Operational Analysis

MMWC buys the equipment to expand their services. Present a recommendation supporting the type of financial impact the expansion of services will have on MMWC.

Clearly label the calculation of the impact of food costs and the financial impact costs. Use formulas to calculate the costs and format the cells to insert a comma if there is more than three numbers and round to the nearest whole number.

two-to-three page Word document (not including title and reference pages) and your Excel worksheet. Paper should be formatted according to APA style. Cite at least two scholarly sources in addition to the textbook.

Case study

The Mead Meals on Wheels Center (MMWC) provides meals every day to the homebound elderly. The city of Wabash pays MMWC \$32 per week for each person it serves. There is no shortage of demand for MMWC’s services among the elderly citizens of Wabash, and MMWC can find qualified recipients for as many meals as it can deliver. Each person helped by MMWC receives two hot emails per day, seven days per week, for a total of 14 meals every week.

To service the contract, MMWCs has a central kitchen that has the capacity to produce a maximum of 9,600 meals per day. It costs MMWC an average of \$36,000 per week to operate the kitchen and other central facilities regardless of the number of meals that MMWC serves. This covers all of WWWC’s fixed costs (e.g., rent, equipment costs, and its personnel including administrative staff) as well as its fixed seasonal service contract costs (utilities, snow removal, etc.)

Question 1: the executive director has come to you to calculate how much MMWC can spend per week, per person and still break even. What do you tell the executive director?

Using your work to define MMWC’s spending limit, the executive director prepared a request for bids and sent it to all of the food purveyors in and near Wabash. The best bid came in at \$.50 (fifty cents) below the number the number that you have calculated as MMWC’s break-even per person-week. Using the lowest bid and the information given earlier, the executive director wants you to prepare a budget for MMWC’s in a format that will allow her to monitor MMWC’s performance on a quarterly basis for the coming year.

For budgeting purposes, the executive director has told you to assume that there are 13 weeks in each quarter. You know for your experience that the fixed expenses for the organization vary by season. Fixed costs average \$38,000 per week in the winger (first quarter), \$34,000 per week in the second quarter, \$35,000 in the third quarter, and \$37,000 in the fourth quarter.

Question 2: Prepare a budget for the next four quarters of operation for the executive director and summarize it for the full year.

The first quarter of operation was in the midst of a very severe winter. As a result MMWC was only able to get food to, 4,600 people per week on average. In addition, the cold weather and snow caused MMWC to exceed the limits of its snowplowing and heating oil contracts. As a result, MMWC’s fixed costs were \$2,000 per week above what you had forecast. Luckily, a food purveyor from outside the Wabash city limits responded to MMWC’s request for bids just before the quarter began and gave MMWC a bid that was \$.75 (seventy-five cents) per person-week below the quote that was used in your budget. That is a full \$1.25 below the break-even level that you calculated.

The executive director knows that something has happened because the budgeted numbers and the actual results that she sees on her quarterly operating statement don’t match. She wants you to tell her why.

Question 3. Prepare an analysis of variances for the first quarter of the year to help her understand what caused the differences between the results. Provide her with as much detail as you can give the available information, that is, volume variance, price variance, and quantity variance. Be sure to indicate whether those variances were favorable or unfavorable. Don’t forget to look at the fixed-cost variance as well.

1. Prepare a revenue variance analysis.
2. Prepare a food expense variance analysis.
3. Calculate the net impact of the severe winter weather and lower food prices on MMWC’s first quarter result. Was MMWC better off or worse off?
4. Was the overall aggregate variance large enough to have a significant impact on MMWC during the first quarter? Is it significant when compared to projected annual profits or losses?

During the year, you conducted an analysis of MMWC’s kitchen operations and determined that you could increase the capacity of the kitchen to 10,400 meals per day. You see a chance to increase the number of meals that MMWC can deliver to the elderly, as well as a way to increase your weekly revenue. However, expanding the kitchen’s capacity will require you to purchase \$700,000 worth of equipment. The equipment has a useful life of five years. The executive director is interested in any idea that will expand service delivery. But, she is concerned about being able to pay for the equipment. She tells you that MMWC’s cost of capital is 9 percent and asks if MMWC should purchase the equipment.

