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BUS 475 FINAL EXAM 600 MCQS |
To buy this click here http://www.coursehomework.com/product/bus-475-final-exam-600-mcqs/
BUS 475 FINAL EXAM 600 (QUESTIONS AND ANSWERS) 1) One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers?$90,000$60,000$75,000$150,0002) 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 _____.$50$75$60$653). If a company reports a net loss, it __________.Will not be able to make capital expendituresWill not be able to pay cash dividendsWill not be able to get a loanMay still have a net increase in cash4). 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 salaryGeneral corporate liability insuranceCost of landscaping the corporate officeFactory janitor5) 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 breakeven point?2,133 units$25,6006,200 units4,600 units6) Of the following companies, which one would not likely employ the specific identification method for inventory costing?Hardware storeFarm implement dealershipAntique shopMusic store specializing in organ sales7) What effect do current technology changes have on managerial accounting?A. Reduction of reporting costs of managerial accounting informationB. Increase in product costsC. Reduction of emphasis on the value chainD. Creation of the middleman8) 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. $6,000B. $28,000C. $12,000D. $18,0009) What is the preparation of reports for each level of responsibility in the company’s organization chart called?A. Master budgeting analysisB. Responsibility reportingC. Exception reportingD. Static reporting10) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.A. Have been approved for use by the managements of business firmsB. Have substantial authoritative supportC. Have been approved by the Internal Revenue ServiceD. Are proven theories of accounting11) Which one of the following is a product cost?A. Advertising costsB. Office salariesC. Sales person’s salariesD. Indirect labor12) 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?A. $8,250B. $750C. $4,500D. $5,25013) What exists when budgeted costs exceed actual results?A. An excess profitB. An unfavorable differenceC. A favorable differenceD. A budgeting error14) The major reporting standard for management accounts is __________.A. Generally accepted accounting principlesB. Relevance to decisionsC. The Sarbanes-Oxley Act of 2002D. The Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management15) 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 otherB. Compete rather than cooperate with each otherC. Form various degrees of cartelsD. Collude with each other16) 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 questionB. Whether the buyer of the good or a service is a household, another firm, or the governmentC. Only if the buyer of the good or service is a household or another firmD. Only if the buyer of the good or service is a household17) Institutions in the economy that help to match one person's saving with another person's investment are collectively called the __________.A. Financial systemB. Monetary systemC. Banking systemD. Federal Reserve system18) 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 __________.A. Double the quantity suppliedB. Equal to quantity suppliedC. Less than quantity suppliedD. Greater than quantity supplied19) There are two types of markets in which firms face some competition yet are still able to have some control over the prices of their products. The names given to these market structures are __________.A. Duopoly and imperfect competitionB. Perfect competition and monopolistic competitionC. Duopoly and triopolyD. Monopolistic competition and oligopoly20) Which of the following would be most likely to contribute to the breakdown of a cartel in a natural resource (e.g., bauxite) market?A. Unequal member ownership of the natural resourceB. High compatibility of member interestsC. Low price elasticity of demandD. High prices21) One characteristic of an oligopoly market structure is:A. The actions of one seller have no impact on the profitability of other sellersB. Products typically sell at a price that reflects their marginal cost of productionC. Firms in the industry have some degree of market powerD. Firms in the industry are typically characterized by very diverse product lines22) Real GDP __________.A. Is a measure of the value of goods only; it excludes the value of servicesB. Is not a valid measure of the economy's performance, since prices change from year to yearC. Evaluates current production at the prices that prevailed in some specific year in the pastD. Evaluates current production at current prices23) The open-economy macroeconomic model examines the determination of __________.A. The trade balance and the exchange rateB. Unemployment and the exchange rateC. The output growth rate and the inflation rateD. The output growth rate and the real interest rate24) The part of the balance of payments account that lists all long-term flows of payments is called the:A. Balance of tradeB. Financial and capital accountC. Government financial accountD. Current account25) The Federal Reserve will tend to tighten monetary policy when __________.A. It thinks inflation is too high today, or will become too high in the futureB. It thinks the unemployment rate is too highC. The growth rate of real GDP is quite sluggishD. Interest rates are rising too rapidly26) Which of the following is not correct?A. In 2005, the U.S. government had a deficitB. Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do soC. The U.S. debt per-person is large compared with average lifetime incomeD. A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth27) The open-economy macroeconomic model includes __________.A. Neither the market for loanable funds or the market for foreign-currency exchangeB. Only the market for foreign-currency exchangeC. Both the market for loanable funds and the market for foreign-currency exchangeD. Only the market for loanable funds28) ABC International carefully watches the actions of its most innovative competitor and learns from them. ABC can establish a low-cost position by:A. Technology followers are not successful at low-cost strategiesB. Producing an imitation of the new technology that utilizes lower-quality and lower-cost materialsC. Mass-producing products that have an established market nicheD. Making subtle changes to the product, thereby avoiding patent restrictionsE. Learning from the leader thereby avoiding the costs and risks of technology leadership29) A leader is:A. Someone well-respected by othersB. The top level manager in a firm or businessC. Someone who influences others to attain goalsD. Someone with authority over othersE. A strategic level manager30) __________ is the process of working with people and resources to accomplish organizational goals.A. SupervisingB. ManagementC. Decision makingD. PlanningE. Controlling31) Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity?A. Behavioral assessmentB. Integrity evaluationsC. Aptitude testsD. Intelligence testsE. Work sampling32) Teams that operate separately from the regular work structure and exist temporarily are known as:A. Transnational teamsB. Parallel teamsC. Self-managed teamsD. Management teamsE. Self-designing teams33) The pursuit of lucrative opportunities by enterprising individuals is called:A. Social experimentationB. IndependenceC. EntrepreneurshipD. IntrapreneurshipE. Business incubating34) The best way for an employer to find out if a potential employee can do a job is by __________.A. Using a performance simulation testB. Using a written testC. Administering an IQ testD. Using the interview processE. Having them spend a day in the office35) A manager's ability to stimulate people to be high performers is referred to as:A. StaffingB. OrganizingC. ControllingD. PlanningE. Leading36) Teams that work on long-term projects but disband once the work is completed are known as:A. Parallel teamsB. Project and development teamsC. Transnational teamsD. Traditional work groupsE. Management teams37) Having individuals actually do the job they are applying for as a test to see if they can do it is __________.A. An approach with low reliabilityB. An approach with high reliabilityC. A formal means of screening candidatesD. An informal means of screening candidatesE. An approach with high face validity38) As related to managing of human resources, diversity refers to:A. Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)B. Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)C. Differences in retention strategies (such as training, hiring, incentives, etc)D. Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)E. Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)39) To be competitive in a global economy, Europeans must increase their level of:A. Population densityB. Philanthropic contributionsC. Financial subsidyD. Espionage activityE. Productivity40) A manager's ability to stimulate people to be high performers is referred to as:A. PlanningB. ControllingC. SupervisingD. LeadingE. Organizing41) 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:A. Work teamB. Project teamC. Parallel teamD. Project groupE. Working group42) To estimate the average annual expenses of students on books and class materials a sample of size 36 is taken. The average is $850 and the standard deviation is $54. A 99% confidence interval for the population mean is __________.A. $825.48 to $874.52B. $823.72 to $876.28C. $832.36 to $867.64D. $826.82 to $873.1843) Twelve randomly-chosen 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. MeanB. MidrangeC. ModeD. Median44) 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.A. The p-value cannot be determined without specifyingB. The p-value is less than .05C. The p-value is equal to .05D. The p-value is greater than .0545) Jolly Blue Giant Health Insurance (JBGHI) 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. JBGHI demands a sample largeenough