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BUS 475 final exam




Question;1) A well-designed;activity-based costing system starts with __________.;A. identifying;the activity-cost pools;B. assigning;manufacturing overhead costs for each activity cost pool to products;C. computing;the activity-based overhead rate;D. analyzing;the activities performed to manufacture a product;2) In what;situations will a static budget be most effective in evaluating a manager's;effectiveness?;A. The;company has substantial fixed costs.;B. The;planned activity levels match actual activity levels.;C. The;company has substantial variable costs.;D. The;company has no fixed costs.;3) The conceptual;framework developed by the Financial Accounting Standards Board __________.;A. was;approved by a vote of all accountants;B. is;viewed as providing a constitution for setting accounting standards for;financial reporting;C. are;rules that all accountants must follow;D. is;legally binding on all accountants;4) 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. $18,000;B. $12,000;C. $28,000;D. $6,000;5) Of the following;companies, which one would not likely employ the specific identification;method for inventory costing?;A. Music;store specializing in organ sales;B. Antique;shop;C. Farm;implement dealership;D. Hardware;store;6) These are selected account balances on;December 31, 2008.;Land;(location of the corporation's office building);$100,000;Land;(held for future use);150,000;Corporate;Office Building;600,000;Inventory;200,000;Equipment;450,000;Office;Furniture;100,000;Accumulated;Depreciation;300,000;What is the net amount of property, plant, and equipment that will appear on;the balance sheet?;A. $1,300,000;B. $1,600,000;C. $1,100,000;D. $950,000;7) Which one of the;following items is not generally used in preparing a statement of cash flows?;A. Adjusted;trial balance;B. Current;income statement;C. Comparative;balance sheets;D. Additional;information;8) 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;The net income (or loss) for the period is __________.;A. $48,000;income;B. $10,000;loss;C. $10,000;income;D. not;determinable;9) What effect do;current technology changes have on managerial accounting?;A. Creation;of the middleman;B. Reduction;of emphasis on the value chain;C. Increase;in product costs;D. Reduction;of reporting costs of managerial accounting information;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?;A. Factory;janitor;B. Cost;of landscaping the corporate office;C. General;corporate liability insurance;D. The;western division?s vice president?s salary;11) The major;reporting standard for management accounts is __________.;A. the;Standards of Ethical Conduct for Practitioners of Management Accounting;and Financial Management;B. relevance;to decisions;C. the;Sarbanes-Oxley Act of 2002;D. generally;accepted accounting principles;12) Which list below;best describes the major services performed by public accountants?;A. Cost;accounting, production scheduling, recruiting;B. Auditing;taxation, management consulting;C. Employee;training, auditing, bookkeeping;D. Bookkeeping;mergers, budgets;13) 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;14) Managerial;accounting __________.;A. places;emphasis on special-purpose information;B. pertains;to the entity as a whole and is highly aggregated;C. is;governed by generally accepted accounting principles;D. is;concerned with costing products;15);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. $300;B. $100;C. the;value to Maurice of Options A, C and D combined;D. the;value to Maurice of the option he would have chosen had Option B not been;available;16);A tax on an imported good is called a __________.;A. trade;tax;B. supply;tax;C. tariff;D. quota;17);Lekeisha's income exceeds her expenditures. Lekeisha is a __________.;A. borrower;who supplies money to the financial system;B. borrower;who demands money from the financial system;C. saver;who supplies money to the financial system;D. saver;who demands money from the financial system;18);Lucy starts her own psychiatric practice, but her expenditures to open the;practice exceed her income. Lucy is a __________.;A. borrower;who supplies money to the financial system;B. borrower;who demands money from the financial system;C. saver;who supplies money to the financial system;D. saver;who demands money from the financial system;19);A rational decision maker __________.;A. takes;an action only if the combined benefits of that action and previous;actions exceed the combined costs of that action and previous actions;B. takes;an action only if the marginal benefit of that action exceeds the marginal;cost of that action;C. ignores;the likely effects of government policies when he or she makes choices;D. ignores;marginal changes and focuses instead on ?the big picture?;20);When a firm sells a good or a service, the sale contributes to the nation?s;income __________.;A. We;have to know whether