Question 4: What do you tell her? Support your recommendation and present your findings in a way that the executive director will understand?

1. Assuming that you pay your suppliers quarterly and that you are paid by Wabash quarterly, what would you recommend doing?
2. Would you answer be different if you were paid by Wabash and pay your suppliers weekly? Annually?

You finish your capital budget analysis just in time to prepare the operating budget for the coming year. The executive director wants you to use last year’s budget as a starting point but to update it to reflect the higher fixed costs that occurred during this year’s winter operations (i.e. the first quarter). In addition, she has decided to accept your recommendation about the equipment. If you decide to go ahead with the purchase, a local bank will lend WC the full purchase price of the equipment and only charge MMWC for interest during the first year of the loan. Interest on the loan would be set at 8 percent per year. MMWC’s normal policy is to assume a 10 percent residual value on all kitchen equipment and to depreciate it over five years on a straight-line basis.

Question 5: Incorporating all of the things that have happened during the year, as well as your capital budgeting recommendation, prepare a new quarterly budget and an annual summary for MMWC for the coming year.

Question 6: Given the profits that MMWC expects to produce in the next fiscal year, should it expand and feed ore people? Why has it chosen not to feed more than 5,200 people? What would be required to expand MMWC beyond its current level of operations?

Review the team report on MPBS located in the Case Study Overview. In this assignment you are expected to recommend the most appropriate method of job evaluation to use at MPBS and support your recommendations with your rationale. Your recommendation should consider the organization’s comprehensive job structure with major occupational groups including scientific, administrative, sales, management, and technical. Your rationale must be backed up with support from the text and/or other articles you may have researched. Your recommendations must cover the following: Describe your recommended approach and the expected impact of that approach on job performance. Address key HR and compensation issues identified at MPBS. Differentiate the components that would need to be included if MPBS were to use a point-based method as compared to a ranking and to a classification method. Provide a list of compensable factors for a point-based method and the factor weights you would suggest if using that method. Explain how your recommended method of job evaluation aligns with MPBS’s strategic focus. Describe the key challenges to effective implementation of the recommended approach to job evaluation at MPBS. To complete this assignment, write a 3–5 page report in Word format and provide rationale and support. Apply APA standards for writing style to your work.

Review the team report on MPBS located in the Case Study Overview.

In this assignment you are expected to recommend the most appropriate method of job evaluation to use at MPBS and support your recommendations with your rationale. Your recommendation should consider the organization’s comprehensive job structure with major occupational groups including scientific, administrative, sales, management, and technical. Your rationale must be backed up with support from the text and/or other articles you may have researched.

Your recommendations must cover the following:

• Describe your recommended approach and the expected impact of that approach on job performance.   Address key HR and compensation issues identified at MPBS.
• Differentiate the components that would need to be included if MPBS were to use a point-based method as compared to a ranking and to a classification method.
• Provide a list of compensable factors for a point-based method and the factor weights you would suggest if using that method.
• Explain how your recommended method of job evaluation aligns with MPBS’s strategic focus.
• Describe the key challenges to effective implementation of the recommended approach to job evaluation at MPBS.

To complete this assignment, write a 3–5 page report in Word format and provide rationale and support.   Apply APA standards for writing style to your work.

Volume, Risk, and Price Variances

Analyze the variances in the following scenario:

You are the nursing administrator for a medical group that expects a severe outbreak of the flu this winter.  You hire additional staff to treat the patients and administer shots.  Your special project budget was for 1,000 hours of part-time nurses’ services at \$40 per hour, for a total cost of \$40,000.  It was expected that these nurses would administer 400 flu shots and treat 1,600 flu patients.  The medical group typically charges \$50 for a flu shot and \$80 for treating a flu patient. Actually, the group had 1,200 patients who received the flu shot and 1,400 who had the flu and received treatment.  On average, it was able to collect \$55 per flu shot and \$70 per flu patient.

