3) What effect do current technology changes have on managerial accounting?
A. Increase in product costs
B. Reduction of reporting costs of managerial accounting information
C. Creation of the middleman
D. Reduction of emphasis on the value chain
14) The cost principle is the basis for preparing financial statements because it is
A. an international accounting standard
B. a conservative value
C. the most accurate measure of purchasing power
D. relevant and objectively measured, and verifiable
16) Which of the following would be most likely to contribute to the breakdown of a cartel in a natural resource (e.g., bauxite) market?
A. High compatibility of member interests
B. High prices
C. Unequal member ownership of the natural resource
D. Low price elasticity of demand
17) 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 __________.
A. must balance with the price effect
B. must dominate the price effect
C. can be larger or smaller than the price effect
A. must balance with the price effect
D. must be smaller than the price effect
18) 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 __________?
A. equal to quantity supplied
B. greater than quantity supplied
C. double the quantity supplied
D. less than quantity supplied
20) If a binding price ceiling were imposed in the computer market, __________.
A. a shortage of computers would develop
B. the demand for computers would increase
C. the quality of computers would increase
D. the supply of computers would decrease
21) When a firm sells a good or a service, the sale contributes to the nation’s income __________.
A. only if the buyer of the good or service is a household
B. whether the buyer of the good or a service is a household, another firm, or the
C. We have to know whether the item being sold is a good or a service in order to answer
D. only if the buyer of the good or service is a household or another firm
24) The model of aggregate demand and aggregate supply explains the relationship between __________.
A. the price and quantity of a particular good
B. wages and employment
C. real GDP and the price level
A. the price and quantity of a particular good
D. unemployment and output
25) In the market for foreign currency exchange in the open economy macroeconomic model, the amount of net capital outflow represents the quantity of dollars __________.
A. supplied for the purpose of selling assets domestically
B. demanded for the purpose of buying U.S. net exports of goods and services
C. demanded for the purpose of importing foreign goods and services
D. supplied for the purpose of buying assets abroad
26) Many U.S. business leaders argue that the current state of U.S. net exports is the result of __________.
A. U.S. export subsidies.
B. unproductive U.S. workers.
C. unfair foreign competition.
D. free trade policies of foreign governments.
27) The balance of payment account is made up of:
A. a current account and a financial and capital account.
B. an investment account and a consumption account.
C. a monetary account and a fiscal account.
D. an import account and an export account.
20) In order to be successful, a cartel must __________.
A. agree on the prices charged by each member, but they need not agree on amounts produced
B. agree on the total level of production for the cartel, but they need not agree on the amount produced by each member
C. agree on the total level of production and on the amount produced by each member
D. find a way to encourage members to produce more than they would otherwise produce
25) The Federal Open Market Committee __________.
A. is required by its charter to change the money supply using a complex formula that concerns the tradeoff between inflation and unemployment
B. is required to increase the money supply by a given growth rate each year
C. is required to keep the interest rate within a range set by Congress
D. operates with almost complete discretion over monetary policy
31) Which of the following statements does NOT support Total Quality Management?
A. Break down barriers among departments
B. Creating silos between departments
C. Strive for long-term improvement rather than short-term profit
D. Use numerical quotas
E. Build long-term relationships instead of awarding business on price tag alone
39) Which of these describes a vision, as it pertains to leadership?
A. A long-term goal of an organization
B. A mental image of a future state of an organization
C. The method through which leaders achieve goals
D. A short-term goal of an organization
E. Likely to land you in a padded room
40) When a company establishes technology leadership by pioneering unique products or services that command premium prices, it has benefited from a:
A. High-cost strategy
B. High-price strategy
C. Low-cost strategy
D. Differentiation strategy
E. Diversification strategy
45) To estimate the average annual expenses of students on books and class materials a sample of size 36 is taken. The average is $850 and the standard deviation is $54. A 99% confidence interval for the population mean is __________.
A. $825.48 to $874.52
B. $826.82 to $873.18
C. $832.36 to $867.64
D. $823.72 to $876.28
92) Which of the following receives at least some protection under the U.S. Constitution?
A. Offensive speech
B. Neither obscene speech nor offensive speech
C. Obscene speech
D. Both obscene speech and offensive speech
93) A “closely held corporation” is a corporation that is owned by:
A. The government.
B. A nonprofit organization.
C. A large number of members of the public.
D. A few shareholders, usually family members.
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 __________.
