1) Because the United States has had a long time agreement with __blank__ after the passage of NAFTA, ___blank__ became the US’s 2nd biggest trading partner.
Explanation: NAFTA has allowed Mexico to have a much greater trade relationship with the United States.
2) The term generally accepted contained in the saying “generally accepted accounting principles” means what about the principles?
They have substantial authoritative support
Explanation: Known as GAAP in the accounting world, these principle are accepted by virtually all businesses that conduct operations in the United States.
3) Which function of management is defined by building a dynamic organization?
Explanation: The ability to organize is considered essential when building a dynamic business.
4) Billy Bob's Used Car Sales uses the specific identification method for costing inventory. In the month of June, Billy Bob bought 3 cars for $6,000, $7,500, and $9,750. During June, two cars are sold for $9,000 a pop. Billy Bob determines that at June 31, the $9,750 car on the lot. What is the gross profit in June?
Explanation: The solution is found by summing up the cost of all cars, then summing up total sales, then subtracting the car still on hand to get $4,500 gross profit.
5) Hostess, Inc. sells one product with a contribution margin of $12 per unit and fixed costs of $74,400. Sales for the current year have reached a total of $100,000. What is the breakeven point for Hostess?
Explanation: The solution is found by using the formula 12x = 74,000. Ignore the 100,000, that number is just there to trick you!
6) As Plant Controller, your manager asks you to reduce your overhead costs. What would be called manufacturing overhead?
Explanation: The manufacturing process creates a mess and this requires the services of a janitor, thus being considered an overhead expense.
7) Each level of responsibility within a company’s organization chart would be called what?
8) Knots Berry Farm’s variable costs are 30% of sales. The firm is thinking about an advertising project that will cost $22,000. Assuming sales are anticipated to increase by $40,000, by how much will the firm’s net income increase?
Explanation: Find the solution by multiplying 40,000 by 30%. Then add the total to 22,000 to get 46,000. Simply subtract 46,000 from 40,000 to get the answer.
9) What is true about the cost of an asset and the fair market value?
The same on the date of acquisition
Explanation: Book value will be the same in the future, but fair market value can fluctuate with trends in the marketplace.
10) What is considered a product cost?
Explanation: Indirect labor is often required to bring a product to necessary sales standards.
11) Let’s say budgeted costs exceed actual results on a project, what can you expect?
A favorable difference
Explanation: This means you saved some money on the project, nice work!
12) The income statement and balance sheet columns of Douglas Fur Company's worksheet is showing these totals:
Income Statement Balance Sheet
Totals $58,000 $48,000 $34,000 $44,000
What will closing entries be necessary for?
Temporary accounts only
Explanation: The differences in debits and credits are equal in both worksheets, therefor it should only need closing entries for the closing accounts.
13) Which statement is true about managerial accounting?
Places emphasis on special-purpose information
Explanation: Managerial accounting is designed to provide companies with information that can be used to improve internal performance.
14) J32 is a company that sells beer and wine. Beer has a 10 percent profit margin, while wine has a 12 percent profit margin. Beer shows a 27 percent contribution margin, while wine shows a 25 percent contribution margin. What is the better product to push on customers?
Explanation: In this scenario, wine is shown to have higher profit margin, which is a higher consideration when compared to contribution margins.
15) Tamika has an income that exceeds expenditures. What is Tamika?
Saver who supplies money to the financial system
Explanation: Tamika saves money, yet also supplies it through her expenditures.
16) Mitch gets $100 as a Hanukkah gift, but needs to determine where to spend the cash. He finally settles on four different potential options. Option A, Option B, Option C, and Option D. Each option costs $100. At last, he chooses Option B. What is his opportunity cost?
The value to Mitch of the option he would have chosen had Option B not been available
17) The production possibilities frontier will have a straight line when which conditions are met?
Increasing the production of one good by x units entails a constant opportunity cost in terms of the other good
Explanation: The production possibilities frontier is a way to visualize the potential manufacturing choices of a firm.
18) In the context of economics, what is the cost of something?
What you must give up to get it
Explanation: A basic rule of economics states that the we must give something up, usually money, to obtain goods.
19) What do we call a tax on imported goods?
Explanation: The government uses Tariffs to impose trade restrictions and barriers.
20) Choose the correct statement about GDP?
Money continuously flows from households to government and then back to households, and GDP measures this flow of money.
Explanation: GDP is a common economic measure to show the value of goods produced by a nation or geographic region.
21) In order to calculate GDP, market prices are often used to value final goods and services. Why?
Market prices reflect the values of goods and services
Explanation: GDP is a common economic measure to show the value of goods produced by a nation or geographic region.
