Bus 475 Final Exams

Complete 100 Questions

1) A well-designed activity-based costing system starts with __________.

2) What effect do current technology changes have on managerial accounting?

3) A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; second purchase $95; third purchase $85. If the company sold two units for a total of $240 and used FIFO costing, the gross profit for the period would be _____.

4) The income statement and balance sheet columns of Pine Company's worksheet reflect 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 __________

5) The income statement and balance sheet columns of Pine Company's worksheet reflect the following totals:

Income Statement Balance Sheet

Dr Cr Dr Cr

Totals $58,000 $48,000 $34,000 $44,000

To enter the net income (or loss) for the period into the above worksheet requires an entry to the __________.

6) Managerial accounting __________.

7) 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?

8) The cost principle requires that when assets are acquired, they be recorded at __________.

9) Which one of the following is a product cost?

10) What exists when budgeted costs exceed actual results?

11) The primary purpose of the statement of cash flows is to __________.

12) Multinational corporations __________

13) 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?

14) What exists when budgeted costs exceed actual results?

15) A logical starting point from which the study of international trade begins is __________.

16) Which of the following statements about GDP is correct?

17) In economics, the cost of something is __________.

18) One characteristic of an oligopoly market structure is:

19) 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 __________.

20) The price of a good that prevails in a world market is called the

21) A rational decision maker __________.

22) Many U.S. business leaders argue that the current state of U.S. net exports is the result of __________.

23) The political business cycle refers to __________.

24) The part of the balance of payments account that lists all long-term flows of payments is called the:

25) The model of aggregate demand and aggregate supply explains the relationship between __________.

26) The part of the balance of payments account that lists all long-term flows of payments is called the:

27) Most economists use the aggregate demand and aggregate supply model primarily to analyze __________.

28) ABC International carefully watches the actions of its most innovative competitor and learns from them. ABC can establish a low-cost position by:

29) Which of the following statements does NOT support Total Quality Management?

30) As related to managing of human resources, diversity refers to:

31) 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:

32) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:

33) Teams that operate separately from the regular work structure and exist temporarily are known as:

34) 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:

35) Building a dynamic organization is another way of describing which function of management?

36) The pursuit of lucrative opportunities by enterprising individuals is called:

37) Teams that work on long-term projects but disband once the work is completed are known as:

38) Which of these represent skills that managers need?

39) 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?

40) The most dominant areas in the global economy include

41) 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?

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.

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)?

43) From its 32 regions, the Federal Aviation Administration selects 5 regions, and then randomly audits 20 departing commercial flights in each region for compliance with legal fuel and weight requirements. This is __________.

44) A poll showed that 48 out of 120 randomly chosen graduates of California medical schools last year intended to specialize in family practice. What is the width of a 90% confidence interval for the proportion that plan to specialize in family practice?

45) A financial institution wishes to estimate the mean balances owed by its credit card customers. The population standard deviation is estimated to be $300. If a 98 percent confidence interval is used and an interval of ±$75 is desired, how many cardholders should be sampled?

46) Independent events A and B would be consistent with which of the following statements:

47) 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 p-value for reporting the study's findings, which of the following is true?

48) Which one of the following statements concerning production and staffing plans is best?

49) In a network diagram, an activity:

50) 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:

51) Which one of the following statements concerning production and staffing plans is best?

52) The one-worker, multiple machines approach functions as:

53) Success in the _____ phase of the decision making process results in resolving the original problem, and failure leads to a return to previous phases.

54) Networks enable which of the following applications?

55) In the _____ phase of the decision making process, managers test potential solutions “on paper.”

56) Zippos built the majority of its information systems using which of the following?

57) When customers access a Web site and make purchases, they generate __________.

58) Which of the following are not provided by digital dashboards?

59) A company wants to use data from past promotional mailings to identify people who would likely respond favorably to future mailings. This company would most likely use _____.

60) Credit card companies would most likely use which of the following to check for fraudulent credit card use?

61) Which of the following statements about information systems is not correct?

62) Competitive advantage for an organization manifests as all of the following except:

63) Disadvantages of using current liabilities as opposed to long-term debt include:

64) Which of the following best represents the stream of income that is available to common stockholders?

65) You hold a portfolio with the following securities:

Security Percent of Portfolio Beta Return

X Corporation 20% 1.35 14%

Y Corporation 35% .95 10%

Z Corporation 45% .75 8%

Compute the expected return and beta for the portfolio.

66) Dublin International Corporation’s marginal tax rate is 40%. It can issue three-year bonds with a coupon rate of 8.5% and par value of $1,000. The bonds can be sold now at a price of $938.90 each. The underwriters will charge $23 per bond in flotation costs. Determine the approximate after-tax cost of debt for Dublin International to use in a capital budgeting analysis.

67) What is the yield to maturity of a nine-year bond that pays a coupon rate of 20% per year, has a $1,000 par value, and is currently priced at $1,407? Round your answer to the nearest whole percent and assume annual coupon payments.

68) At 8% compounded annually, how long will it take $750 to double?

69) Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?

70) A stock with a beta greater than 1.0 has returns that are _____ volatile than the market, and a stock with a beta of less than 1.0 exhibits returns which are _____ volatile than those of the market portfolio.

71) According to the hedging principle, permanent assets should be financed with _____ liabilities.

72) Given the following annual net cash flows, determine the IRR to the nearest whole percent of a project with an initial outlay of $1,520.

Year Net Cash Flow

1 $1,000

2 $1,500

3 $ 500

73) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answer to the nearest $10)

74) Bondholders have a priority claim on assets ahead of:

75) Bell Weather, Inc. has a beta of 1.25. The return on the market portfolio is 12.5%, and the risk-free rate is 5%. According to CAPM, what is the required return on this stock?

76) Coca-Cola is taking advantage of the new willingness of Chinese leaders to engage in international trade by marketing its soft drinks in China. What type of opportunity is Coke pursuing?

77) "Marketing strategy planning" means:

78) The economists' view of buyers:

79) Analysis of demographic dimensions:

80) Economists' economic-buyer theory assumes that __________.

81) The "four Ps" of a marketing mix are:

82) The managerial process of developing and maintaining a match between the resources of an organization and its market opportunities is called:

83) "Positioning":

84) The basic objective of the U.S. market-directed economic system is to:

85) In comparison to the buying of final consumers, the purchasing of organizational buyers:

86) Coca-Cola is taking advantage of the new willingness of Chinese leaders to engage in international trade by marketing its soft drinks in China. What type of opportunity is Coke pursuing?

87) Which of the following is a business or organizational customer?

88) Which of the following terms need not be disclosed under Truth-in-Lending Act?

89) Which of the following is true about the power of administrative agencies to grant licenses?

90) In a criminal proceeding, what is the difference between an indictment and information?

91) Which of the following activities by an administrative agency requires public notice and participation?

92) Product disparagement differs from defamation of a nonpublic figure in that:

93) Which of the following is correct with regard to the relationship between law and ethics?

94) Information which comes to the knowledge of an agent is:

95) Which of the following terms is not required to be disclosed under the Truth-in-Lending Act?

96) The Houston-based energy company that filed for Chapter 11 bankruptcy and whose business conduct is one of the grossest examples of corporate greed and fraud in America was:

97) A “closely held corporation” is a corporation that is owned by:

98) Which country does the text describe as becoming the largest producer and consumer of many of the world's goods?

99) Which country does the text describe as becoming the largest producer and consumer of many of the world's goods?

100) One study found that manufacturing labor costs about _____ an hour in China, compared to _____ dollars in the United States.