BUS 475 Final Exam 1 PLEASE DOWNLOAD THE ANSWERS HERE!!!1) The cost principle requires that when assets are acquired, they be recorded at__________.2) "Generally accepted" in the phrase generally accepted accounting principlesmeans that the principles __________.3) The standards and rules that are recognized as a general guide for financialreporting are called __________.4) Sams 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 thatat March 31, the $9,750 car is still on hand. What is Sam’s gross profit for March?5) Hess, Inc. sells a single product with a contribution margin of $12 per unit andfixed costs of $74,400 and sales for the current year of $100,000. How much is Hess’sbreak even point?6) As Plant Controller, you are trying to determine which costs over which you havethe 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 directlyreduce costs. Which of the following items would be classified as manufacturingoverhead?7) What is the preparation of reports for each level of responsibility in the company’sorganization chart called?8) Disney’s variable costs are 30% of sales. The company is contemplating anadvertising campaign that will cost $22,000. If sales are expected to increase$40,000, by how much will the companys net income increase?9) The cost of an asset and its fair market value are __________.10) Which one of the following is a product cost?11) What exists when budgeted costs exceed actual results?12) The income statement and balance sheet columns of Pine Companys worksheetreflects 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 __________.13) Managerial accounting __________.14) H55 Company sells two products, beer and wine. Beer has a 10 percent profitmargin and wine has a 12 percent profit margin. Beer has a 27 percent contributionmargin and wine has a 25 percent contribution margin. If other factors are equal,which product should H55 push to customers?15) Lekeishas income exceeds her expenditures. Lekeisha is a __________.16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, henarrows his options down to four choices: Option A, Option B, Option C, and OptionD. Each option costs $100. Finally he decides on Option B. The opportunity cost ofthis decision is __________.17) A production possibilities frontier will be a straight line if __________.18) In economics, the cost of something is __________.19) A tax on an imported good is called a __________.20) Which of the following statements about GDP is correct?21) In computing GDP, market prices are used to value final goods and servicesbecause __________.22) Which of the following statements about GDP is correct?23) Which of the following is not correct?24) The part of the balance of payments account that lists all long-term flows ofpayments is called the: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 peopleto expect zero inflation, then the Fed would be tempted to raise output byincreasing inflation. This possibility is known as __________.26) In general, the longest lag for __________.
27) Consider two items that might be included in GDP: (1) The estimated rentalvalue of owner-occupied housing; and (2) purchases of newly-constructed homes.How are these two items accounted for when GDP is calculated?28) Managers will utilize __________ skills with increasing frequency as they risewithin an organization.29) Which of these represent skills that managers need?30) Building a dynamic organization is another way of describing which function ofmanagement?31) Your roommate is interested in starting a business and everybody has beengiving him different information about being an entrepreneur. Since you have beenstudying about entrepreneurship and new ventures, which of these would you tellhim is true?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:33) A managers ability to stimulate people to be high performers is referred to as:34) A series of quality standards developed by a committee working under theInternational Organization for Standardization to improve total quality in allbusinesses for the benefit of both producers and consumers is:35) Japanese manufacturers kaizen (continuous improvement) programs enablethem to maintain:36) Listening to employee suggestions, gaining support for organizationalobjectives and fostering an atmosphere of teamwork are all considered:37) The basic components of an effective sexual harassment policy include thefollowing EXCEPT:38) Teams that operate separately from the regular work structure and existtemporarily are known as:39) The Aquatic Center, Inc. periodically reviews the goals of the company. Duringthe process, The Aquatic Center managers analyze their current strategies ascompared to their competitors, determine goals that they will pursue and decideupon 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:40) As related to managing of human resources, diversity refers to:
41) __________ is the process of working with people and resources to accomplishorganizational goals.42) Twelve randomly-chosen students were asked how many times they had missedclass 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 _____.43) Use the following table to answer question:P(S | W) is approximately _____.44) Use the following table to answer question:P(M A) is approximately _____.45) Dullco Manufacturing claims that its alkaline batteries last forty hours onaverage in a certain type of portable CD player. Tests on a random sample of 18batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4hours.In determining the p-value for reporting the studys findings, which of the followingis true?46) William used a sample of 68 U.S. cities to estimate the relationship betweenCrime (annual property crimes per 100,000 persons) and Income (median incomeper capita). His estimated regression equation was + .050 Income.Which outcomes would be likely in a bivariate regression on 45 randomly chosenU.S. cities in 2005 withof robberies in each city (thousands of robberies) andof police force in each city (thousands of police)?47) Twelve randomly-chosen students were asked how many times they had missedclass 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?48) Likely reasons for inaccurate control limits would include which of the following?49) You are faced with a linear programming objective function of:Max P = $20X + $30Y
