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"All of the following can be considered in the evaluation of a business unit EXCEPT (A) wages paid to labor (B) projected annual revenues of competitors (C) the cost of materials used in the production process
(D) the price at which goods produced are sold - CORRECT ANSWER=> (B) projected annual revenues
of competitors" "The sales division of a corporation is considering an internal product transfer because of excess demand. What is the lowest acceptable transfer price for the product? (A) The amount that the company would have to pay to acquire a similar product (B) The variable cost of producing a unit of product (C) The full absorption cost of producing a unit of product (D) The difference between the market price and the costs recaptured by transferring internally -
CORRECT ANSWER=> (D) The difference between the market price and the costs recaptured by
transferring internally" "The Mart, a large retail chain, is considering whether or not to close down a division. The division's projected income statement for the next year follows. -Sales $20,000, -Cost of goods sold 17,000, -Gross profit 3,000, -Operating costs: -Building rents $2,500, -Store clerk salaries 3,000, -Store utilities 1,200, -Allocated home office cost 700, -Total operating costs 7,400, -Anticipated loss ($4,400,000) The building rents arise from long-term leases that cannot be cancelled. If The Mart closed down this division, what would be the increase in company profits? (A) $700, (B) $1,200, (C) $3,000,
(D) $4,400,000 - CORRECT ANSWER=> (B) $1,200,000"
"Prosco Ltd. employs a process cost system. Inspection of units occurs at the 50 percent mark. Defective units are then removed from the process, and their cost ($4.50) is absorbed by the good units. Prosco has recently been approached by a firm wishing to buy the defective units for a special use. The firm would require Prosco to modify the defective units at a unit cost of $2.00. If Prosco sells the defective units to the firm for $5.00 each, how would Prosco's reported income be affected? (A) It would decrease by $4.50 per unit sold. (B) It would decrease by $1.50 per unit sold. (C) It would increase by $3.00 per unit sold.
(D) It would increase by $5.00 per unit sold. - CORRECT ANSWER=> (C) It would increase by $3.00 per
unit sold." "Some companies have little, if any, net income or earnings, yet they seem to have all the money they need for capital expenditures. Which of the following best explains how such companies operate? (A) They have good cash flows. (B) They lease capital equipment that does not show up on balance sheets. (C) They have accounts with many different banks.
(D) They issue warrants to their officers. - CORRECT ANSWER=> (A) They have good cash flows."
"The Sintar Corporation has just announced that it will pay $1.10 per share in dividends to its stockholders in the current quarter. The prior quarter's dividend was $1.00 per share. The announcement indicates which of the following? (A) Management is sending a signal that it expects the economy to expand. (B) Management is sending a signal that the company has good projected future earnings. (C) While the company was able to pay a higher dividend, management preferred a more conservative figure. (D) The company has overextended its cash position and may have liquidity problems in the future. -
CORRECT ANSWER=> (B) Management is sending a signal that the company has good projected future
earnings." "Wave Inc. is a telecommunications company that wants to become involved in e-commerce. It has to decide whether to develop a business-to-business or business-to-consumer strategy. As Wave's strategic planner, you have been asked to develop a business plan for each opportunity and present these to senior management. The answer to which of the following questions is most important to know before starting your plan? (A) What are the company's core competencies? (B) What is the potential market size? (C) What is the impact on the estimated revenue? (D) Does the company have e-commerce
capabilities? - CORRECT ANSWER=> (A) What are the company's core competencies?"
"If you were the holder of a call option (having cost you $2) on some stock with an exercise price of $20, it would be best for you to exercise your option when the market price is at
(B) The conformance of the finished product to agreed-to product specifications (C) Objective, third-party tests of the performance of the product
(D) Warranty repair histories of the finished product - CORRECT ANSWER=> (B) The conformance of the
finished product to agreed-to product specifications" "The common stock of ABC, Inc. has a current market price of $52 per share. Dividends have been $5 a share for several years and are not expected to change. The dividend yield of the stock of comparable companies is 10%. Which recommendation would you make regarding ABC, Inc. stock? (A) Purchase at $52 per share because that is a fair price. (B) Purchase at $52 per share because the dividend yield will be 10.1%. (C) Don't purchase, because the dividend yield will be only 2%.