to ensure an error of ± 2% with 90% confidence. What is the necessary sample size?A. 609B. 2,401C. 1,692D. 1,60446) 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 testB. Feel uncomfortable with either decision (too close)C. Comfortably accept the claimD. Comfortably reject the claim47) In a right-tail test, a statistician came up with a z test statistic of 1.469. What is the p-value?A. .0301B. .0874C. .0708D. .429248) Theoretically, service capacity must exceed demand, lest queues become infinitely long. If capacity does not exceed demand, what is likely to happen?A. Customers will renege or balk, thereby reducing demandB. Servers will decrease time spent per customer, thereby increasing capacityC. Servers will eliminate time-consuming portions of their jobs, thereby increasing capacityD. All of these49) Likely reasons for inaccurate control limits would include which of the following?A. The engineering parameter for variance is unknownB. The engineers were underpaid for their workC. There was insufficient preliminary samplingD. Process variation was not zero, as expected50) Which one of the following statements concerning production and staffing plans is best?A. Production and staffing plans specify production rates, workforce levels, and inventory holdings, but do not account for capacity limitations because they are aggregatedB. Production and staffing plans attempt to achieve several objectives, all of which must be consistent with one anotherC. When production and staffing plans are made, aggregation can be performed only along two dimensions: products and time |
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BUS 475 FINAL EXAM 600 MCQS |
To buy this click here http://www.coursehomework.com/product/bus-475-final-exam-600-mcqs/
BUS 475 FINAL EXAM 600 (QUESTIONS AND ANSWERS) 1) One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers?$90,000$60,000$75,000$150,0002) 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 _____.$50$75$60$653). If a company reports a net loss, it __________.Will not be able to make capital expendituresWill not be able to pay cash dividendsWill not be able to get a loanMay still have a net increase in cash4). 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 salaryGeneral corporate liability insuranceCost of landscaping the corporate officeFactory janitor5) 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 breakeven point?2,133 units$25,6006,200 units4,600 units6) Of the following companies, which one would not likely employ the specific identification method for inventory costing?Hardware storeFarm implement dealershipAntique shopMusic store specializing in organ sales7) What effect do current technology changes have on managerial accounting?A. Reduction of reporting costs of managerial accounting informationB. Increase in product costsC. Reduction of emphasis on the value chainD. Creation of the middleman8) 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. $6,000B. $28,000C. $12,000D. $18,0009) What is the preparation of reports for each level of responsibility in the company’s organization chart called?A. Master budgeting analysisB. Responsibility reportingC. Exception reportingD. Static reporting10) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.A. Have been approved for use by the managements of business firmsB. Have substantial authoritative supportC. Have been approved by the Internal Revenue ServiceD. Are proven theories of accounting11) Which one of the following is a product cost?A. Advertising costsB. Office salariesC. Sales person’s salariesD. Indirect labor12) 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?A. $8,250B. $750C. $4,500D. $5,25013) What exists when budgeted costs exceed actual results?A. An excess profitB. An unfavorable differenceC. A favorable differenceD. A budgeting error14) The major reporting standard for management accounts is __________.A. Generally accepted accounting principlesB. Relevance to decisionsC. The Sarbanes-Oxley Act of 2002D. The Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management15) 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 otherB. Compete rather than cooperate with each otherC. Form various degrees of cartelsD. Collude with each other16) 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 questionB. Whether the buyer of the good or a service is a household, another firm, or the governmentC. Only if the buyer of the good or service is a household or another firmD. Only if the buyer of the good or service is a household17) Institutions in the economy that help to match one person's saving with another person's investment are collectively called the __________.A. Financial systemB. Monetary systemC. Banking systemD. Federal Reserve system18) 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 __________.A. Double the quantity suppliedB. Equal to quantity suppliedC. Less than quantity suppliedD. Greater than quantity supplied19) There are two types of markets in which firms face