22) Choose the correct statement about GDP:
Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
Explanation: GDP is a common economic measure to show the value of goods produced by a nation or geographic region.
23) Choose the statement that is not correct:
The U.S. debt per-person is large compared with average lifetime income.
Explanation: Debt levels in the USA are actually consistent with the lifetime income amounts.
24) The section of the balance of payments account which shows all long-term flows of payments is referred to as:
Financial and capital account.
25) Edward Prescott and Finn Kydland are Nobel prize winners. Their main finding was that when a central bank could tell people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. What is this possibility called?
The time inconsistency of policy
Explanation: This policy shows many of the weaknesses in the current central bank system.
26) What is the longest lag for:
fiscal policy is the time it takes to change policy, while for monetary policy the longest lag is the time it takes for policy to affect aggregate demand
27) Consider the items that could be used in GDP:
1. Est. rental values of owner-occupied homes
2. Purchases of brand new houses
How do we account for these items when determining GDP?
Item 1 is included in the consumption component. Item 2 is included in the investment component.
Explanation: GDP uses distinct components to produce a more accurate version of a countries output, which ensures duplicate items are not measured.
28) What skills will managers use with more frequency as they climb the corporate ladder?
Conceptual and decision
Explanation: Managers will need to focus on bigger picture projects as they rise within the organization.
29) Which of the following are essential skills for managers?
Technical, interpersonal & communication and conceptual & decision making
Explanation: These are essential skills that will help managers make sound decisions in the current capitalist system.
30) What do we call the standards and rules for accounting procedures?
Generally accepted accounting principles
Explanation: Also know as GAAP.
31) You have a friend who wants to launch a startup business. You have been brushing up about entrepreneurship and new ventures, what would you say is true about entrepreneurship?
Successful entrepreneurs take very careful, calculated risks
Explanation: Too little risk will product slow results, too much risk will produce poor results.
32) What do will call differences in religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality?
Explanation: Diversity can be used to create strong team dynamics.
33) As a manager, how can you stimulate workers to be high performers?
Explanation: Providing leadership is an essential skill for most managerial positions.
34) An arrangement of value models improved by a council working under the International Organization for Standardization to enhance add up to quality in all organizations for the profit of both makers and customers is:
Explanation: ISO 9000 is a major consideration for manufacturers in virtually all developed nations in the world.
35) Consider the Japanese manufacturers' kaizen programs. This helps them maintain what?
A Learning advantage over their competition
Explanation: In today’s world of technology, it is a major advantage to have a learned ability that cannot be matched by competing firms.
36) Listening to worker inferences, picking up backing for organizational goals and encouraging an air of cooperation are considered what?
37) What is NOT part of an effective sexual harassment policy?
To establish a performance appraisal system
Explanation: Sexual harassment has nothing to do with performance appraisals.
38) What do we call teams to operate temporarily an work outside the normal workspace?
Explanation: Parallel teams are usually established to help with certain goals and that are not part of the long-term organizational mission.
39) The Aquatic Center intermittently surveys the objectives of the organization. Throughout the procedure, The Aquatic Center administrators investigate their present methods as contrasted with their rivals, confirm objectives that they will seek after and settle on particular movements for every range of the organization to take in hunt for these objectives. The Aquatic Center chiefs have been occupied with the administration capacity of what?
40) When it comes to human resources, diversity is considered what?
Differences in demographics (such as age, race, gender, and more!)
41) What do we call the process of working together with other people and resources to accomplish company goals.
42) 12 people were asked how many times they had failed a drug test during a the semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
What is the median in this sample?
Explanation: The median is the result that appears in the middle of all other numbers. In this case, the middle numbers of 2 and 3 must be divided to get a result of 2.5.
43) Check out the following table to get the answe: P(S | W)
44) Check out the following table to get the answer:
45) Battery Co Manufacturing claims that its antacid electric storage devices most recent forty hours on normal in a certain sort of convenient Blue-Ray player. Tests on an arbitrary specimen of 18 electric cells demonstrated a mean electric storage device life of 37.8 hours with a standard deviation of 5.4 hours.
In figuring out the p-value for reporting the study's discoveries, which of the accompanying is correct?
The p-value is greater than .05.
46) John utilized an example of 68 USA urban communities to gauge the relationship between Crime (yearly property criminal acts for every 100,000 persons) and Income (average wage for every capita). His assessed relapse comparison was Crime = 428 + .050 Income. Which conclusions might be likely in a bivariate regression on 45 arbitrarily picked USA urban areas in 2005 with
Y = number of burglaries in each city
X = size of law enforcement force in each city
Explanation: A positive slope will gradually increases as the x and y values increase. This problem illustrates how robberies and the size of the police force are related.