Compute the volume, mix, and price revenue variances.  How did things turn out for the group considering just revenues?  How did they turn out from a profit perspective? Use the approach from chapter 8 to solve.  Clearly label the calculations of the required variances using Excel.  Use formulas to calculate the three variances and format the cells to insert a comma if there is more than three numbers and round to the nearest whole number.  Explain the meaning of the variances in a two page Word document.

Submit to your instructor your two-to-three page Word document (not including the title and reference pages) and your Excel worksheet. Your paper should be formatted according to APA style, and you must cite at least three scholarly sources.

Part 1 (900 words Portion of Paper)

The President of EEC recently called a meeting to announce that one of the firm’s largest suppliers of component parts has approached EEC about a possible purchase of the supplier. The President has requested that you and your staff analyze the feasibility of acquiring this supplier. Discuss the following:

• What information will you and your staff need to analyze this investment opportunity?
• What will be your decision-making process? Discuss and evaluate the different techniques that could be used in capital budgeting decisions.
• Specifically, discuss how the time value of money affects capital budgeting. Capital budgeting differs from regular budgeting in that capital budgeting is for large investment decisions like plant expansion. The regular budgeting is for your day-to-day operations decisions.
• Which do you think EEC should use? Why?

Part 2 (Excel Sheet and Second Part of Paper (900 words)

Based on the following information, calculate net present value (NPV), internal rate of return (IRR), and payback for the investment opportunity: (EXCEL SHEET)

• EEC expects to save \$500,000 per year for the next 10 years by purchasing the supplier.
• EEC’s cost of capital is 14%.
• EEC believes it can purchase the supplier for \$2 million.

• Based on your calculations, should EEC acquire the supplier? Why or why not?
• Which of the techniques (NPV, IRR, or payback period) is the most useful tool to use? Why?
• Which of the techniques (NPV, IRR, or payback period) is the least useful tool to use? Why?
• Would your answer be the same if EEC’s cost of capital were 25%? Why or why not?
• Would your answer be the same if EEC did not save \$500,000 per year as anticipated?
• What would be the least amount of savings that would make this investment attractive to EEC?
• Given this scenario, what is the most EEC would be willing to pay for the supplier?

Prepare a memo to the President of EEC that details your findings and shows the effects if any of the following situations are true: (INCLUDE MEMO IN PAPER!)

• EEC’s cost of capital increases.
• The expected savings are less than \$500,000 per year.
• EEC must pay more than \$2 million for the supplier.

Assignment 2: LASA – Project Planning – Developing the Project Plan and Determining Critical Path

1. Using the District4WarehouseMove WBS.xls provided, create a project plan for the District 4 Warehouse Move project. Use the PDF document, Project Plan Check – District4Move, to check your work to be sure you have created your starting project plan correctly. ProjectLibre is required for this task. If you have not yet downloaded ProjectLibre, please click here and follow the directions to do so now.

Note: you will need to insert a column to include your WBS codes, then you will need to sequence the tasks to show tasks by work package.

1. Based upon the details in the WBS and the project case, determine which tasks need to be completed first and which tasks are dependent upon other tasks to be completed prior to starting. Using this information identify predecessors in your project plan’s predecessor column. Complete the predecessor column by entering the line number of tasks that must be completed in order for each task to start. This will create your project timeline.

1. Using ProjectLibre’s Network or flow diagram view, determine the critical path for this project. In a MS Word document, list the activities that are on the critical path. Considering the risks identified in the risk table below, identify which risks would be most likely to increase your project timeline. Justify your responses.
2. Submit both your completed project plan and your MS Word document.