some competition yet are still able to have some control over the prices of their products. The names given to these market structures are __________.A. Duopoly and imperfect competitionB. Perfect competition and monopolistic competitionC. Duopoly and triopolyD. Monopolistic competition and oligopoly20) Which of the following would be most likely to contribute to the breakdown of a cartel in a natural resource (e.g., bauxite) market?A. Unequal member ownership of the natural resourceB. High compatibility of member interestsC. Low price elasticity of demandD. High prices21) One characteristic of an oligopoly market structure is:A. The actions of one seller have no impact on the profitability of other sellersB. Products typically sell at a price that reflects their marginal cost of productionC. Firms in the industry have some degree of market powerD. Firms in the industry are typically characterized by very diverse product lines22) Real GDP __________.A. Is a measure of the value of goods only; it excludes the value of servicesB. Is not a valid measure of the economy's performance, since prices change from year to yearC. Evaluates current production at the prices that prevailed in some specific year in the pastD. Evaluates current production at current prices23) The open-economy macroeconomic model examines the determination of __________.A. The trade balance and the exchange rateB. Unemployment and the exchange rateC. The output growth rate and the inflation rateD. The output growth rate and the real interest rate24) The part of the balance of payments account that lists all long-term flows of payments is called the:A. Balance of tradeB. Financial and capital accountC. Government financial accountD. Current account25) The Federal Reserve will tend to tighten monetary policy when __________.A. It thinks inflation is too high today, or will become too high in the futureB. It thinks the unemployment rate is too highC. The growth rate of real GDP is quite sluggishD. Interest rates are rising too rapidly26) Which of the following is not correct?A. In 2005, the U.S. government had a deficitB. Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do soC. The U.S. debt per-person is large compared with average lifetime incomeD. A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth27) The open-economy macroeconomic model includes __________.A. Neither the market for loanable funds or the market for foreign-currency exchangeB. Only the market for foreign-currency exchangeC. Both the market for loanable funds and the market for foreign-currency exchangeD. Only the market for loanable funds28) ABC International carefully watches the actions of its most innovative competitor and learns from them. ABC can establish a low-cost position by:A. Technology followers are not successful at low-cost strategiesB. Producing an imitation of the new technology that utilizes lower-quality and lower-cost materialsC. Mass-producing products that have an established market nicheD. Making subtle changes to the product, thereby avoiding patent restrictionsE. Learning from the leader thereby avoiding the costs and risks of technology leadership29) A leader is:A. Someone well-respected by othersB. The top level manager in a firm or businessC. Someone who influences others to attain goalsD. Someone with authority over othersE. A strategic level manager30) __________ is the process of working with people and resources to accomplish organizational goals.A. SupervisingB. ManagementC. Decision makingD. PlanningE. Controlling31) Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity?A. Behavioral assessmentB. Integrity evaluationsC. Aptitude testsD. Intelligence testsE. Work sampling32) Teams that operate separately from the regular work structure and exist temporarily are known as:A. Transnational teamsB. Parallel teamsC. Self-managed teamsD. Management teamsE. Self-designing teams33) The pursuit of lucrative opportunities by enterprising individuals is called:A. Social experimentationB. IndependenceC. EntrepreneurshipD. IntrapreneurshipE. Business incubating34) The best way for an employer to find out if a potential employee can do a job is by __________.A. Using a performance simulation testB. Using a written testC. Administering an IQ testD. Using the interview processE. Having them spend a day in the office35) A manager's ability to stimulate people to be high performers is referred to as:A. StaffingB. OrganizingC. ControllingD. PlanningE. Leading36) Teams that work on long-term projects but disband once the work is completed are known as:A. Parallel teamsB. Project and development teamsC. Transnational teamsD. Traditional work groupsE. Management teams37) Having individuals actually do the job they are applying for as a test to see if they can do it is __________.A. An approach with low reliabilityB. An approach with high reliabilityC. A formal means of screening candidatesD. An informal means of screening candidatesE. An approach with high face validity38) As related to managing of human resources, diversity refers to:A. Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)B. Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)C. Differences in retention strategies (such as training, hiring, incentives, etc)D. Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)E. Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)39) To be competitive in a global economy, Europeans must increase their level of:A. Population densityB. Philanthropic contributionsC. Financial subsidyD. Espionage activityE. Productivity40) A manager's ability to stimulate people to be high performers is referred to as:A. PlanningB. ControllingC. SupervisingD. LeadingE. Organizing41) 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:A. Work teamB. Project teamC. Parallel teamD. Project groupE. Working group42) To estimate the average annual expenses of students on books and class materials a sample of size 36 is taken. The average is $850 and the standard deviation is $54. A 99% confidence interval for the population mean is __________.A. $825.48 to $874.52B. $823.72 to $876.28C. $832.36 to $867.64D. $826.82 to $873.1843) Twelve randomly-chosen 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. MeanB. MidrangeC. ModeD. Median44) 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.A. The p-value cannot be determined without specifyingB. The p-value is less than .05C. The p-value is equal to .05D. The p-value is greater than .0545) Jolly Blue Giant Health Insurance (JBGHI) 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. JBGHI demands a sample largeenough to ensure an error of ± 2% with 90% confidence. What is the necessary sample size?A. 609B. 2,401C. 1,692D. 1,60446) 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 testB. Feel uncomfortable with either decision (too close)C. Comfortably accept the claimD. Comfortably reject the claim47) In a right-tail test, a statistician came up with a z test statistic of 1.469. What is the p-value?A. .0301B. .0874C. .0708D. .429248) Theoretically, service capacity must exceed demand, lest queues become infinitely long. If capacity does not exceed demand, what is likely to happen?A. Customers will renege or balk, thereby reducing demandB. Servers will decrease time spent per customer, thereby increasing capacityC. Servers will eliminate time-consuming portions of their jobs, thereby increasing capacityD. All of these49) Likely reasons for inaccurate control limits would include which of the following?A. The engineering parameter for variance is unknownB. The engineers were underpaid for their workC. There was insufficient preliminary samplingD. Process variation was not zero, as expected50) Which one of the following statements concerning production and staffing plans is best?A. Production and staffing plans specify production rates, workforce levels, and inventory holdings, but do not account for capacity limitations because they are aggregatedB. Production and staffing plans attempt to achieve several objectives, all of which must be consistent with one anotherC. When production and staffing plans are made, aggregation can be performed only along two dimensions: products and time |
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BUS 475 FINAL EXAM 600 MCQS |
To buy this click here http://www.coursehomework.com/product/bus-475-final-exam-600-mcqs/ BUS 475 FINAL EXAM 600 (QUESTIONS AND ANSWERS) 1) One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers?$90,000$60,000$75,000$150,0002) 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 _____.$50$75$60$653). If a company reports a net loss, it __________.Will not be able to make capital expendituresWill not be able to pay cash dividendsWill not be able to get a loanMay still have a net increase in cash4). 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 salaryGeneral corporate liability insuranceCost of landscaping the corporate officeFactory janitor5) 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 breakeven point?2,133 units$25,6006,200 units4,600 units6) Of the following companies, which one would not likely employ the specific identification method for inventory costing?Hardware storeFarm implement dealershipAntique shopMusic store specializing in organ sales7) What effect do current technology changes have on managerial accounting?A. Reduction of reporting costs of managerial accounting informationB. Increase in product costsC. Reduction of emphasis on the value chainD. Creation of the middleman8) 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. $6,000B. $28,000C. $12,000D. $18,0009) What is the preparation of reports for each level of responsibility in the company’s organization chart called?A. Master budgeting analysisB. Responsibility reportingC. Exception reportingD. Static reporting10) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.A. Have been approved for use by the managements of business firmsB. Have substantial authoritative supportC. Have been approved by the