and constraints of:3X + (Constraint A)5X – (Constraint B)You discover that the shadow price for Constraint A is 7.5 and the shadow price forConstraint B is 0. Which of these statements is TRUE?50) A project has three paths. A–B–C has a length of 25 days. A–D–C has a length of15 days. Finally, A–E–C has a length of 20 days. Which one of the followingstatements is TRUE?51) Which one of the following statements concerning production and staffing plansis best52) While glancing over the sensitivity report, you note that the stitching labor has ashadow price of $10 and a lower limit of 24 hours with an upper limit of 36 hours. Ifyour original right hand value for stitching labor was 30 hours, you know that:53) The costs of delivering products in the _____ channel are much higher thandelivering products in the _____ channel.54) When customers access a Web site and make purchases, they generate__________.55) _____ is the integration of economic, social, cultural, and ecological facets of life,enabled by information.56) Various organizations that promote fair and responsible use of informationsystems often develop __________.57) What is _____ is not necessarily _____.58) _____ provides users with a view of what is happening, where _____ addresseswhy it is happening.59) Computer support is greatest for which of the following problems?60) The management cockpit best exemplifies which type of system?61) _____ is the efficient and effective execution of specific tasks.62) Geocoding is __________.63) At 8% compounded annually, how long will it take $750 to double?
64) Which of the following represents an attempt to measure the earnings of thefirm’s operations over a given time period?65) A machine costs $1,000, has a three-year life, and has an estimated salvagevalue 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 theNPV of this investment? (Round your answerwer to the nearest $10.)66) Disadvantages of using current liabilities as opposed to long-term debt include:67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 pershare. If the stock is currently selling for $21.25 per share, what is the expected rateof return on this stock?68) Which of the following is most consistent with the hedging principle in workingcapital management?69) An increase in future value can be caused by an increase in the __________.70) If the quote for a forward exchange contract is greater than the computed price,the forward contract is:71) Your company is considering an investment in a project which would require aninitial outlay of $300,000 and produce expected cash flows in Years 1 through 5 of$87,385 per year. You have determined that the current after-tax cost of the firm’scapital (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%Long-term debt currently makes up 20% of the capital structure, preferred stock10%, and common stock 70%. What is the net present value of this project?72) Suppose you determine that the NPV of a project is $1,525,855. What does thatmean?73) The common stockholders are most concerned with:74) PepsiCo calculates unlevered betas for each peer group in order to:75) Which of the following best represents operating income?
76) In comparison to the buying of final consumers, the purchasing of organizationalbuyers:77) The basic objective of the U.S. market-directed economic system is to:78) Comparing GDP for foreign countries can help a marketing manager evaluatepotential markets if the manager remembers that:79) A firms "marketing mix" decision areas would NOT include:80) __________ is a marketing management aid which refers to how customersthink about proposed and/or present brands in a market.81) The "four Ps" of a marketing mix are:82) When evaluating macro-marketing:83) A cluster analysis of the "toothpaste market" would probably show that:84) Clustering techniques applied to segmenting markets __________.85) The three basic tasks of ALL managers, according to the text, are:86) The difference between target marketing and mass marketing is that targetmarketing:87) When one considers the strategy decisions organized by the four Ps, branding isrelated to packaging as:88) Which of the following statements is not true under the Fair Labor StandardsAct?89) Probable cause is most directly associated with which step of the criminalprocess?90) Which of the following statements is generally not true about state intermediateappellate courts?91) Which of the following terms need not be disclosed under Truth-in-Lending Act?92) Which of the following activities by an administrative agency requires publicnotice and participation?93) Which of the following is not one of the Caux Round Table Principles forInternational Business?
94) The theory of business social responsibility that holds that a business owesduties solely to produce the highest return for its shareholders is:95) Which social responsibility theory has been advocated by Novel Prizewinningeconomist Milton Friedman?96) Which of the following lists, in descending priority, of sources considered bymost courts in settling questions of international law97) If the value of the collateral is less than the debt owed to the secured party, then:98) One study found that manufacturing labor costs about _____ an hour in China,compared to _____ dollars in the United States.99) Which country does the text describe as becoming the largest producer andconsumer of many of the worlds goods?100) Although the U.S. has had a longstanding agreement with _____ after thepassage of NAFTA, _____ became the United States second largest trading partner. BUS 475 Final Exam 1 PLEASE DOWNLOAD THE ANSWERS HERE!!!