(D) Don't purchase for more than $50 per share. - CORRECT ANSWER=> (D) Don't purchase for more
than $50 per share." "Increasing a regular quarterly dividend payment may indicate which of the following about a corporation? I. Improved earnings prospects for the firm II. A reduction in agency problems of free cash flow III. A reduction in tax payments for shareholders (A) I only (B) II only (C) I and II only
(D) II and III only - CORRECT ANSWER=> (C) I and II only"
"Littleton, Inc., has fixed costs of $75,000 per month, variable costs of $5 per unit, and a sales price per unit of $30. What is the break- even quantity per month? (A) 2, (B) 2, (C) 3,
(D) 15,000 - CORRECT ANSWER=> (C) 3,000"
"Which of the following should be reported net of tax on a corporation's income statement? (A) Discontinued operations (B) Operating income (C) Gross profit
(D) Gain on sale of delivery truck - CORRECT ANSWER=> (A) Discontinued operations"
"If a multinational company cannot change the level of political risk in foreign markets, which of the following tactics would most likely offset possible losses? (A) Maintain control of distribution (B) Use currency futures contracts (C) Finance debt locally
(D) Maintain control of key inputs - CORRECT ANSWER=> (C) Finance debt locally"
"Blessed Bundles is a regional clicks-and-mortar retail chain that sells maternity and baby products. It uses data from past purchases to study customers' product preferences, and it uses server tracking logs to study customers' online shopping behavior. Which of the following correctly describes the two types of market research data the company is using? Past Purchases/Server Tracking Logs (A) Transactional/Clickstream (B) Clickstream/Transactional (C) Private/Public
(D) Public/Private - CORRECT ANSWER=> (A) Transactional/Clickstream"
"Strategic Marketing - CORRECT ANSWER=> Identification of one or more sustainable competitive
advantages a firm has in the markets it serves (or intends to serve), and allocation of resources to exploit them. Read more: http://www.businessdictionary.com/definition/strategic-marketing.html"
"Strategic Marketing: metrics and control mechanisms - CORRECT ANSWER=> Customer feedback;
target market sales; budgeting, market share / http://smallbusiness.chron.com/examples-controls- marketing-plan-11575.html"
"Strategic Marketing: environment scanning and marketing planning - CORRECT ANSWER=>
environment scanning: Careful monitoring of an organization's internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans. In comparison, surveillance is confined to a specific objective or a narrow sector. // marketing planning: http://managementstudyguide.com/environmental-scanning.htm / http://study.com/academy/lesson/environmental-scanning-in-marketing-definition-examples- methods.html / http://smallbusiness.chron.com/marketing-strategy-planning-628.html" Which of the following organizations is most likely to use project financing? A. A small start-up b. A financial services firm with an extensive client list C. A large consumer goods company
D. A large public utility involved in infrastructure development - CORRECT ANSWER=> D. A large public
utility involved in infrastructure development" "After an extensive recruitment process to select well-qualified individuals, a large percent of a company's new hires resigned within the first month of the job. Which of the following is the most likely explanation for this situation? A. The training process to prepare the new hires for their assigned tasks was inadequate.
A. What are the company's Core Competencies? B. What is the potential market size? C. What is the impact on the estimated revenue?
