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
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:
33. A leader is:
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
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.
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:
90. Which of the following is true about the power of administrative agencies to grant licenses?
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.