BUS 475 Final Exam 100 MCQs (A+ Work) Set 02

BUS 475 Final Exam

1) A well-designed activity-based costing system starts with __________.

A.   computing the activity-based overhead rate

B.   assigning manufacturing overhead costs for each activity cost pool to products

C.   analyzing the activities performed to manufacture a product

D.   identifying the activity-cost pools

2) Managerial accounting __________.

A.   is governed by generally accepted accounting principles

B.   pertains to the entity as a whole and is highly aggregated

C.   places emphasis on special-purpose information

D.   is concerned with costing products

3) What effect do current technology changes have on managerial accounting?

A.   Increase in product costs

B.   Reduction of emphasis on the value chain

C.   Reduction of reporting costs of managerial accounting information

D.   Creation of the middleman

4) 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.   $10,000 income

B.   not determinable

C.   $10,000 loss

D.   $48,000 income

5) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.

A.   have substantial authoritative support

B.   have been approved for use by the managements of business firms

C.   have been approved by the Internal Revenue Service

D.   are proven theories of accounting

6) If a company reports a net loss, it __________.

A.   will not be able to pay cash dividends

B.   will not be able to make capital expenditures

C.   will not be able to get a loan

D.   may still have a net increase in cash

7) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55 push to customers?

A.   Wine

B.   It should sell an equal quantity of both

C.   Selling either results in the same additional income for the company

D.   Beer

8) The first step in activity-based costing is to __________.

A.   compute the activity-based overhead rate per cost driver

B.   identify the cost driver that has a strong correlation to the activity cost pool

C.   identify and classify the major activities involved in the manufacture of specific products

D.   assign manufacturing overhead costs for each activity cost pool to products

9) Which one of the following items is not generally used in preparing a statement of cash flows?

A.   Comparative balance sheets

B.   Adjusted trial balance

C.   Current income statement

D.   Additional information

10) What exists when budgeted costs exceed actual results?

A.   A favorable difference

B.   A budgeting error

C.   An unfavorable difference

D.   An excess profit

11) Which list below best describes the major services performed by public accountants?

A.   Employee training, auditing, bookkeeping

B.   Bookkeeping, mergers, budgets

C.   Auditing, taxation, management consulting

D.   Cost accounting, production scheduling, recruiting

12) The cost of an asset and its fair market value are __________.

A.   the same when the asset is sold

B.   never the samle

C.   irrelevant when the asset is used by the business in its operations

D.   the same on the date of acquisition

13) 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 SamТs gross profit for March?

A.   $4,500

B.   $5,250

C.   $750

D.   $8,250

14) 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 _____.

A.   $75

B.   $65

C.   $60

D.   $50

15) Lucy starts her own psychiatric practice, but her expenditures to open the practice exceed her income. Lucy is a __________.

A.   saver who supplies money to the financial system

B.   saver who deamands money from the financial system

C.   borrower who demands money from the financial system

D.   borrower who supplies money to the financial system

16) Which of the following statements about GDP is correct?

A.   Money continuously flows from households to government and then back to households and GDP measures this flow of money.

B.   GDP measures two things at once: the total income of everyone in the economy and the unemployment rate.

C.   GDP is to a nationТs economy as household income is to a household.

D.   GDP increases if the total population increases.

17) A logical starting point from which the study of international trade begins is __________.

A.   the recognition that government intervention in markets sometimes enhances the economic welfare of the society

B.   the recognition that not all markets are competitive

C.   the principle of absolute advantage

D.   the principle of comparative advantage

18) In computing GDP, market prices are used to value final goods and services because __________.

A.   market prices do not change much over time, so it is easy to make comparisons between years

B.   market prices reflect the values of goods and services

C.   if market prices are out of line with how people value goods, the government sets price ceilings and price floors

D.   Market prices are not used in computing GDP

19) 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.   the value to Maurice of Options A, C and D combined

B.   $100

C.   $300

D.   the value to Maurice of the option he would have chosen had Option B not been available

20) To move the allocation of resources closer to the social optimum, policymakers should typically try to induce firms in an oligopoly to __________.

A.   form various degrees of cartels

B.   compete rather than cooperate with each other

C.   cooperate rather than compete with each other

D.   collude with each other

21) Resources are __________.

A.   plentiful for households but scarce for economies

B.   scarce for households and scarce for economies

C.   plentiful for households and plentiful for economies

D.   scarce for households but plentiful for economies

22) Many U.S. business leaders argue that the current state of U.S. net exports is the result of __________.

A.   free trade policies of foreign governments.

B.   unproductive U.S. workers.

C.   unfair foreign competition.

D.   U.S. export subsidies.

23) The balance of payment account is made up of:

A.   an import account and an export account.

B.   an investment account and a consumption account.

C.   a monetary account and a fiscal account.

D.   a current account and a financial and capital account.

24) Real GDP __________.

A.   evaluates current production at the prices that prevailed in some specific year in the past.

B.   is not a valid measure of the economy's performance, since prices change from year to year.

C.   is a measure of the value of goods only; it excludes the value of services.

D.   evaluates current production at current prices.

25) The model of aggregate demand and aggregate supply explains the relationship between __________.