A. $48,000 income
B. not determinable
C. $10,000 loss
D. $10,000 income
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
Office Furniture 150,000
Accumulated Depreciation 450,000
What is the net amount of property, plant, and equipment that will appear on the balance sheet?
(150+225+900+675+150) – 450 = 1,650
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?
B. It should sell an equal quantity of both
C. Selling either results in the same additional income for the company
13) A company just starting in business purchased three merchandise inventory items at the following prices. First purchase $80; Second purchase $95; Third purchase $85. If the company
sold two units for a total of $240 and used FIFO costing, the gross profit for the period would be
16) Game theory is important for the understanding of __________.
A. all market structures
C. competitive markets
47) Thirty patients are selected from a filing cabinet containing 812 patient folders by choosing every 27th patient folder. Which sampling method is this?
A. Cluster sample
B. Stratified sample
C. Simple random sample
D. Systematic sample
51) Which is not a tool of statistical quality control?
A. Fishbone diagram
B. Pareto chart
C. Deming chart
D. Attribute control chart
Which of the following is not a source for external data?
B. government reports
C. corporate databases
D. commercial databases
Which of the following is not a function of functional area information systems?
A. provides information mainly in the form of reports
B. provides analysis capabilities to middle level managers and staff
C. supports the managerial tasks of planning, organizing, and controlling operations
D. provides information to managers in the functional areas
E. provides data from business events to the corporate database
61) __________ integrate the planning, management, and use of all of an organization’s resources, and are designed to tightly integrate the functional areas of the organization.
A. Functional area information systems
B. Corporate extranets
C. Supply chain management systems
D. Transaction processing systems
E. Enterprise resource planning systems
In an effort to increase its total sales, Champion has started exporting its spark plugs for use by several German auto producers. Champion is pursuing a _____ opportunity.
A. market penetration
B. product development
C. market development
D. mass marketing
When looking at demographic dimensions, marketers should:
A. know that demographics are especially helpful in explaining why specific people buy specific brands.
B. recognize that demographics can be very useful for estimating the market potential of possible target markets.
C. always consider external influences.
D. understand that ethnic groups are generally homogeneous within.
E. know that it is illegal to segment markets based on membership in some racial or ethnic group.
Coca-Cola is taking advantage of the new willingness of Chinese leaders to engage in international trade by marketing its soft drinks in China. What type of opportunity is Coke pursuing?
B. product development
C. test marketing
D. market penetration
E. market development
The clustering techniques that can be used in segmenting:
A. group people together into heterogeneous product-market segments.
B. try to find similar patterns within sets of data.
C. looks for differences between groups of people.
D. group people together based on age.
E. eliminate the need for management intuition and judgment.
Bob, an employee of Risky Manufacturing, Inc. is accidentally injured by a fellow worker while working his shift. Under workers’ compensation, Bob can:
A. Seek workers’ compensation only.
B. Sue Risky or seek workers’ compensation recovery, but not both.
C. Recover from workers’ compensation only if Risky was negligent in allowing the injury to occur.
D. Sue Risky or seek workers’ compensation recovery
Which of the following is correct about the states’ powers regarding foreign affairs?
A. The states can pass laws so long as they do not unduly burden foreign commerce, but the states have no authority to enter into treaties with foreign nations.
B. The states have no power over foreign affairs because the U.S. Constitution grants that power exclusively to the federal government.
C. Because of the sharing of powers between the federal government and the states, states have powers over foreign affairs equal to the powers of the federal government.
D. The states can pass laws and enter into treaties with foreign nations so long as they do not unduly burden foreign commerce.
E. The states can pass laws affecting foreign commerce and enter into treaties with foreign nations so
long as they first obtain the consent of the Senate.
Which of the following is correct with regard to the relationship between law and ethics?
A. Lawful conduct is always ethical conduct.
B. The rule of law and the golden rule of ethics demand the same response.
C. Although much of law is based on ethical standards, not all ethical standards have been enacted as law.
D. The law may not .permit something that would be ethically wrong.
Generally, which of the following statements relating to contractual capacity is correct?
A. Minors make void contracts.
B. Persons with full competence make enforceable contracts.
C. People who have been adjudicated insane make voidable contracts.
D. People with limited competence make void contracts.
E. People with no competence make voidable contracts