the item being sold is a good or a service in order;to answer the question;B. whether;the buyer of the good or a service is a household, another firm, or the;government;C. only;if the buyer of the good or service is a household or another firm;D. only;if the buyer of the good or service is a household;21);Without trade, __________.;A. interdependence;is more extensive than it would be with trade;B. a;country can still benefit from international specialization;C. a;country's production possibilities frontier is also its consumption possibilities;frontier;D. a;country is better off because it will have to learn to be self-sufficient;without trade;22);The open-economy macroeconomic model includes __________.;A. neither;the market for loanable funds or the market for foreign-currency exchange;B. both;the market for loanable funds and the market for foreign-currency exchange;C. only;the market for foreign-currency exchange;D. only;the market for loanable funds;23);The political business cycle refers to __________.;A. changes;in output created by the monetary rule the Fed must follow;B. the;part of the business cycle caused by the reluctance of politicians to;smooth the business cycle;C. the;potential for a central bank to increase the money supply and therefore;real GDP to help the incumbent get re-elected;D. the;fact that about every four years some politician advocates greater;government control of the Fed;24);Consider two items that might be included in GDP: (1) The estimated rental;value of owner-occupied 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 investment component, while item (2) is included in;the consumption component.;C. Item;(1) is included in the consumption component, while item (2) is included in;the investment component.;D. Both;item (1) and item (2) are included in the consumption component of GDP.;25);The part of the balance of payments account that lists all long-term flows of;payments is called the;A. financial;and capital account.;B. current;account.;C. balance;of trade.;D. government;financial account.;26);Real GDP __________.;A. evaluates;current production at the prices that prevailed in some specific year in;the past.;B. evaluates;current production at current prices.;C. is;a measure of the value of goods only, it excludes the value of services.;D. is;not a valid measure of the economy's performance, since prices change from;year to year.;27);The open-economy macroeconomic model examines the determination of;__________.;A. unemployment;and the exchange rate;B. the;output growth rate and the real interest rate;C. the;trade balance and the exchange rate;D. the;output growth rate and the inflation rate;28);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. Job;enrichment theory;B. Black;box theory;C. Glass;floor;D. Glass;ceiling;E. Job;enlargement concept;29);The basic components of an effective sexual harassment policy include the;following EXCEPT;A. To;establish a formal complaint procedure;B. To;develop an organization wide policy on sexual harassment;C. To;establish a means for ongoing training;D. To;establish a performance appraisal system;E. To;act immediately when employees complain of sexual harassment;30);A leader is;A. A;strategic level manager;B. Someone;with authority over others;C. Someone;well-respected by others;D. The;top level manager in a firm or business;E. Someone;who influences others to attain goals;31);Teams that operate separately from the regular work structure and exist;temporarily are known as;A. Self-designing;teams;B. Management;teams;C. Transnational;teams;D. Parallel;teams;E. Self-managed;teams;32);Which of these describes a vision, as it pertains to leadership?;A. The;method through which leaders achieve goals;B. A;long-term goal of an organization;C. A;short-term goal of an organization;D. A;mental image of a future state of an organization;E. Likely;to land you in a padded room;33);Japanese manufacturers' kaizen (continuous improvement) programs enable them;to maintain;A. Larger;faster facilities;B. A;strategic alliance;C. A;homogeneous workforce;D. A;Learning advantage over their competition;E. Positive;working relationships with all employees;34);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. Selection;B. Diversity;C. Managerial;ethics;D. Employment;E. Recruiting;35);A manager's ability to stimulate people to be high performers is referred to;as;A. Leading;B. Planning;C. Staffing;D. Organizing;E. Controlling;36);Which of the following has proven to be a particularly good predictor for;jobs that require cognitive complexity?;A. work;sampling;B. intelligence;tests;C. behavioral;assessment;D. integrity;evaluations;E. aptitude;tests;37);The best way for an employer to find out if a potential employee can do a job;is by __________.;A. using;the interview process;B. having;them spend a day in the office;C. using;a written test;D. using;a performance simulation test;E. administering;an IQ test;38);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. ISO;9000;C. Just-in-time;control (JIT);D. Customer-based;integration;E. Computer-integrated;manufacturing (CIM);39);Which of the following statements does NOT support Total Quality Management?;A. Strive;for long-term improvement rather than short-term profit;B. Build;long-term relationships instead of awarding business on price tag alone;C. Break;down barriers among departments;D. Creating;silos between departments;E. Use;numerical quotas;40);Building a dynamic organization is another way of describing which function;of management?;A. Planning;B. Leading;C. Organizing;D. Staffing;E. Controlling;41);The pursuit of lucrative opportunities by enterprising individuals is called;A. Intrapreneurship;B. Business;incubating;C. Independence;D. Social;experimentation;E. Entrepreneurship;42);Use the following table to answer question: P(S | W) is approximately _____.;A..12;B..30;C..40;D..58;43);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 a left-tailed test at=.05 we would;__________.;A. switch;to alpha of 0.01 for a more powerful test;B. feel;uncomfortable with either decision (too close);C. comfortably;accept the claim;D. comfortably;reject the claim;44);Thirty patients are selected from a filing cabinet containing 812 patient;folders by choosing every 27th patient folder. Which sampling method is this?;A. Cluster;sample;B. Stratified;sample;C. Systematic;sample;D. Simple;random sample;45);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.;From this information, we can conclude that __________.;A. none;of these are correct;B. wealthy;individuals tend to commit more crimes;C. crime;creates additional income in a city;D. the;slope is not significantly different from zero;46);Which of the following statements is true?;A. If;event (A) occurs, then its complement (A') will also occur.;B. The;probability of A and its complement (A') will always sum to;one.;C. The;sum of two mutually exclusive events is one.;D. If;A and B are independent events, the P(B) = P(A);P(B).;47);Independent events A and B would be consistent with which of the following;statements;A. P;(A) =.4, P (B) =.5, P (AB) =.2;B. P;(A) =.3, P (B) =.5, P (AB) =.4;C. P;(A) =.4, P (B) =.3, P (AB) =.5;D. P;(A) =.5, P (B) =.4, P (AB) =.3;48);In an activity-on-node [AON] network, the nodes represent;whereas the arcs represent ____________.;A. activities;time;B. activities;precedence relationships;C. events;activities;D. precedence;relationships, time;49);Assume that the arrival of airplanes at a one-runway airport is a Poisson;distribution with a mean rate of= 8 planes per hour.;The landing time is an exponential distribution with a mean of 5 minutes per;plane. What is the mean number of planes in the system?;A. 1.67;B. 1.33;C. 1;D. 2;50);In statistical process control a p-chart could __________.;A. have;more than one characteristics;B. measure;the fraction of conforming parts in a sample;C. measure;the number of defects per sample unit;D. use;the student's distribution;51);Which one of the following statements concerning production and staffing;plans is best?;A. When;production and staffing plans are made, aggregation can be performed only;along two dimensions: products and time.;B. Production;and staffing plans attempt to achieve several objectives, all of which must;be consistent with one another.;C. Production;and staffing plans specify production rates, workforce levels, and;inventory holdings, but do not account for capacity limitations because;they are aggregated.;D. The;impact of production and staffing plans cuts across several functional;areas of the firm.;52);Companies using lean systems generally have;A. suppliers;that are willing to accept short-term contracts.;B. suppliers;that are located nearby to decrease delivery lead time.;C. many;suppliers to ensure that material shortages never occur.;D. suppliers;who are low-cost producers.;53);The Global, Web-Based Platform enables individuals to do which of the;following?;A. produce;and sell goods and services;B. exchange;knowledge;C. connect;compute, communicate, collaborate, and compete everywhere and all the time;D. all;of these are true;E. access;information, services, and entertainment;54);Zappos built the majority of its information systems using which of the;following?;A. Free;software;B. Open;source software;C. Vendor;software;D. Consultants;E. Proprietary;software;55);Which of the following are disadvantages of the buy option for acquiring IS;applications?;A. software;may not integrate with existing systems;B. company;will not have control over software improvements;C. software;may not exactly meet the company?s needs;D. all;of the these are disadvantages;E. software;may be impossible to modify;56);Fundamental points about network computing in organizations include all of;the following except;A. Networks;have had limited impact on organizational productivity;B. Networks;can be of any size, from small to enormous;C. Computers;constantly