A.   unemployment and output

B.   wages and employment

C.   real GDP and the price level

D.   the price and quantity of a particular good

26) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility is known as __________.

27) Over the past two decades, the United States has __________.

28) ABC International carefully watches the actions of its most innovative competitor and learns from them. ABC can establish a low-cost position by:

.

.

.

.

36) Which of these represent skills that managers need?

37) Teams that work on long-term projects but disband once the work is completed are known as:

38) Building a dynamic organization is another way of describing which function of management?

39) When a company establishes technology leadership by pioneering unique products or services that command premium prices, it has benefited from a:

40) The most dominant areas in the global economy include: 

41) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all considered:

42) 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. 

43) A poll showed that 48 out of 120 randomly chosen graduates of California medical schools last year intended to specialize in family practice. What is the width of a 90% confidence interval for the proportion that plan to specialize in family practice?

44) 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 + .050 Income. 

Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with

of robberies in each city (thousands of robberies) and

of police force in each city (thousands of police)?

45) In a random sample of 810 women employees, it is found that 81 would prefer working for a female boss. The width of the 95% confidence interval for the proportion of women who prefer a female boss is _____.

46) Independent events A and B would be consistent with which of the following statements:

47) 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, the standard deviation is approximately _____.

48) In lean systems, if a defective product is found, which of the following is generally NOT done?

49) In a network diagram, an activity:

50) Which is not a tool of statistical quality control?

51) A computer analysis reveals that the best-fitting trend model is e 0.987 t. The trend was fitted using year-end common stock prices for Melodic Kortholt Outlet for the last six years. The R2 is 0.8571. 

If we fit a linear trend to data that are growing exponentially __________.

52) The one-worker, multiple machines approach functions as:

53) Zappos built the majority of its information systems using which of the following?

54) Search engines and meta search engines are examples of which network application?

55) In the _____ phase of the decision making process, managers test potential solutions Уon paper.Ф

56) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.

57) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.

58) Which of the following are not provided by digital dashboards?

59) A company wants to use data from past promotional mailings to identify people who would likely respond favorably to future mailings. This company would most likely use _____.

60) Credit card companies would most likely use which of the following to check for fraudulent credit card use?

61) Computer support is greatest for which of the following problems?

62) International Game TechnologyТs new ERP system produced all of the following benefits except:

63) Disadvantages of using current liabilities as opposed to long-term debt include:

64) Suppose you determine that the NPV of a project is $1,525,855. What does that mean?

65) An increase in future value can be caused by an increase in the __________.

66) Dublin International CorporationТs 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.

67) A stock with a beta greater than 1.0 has returns that are _____ volatile than the market, and a stock with a beta of less than 1.0 exhibits returns which are _____ volatile than those of the market portfolio.

68) At 8% compounded annually, how long will it take $750 to double?

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?

70) Exchange rate risk:

71) According to the hedging principle, permanent assets should be financed with _____ liabilities.

72) PepsiCo calculates unlevered betas for each peer group in order to:

73) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:

74) Bondholders have a priority claim on assets ahead of:

75) The common stockholders are most concerned with:

76) Regarding organizational buying, the people who have the power to select or approve the supplier--especially for larger purchases--are called:

77) "Marketing strategy planning" means:

78) A cluster analysis of the "toothpaste market" would probably show that:

79) When doing "positioning," a marketing manager should:

80) Economists' economic-buyer theory assumes that __________.

81) The managerial process of developing and maintaining a match between the resources of an organization and its market opportunities is called:

82) When evaluating macro-marketing:

83) "Positioning":

84) Coca-Cola is taking advantage of the new willingness of Chinese leaders to engage in international trade by marketing its soft drinks in China. What type of opportunity is Coke pursuing?

85) In comparison to the buying of final consumers, the purchasing of organizational buyers:

86) The basic objective of the U.S. market-directed economic system is to:

87) The clustering techniques that can be used in segmenting:

88) Which of the following terms need not be disclosed under Truth-in-Lending Act?

89) The tort of intentional interference with contractual relations requires the following except:

90) Which of the following is correct about litigating commercial disputes?

91) Which of the following activities by an administrative agency requires public notice and participation?

92) What type of commercial speech did the U.S. Supreme Court say was protected in the Greater New Orleans Broadcasting Association, Inc. v. United States case?

93) Which of the following lists, in descending priority, of sources considered by most courts in settling questions of international law?

94) Information which comes to the knowledge of an agent is:

95) A professional corporation is one that:

96) What makes a publicly held corporation different from a public corporation?

97) A Уclosely held corporationФ is a corporation that is owned by:

98) One study found that manufacturing labor costs about _____ an hour in China, compared to _____ dollars in the United States.

99) Which country does the text describe as becoming the largest producer and consumer of many of the world's goods?

100) Although the U.S. has had a longstanding agreement with _____ after the passage of NAFTA, _____ became the United States' second largest trading partner.