marketquot would probably show that FUOPquot most consumers are concerned about cost most consumers are mainly concerned about brightness of teeth the broad product market can be served effectively with one marketing mix factors such as taste price and quotsex appealquot are not important different market segments seek different product benefits 80 quotMarketing strategy planningquot means P159570 selecting a target market and developing a marketing strategy finding attractive opportunities and selecting a target market nding attractive opportunities and developing profitable marketing strategies selecting an attractive target market selecting an attractive marketing mix 81 The managerial process of developing and maintaining a match between the resources of an organization and its market opportunities is called eccwgt market planning marketing strategy planning marketing programming management by objective strategic management planningz 82 Regarding organizational buying the people who have the power to select or approve the supplierespecially for larger purchasesare called users buyers deciders in uencers gatekeepers WUQPquot 83 The economists39 view of buyers A None of these are true B assumes that they always buy the lowest price alternative C is based on the idea that consumers value time and select the first alternative they learn about D puts a great deal of emphasis on differences in buying behavior related to individual differences among consumers E emphasizes psychological variables rather than social in uences 84 is a marketing management aid which refers to how customers think about proposed andor present brands in a market Customer relationship management CRM Market scanning Positioning Brand familiarity Market segmentation mung 85 When evaluating macromarketing A one must consider the society s role in the marketing system B one must determine how ef ciently the society39s resources are used C the best approach is to consider the profit generated by individual firms within the overall system D the evaluation is necessarily subjective E one must consider each individual firm39s role in the marketing system 86 Marketing A not important if you have a good product B re ects existing social values in the short run while reinforcing these values in the long run C turns consumers into puppets D creates materialistic values which did not exist before E is only propaganda 87 Clustering techniques applied to segmenting markets A doesn t apply to demographic data B eliminate the need for marketing managers to specify in advance what dimensions might be relevant for grouping consumers C remove the need for managerial judgment D usually require computers to group people based on data from market research E is time consuming and eXpensive 88 Product disparagement differs from defamation of a nonpublic figure in that A Intent is only required in a disparagement case B Publication to a third party is required in the defamation case but not in the disparagement case C Publication to a third party is required in the disparagement case but not in the defamation case D Intent is required for the disparagement case but not in the defamation case E Intent is required for the defamation case but not in the disparagement case 89 Mary arrived at work one day and her boss said to her That s the ugliest dress I have ever seen Because you wore that to work today you are fired Assuming that Mary is an atwill employee which of the following is true Mary can be fired only if it is in the best interest of the employer If none of the exceptions to the atwill rule applv Marv can be red If Mary has the will to work she cannot be fired without cause Mary can be fired for any reason 00 90 Which of the following is correct about interpretive rules Interpretive rules are not subject to judicial review All federal administrative agencies have implied power to make interpretive rules They must be accompanied by substantive rules They do not establish new law They require public notice and participation to create WPCW 91 In responding to a constitutional challenge to the Computer Decency Act the US Supreme Court ruled that A The Internet was similar to television and that restrictions similar to those on television programming were appropriate B The Act was unconstitutional because its provisions were too vague to define C Obscene materials could not be available between 600 am and 1000 pm local time D Computers and the Internet were not covered by the free speech provisions of the US Constitution because they did not eXist when the Constitution was drafted E The Act was constitutional because obscene speech receives no protection 92 In a criminal proceeding what is the difference between an indictment and an information A An indictment requires proof beyond a reasonable doubt but an information does not B A grand iurv issues an indictment but does not issue an information C Guilt or innocence is determined in an indictment but not in an information D The defendant is charged with a crime in an indictment but not in an information 93 Which social responsibility theory has been advocated by Novel Prizewinning economist Milton Friedman Corporate social audit Corporate citizenship Stakeholder interest Maximizing pro ts Moral minimum WPCF 94 If a minor wishes to be bound to a contract after becoming an adult she must Bring an action to verify the contract Give back the goods or services received as a minor C Disaffirm the contract D Ratify the contract w 95 Which of the following statements is true regarding the relationship of law and ethics A Depending on the circumstances the law can require a higher lower or the same standard of conduct as ethics demands B The legal requirements will almost always be the same as the ethical requirement because the law is based on the ethical standards C In some cases ethics will require a higher standard of conduct than the law but never vice versa D In some cases the law will require a higher standard of conduct than ethics but never vice versa 96 Information which comes to the knowledge of an agent is A Will result in termination of the agency arrangement if it is not communicated to the principal B Required to be communicated to the principal in all circumstances C Is imputed to the principal D Can be disclosed to the principal only with the third party s consent 97 Which of the following is true about proof of claims A They can generally be filed any time Within one year of the filing of the bankruptcy petition B They must be field by both secured and unsecured creditors in order for the creditor to receive a distribution from the bankruptcy estate C They need not be led by secured creditors whose security covers the amount of their debt D They are never used by secured creditors 98 Although the US has had a longstanding agreement with after the passage of NAFTA became the United States39 second largest trading partner Great Britain Paraguay Canada Venezuela Canada Mexico Mexico Canada Mexico Venezuela WPCF 99 Which country does the text describe as becoming the largest producer and consumer of many of the world39s goods A Ecuador B Japan C Canada D Mexico E China 100 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 About 2 about 15 D Less than 1 about 25 E 2 about 25 Good Luck HonestAbe
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