District 4 Production Warehouse Move Project – Risk Table

dentify and critically evaluate a quantitative research article based on a social science topic. Your selected article must include a research question(s) and/or hypothesis(es) and utilize statistical analyses covered in the course. The article must be peer-reviewed and published within the last 10 years. In the body of your critique, describe the statistical approaches used, the variables included, the hypothesis(es) proposed, and the interpretation of the results. In your conclusion, suggest other statistical approaches that could have been used and, if appropriate, suggest alternative interpretations of the results. This process will allow you to apply the concepts learned throughout the course in the interpretation of actual scientific research. Your critique must include the following sections

dentify and critically evaluate a quantitative research article based on a social science topic.  Your selected article must include a research question(s) and/or hypothesis(es) and utilize statistical analyses covered in the course. The article must be peer-reviewed and published within the last 10 years.

In the body of your critique, describe the statistical approaches used, the variables included, the hypothesis(es) proposed, and the interpretation of the results.   In your conclusion, suggest other statistical approaches that could have been used and, if appropriate, suggest alternative interpretations of the results.  This process will allow you to apply the concepts learned throughout the course in the interpretation of actual scientific research. Your critique must include the following sections

1. 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 __________.

2. 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

To enter the net income (or loss) for the period into the above worksheet requires an entry to the __________.

3. These are selected account balances on December 31, 2008.

Land (location of the corporation’s office building) \$100,000

Land (held for future use) 150,000

Corporate Office Building 600,000

Inventory 200,000

Equipment 450,000

Office Furniture 100,000

Accumulated Depreciation 300,000

What is the net amount of property, plant, and equipment that will appear on the balance sheet?

4. These are selected account balances on December 31, 2008.

Land (location of the corporation’s office building) \$150,000

Land (held for future use) 225,000

Corporate Office Building 900,000

Inventory 300,000

Equipment 675,000

Office Furniture 150,000

Accumulated Depreciation 450,000

What is the net amount of property, plant, and equipment that will appear on the balance sheet?

5. If a company reports a net loss, it __________.

6. Which list below best describes the major services performed by public accountants?

7. What effect do current technology changes have on managerial accounting?

8. What exists when budgeted costs exceed actual results?

9. In what situations will a static budget be most effective in evaluating a manager’s effectiveness?

10. 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 _____.

11. Of the following companies, which one would not likely employ the specific identification method for inventory costing?

12. The major reporting standard for management accounts is __________.

13. As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead

14. Multinational corporations __________.

15. A country’s consumption possibilities frontier can be outside its production possibilities frontier if __________.

16. A production possibilities frontier will be a straight line if __________.

17. A tax on an imported good is called a __________.

18. Institutions in the economy that help to match one person’s saving with another person’s investment are collectively called the __________.

19. When, in a particular market, the law of demand and the law of supply both apply, the imposition of a binding price ceiling in that market causes quantity demanded to be __________.

20. For a college student who wishes to calculate the true costs of going to college, the costs of room and board __________.

21. Assume oligopoly firms are profit maximizers, they do not form a cartel, and they take other firms’ production levels as given. Then in equilibrium the output effect __________.

22. Which of the following statements about GDP is correct?

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

24. The Federal Reserve will tend to tighten monetary policy when __________.

25. The Federal Open Market Committee __________.

26. The open-economy macroeconomic model examines the determination of __________.

27. The part of the balance of payments account that records the amount of foreign currency the government buys or sells is the:

28. Which of these refers to the practices aimed at discovering and harnessing an organization’s intellectual resources?

29. __________ is the process of working with people and resources to accomplish organizational goals.

30. Building a dynamic organization is another way of describing which function of management?

31. A manager’s ability to stimulate people to be high performers is referred to as:

32. 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:

33. Which of these represent skills that managers need?

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

35. Managers will utilize __________ skills with increasing frequency as they rise within an organization.

36. 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:

37. Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity

38. The best way for an employer to find out if a potential employee can do a job is by __________.

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

40. The pursuit of lucrative opportunities by enterprising individuals is called:

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

43. Which of the following statements is true?

44. 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, which measure of central tendency is least representative of the “typical” student?

