BUS 475 Final Exam

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BUS 475 Final Exam1) Which one of the following items is not generally used in preparing a statementof cash flows?A.Adjusted trial balanceB.Comparative balance sheetsC.Additional informationD.Current income statement2) One of Astro Company's activity cost pools is machine setups, with estimatedoverhead of $150,000. Astro produces sparklers (400 setups) and lighters (600setups). How much of the machine setup cost pool should be assigned to sparklers?A.$150,000B.$60,000C.$90,000D.$75,0003) Of the following companies, which one would not likely employ the specificidentification method for inventory costing?A.Music store specializing in organ salesB.Antique shopC.Farm implement dealershipD.Hardware store4) Which one of the following is a product cost?A.Indirect laborB.Sales person’s salariesC.Office salariesD.Advertising costs5) The conceptual framework developed by the Financial Accounting StandardsBoard __________.A.was approved by a vote of all accountantsB.is viewed as providing a constitution for setting accounting standards forfinancial reportingC.are rules that all accountants must followD.is legally binding on all accountants

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6) What is the preparation of reports for each level of responsibility in thecompany’s organization chart called?A.Static reportingB.Exception reportingC.Responsibility reportingD.Master budgeting analysis7) The cost principle requires that when assets are acquired, they be recorded at__________.A.appraisal valueB.selling priceC.exchange price paidD.list price8) If a company reports a net loss, it __________.A.will not be able to make capital expendituresB.will not be able to get a loanC.may still have a net increase in cashD.will not be able to pay cash dividends9) The major reporting standard for management accounts is __________.A.generallyaccepted accounting principlesB.relevance to decisionsC.the Standards of Ethical Conduct for Practitioners of Management Accountingand Financial ManagementD.the Sarbanes-Oxley Act of 200210) The primary purpose of the statement of cash flows is to __________.A.facilitate banking relationshipsB.provide information about the cash receipts and cash payments during a periodC.provide information about the investing and financing activities during a periodD.prove that revenues exceed expenses if there is a net income11) Managerial accounting __________.A.places emphasis on special-purpose informationB.pertains to the entity as a whole and is highly aggregatedC.is concerned with costing productsD.is governed by generally accepted accounting principles12) A well-designed activity-based costing system starts with __________.A.analyzing the activities performed to manufacture a productB.assigning manufacturing overhead costs for each activity cost pool to products

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C.identifying the activity-cost poolsD.computing the activity-based overhead rate13) Balance sheet accounts are considered to be __________.A.nominal accountsB.capital accountsC.temporary stockholders’ accountsD.permanent accounts14) As Plant Controller, you are trying to determine which costs over which youhave the most control on a day to day basis. Your goal is to achieve betterprofitability. The Plant Operations Manager suggests that overhead is the easiestarea to directly reduce costs. Which of the following items would be classified asmanufacturing overhead?A.Cost of landscaping the corporate officeB.The western division’s vice president’s salaryC.Generalcorporate liability insuranceD.Factory janitor15) There are two types of markets in which firms face some competition yet arestill able to have some control over the prices of their products. The names given tothese market structures are __________.A.perfect competition and monopolistic competitionB.duopoly and imperfect competitionC.duopoly and triopolyD.monopolistic competition and oligopoly16) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.A.borrower who demands money from the financial systemB.borrower who suppliesmoney to the financial systemC.saver who supplies money to the financial systemD.saver who demands money from the financial system17) A tax on an imported good is called a __________.A.supply taxB.trade taxC.tariffD.quota18) Lucy starts her own psychiatric practice, but her expenditures to open thepractice exceed her income. Lucy is a __________.A.borrower who demands money from the financial systemB.borrower who suppliesmoney to the financial system

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C.saver who suppliesmoney to the financial systemD.saver who demands money from the financial system19) One characteristic of an oligopoly market structure is:A.firms in the industry have some degree of market power.B.firms in the industry are typically characterized by very diverse product lines.C.the actions of one seller have no impact on the profitability of other sellers.D.products typically sell at a price that reflects their marginal cost of production.20) When, in a particular market, the law of demand and the law of supply bothapply, the imposition of a binding price ceiling in that market causes quantitydemanded to be __________.A.less thanquantity suppliedB.greater than quantity suppliedC.double the quantity suppliedD.equal to quantity supplied21) When a firm sells a good or a service, the sale contributes to the nation’sincome __________.A.only if the buyer of the good or serviceis a household or another firmB.only if the buyer of thegood or service is a householdC.We have to know whether the item being sold is a good or a servicein order toanswer the questionD.whether the buyer of the good or a service is a household, another firm, or thegovernment22) The open-economy macroeconomic model includes __________.A.only the marketfor foreign-currency exchangeB.onlythe market for loanable fundsC.neither the market for loanable funds or the market for foreign-currency exchangeD.both the market for loanable funds and the market for foreign-currencyexchange23) Most economists use the aggregate demand and aggregate supply modelprimarily to analyze __________.A.the effects of macroeconomic policy onthe prices of individual goodsB.short-run fluctuations in the economyC.productivity and economic growthD.the long-run effects of international trade policies24) In the market for foreign-currency exchange in the open economymacroeconomic model, the amount of net capital outflow represents the quantity ofdollars __________.