47) 12 people were asked how many times they had failed a drug test during a the semester, with this result: 2, 1, 5, 1, 1, 3, 4, 3, 1, 1, 5, 18.
What measure of central tendency least represents the “typical” person?
Explanation: The majority of people and students are at the bottom end of the spectrum and it is rare to be at the midrange.
48) The most possible reason for inaccurate control limits is due to what?
Insufficient preliminary sampling.
Explanation: Preliminary sampling can identify certain type of data within a sample that will help decrease the chance of skewed data.
49) Consider the following linear programming objective function:
Max P = $20X + $30Y
and constraints of:
3X + 4Y = 24 (Constraint A)
5X – Y = 18 (Constraint B)
The shadow price for Constraint A is determined to be 7.5 and the shadow price for Constraint B is 0. Choose the statement that is TRUE?
You can change quantities of X and Y at no cost for Constraint B.
50) Let’s imagine a project that has three paths. A–B–C has a length of 25 days. A–D–C has a length of 15 days. A–E–C has a length of 20 days. Choose the statement that is TRUE?
The expected duration of this project is 25 days.
51) Choose the statement concerning production and staffing plans that is the best?
Aggregation can be performed along three dimensions: product families, labor, and time.
52) You looked at a sensitivity report and 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, what can we assume?
You would be willing pay up to $60 for someone to work another 6 hours.
53) The expenses of using products in the __blank___ channel are quite a bit higher than delivering products in the __blank___ channel.
Explanation: The physical channel has much higher costs, such as building expenses, property taxes, security guards, and electricity bills.
54) When people visit a web site and make purchases they are generating?
Explanation: Each click on a website following a path that can be tracked to determine visitor behavior and preferences on a website.
55) What do we call the integration of economic, social, cultural, and ecological parts of life, made possible by information.
Explanation: Information and industrial technologies have made it possible to connect cultures and industries throughout the world.
56) Companies that promote fair and responsible use of information systems may use what tool?
Code of ethics
57) What is __blank___ is not necessarily __blank___.
58) __blank___ gives users with a view of what is happening, while __blank___ addresses the reason it is happening.
Multidimensional data analysis, data mining
Explanation: These two areas of analysis are closely related, but their core objectives are focused at different ends of the spectrum.
59) Computer support is most effective for solving what problem?
Structured and operational control
Explanation: A company can maintain a better level of operational control and structure by using the computer support programs.
60) A management cockpit is an example of what system?
Explanation: This is a computer driven tool that allows managers to control projects and organize the employees on their team.
61) What would be described as the efficient and effective execution of specific tasks?
Explanation: Operational controls are used to ensure that a company is conducting its core area of business in the most efficient and effective manner.
62) What is Geocoding?
Integrating maps with spatially oriented databases and other databases
Explanation: Geocoding is the marriage of digital logic with graphical maps. This is exactly how Google Maps functions on most levels.
63) If 8% is compounded annually, when will $750 double in value?
64) Which statement attempts to show the earnings of the firm’s operations over a specific time period?
Explanation: The income statement will generally show how much a company has earned on a quarterly or annual basis.
65) Let’s say a machine costs $1,000, has a three-year life, and has an expected salvage value of $100. It will produce after-expense twelve-month cash flows (ACF) of $600 per year, beginning one year from now. Provided that your needed rate of return for the task is 10%, what is the NPV (Net Present Value) of this investment product?
66) What are some of the disadvantages of using current liabilities versus long-term debt?
Greater risk of illiquidity, and uncertainty of interest costs
Explanation: Short-term debt often carries a larger interest rate and will make your company appear risker to investors and creditors.
67) Channel Islands Skin Care Inc. pays for an annual perpetual dividend of $1.70 per share. If the stock is selling for $21.25 per share in today’s money, what is the anticipated rate of return on this stock?
Explanation: Assuming the stock remains at the current value, simply divide 1.70 over 21.25.
68) Choose the tactic that is consistent with the hedging principle in working capital management?
Accounts receivable should be financed with short-term lines of credit.
Explanation: This strategy will allow companies have an opposing force that will cover accounts receivable if the creditor does not pay the balance.
69) Increases in future value can often be the result of an increase in what?
Annual interest rate and number of compounding periods
70 Let’s imagine a quote for a forward exchange contract is higher than its computed price, the forward contract would be considered…?
Explanation: It would be overvalued because the market is only willing to pay a lower amount for this particular contract.
71) Let’s take a look at the following investment project:
Initial outlay = $300,000
Expected cash flows in Years 1 through 5 of $87,385 per year.
