BUS 475 Final Exam Study Guide 2012 � Set 1
Study guide for the 2012 BUS 475 final exam.
William Scott
Contributor
4.5
46
about 1 month ago
Preview (6 of 17)
Sign in to access the full document!
BUS 475 Final Exam Study Guide 2012 – Set 1
100 Answers from 2012 BUS/475 Final Exam
Reviewed and Prepared by ACCNerd.com. Thank you!
1) Although the U.S. has had a longstanding agreement with _____ after the passage of NAFTA,
_____ became the United States' second largest trading partner.
A. Mexico, Venezuela
B. Canada, Venezuela
C. Great Britain, Paraguay
D. Mexico, Canada
E. Canada, Mexico
2) "Generally accepted" in the phrase generally accepted accounting principles means that the
principles __________.
A. have been approved for use by the managements of business firms
B. have been approved by the Internal Revenue Service
C. have substantial authoritative support
D. are proven theories of accounting
30) Building a dynamic organization is another way of describing which function of management?
A. Staffing
B. Organizing
C. Leading
D. Controlling
E. Planning
4) 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?
A. $8,250
B. $750
C. $4,500
D. $5,250
5) 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?
A. 2,133 units
B. 6,200 units
C. $25,600
D. 4,600 units
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
100 Answers from 2012 BUS/475 Final Exam
Reviewed and Prepared by ACCNerd.com. Thank you!
1) Although the U.S. has had a longstanding agreement with _____ after the passage of NAFTA,
_____ became the United States' second largest trading partner.
A. Mexico, Venezuela
B. Canada, Venezuela
C. Great Britain, Paraguay
D. Mexico, Canada
E. Canada, Mexico
2) "Generally accepted" in the phrase generally accepted accounting principles means that the
principles __________.
A. have been approved for use by the managements of business firms
B. have been approved by the Internal Revenue Service
C. have substantial authoritative support
D. are proven theories of accounting
30) Building a dynamic organization is another way of describing which function of management?
A. Staffing
B. Organizing
C. Leading
D. Controlling
E. Planning
4) 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?
A. $8,250
B. $750
C. $4,500
D. $5,250
5) 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?
A. 2,133 units
B. 6,200 units
C. $25,600
D. 4,600 units
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?
A. The western division’s vice president’s salary
B. Cost of landscaping the corporate office
C. General corporate liability insurance
D. Factory janitor
7) What is the preparation of reports for each level of responsibility in the company’s organization
chart called?
A. Master budgeting analysis
B. Exception reporting
C. Responsibility reporting
D. Static reporting
8) 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?
A. $6,000
B. $12,000
C. $28,000
D. $18,000
9) The cost of an asset and its fair market value are __________.
A. never the same
B. irrelevant when the asset is used by the business in its operations
C. the same on the date of acquisition
D. the same when the asset is sold
10) Which one of the following is a product cost?
A. Indirect labor
B. Sales person’s salaries
C. Advertising costs
D. Office salaries
11) What exists when budgeted costs exceed actual results?
A. A budgeting error
B. An unfavorable difference
C. An excess profit
D. A favorable difference
12) 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 __________.
items would be classified as manufacturing overhead?
A. The western division’s vice president’s salary
B. Cost of landscaping the corporate office
C. General corporate liability insurance
D. Factory janitor
7) What is the preparation of reports for each level of responsibility in the company’s organization
chart called?
A. Master budgeting analysis
B. Exception reporting
C. Responsibility reporting
D. Static reporting
8) 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?
A. $6,000
B. $12,000
C. $28,000
D. $18,000
9) The cost of an asset and its fair market value are __________.
A. never the same
B. irrelevant when the asset is used by the business in its operations
C. the same on the date of acquisition
D. the same when the asset is sold
10) Which one of the following is a product cost?
A. Indirect labor
B. Sales person’s salaries
C. Advertising costs
D. Office salaries
11) What exists when budgeted costs exceed actual results?
A. A budgeting error
B. An unfavorable difference
C. An excess profit
D. A favorable difference
12) 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 __________.
A. permanent accounts only
B. both permanent and temporary accounts
C. permanent or real accounts only
D. temporary accounts only
13) Managerial accounting __________.
A. is concerned with costing products
B. pertains to the entity as a whole and is highly aggregated
C. places emphasis on special-purpose information
D. is governed by generally accepted accounting principles
14) 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?
A. Beer
B. Selling either results in the same additional income for the company
C. It should sell an equal quantity of both
D. Wine
15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A. saver who demands money from the financial system
B. borrower who demands money from the financial system
C. borrower who supplies money to the financial system
D. saver who supplies money to the financial system
16) 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 __________.
A. the value to Maurice of the option he would have chosen had Option B not been available
B. $100
C. $300
D. the value to Maurice of Options A, C and D combined
17) A production possibilities frontier will be a straight line if __________.
A. the economy is producing efficiently
B. the economy is engaged in trade with at least one other economy
C. increasing the production of one good by x units entails no opportunity cost in terms of the other
good
D. increasing the production of one good by x units entails a constant opportunity cost in terms of
the other good
18) In economics, the cost of something is __________.
