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1. BUS 475 FINAL EXAMS
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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 _____.
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 reflects the following totals:
5) The income statement and balance sheet columns of Pine Company's
worksheet reflects the following totals:
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?

2. 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:

3. 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?

4. 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.
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?

5. 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.
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:
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) Zappos built the majority of its information systems using which of the
following?

6. 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:
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?

7. 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.
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 answerer 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:

8. 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 an
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?

9. 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.