exchange data;D. Networks;support new ways of doing business;E. Computer;data exchange provides significant advantages to organizations;57);The force behind globalization in _____ was the amount of muscle, horsepower;wind power, or steam power that a country could deploy.;A. Globalization;3.0;B. Globalization;2.0;C. Globalization;1.0;D. None;of these;58);Which of the following is not a reason that managers need IT support?;A. Need;to access remote information sources;B. Decisions;are becoming more complex;C. Number;of alternatives are decreasing;D. Decision;makers are often in different locations;E. Decisions;must typically be made under time pressure;59);__________ integrate the planning, management, and use of all of an;organization?s resources, and are designed to tightly integrate the;functional areas of the organization.;A. Enterprise;resource planning systems;B. Functional;area information systems;C. Transaction;processing systems;D. Corporate;extranets;E. Supply;chain management systems;60);Computer support is greatest for which of the following problems?;A. Semistructured;and management control;B. Structured;and operational control;C. Semistructured;and strategic planning;D. Structured;and management control;E. Unstructured;and operational control;61);Which of the following is not a function of functional area information;systems?;A. supports;the managerial tasks of planning, organizing, and controlling operations;B. provides;analysis capabilities to middle level managers and staff;C. provides;information mainly in the form of reports;D. provides;information to managers in the functional areas;E. provides;data from business events to the corporate database;62);_____ is the acquisition and efficient use of resources in accomplishing;organizational goals.;A. Management;control;B. Wisdom;C. Strategic;planning;D. Operational;control;E. Expertise;63);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?;A. 20.62%;B. 15.62%;C. 9.37%;D. 14.37%;64);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.;A. 5.1%;B. 9.2%;C. 6.0%;D. 8.5%;65) Your company is;considering an investment in a project which would require an initial 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?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%;Long-term 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. $463;B. $1,568;C. $871;D. $1,241;66) 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.;A. 10.67%;1.02;B. 9.9%;.94;C. 9.9%;1.02;D. 34.4%;.94;67);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 answerwer to the nearest;$10.);A. $490;B. -$150;C. $570;D. $900;68);The common stockholders are most concerned with;A. the;percentage of profits retained.;B. the;spread between the return generated on new investments and the investor?s;required rate of return.;C. the;size of the firm?s beginning earnings per share.;D. the;risk of the investment.;69);Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70;per share. If the stock is currently selling for $21.25 per share, what is;the expected rate of return on this stock?;A. 36.13%;B. 13.6%;C. 12.5%;D. 8.0%;70);Suppose you determine that the NPV of a project is $1,525,855. What does that;mean?;A. In;all cases, investing in this project would be better than investing in a;project that has an NPV of $850,000.;B. The;project?s IRR would have to be less that the firm?s discount rate.;C. The;project would add value to the firm.;D. Under;all conditions, the project?s payback would be less than the profitability;index.;71);Which of the following is most consistent with the hedging principle in;working capital management?;A. Fixed;assets should be financed with short-term notes payable.;B. Inventory;should be financed with preferred stock.;C. Accounts;receivable should be financed with short-term lines of credit.;D. Borrow;on a floating rate basis to finance investments in permanent assets.;72);According to the hedging principle, permanent assets should be financed with;_____ liabilities.;A. permanent;B. fixed;C. spontaneous;D. current;73);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.;A. 5%;B. 11%;C. 14%;D. 12%;74);Tri State Pickle Company preferred stock pays a perpetual annual dividend of;2 1/2% 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. $37.50;B. $6.00;C. $15.00;D. $16.67;75);Exchange rate risk;A. doesn?t;affect trades made in US Dollars.;B. has;been phased out due to recent international legislation.;C. applies;only to certain types of domestic businesses.;D. arises;from the fact that the spot exchange rate on a future date is a random;variable.;88);Minimum wages, hours of employment, and child labor are regulated by the;89);Which of the following receives at least some protection under the U.S.;Constitution?;A. Offensive;speech;B. Obscene;speech;C. Neither;obscene speech nor offensive speech;D. Both;obscene speech and offensive speech


Paper#44428 | Written in 18-Jul-2015

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