45. To estimate the average annual expenses of students on books and class materials a sample of size 36 is taken. The average is \$850 and the standard deviation is \$54. A 99% confidence interval for the population mean is __________.

46. 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?

47. 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.

Assuming b1 is significant, if Income decreases by 1000 we would predict that Crime will __________.

48. In an activity-on-node [AON] network, the nodes represent ____________, whereas the arcs represent ____________.

49. In a network diagram, an activity:

50. Which one of the following statements concerning production and staffing plans is best?

51. Which one of the following statements concerning production and staffing plans is best?

52. Queuing models use an A/B/C notation. What do these variables represent?

53. The force behind globalization in _____ was the amount of muscle, horsepower, wind power, or steam power that a country could deploy.

54. Various organizations that promote fair and responsible use of information systems often develop __________.

55. It is very difficult to manage data for which of the following reasons?

56. Fundamental points about network computing in organizations include all of the following except:

57. Networks enable which of the following applications?

58. Geocoding is __________.

59. International Game Technology’s new ERP system produced all of the following benefits except:

60. Information-based industries are most susceptible to which one of Porter’s five forces?

61. Competitive advantage for an organization manifests as all of the following except:

62. _____ is the efficient and effective execution of specific tasks.

63. 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 answerwer to the nearest \$10.)

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

65. Disadvantages of using current liabilities as opposed to long-term debt include:

66. Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?

67. Which of the following best represents operating income?

68. PepsiCo calculates unlevered betas for each peer group in order to:

69. 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.

70. 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.

71. Bondholders have a priority claim on assets ahead of:

72. 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.

73. Forward rates are quoted:

74. If the quote for a forward exchange contract is greater than the computed price, the forward contract is:

75. Exchange rate risk:

76. The managerial process of developing and maintaining a match between the resources of an organization and its market opportunities is called

77. “Marketing strategy planning” means:

78. __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.

79. When doing “positioning,” a marketing manager should:

80. “Positioning”:

81. The clustering techniques that can be used in segmenting:

82. Economists’ economic-buyer theory assumes that __________.

83. A firm’s “marketing mix” decision areas would NOT include:

84. When one considers the strategy decisions organized by the four Ps, branding is related to packaging as:

85. The difference between target marketing and mass marketing is that target marketing:

87. When evaluating macro-marketing:

88. Which article of the United States Constitution deals with the judicial power of the federal government?

89. Which of the following receives at least some protection under the U.S. Constitution?

90. Which of the following is correct about interpretive rules?

92. Which of the following statements is not true under the Fair Labor Standards Act?

93. Generally, which of the following statements relating to contractual capacity is correct?

94. Generally speaking, the contract of a minor:

95. If a minor wishes to be bound to a contract after becoming an adult, she must:

96. What is the major convention that provides international protection to patents?

97. Which of the following statements is true regarding the relationship of law and ethics?

98. Which country does the text describe as becoming the largest producer and consumer of many of the world’s goods?

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

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

Accounting

1. 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?

2. One of Astro Company’s activity cost pools is machine setups, with estimated overhead of \$150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers?

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

4. These are selected account balances on December 31, 2008.

Land (location of the corporation’s office building) \$150,000

Land (held for future use) 225,000

Corporate Office Building 900,000

Inventory 300,000

Equipment 675,000

Office Furniture 150,000

Accumulated Depreciation 450,000

What is the net amount of property, plant, and equipment that will appear on the balance sheet?

5. 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?

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

7. Disney’s variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost \$22,000. If sales are expected to increase \$40,000, by how much will the company’s net income increase?

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

9. What is value chain management best defined as?

10. If a company reports a net loss, it __________.

11. “Generally accepted” in the phrase generally accepted accounting principles means that the principles __________.