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A.supplied for the purpose of buying assets abroadB.supplied for the purpose of selling assets domesticallyC.demanded for the purpose of importing foreign goods and servicesD.demanded for the purpose of buying U.S. net exports of goods and services25) Which of the following is not correct?A.A potential cost of deficits is that they reduce national saving, thereby reducinggrowth of the capital stock and output growth.B.The U.S. debt per-person is large compared with average lifetime income.C.Deficits give people the opportunity to consume at the expense of their children, butthey do not require them to do so.D.In 2005, the U.S. government had a deficit.26) The Federal Reserve will tend to tighten monetary policy when __________.A.interest rates are rising too rapidlyB.the growth rateof real GDP is quite sluggishC.it thinks theunemployment rate is too highD.it thinks inflation is too high today, or will become too high in the future27) Which of the following statements about GDP is correct?A.Nominal GDP values production at current prices, whereas real GDP valuesproduction at constant prices.B.Nominal GDP values production at market prices, whereas real GDP valuesproduction at the cost of the resources used in the production process.C.Nominal GDP values production at constant prices, whereas real GDP valuesproduction at current prices.D.Nominal GDP consistently underestimates the value of production, whereas realGDP consistently overestimates the value of production.28) The most dominant areas in the global economy include:A.North America, Western Europe and AsiaB.North America, Asia and AfricaC.North America, Mexico and AsiaD.Western Europe, Asia and AfricaE.North America, South America and Western Europe29) 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.DiversityB.RecruitingC.EmploymentD.Managerial ethics

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E.Selection30) A leader is:A.Someone with authority over othersB.Someone who influences others to attain goalsC.The top levelmanager in a firm or businessD.Someone well-respected by othersE.A strategic level manager31) Teams that operate separately from the regular work structure and existtemporarily are known as:A.Management teamsB.Self-managed teamsC.Parallel teamsD.Transnational teamsE.Self-designing teams32) __________ is the process of working with people and resources to accomplishorganizational goals.A.SupervisingB.Decision makingC.ManagementD.ControllingE.Planning33) An organization that is managed aggressively and has growth and high profitsas primary objectives may be considered a(n):A.Online BusinessB.Entrepreneurship ventureC.Large corporationD.Small businessE.Multinational corporation34) A manager's ability to stimulate people to be high performers is referred to as:A.SupervisingB.ControllingC.OrganizingD.LeadingE.Planning35) 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:

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A.Customer-based integrationB.Computer-integrated manufacturing (CIM)C.Just-in-time control (JIT)D.ISO 9000E.Total quality management36) Having individuals actually do the job they are applying for as a test to see ifthey can do it is __________.A.a formal means of screening candidatesB.an approach with high reliabilityC.an approach with high face validityD.an informalmeans of screening candidatesE.an approach with low reliability37) The basic components of an effective sexual harassment policy include thefollowing EXCEPT:A.To act immediately when employeescomplain of sexual harassmentB.To develop an organization wide policy on sexual harassmentC.To establish a means for ongoing trainingD.To establish a performance appraisal systemE.To establish a formal complaint procedure38) The best way for an employer to find out if a potential employee can do a job isby __________.A.administering an IQ testB.using the interview processC.using a performance simulation testD.using a written testE.having them spend a day in the office39) As related to managing of human resources, diversity refers to:A.Differences in pay methods (such as hourly, salaried, overtime, hazard-pay,commissioned, etc.)B.Differences in employee benefit plans (such as pensions, insurance, vacations,memberships, etc.)C.Differences in retention strategies (such as training, hiring, incentives, etc)D.Differences in recruiting methods (such as newspapers, schools, flyers, magazines,agencies, etc.)E.Differences in demographics (such as age, race, gender, disability status,lifestyle, veteran status, educational level, etc.)

