BUS/475 Final Exam Study Guide
Comprehensive study guide for the BUS 475 final exam.
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BUS/475 Final Exam Study Guide
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.
Canada, Mexico
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?
Organizing
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?
$4,500
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?
6,200 units
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?
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.
Canada, Mexico
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?
Organizing
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?
$4,500
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?
6,200 units
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?
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Document Details
University
University of Phoenix
Subject
Business Management