12. Multinational corporations __________.

13. The cost principle is the basis for preparing financial statements because it is __________.

14. Which one of the following is a product cost?

15. In economics, the cost of something is __________.

16. When a firm sells a good or a service, the sale contributes to the nation’s income __________.

17. A rational decision maker __________.

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

19. Which of the following would be most likely to contribute to the breakdown of a cartel in a natural resource (e.g., bauxite) market?

20. The general term for market structures that fall somewhere in-between monopoly and perfect competition is __________.

21. 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 __________.

22. In general, the longest lag for __________.

23. Which of the following is not correct?

24. Which of the following statements about GDP is correct?

25. In the open-economy macroeconomic model, other things the same, a decrease in the interest rate shifts __________.

26. The part of the balance of payments account that lists all long-term flows of payments is called the:

27. 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 __________.

28. Japanese manufacturers’ kaizen (continuous improvement) programs enable them to maintain:

29. An invisible barrier that makes it difficult for certain groups, such as minorities and women, to move beyond a certain level in the organizational hierarchy is referred to as the:

30. Managers will utilize __________ skills with increasing frequency as they rise within an organization.

31. A manager’s ability to stimulate people to be high performers is referred to as:

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

33. 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:

34. The basic components of an effective sexual harassment policy include the following EXCEPT:

35. 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:

36. The most dominant areas in the global economy include:

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

38. Teams that operate separately from the regular work structure and exist temporarily are known as:

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

40. Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity?

41. One of the most important contributors to total quality management has been the introduction of statistical tools to analyze the causes of product defects in an approach called:

42. Independent events A and B would be consistent with which of the following statements:

43. 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, which measure of central tendency is least representative of the “typical” student?

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 Crime = 428 + .050 Income.

Assuming b1 is significant, if Income decreases by 1000 we would predict that Crime will __________.

45. Use the following table to answer question:

P(M A) is approximately _____.

46. To estimate the average annual expenses of students on books and class materials a sample of size 36 is taken. The average is \$850 and the standard deviation is \$54. A 99% confidence interval for the population mean is __________.

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. Assume that the arrival of airplanes at a one-runway airport is a Poisson distribution with a mean rate of = 8 planes per hour. The landing time is an exponential distribution with a mean of 5 minutes per plane. What is the mean number of planes in the system?

49. Which is not a tool of statistical quality control?

50. In a network diagram, an activity:

51. Which one of the following statements about managerial inputs to production and staffing plans is best?

52. In an activity-on-node [AON] network, the nodes represent ____________, whereas the arcs represent ____________.

53. When customers access a Web site and make purchases, they generate __________.

54. In the _____ phase of the decision making process, managers test potential solutions “on paper.”

55. Search engines and metasearch engines are examples of which network application?

56. Which of the following are disadvantages of the buy option for acquiring IS applications?

57. When your purchases are swiped over the bar-code reader at the point-of-sale terminals at Wal-Mart, a _____ records the data.

58. International Game Technology’s new ERP system produced all of the following benefits except:

59. Information-based industries are most susceptible to which one of Porter’s five forces?

60. __________ integrate the planning, management, and use of all of an organization’s resources, and are designed to tightly integrate the functional areas of the organization.

61. _____ is a process that helps organizations identify, select, organize, disseminate, transfer, and apply expertise that are part of the organization’s memory and typically reside inside the organization in an unstructured manner.

62. The end result of the Data Life Cycle is the generation of _____.

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

64. 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?

65. 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

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. Forward rates are quoted:

68. 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.

69. At 8% compounded annually, how long will it take \$750 to double?

70. 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?

71. Mortgage bonds:

72. Your company is considering an investment in a project which would require an initial outlay of \$300,000 and produce expected cash flows in Years 1 through 5 of \$87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:

Cost of debt 8%

Cost of preferred stock 12%

Cost of common stock 16%

Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?

73. 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.