Internal Revenue ServiceD. Are proven theories of accounting11) Which one of the following is a product cost?A. Advertising costsB. Office salariesC. Sales person’s salariesD. Indirect labor12) 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?A. $8,250B. $750C. $4,500D. $5,25013) What exists when budgeted costs exceed actual results?A. An excess profitB. An unfavorable differenceC. A favorable differenceD. A budgeting error14) The major reporting standard for management accounts is __________.A. Generally accepted accounting principlesB. Relevance to decisionsC. The Sarbanes-Oxley Act of 2002D. The Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management15) 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 otherB. Compete rather than cooperate with each otherC. Form various degrees of cartelsD. Collude with each other16) 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 questionB. Whether the buyer of the good or a service is a household, another firm, or the governmentC. Only if the buyer of the good or service is a household or another firmD. Only if the buyer of the good or service is a household17) Institutions in the economy that help to match one person's saving with another person's investment are collectively called the __________.A. Financial systemB. Monetary systemC. Banking systemD. Federal Reserve system18) 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 __________.A. Double the quantity suppliedB. Equal to quantity suppliedC. Less than quantity suppliedD. Greater than quantity supplied19) There are two types of markets in which firms face some competition yet are still able to have some control over the prices of their products. The names given to these market structures are __________.A. Duopoly and imperfect competitionB. Perfect competition and monopolistic competitionC. Duopoly and triopolyD. Monopolistic competition and oligopoly20) Which of the following would be most likely to contribute to the breakdown of a cartel in a natural resource (e.g., bauxite) market?A. Unequal member ownership of the natural resourceB. High compatibility of member interestsC. Low price elasticity of demandD. High prices21) One characteristic of an oligopoly market structure is:A. The actions of one seller have no impact on the profitability of other sellersB. Products typically sell at a price that reflects their marginal cost of productionC. Firms in the industry have some degree of market powerD. Firms in the industry are typically characterized by very diverse product lines22) Real GDP __________.A. Is a measure of the value of goods only; it excludes the value of servicesB. Is not a valid measure of the economy's performance, since prices change from year to yearC. Evaluates current production at the prices that prevailed in some specific year in the pastD. Evaluates current production at current prices23) The open-economy macroeconomic model examines the determination of __________.A. The trade balance and the exchange rateB. Unemployment and the exchange rateC. The output growth rate and the inflation rateD. The output growth rate and the real interest rate24) The part of the balance of payments account that lists all long-term flows of payments is called the:A. Balance of tradeB. Financial and capital accountC. Government financial accountD. Current account25) The Federal Reserve will tend to tighten monetary policy when __________.A. It thinks inflation is too high today, or will become too high in the futureB. It thinks the unemployment rate is too highC. The growth rate of real GDP is quite sluggishD. Interest rates are rising too rapidly26) Which of the following is not correct?A. In 2005, the U.S. government had a deficitB. Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do soC. The U.S. debt per-person is large compared with average lifetime incomeD. A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth27) The open-economy macroeconomic model includes __________.A. Neither the market for loanable funds or the market for foreign-currency exchangeB. Only the market for foreign-currency exchangeC. Both the market for loanable funds and the market for foreign-currency exchangeD. Only the market for loanable funds28) ABC International carefully watches the actions of its most innovative competitor and learns from them. ABC can establish a low-cost position by:A. Technology followers are not successful at low-cost strategiesB. Producing an imitation of the new technology that utilizes lower-quality and lower-cost materialsC. Mass-producing products that have an established market nicheD. Making subtle changes to the product, thereby avoiding patent restrictionsE. Learning from the leader thereby avoiding the costs and risks of technology leadership29) A leader is:A. Someone well-respected by othersB. The top level manager in a firm or businessC. Someone who influences others to attain goalsD. Someone with authority over othersE. A strategic level manager30) __________ is the process of working