D. Does the company have e-commerce capabilities? - CORRECT ANSWER=> A. What are the
company's Core Competencies?" "If you were the holder of a call option (having cost you $2) on some stock with an exercise price of $20, it would be best for you to exercise your option when the market price is at A. $ B. $ C. $
D $24 - CORRECT ANSWER=> D $24"
"Increased globalization and technological change, particularly in telecommunications, enable more organizations to adopt which of the following organizational structures? A. Functional B. Matrix C. Network
D Mechanistic - CORRECT ANSWER=> C. Network"
"A new local Super Store publicly announced that when more than three people standing in line at cash registers, additional checkout-lines will be opened. After the announcement, customers quickly noticed that the additional lines were not opened until six or seven people were standing in line. This indicates a gap between A. customer expectation and management perception of customer expectation B. Management perception of customer expectation and service quality specifications C. Customer expectation and internal management communication
D. actual service delivery and how service quality was communicated - CORRECT ANSWER=> D. actual
service delivery and how service quality was communicated" "All of the following can be considered in the evaluation of a business unit EXCEPT A. wages paid to labor B. projected annual revenues of competitors C. the cost of materials used in the production process
D. the price at which goods produced are sold - CORRECT ANSWER=> B. projected annual revenues of
competitors" "The sales division of a corporation is considering an internal product transfer because of excess demand. What is the LOWEST acceptable transfer price for the product?
A. The amount that the company would have to pay to acquire a similar product B. The variable cost of producing a unit of product C. The full absorption cost of producing a unit of product D. The difference between the market price and the costs recaptured by transferring internally -
CORRECT ANSWER=> D. The difference between the market price and the costs recaptured by
transferring internally" "You are considering investigating in one of the four securities below, characterized only as follows. Security W X Y Z Expected Return 15% 15% 17% 17% S.D. of return 25% 30% 25% 30% Which security makes the most prudent investment? A. W B. X C. Y
D. Z - CORRECT ANSWER=> C. Y"
"The Mart, a large retail chain, is considering whether or not to close down a division. The division;s projected income statement for the next year follows. Sales $20,000, COGS 17,000, gross profit $3,000, Operating Costs: Building rents $2,500, Store Clerk salaries: 3,000, Store utilities: $ 1,200, Allocated home office cost $700, Total operating costs: 7,400, Anticipated loss ($4,400,000) The building rents arise from long term leases that cannot be cancelled. If The Mart closed down this division, what would be the increase in company profits? A. $700, B. $1,200, C. $3,000,
D. $4,400,000 - CORRECT ANSWER=> B. $1,200,000"
D. Gain on sale of delivery truck - CORRECT ANSWER=> A. Discounted operations"
"If a multinational co cannot change the level of political rsk in foreign markets which of the following tactics would most likely offset possible losses? A. Maintain control of distribution B. Use currency futures contracts C. Finance debt locally
D Maintain control of key inputs - CORRECT ANSWER=> C. Finance debt locally"
"Blessed Bundles is a regional clicks-and mortar retail chain that sells maternity and baby products. It uses data from past purchases to study customers' product preferences, and it uses server tracking logs to study customers' product preferences, and it uses server tracking logs to study customer' online shoppingbehavior. Which of the following correctly describes the two types of market research data the co is using? Past Purchases SErver TRackingLogs A Transactional Clickstream B. Clcikstream Transactional C. Private Public
D. Public Private - CORRECT ANSWER=> A"
"Product Costing: process vs. job order - CORRECT ANSWER=> Companies that produce goods and
physical products need some sort of system to track costs and production levels. Process costing and job order costing are both viable methods for doing just that. Depending on the nature of the products and the amount of products created, one system may work better than the other. / Job Costing - track cost on a per-job basis...Process Costing - company tracks based on entire production department / https://bizfluent.com/about-5389912-process-vs-job-order-costing.html"
"Product Costing: byproduct - CORRECT ANSWER=> By-product is a secondary product. By-products are
minor products obtained incidentally in the process of manufacturing the main product. They possess some saleable value. A by-product is of minor commercial importance and often requires further processing before sale. The commercial or economic importance of the products classifies as main or joint products and by-products. By-products are secondary products and have very low commercial value. They are produced jointly with the main product and mostly in continuous process industries like oil refining, sugar manufacturing, chemical, meatpacking and coal."