74. Exchange rate risk:

75. Tri State Pickle Company preferred stock pays a perpetual annual dividend of 2 1/2% of its par value. Par value of TSP preferred stock is \$100 per share. If investors’ required rate of return on this stock is 15%, what is the value of per share?

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

77. The “four Ps” of a marketing mix are:

78. Clustering techniques applied to segmenting markets __________.

79. “Positioning”:

80. Comparing GDP for foreign countries can help a marketing manager evaluate potential markets if the manager remembers that:

81. When looking at demographic dimensions, marketers should:

82. Which of the following is a business or organizational customer?

83. The three basic tasks of ALL managers, according to the text, are:

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

85. A firm’s “marketing mix” decision areas would NOT include:

86. Marketing:

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

88. Which of the following activities by an administrative agency requires public notice and participation?

89. The tort of palming off involves:

90. Which of the following is correct about interpretive rules?

91. Which of the following statements is not true under the Fair Labor Standards Act?

92. Which of the following is correct about litigating commercial disputes?

93. An agent’s duty of notification can best be described as a duty to:

94. Which of the following is correct with regard to the relationship between law and ethics?

95. Generally speaking, the contract of a minor:

96. What is the major convention that provides international protection to patents?

97. What was the holding of the U.S. Supreme Court in its 2000 decision regarding a Massachusetts law affecting firms doing business with the nation of Myanmar (formerly Burma)?

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

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

100. Which country does the text describe as becoming the largest producer and consumer of many of the world’s goods?

Accounting

1. What is the preparation of reports for each level of responsibility in the company’s organization chart called?

2. Which list below best describes the major services performed by public accountants?

3. 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?

4. Balance sheet accounts are considered to be __________.

5. 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 _____.

6. As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?

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

8. Managerial accounting __________.

9. One of Astro Company’s activity cost pools is machine setups, with estimated overhead of \$150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers?

10. The standards and rules that are recognized as a general guide for financial reporting are called __________.

11. Of the following companies, which one would not likely employ the specific identification method for inventory costing?

12. The primary purpose of the statement of cash flows is to __________.

13. These are selected account balances on December 31, 2008.

Land (location of the corporation’s office building) \$150,000

Land (held for future use) 225,000

Corporate Office Building 900,000

Inventory 300,000

Equipment 675,000

Office Furniture 150,000

Accumulated Depreciation 450,000

What is the net amount of property, plant, and equipment that will appear on the balance sheet?

14. The major reporting standard for management accounts is __________.

15. The general term for market structures that fall somewhere in-between monopoly and perfect competition is __________.

16. If a binding price ceiling were imposed in the computer market, __________.

17. A country’s consumption possibilities frontier can be outside its production possibilities frontier if __________.

18. Resources are __________.

19. In order to be successful, a cartel must __________.

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

21. There are two types of markets in which firms face some competition yet are still able to have some control over the prices of their products. The names given to these market structures are __________.

22. The Federal Open Market Committee __________.

23. Most economists use the aggregate demand and aggregate supply model primarily to analyze __________.

24. In general, the longest lag for __________.

25. Which of the following is not correct?

26. The open-economy macroeconomic model includes __________.

27. 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 __________.

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

29. Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity?

30. The most dominant areas in the global economy include:

31. Which of the following best describes a mental image of a possible and desirable future state of the organization?

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

34. 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?

35. To be competitive in a global economy, Europeans must increase their level of:

36. Having individuals actually do the job they are applying for as a test to see if they can do it is __________.

37. The basic components of an effective sexual harassment policy include the following EXCEPT:

38. As related to managing of human resources, diversity refers to:

39. One of the most important contributors to total quality management has been the introduction of statistical tools to analyze the causes of product defects in an approach called:

40. 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:

41. Which of the following statements does NOT support Total Quality Management?

42. 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?

43. 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 median is _____.

44. 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 __________.

45. Which of the following statements is true?

46. 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)?

47. 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.

From this information, we can conclude that __________.