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40) One of the most important contributors to total quality management has beenthe introduction of statistical tools to analyze the causes of product defects in anapproach called:A.MechanisticB.Six Sigma QualityC.OrganicD.Total quality integrationE.ISO 900041) 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?A.Successful entrepreneurs take very careful, calculated risksB.Anyone can start a businessC.All entrepreneurs need venture capital in order to get startedD.Entrepreneurs are their own bosses and completely independentE.Money should not be considered a start-up ingredient42) Jolly Blue Giant Health Insurance (JBGHI) is concerned about rising lab testcosts and would like to know what proportion of the positive lab tests for prostatecancer are actually proven correct through subsequent biopsy. JBGHI demands asample large enough to ensure an error of ± 2% with 90% confidence. What is thenecessary sample size?A.1,692B.609C.2,401D.1,60443) In a right-tail test, a statistician came up with a z test statistic of 1.469. What isthe p-value?A..0708B..0301C..4292D..087444) 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 _____.A.3.5B.3C.2.5

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D.245) 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 standard deviation is approximately _____.A.3.75B.4.55C.4.75D.3.0346) 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 Crime = 428 + .050 Income.Which outcomes would be likely in a bivariate regression on 45 randomly chosenU.S. cities in 2005 withY = number of robberies in each city (thousands of robberies) andX = size of police force in each city (thousands of police)?A.Autocorrelation.B.High R2 (due to city size).C.No correlation.D.Positive slope (due to city size).47) 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 study's findings, which of thefollowing is true?A.The p-value is less than .05.B.The p-value is equal to .05.C.The p-value cannot be determined without specifying .D.The p-value is greater than .05.48) In an activity-on-node [AON] network, the nodes represent ____________,whereas the arcs represent ____________.A.precedence relationships; timeB.events; activitiesC.activities; timeD.activities; precedence relationships49) Theoretically, service capacity must exceed demand, lest queues becomeinfinitely long. If capacity does not exceed demand, what is likely to happen?

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A.All of theseB.Servers will eliminate time-consuming portions of their jobs, thereby increasingcapacity.C.Customers will renege or balk, thereby reducing demand.D.Servers will decrease time spent per customer, thereby increasing capacity.50) Queuing models use an A/B/C notation. What do these variables represent?A.minimum time between arrivals/minimum allowable service time/minimum numberof parallel serversB.maximum time between arrivals/maximum allowable service time/maximumnumber of parallel serversC.distribution of time between arrivals/distribution of service times/number ofparallel serversD.average time between arrivals/average service time/number of parallel servers51) In a network diagram, an activity:A.must always have a single, precise estimate for the time duration.B.should always be something the company has had experience with.C.is the largest unit of work effort consuming both time and resources that a projectmanager can schedule and control.D.is the smallest unit of work effort consuming both time and resources that aproject manager can schedule and control.52) Suppose the estimated quadratic model Yt = 500 + 20 t-t2 is the best-fittingtrend of sales of XYZ Inc. using data for the past twenty years (t = 1, 2,.., 20).Which statement is incorrect?A.Sales are increasing by about 20 units per year.B.The turning point would be in period 10.C.The trend was higher in year 10 than in year 20.D.Latest year sales are no better than in year zero.53) Which of the following statements is correct?A.Advances in information technologies have not affected individual privacyB.An individual’s right to privacy is absoluteC.It is difficult to determine and enforce privacy regulationsD.An individual’s right to privacy supersedes the needs of societyE.The Internet hasincreased individuals’ privacy54) The Global, Web-Based Platform enables individuals to do which of thefollowing?A.produce and sell goods and servicesB.connect, compute, communicate, collaborate, and compete everywhere and all thetime

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C.access information, services, and entertainmentD.exchange knowledgeE.all of these are true55) It is very difficult to manage data for which of the following reasons?A.data security is easy to maintainB.amount of datastays about the same over timeC.data are scattered throughout organizationsD.decreasing amount of external data needs to be consideredE.data are stored in the same format throughout organizations56) Success in the _____ phase of the decision making process results in resolvingthe original problem, and failure leads to a return to previous phases.A.implementationB.choiceC.designD.intelligenceE.consideration57) When customers access a Web site and make purchases, they generate__________.A.Web dataB.Tracking cookiesC.InformationD.Clickstream dataE.Hyperlink data58) _____ is the efficient and effective execution of specific tasks.A.ExpertiseB.Operational controlC.Management controlD.Strategic planningE.Wisdom59) Geocoding is __________.A.integrating organizational transactions with spatially oriented databasesB.integrating maps with spatially oriented databases and other databasesC.encrypting spatial informationD.accessing geographical informationE.programming spatially oriented databases60) Information-based industries are most susceptible to which one of Porter’s fiveforces?

