### BUS 475 Final Exam Complete Solution Guide 1. Get an .

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Question Details: #2206
BUS 475 Final Exam Complete Solution Guide 1. Get an .

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

2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.
3) 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 __________.
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
5) The first step in activity-based costing is to __________.
6) Hess, Inc. sells a single product with a contribution margin of \$12 per unit and fixed costs of \$74,400 and sales for the current year of

\$100,000. How much is Hess’s break even point?
7) 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?
8) 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?
9) 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

Closing entries are necessary for __________.
10) 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?
11) The cost of an asset and its fair market value are __________.

12) 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?
13) The cost principle is the basis for preparing financial statements because it is __________.
14) Which one of the following items is not generally used in preparing a statement of cash flows?
15) To move the allocation of resources closer to the social optimum, policymakers should typically try to induce firms in an oligopoly to

__________.
16) 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 __________.
17) The price of a good that prevails in a world market is called the
18) A country's consumption possibilities frontier can be outside its production possibilities frontier if __________.
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) If a binding price ceiling were imposed in the computer market, __________.
21) For a college student who wishes to calculate the true costs of going to college, the costs of room and board __________.
22) In the market for foreign-currency exchange in the open economy macroeconomic model, the amount of net capital outflow represents

the quantity of dollars __________.

23) The part of the balance of payments account that records the amount of foreign currency the government buys or sells is the:
24) The balance of payment account is made up of:
25) The model of aggregate demand and aggregate supply explains the relationship between __________.
26) The open-economy macroeconomic model includes __________.

27) The principal lag for monetary policy __________.
28) Which of the following best describes a mental image of a possible and desirable future state of the organization?
29) Sebastian Stabilio just joined a team of people from throughout his organization whose primary task is to recommend valuable uses for

the scrap generated in the manufacturing process. The team meets twice per week; otherwise members work within the usual

organizational structure. The team, not permanent, which Sebastian has joined, would be considered a:
30) 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:
31) 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:
32) Which of the following has proven to be a particularly good predictor for jobs that require cognitive complexity?
33) To be competitive in a global economy, Europeans must increase their level of:
34) Teams that operate separately from the regular work structure and exist temporarily are known as:
35) A manager's ability to stimulate people to be high performers is referred to as:
36) The best way for an employer to find out if a potential employee can do a job is by __________.
37) 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?

38) One study found that manufacturing labor costs about _____ an hour in China, compared to _____ dollars in the United States.
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) __________ is the process of working with people and resources to accomplish organizational goals.
41) 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:

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.
Assuming b1 is significant, if Income decreases by 1000 we would predict that Crime will __________.
43) Sampling error can be reduced by __________.
44) Use the following table to answer question:
P(M  A) is approximately _____.
45) Use the following table to answer question:
Are Service provider and county independent events?
46) 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?
47) Jolly Blue Giant Health Insurance (JBGHI) is concerned about rising lab test costs and would like to know what proportion of the

positive lab tests for prostate cancer are actually proven correct through subsequent biopsy. JBGHI demands a sample large enough to

ensure an error of ± 2% with 90% confidence. What is the necessary sample size?
48) Which one of the following statements concerning production and staffing plans is best?

49) Likely reasons for inaccurate control limits would include which of the following?
50) The one-worker, multiple machines approach functions as:
51) In an activity-on-node [AON] network, the nodes represent ____________, whereas the arcs represent ____________.
52) 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:
53) The force behind globalization in _____ was the amount of muscle, horsepower, wind power, or steam power that a country could

deploy.
54) In the _____ phase of the decision making process, managers test potential solutions “on paper.”
55) A set of programs that enable the hardware to process data is _____.
56) What is _____ is not necessarily _____.
57) The Global, Web-Based Platform enables individuals to do which of the following?

58) The management cockpit best exemplifies which type of system?
59) _____ is the acquisition and efficient use of resources in accomplishing organizational goals.
60) International Game Technology’s new ERP system produced all of the following benefits except:
61) Which of the following are not provided by digital dashboards?
62) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
63) An increase in future value can be caused by an increase in the __________.
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?
A.   \$1,568 B.   \$463 C.   \$1,241 D.   \$871
65) Disadvantages of using current liabilities as opposed to long-term debt include:
66) 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?
67) 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.
68) Forward rates are quoted:
69) 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?

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Solution Details: #2185
BUS 475 Final Exam Complete Solution Guide 1. Get an .

1) A well-designed activity-based costing system starts with __________. 2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________. 3) 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 __________. 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 5) The first step in activity-based costing is to __________. 6) Hess, Inc. sells a single product with a contribution margin of \$12 per unit and fixed costs of \$74,400 and sales for the current year of \$100,000. How much is Hess’s break even point? 7) 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? 8) 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? 9) 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 Closing entries are necessary for __________. 10) 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? 11) The cost of an asset and its fair market value are __________. 12) 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? 13) The cost principle is the basis for preparing financial statements because it is __________. 14) Which one of the following items is not generally used in preparing a statement of cash flows? 15) To move the allocation of resources closer to the social optimum, policymakers should typically try to induce firms in an oligopoly to __________. 16) 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 __________. 17) The price of a good that prevails in a world market is called the 18) A country's consumption possibilities frontier can be outside its production possibilities frontier if __________. 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) If a binding price ceiling were imposed in the computer market, __________. 21) For a college student who wishes to calculate the true costs of going to college, the costs of room and board __________. 22) In the market for foreign-currency exchange in the open economy macroeconomic model, the amount of net capital outflow represents the quantity of dollars __________. 23) The part of the balance of payments account that records the amount of foreign currency the government buys or sells is the: 24)...

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