Devry BUSN278 Week 4 Midterm

BUSN 278 Week
4 Midterm
(TCO 1) The type of budget that is updated on a regular basis is
known as a ________________
(TCO 2) The quantitative forecasting method that uses actual sales
from recent time periods to predict future sales assuming that the closest time
period is a more accurate predictor of future sales is:
(TCO 3) The regression statistic that measures how many standard
errors the coefficient is from zero is the ________________
(TCO 4) Capital expenditures are incurred for all of the following
reasons except:
(TCO 5) Which of the following is not true when ranking proposals
using zero-base budgeting?
(TCO 6) Which of the following ignores the time value of money?
(TCO 1) There are several approaches that may be used to develop
the budget. Managers typically prefer an approach known as participative
budgeting. Discuss this form of budgeting and identify its advantages and
disadvantages.
(TCO 2) There are a variety of forecasting techniques that a
company may use. Identify and discuss the three main quantitative approaches
used for time series forecasting models.
(TCO 2) The Federal Election Commission maintains data showing the
voting age population, the number of registered voters, and the turnout for
federal elections. The following table shows the national voter turnout as a percentage
of the voting age population from 1972 to 1996 (The Wall Street Journal
Almanac; 1998):
(TCO 3) Use the table “Food and Beverage Sales for Paul’s
Pizzeria” to answer the questions below.
(TCO 6) Jackson Company is considering two capital investment
proposals. Estimates regarding each project are provided below:
(TCO 6) Top Growth Farms, a farming cooperative, is considering
purchasing a tractor for $468,000. The machine has a 10-year life and an
estimated salvage value of $32,000. Top Growth uses straight-line depreciation.
Top Growth estimates that the annual cash flow will be $78,000. The required
rate of return is 9%.
Part (a) Calculate the payback period.
Part (b) Calculate the net present value.
Part (c) Calculate the accounting rate of return