BUS 475 Final Exam Study Guide 2012 � Set 2

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BUS 475 Final Exam Study Guide 2012–Set 2100 Answers from 2012 BUS/475 Final ExamReviewed and Prepared by ACCNerd.com. Thank you!1) Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaignthat will cost$22,000. If sales are expected to increase $40,000, by how much will the company'snet income increase?A.$12,000B.$18,000C.$6,000D.$28,0002) Multinational corporations __________.A.are firms that conduct their operations in morethan one country through subsidiaries, divisions,or branches in foreign countriesB.are U.S. companies that sell goods and services in other countriesC.are required to use international accounting standardsD.are U.S. companies that trade their securities on the exchanges in other countries3) Balance sheet accounts are considered to be __________.A.capital accountsB.nominal accountsC.temporary stockholders’ accountsD.permanent accounts4) What is value chain management best defined as?A.The incremental value of costs associated with hiring a new production floor leaderB.All activities associated with providing a product or serviceC.A large chain that keeps the machines from falling on the production floorD.Management decisions that affect how quickly the production run occurs5) The primary purpose of the statement of cash flows is to __________.A.provide information about the cash receipts and cash payments during a periodB.facilitate banking relationshipsC.provide information about the investing and financing activities during a periodD.prove that revenues exceed expenses if there is a net income6) In what situations will a static budget be most effective in evaluating a manager's effectiveness?A.The planned activity levels match actual activity levels.B.The company has no fixed costs.C.The company has substantial fixed costs.D.The company has substantial variable costs.7) Which one of the following is a product cost?A.Sales person’s salaries

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