48. A computer analysis reveals that the best-fitting trend model is Yt = 4.12 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.

Which conclusion is not correct?

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

50. A computer analysis reveals that the best-fitting trend model is Yt = 4.12 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 __________.

51. 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:

52. You are faced with a linear programming objective function of:

Max P = \$20X + \$30Y

and constraints of:

3X + 4Y = 24 (Constraint A)

5X – Y = 18 (Constraint B)

You discover that the shadow price for Constraint A is 7.5 and the shadow price for Constraint B is 0. Which of these statements is TRUE?

53. Which of the following are disadvantages of the buy option for acquiring IS applications?

54. A set of programs that enable the hardware to process data is _____.

55. Which of the following is not a source for external data?

56. Networks enable which of the following applications?

57. Various organizations that promote fair and responsible use of information systems often develop __________.

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

59. _____ provides users with a view of what is happening, where _____ addresses why it is happening.

60. _____ is the efficient and effective execution of specific tasks.

61. International Game Technology’s new ERP system produced all of the following benefits except:

62. Which of the following statements about information systems is not correct?

63. The common stockholders are most concerned with:

64. Your company is considering an investment in a project which would require an initial outlay of \$300,000 and produce expected cash flows in Years 1 through 5 of \$87,385 per year. You have determined that the current after-tax cost of the firm’s capital (required rate of return) for each source of financing is as follows:

Cost of debt 8%

Cost of preferred stock 12%

Cost of common stock 16%

Long-term debt currently makes up 20% of the capital structure, preferred stock 10%, and common stock 70%. What is the net present value of this project?

65. Which of the following represents an attempt to measure the earnings of the firm’s operations over a given time period?

66. 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

67. PepsiCo calculates unlevered betas for each peer group in order to:

68. Which of the following is most consistent with the hedging principle in working capital management?

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. 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 answerwer to the nearest \$10.)

71. Mortgage bonds:

72. 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.

73. Disadvantages of using current liabilities as opposed to long-term debt include:

74. At 8% compounded annually, how long will it take \$750 to double?

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

76. Economists’ economic-buyer theory assumes that __________.

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

78. In an effort to increase its total sales, Champion has started exporting its spark plugs for use by several German auto producers. Champion is pursuing a _____ opportunity.

79. Marketing:

80. The statement, “Of course people will buy our product–each of its features is better than the competition,” most closely reflects which consumer behavior concept?

81. Good marketing strategy planners know that:

82. __________ is a marketing management aid which refers to how customers think about proposed and/or present brands in a market.

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

84. Which of the following is a business or organizational customer?

85. “Marketing strategy planning” means:

86. The clustering techniques that can be used in segmenting:

87. When looking at demographic dimensions, marketers should:

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

89. Product disparagement differs from defamation of a nonpublic figure in that:

91. Bob, an employee of Risky Manufacturing, Inc. is accidentally injured by a fellow worker while working his shift. Under workers’ compensation, Bob can:

92. In which of the following are these steps of a criminal case listed in the correct order?

93. What is the major convention that provides international protection to patents?

94. Which of the following is correct with regard to the relationship between law and ethics?

95. An agent’s obligation to perform in accordance with the terms of the agency arrangement is the agent’s duty of:

96. Information which comes to the knowledge of an agent is:

97. For which of the following kinds of intellectual property is a filing or registration required in order to receive protection?

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.

You are a member of a team auditing Sundance Furniture, LLC. The new purchasing has a retail background and is curious as to what the auditors mean by fixed and variable costs. Your supervisor, Butch Cassidy, assigns you to prepare a memo explaining fixed and variable costs on a per unit and aggregate basis.

You are a member of a team auditing Sundance Furniture, LLC. The new purchasing has a retail background and is curious as to what the auditors mean by fixed and variable costs. Your supervisor, Butch Cassidy, assigns you to prepare a memo explaining fixed and variable costs on a per unit and aggregate basis.