BUS 475 FINAL EXAMS

Bus
475 Final Exams
Complete
100 Questions
1) A well-designed activity-based costing system
starts with __________.
2) What effect do current technology changes have on
managerial accounting?
3) 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 _____.
4) The income statement and balance sheet columns of
Pine Company’s worksheet reflect 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
__________
5) The income statement and balance sheet columns of
Pine Company’s worksheet reflect the following totals:
Income
Statement Balance Sheet
Dr Cr Dr Cr
Totals $58,000 $48,000 $34,000 $44,000
To enter the net income (or loss) for the period
into the above worksheet requires an entry to the __________.
6) Managerial accounting __________.
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?
8) The cost principle requires that when assets are
acquired, they be recorded at __________.
9) Which one of the following is a product cost?
10) What exists when budgeted costs exceed actual
results?
11) The primary purpose of the statement of cash
flows is to __________.
12) Multinational corporations __________
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
Sam’s gross profit for March?
14) What exists when budgeted costs exceed actual
results?
15) A logical starting point from which the study of
international trade begins is __________.
16) Which of the following statements about GDP is
correct?
17) In economics, the cost of something is
__________.
18) One characteristic of an oligopoly market
structure is:
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 __________.
20) The price of a good that prevails in a world
market is called the
21) A rational decision maker __________.
22) Many U.S. business leaders argue that the
current state of U.S. net exports is the result of __________.
23) The political business cycle refers to
__________.
24) The part of the balance of payments account that
lists all long-term flows of payments is called the:
25) The model of aggregate demand and aggregate
supply explains the relationship between __________.
26) The part of the balance of payments account that
lists all long-term flows of payments is called the:
27) Most economists use the aggregate demand and
aggregate supply model primarily to analyze __________.
28) ABC International carefully watches the actions
of its most innovative competitor and learns from them. ABC can establish a
low-cost position by:
29) Which of the following statements does NOT
support Total Quality Management?
30) As related to managing of human resources,
diversity refers to:
31) 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:
32) Japanese manufacturers’ kaizen (continuous
improvement) programs enable them to maintain:
33) Teams that operate separately from the regular
work structure and exist temporarily are known as:
34) The Aquatic Center, Inc. periodically reviews
the goals of the company. During the process, The Aquatic Center managers
analyze their current strategies as compared to their competitors, determine
goals that they will pursue and decide upon specific actions for each area of
the company to take in pursuit of these goals. The Aquatic Center managers have
been engaged in the management function of:
35) Building a dynamic organization is another way
of describing which function of management?
36) The pursuit of lucrative opportunities by enterprising
individuals is called:
37) Teams that work on long-term projects but disband
once the work is completed are known as:
38) Which of these represent skills that managers
need?
39) Your roommate is interested in starting a
business and everybody has been giving him different information about being an
entrepreneur. Since you have been studying about entrepreneurship and new
ventures, which of these would you tell him is true?
40) The most dominant areas in the global economy
include
41) Your roommate is interested in starting a
business and everybody has been giving him different information about being an
entrepreneur. Since you have been studying about entrepreneurship and new
ventures, which of these would you tell him is true?
42) 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.

Which outcomes would be likely in a bivariate
regression on 45 randomly chosen U.S. cities in 2005 with?
Y = number of robberies in each city (thousands of
robberies) and
X = size of police force in each city (thousands of
police)?
43) From its 32 regions, the Federal Aviation
Administration selects 5 regions, and then randomly audits 20 departing
commercial flights in each region for compliance with legal fuel and weight
requirements. This is __________.
44) 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?

45) A financial institution wishes to estimate the
mean balances owed by its credit card customers. The population standard
deviation is estimated to be $300. If a 98 percent confidence interval is used
and an interval of ±$75 is desired, how many cardholders should be sampled?
46) Independent events A and B would be consistent
with which of the following statements:
47) 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 determining the p-value for reporting the study’s
findings, which of the following is true?
48) Which one of the following statements concerning
production and staffing plans is best?
49) In a network diagram, an activity:
50) While glancing over the sensitivity report, you
note that the stitching labor has a shadow price of $10 and a lower limit of 24
hours with an upper limit of 36 hours. If your original right hand value for
stitching labor was 30 hours, you know that:
51) Which one of the following statements concerning
production and staffing plans is best?
52) The one-worker, multiple machines approach
functions as:
53) Success in the _____ phase of the decision
making process results in resolving the original problem, and failure leads to
a return to previous phases.
54) Networks enable which of the following
applications?
55) In the _____ phase of the decision making
process, managers test potential solutions “on paper.”
56) Zippos built the majority of its information
systems using which of the following?
57) When customers access a Web site and make purchases,
they generate __________.
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) Which of the following statements about
information systems is not correct?
62) Competitive advantage for an organization
manifests as all of the following except:
63) Disadvantages of using current liabilities as
opposed to long-term debt include:
64) Which of the following best represents the
stream of income that is available to common stockholders?
65) 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.
66) 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.
67) 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.
68) At 8% compounded annually, how long will it take
$750 to double?
69) Which of the following represents an attempt to
measure the earnings of the firm’s operations over a given time period?
70) 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.
71) According to the hedging principle, permanent
assets should be financed with _____ liabilities.
72) Given the following annual net cash flows,
determine the IRR to the nearest whole percent of a project with an initial
outlay of $1,520.
Year Net Cash Flow
1 $1,000
2 $1,500
3 $
500
73) 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
answer to the nearest $10)
74) Bondholders have a priority claim on assets
ahead of:
75) 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?
76) 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?
77) “Marketing strategy planning” means:
78) The economists’ view of buyers:
79) Analysis of demographic dimensions:
80) Economists’ economic-buyer theory assumes that
__________.
81) The “four Ps” of a marketing mix are:
82) The managerial process of developing and
maintaining a match between the resources of an organization and its market
opportunities is called:
83) “Positioning”:
84) The basic objective of the U.S. market-directed
economic system is to:
85) In comparison to the buying of final consumers,
the purchasing of organizational buyers:
86) 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?
87) Which of the following is a business or
organizational customer?
88) Which of the following terms need not be disclosed
under Truth-in-Lending Act?
89) Which of the following is true about the power
of administrative agencies to grant licenses?
90) In a criminal proceeding, what is the difference
between an indictment and information?
91) Which of the following activities by an
administrative agency requires public notice and participation?
92) Product disparagement differs from defamation of
a nonpublic figure in that:
93) Which of the following is correct with regard to
the relationship between law and ethics?
94) Information which comes to the knowledge of an
agent is:
95) Which of the following terms is not required to
be disclosed under the Truth-in-Lending Act?
96) The Houston-based energy company that filed for
Chapter 11 bankruptcy and whose business conduct is one of the grossest
examples of corporate greed and fraud in America was:
97) A “closely held corporation” is a corporation
that is owned by:
98) Which country does the text describe as becoming
the largest producer and consumer of many of the world’s goods?
99) Which country does the text describe as becoming
the largest producer and consumer of many of the world’s goods?
100) One study found that manufacturing labor costs
about _____ an hour in China, compared to _____ dollars in the United States.