Cost of capital:
Cost of debt 8%
Cost of preferred stock 12%
Cost of common stock 16%
Long-term debt consists of 20% of the capital structure, preferred stock 10%, and common stock 70%. Calculate the NPV of this project:
Explanation: Use the NPV formula: Rt / (1 + i)^t
72) Lets pretend the NPV of a project is $1,525,855. Why is this important?
The project would add value to the firm.
Explanation: The NPV is greater than zero and thus provides a future value to the firm.
73) What is the main concern for common stockholders in a company?
The percentage of profits retained.
Explanation: Since common stock holders are often the last to be paid, they want to see a high level of profits being retained.
74) Coca-Cola calculates unlevered betas for each peer group for what purpose?
Eliminate different financial risks.
Explanation: Betas are used to compare the risk level of various financial projects.
75) Choose the statement that describes operating income?
Earnings before interest and taxes
Explanation: This is the income that is generated purely from operations and would be found on the profit/loss statement of a company.
76) When compared to buying final consumers, the purchasing of organizational buyers is said to be?
Leans basically toward economy, quality, and dependability.
77) What is the basic objective of the U.S. market-directed economic system?
Satisfy consumer needs as they--the consumers--see them.
Explanation: Businesses primary goal is to deliver value to consumers in a way that can generate profits for the company.
78) When making a comparison of GDP in foreign nations, how can this data help a marketing manager evaluate potential markets?
GDP measures show people's tendency to buy particular products.
Explanation: GDP shows the total output of all goods and can be used to find trends that will help exploit consumer-buying preferences.
79) What is NOT included in the marketing mix?
80) Name the marketing management aid that shows to how customers think about proposed and present brands within a market.
Explanation: Choosing the correct position for a product will greatly improve the changes of financial success in the market.
81) Select the "Four Ps" of the marketing mix:
Product, Place, Promotion, and Price
82) In macro-marketing, a manager must:
Determine how efficiently a society's resources are utilized.
Explanation: The amount of resources in a society is directly related to buying habits.
83) What will a cluster analysis of the toothpaste market yield?
. Different market segments seek different product benefits.
Explanation: Some types of toothpaste are for whitening, and others are for cavity prevention.
84) What happens when clustering techniques are applied to market segmentation?
Most often require computers to group people based on market research data
85) What are the three basic functions of managers?
Planning, implementation, and control.
Explanation: According to the text, these are the main functions of managers.
86) How is target marketing different than mass marketing?
Focuses on specific customers, while mass marketing aims at an entire market.
87) Choose the correct strategy relationship. Branding is related to packaging as:
Personal selling is to mass selling.
Explanation: When compared to the four Ps, branding seeks to identify with a certain type of customer, while packaging is designed for mass appeal.
88) Name the Fair Labor Standards Act stipulation that is NOT true?
Children under 14 cannot work at all, except on farms.
Explanation: Even on farms in the Deep South, children are not allowed to work.
89) Probable cause is associated with what part of the criminal process?
Explanation: Police must have probable cause that a crime has been committed in order to make an arrest.
90) Which statement is generally NOT true about state intermediate appellate courts?
The appellate court allows parties to introduce new evidence as long as it was not previously introduced at the original trial.
91) What terms are not required to be disclosed under the Truth-in-Lending Act?
The terms available from competitors.
92) Choose the agency activity that requires public notice and participation?
Substantive rule making only.
Explanation: Major rule changes must go through a process that ensures the affected bodies are prepared to adapt to the new rules.
93) What is NOT part of Caux Round Table Principles for International Business?
Promotion of Multiculturalism.
94) Choose the business social responsibility theory that states that businesses owe its duties solely to produce the highest return for its shareholders…
The maximizing profits theory.
Explanation: By attempting to maximize profits, a business will make choices in the best interests of its end users and customers.
95) Milton Friedman is famous for which social responsibility theory of business?
Explanation: In his book Free to Choose, Friedman explains how profit maximization is the ideal route to creating a utopian society with virtually no flaws.
96) What order of sources are considered by courts in settling questions of international law?
Treaties, customs, general principles of law, judicial decisions and teachings
Explanation: International law issues must go through a different process to settle the variations in domestic law at each country.
97) If the value of the collateral is less than the debt owed to the secured party, then:
The secured party is unsecured for the excess of debt over the value of the security.
98) A scientific study found that manufacturing labor costs about __blank___ per hour in China, as compared to __blank___ dollars in the United States.
Less than $1. About $25
Explanation: In order to buy cheap goods from Wal-Mart, it is essential to utilize Chinese workers for very little pay.
99) What country has become the largest producer and consumer of goods?
100) According to the cost principle, when assets are acquired that should be recorded at?
Exchange price paid
Explanation: They will be kept at exchange price paid as opposed to fair market value.