with people and resources to accomplish organizational goals.A. SupervisingB. ManagementC. Decision makingD. PlanningE. Controlling31) Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity?A. Behavioral assessmentB. Integrity evaluationsC. Aptitude testsD. Intelligence testsE. Work sampling32) Teams that operate separately from the regular work structure and exist temporarily are known as:A. Transnational teamsB. Parallel teamsC. Self-managed teamsD. Management teamsE. Self-designing teams33) The pursuit of lucrative opportunities by enterprising individuals is called:A. Social experimentationB. IndependenceC. EntrepreneurshipD. IntrapreneurshipE. Business incubating34) The best way for an employer to find out if a potential employee can do a job is by __________.A. Using a performance simulation testB. Using a written testC. Administering an IQ testD. Using the interview processE. Having them spend a day in the office35) A manager's ability to stimulate people to be high performers is referred to as:A. StaffingB. OrganizingC. ControllingD. PlanningE. Leading36) Teams that work on long-term projects but disband once the work is completed are known as:A. Parallel teamsB. Project and development teamsC. Transnational teamsD. Traditional work groupsE. Management teams37) Having individuals actually do the job they are applying for as a test to see if they can do it is __________.A. An approach with low reliabilityB. An approach with high reliabilityC. A formal means of screening candidatesD. An informal means of screening candidatesE. An approach with high face validity38) As related to managing of human resources, diversity refers to:A. Differences in employee benefit plans (such as pensions, insurance, vacations, memberships, etc.)B. Differences in pay methods (such as hourly, salaried, overtime, hazard-pay, commissioned, etc.)C. Differences in retention strategies (such as training, hiring, incentives, etc)D. Differences in demographics (such as age, race, gender, disability status, lifestyle, veteran status, educational level, etc.)E. Differences in recruiting methods (such as newspapers, schools, flyers, magazines, agencies, etc.)39) To be competitive in a global economy, Europeans must increase their level of:A. Population densityB. Philanthropic contributionsC. Financial subsidyD. Espionage activityE. Productivity40) A manager's ability to stimulate people to be high performers is referred to as:A. PlanningB. ControllingC. SupervisingD. LeadingE. Organizing41) 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:A. Work teamB. Project teamC. Parallel teamD. Project groupE. Working group42) To estimate the average annual expenses of students on books and class materials a sample of size 36 is taken. The average is $850 and the standard deviation is $54. A 99% confidence interval for the population mean is __________.A. $825.48 to $874.52B. $823.72 to $876.28C. $832.36 to $867.64D. $826.82 to $873.1843) Twelve randomly-chosen 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. MeanB. MidrangeC. ModeD. Median44) 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.A. The p-value cannot be determined without specifyingB. The p-value is less than .05C. The p-value is equal to .05D. The p-value is greater than .0545) Jolly Blue Giant Health Insurance (JBGHI) 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. JBGHI demands a sample largeenough to ensure an error of ± 2% with 90% confidence. What is the necessary sample size?A. 609B. 2,401C. 1,692D. 1,60446) 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 testB. Feel uncomfortable with either decision (too close)C. Comfortably accept the claimD. Comfortably reject the claim47) In a right-tail test, a statistician came up with a z test statistic of 1.469. What is the p-value?A. .0301B. .0874C. .0708D. .429248) Theoretically, service capacity must exceed demand, lest queues become infinitely long. If capacity does not exceed demand, what is likely to happen?A. Customers will renege or balk, thereby reducing demandB. Servers will decrease time spent per customer, thereby increasing capacityC. Servers will eliminate time-consuming portions of their jobs, thereby increasing capacityD. All of these49) Likely reasons for inaccurate control limits would include which of the following?A. The engineering parameter for variance is unknownB. The engineers were underpaid for their workC. There was insufficient preliminary samplingD. Process variation was not zero, as expected50) Which one of the following statements concerning production and staffing plans is best?A. Production and staffing plans specify production rates, workforce levels, and inventory holdings, but do not account for capacity limitations because they are aggregatedB. Production and staffing plans attempt to achieve several objectives, all of which must be consistent with one anotherC. When production and staffing plans are made, aggregation can be performed only along two dimensions: products and time |