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A.threat of substitute productsB.bargaining power of suppliersC.bargaining power of customersD.rivalry amongexisting firms in an industry61) International Game Technology’s new ERP system produced all of thefollowing benefits except:A.The company gained flexibility in manufacturing productsB.Integrated the company’s business functionsC.Company was able to maintain its original business processesD.ERP system connected the company’s global operationsE.Operations employees were able to access manufacturing process details at theirworkstations62) Credit card companies would most likely use which of the following to checkfor fraudulent credit card use?A.Data miningB.Expert systemsC.Neural networksD.Multidimensional data analysisE.Structured query language63) 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 isthe NPV of this investment? (Round your answerwer to the nearest $10.)A.$570B.$900C.-$150D.$49064) Your company is considering an investment in a project which would requirean initial outlay of $300,000 and produce expected cash flows in Years 1 through 5of $87,385 per year. You have determined that the current after-tax cost of thefirm’s capital (required rate of return) for each source of financing is as follows:Cost of debt8%Cost of preferred stock12%Cost of common stock16%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?

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A.$871B.$1,241C.$1,568D.$46365) The common stockholders are most concerned with:A.the size of the firm’sbeginning earnings per share.B.the risk of the investment.C.the spread between the return generated on new investments and the investor’srequired rate of return.D.the percentage of profits retained66) Tri State Pickle Company preferred stock pays a perpetual annual dividend of2 1/2% of its par value. Par value of TSP preferred stock is $100 per share. Ifinvestors’ required rate of return on this stock is 15%, what is the value of pershare?A.$15.00B.$16.67C.$6.00D.$37.5067) Which of the following is most consistent with the hedging principle in workingcapital management?A.Fixed assets should be financedwith short-term notes payable.B.Inventory should befinanced 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.68) At what rate must $400 be compounded annually for it to grow to $716.40 in 10years?A.5%B.7%C.8%D.6%69) PepsiCo calculates unlevered betas for each peer group in order to:A.eliminate competitive factors.B.eliminate judgment factors.C.eliminate different financial risks.D.eliminate different business risks.70) According to the hedging principle, permanent assets should be financed with_____ liabilities.

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A.spontaneousB.currentC.fixedD.permanent71) Bondholders have a priority claim on assets ahead of:A.shareholders.B.investorsC.creditors.D.common and preferred stockholders.72) Which of the following represents an attempt to measure the earnings of thefirm’s operations over a given time period?A.Balance sheetB.Income statementC.Quarterly statementD.Cash flow statement73) Given the following annual net cash flows, determine the IRR to the nearestwhole percent of a project with an initial outlay of $1,520.YearNet Cash Flow1$1,0002$1,5003$ 500A.48%B.32%C.28%D.40%74) Bell Weather, Inc. has a beta of 1.25. The return on the market portfolio is12.5%, and the risk-free rate is 5%. According to CAPM, what is the requiredreturn on this stock?A.20.62%B.14.37%C.15.62%D.9.37%75) You hold a portfolio with the following securities:SecurityPercent of PortfolioBetaReturnX Corporation20%1.3514%Y Corporation35%.9510%Z Corporation45%.758%

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Compute the expected return and beta for the portfolio.A.10.67%, 1.02B.34.4%, .94C.9.9%, .94D.9.9%, 1.0276) The managerial process of developing and maintaining a match between theresources of an organization and its market opportunities is called:A.marketing programming.B.strategic (management) planning.C.market planning.D.marketing strategy planning.E.management by objective.77) Analysis of demographic dimensions:A.considers income and sex, but not age.B.can be used along with analysis of other dimensions to identify attractive targetmarkets.C.only considers age.D.is the most effective way toidentify unmet consumer needs.E.is the most important step to successful segmentation.78) When evaluating macro-marketing:A.the best approach is to consider the profit generated by individual firms within theoverall system.B.one must consider each individual firm'srole in the marketing system.C.one must consider the society’srole in the marketing system.D.one must determine how efficiently thesociety's resources are used.E.the evaluation is necessarily subjective.79) "Marketing strategy planning" means:A.finding attractive opportunities and selectinga target market.B.selecting an attractive marketing mix.C.selecting a target market and developing a marketing strategy.D.selecting an attractive target market.E.finding attractive opportunities and developing profitable marketing strategies.80) __________ is a marketing management aid which refers to how customersthink about proposed and/or present brands in a market.A.Customerrelationship management (CRM)B.Market segmentation

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