A. what you give up to get it
B. often impossible to quantify, even in principle
C. the dollar amount of obtaining it
D. always measured in units of time given up to get it
B. both permanent and temporary accounts
C. permanent or real accounts only
D. temporary accounts only
13) Managerial accounting __________.
A. is concerned with costing products
B. pertains to the entity as a whole and is highly aggregated
C. places emphasis on special-purpose information
D. is governed by generally accepted accounting principles
14) 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?
A. Beer
B. Selling either results in the same additional income for the company
C. It should sell an equal quantity of both
D. Wine
15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A. saver who demands money from the financial system
B. borrower who demands money from the financial system
C. borrower who supplies money to the financial system
D. saver who supplies money to the financial system
16) 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 __________.
A. the value to Maurice of the option he would have chosen had Option B not been available
B. $100
C. $300
D. the value to Maurice of Options A, C and D combined
17) A production possibilities frontier will be a straight line if __________.
A. the economy is producing efficiently
B. the economy is engaged in trade with at least one other economy
C. increasing the production of one good by x units entails no opportunity cost in terms of the other
good
D. increasing the production of one good by x units entails a constant opportunity cost in terms of
the other good
18) In economics, the cost of something is __________.
A. what you give up to get it
B. often impossible to quantify, even in principle
C. the dollar amount of obtaining it
D. always measured in units of time given up to get it
19) A tax on an imported good is called a __________.
A. supply tax
B. trade tax
C. quota
D. tariff
20) Which of the following statements about GDP is correct?
A. GDP is to a nation’s economy as household income is to a household.
B. GDP increases if the total population increases.
C. GDP measures two things at once: the total income of everyone in the economy and the
unemployment rate.
D. Money continuously flows from households to government and then back to households, and
GDP measures this flow of money.
21) In computing GDP, market prices are used to value final goods and services because
__________.
A. if market prices are out of line with how people value goods, the government sets price ceilings
and price floors
B. Market prices are not used in computing GDP
C. market prices reflect the values of goods and services
D. market prices do not change much over time, so it is easy to make comparisons between years
22) Which of the following statements about GDP is correct?
A. Nominal GDP values production at market prices, whereas real GDP values production at the cost
of the resources used in the production process.
B. Nominal GDP consistently underestimates the value of production, whereas real GDP consistently
overestimates the value of production.
C. Nominal GDP values production at current prices, whereas real GDP values production at
constant prices.
D. Nominal GDP values production at constant prices, whereas real GDP values production at current
prices.
23) Which of the following is not correct?
A. The U.S. debt per-person is large compared with average lifetime income.
B. In 2005, the U.S. government had a deficit.
C. A potential cost of deficits is that they reduce national saving, thereby reducing growth of the
capital stock and output growth.
D. Deficits give people the opportunity to consume at the expense of their children, but they do not
require them to do so.
24) The part of the balance of payments account that lists all long-term flows of payments is called
the:
A. balance of trade.
B. financial and capital account.
C. government financial account.
D. current account.
A. supply tax
B. trade tax
C. quota
D. tariff
20) Which of the following statements about GDP is correct?
A. GDP is to a nation’s economy as household income is to a household.
B. GDP increases if the total population increases.
C. GDP measures two things at once: the total income of everyone in the economy and the
unemployment rate.
D. Money continuously flows from households to government and then back to households, and
GDP measures this flow of money.
21) In computing GDP, market prices are used to value final goods and services because
__________.
A. if market prices are out of line with how people value goods, the government sets price ceilings
and price floors
B. Market prices are not used in computing GDP
C. market prices reflect the values of goods and services
D. market prices do not change much over time, so it is easy to make comparisons between years
22) Which of the following statements about GDP is correct?
A. Nominal GDP values production at market prices, whereas real GDP values production at the cost
of the resources used in the production process.
B. Nominal GDP consistently underestimates the value of production, whereas real GDP consistently
overestimates the value of production.
C. Nominal GDP values production at current prices, whereas real GDP values production at
constant prices.
D. Nominal GDP values production at constant prices, whereas real GDP values production at current
prices.
23) Which of the following is not correct?
A. The U.S. debt per-person is large compared with average lifetime income.
B. In 2005, the U.S. government had a deficit.
C. A potential cost of deficits is that they reduce national saving, thereby reducing growth of the
capital stock and output growth.
D. Deficits give people the opportunity to consume at the expense of their children, but they do not
require them to do so.
24) The part of the balance of payments account that lists all long-term flows of payments is called
the:
A. balance of trade.
B. financial and capital account.
C. government financial account.
D. current account.
Loading page 6...
1 more pages available. Scroll down to load them.
Preview Mode
Sign in to access the full document!
100%
Study Now!
XY-Copilot AI
Unlimited Access
Secure Payment
Instant Access
24/7 Support
Document Chat
Document Details
University
University of Phoenix
Subject
Business Management