DeVry University, Keller Graduate School of Management - BUSN 278FINALS4. Graded A

Document Content and Description Below

2. (TCO 2) Which of the following is not a quantitative forecasting method? (Points : 5) Moving average model Classical decomposition Delphi method Simple regression 4. (TCO 4) Marketing expens... es typically increase in proportion to _____. (Points : 5) number of customer orders. advertising dollars. sales dollars. salespersons’ salaries. 5. (TCO 5) Which of the following is not true of the decision packages used in zero-base budgeting? (Points : 5) Decision packages should include alternative methods of performing the activity. Decision packages may cross functional and organizational lines. Decision packages can be either mutually exclusive or incremental. Decision packages may cover either short-term or long-term periods. Question 6. 6. (TCO 6) A disadvantage of the payback period technique is that it _____. (Points : 5) ignores obsolescence factors ignores the cost of an investment is complicated to use ignores the time value of money Question 7. 7. (TCO 6) The accounting rate of return method is based on _____. (Points : 5) income data the time value of money data market values cash flow data Question 8. 8. (TCO 6) A company projects annual cash inflows of $85,000 each year for the next 5 years if it invests $300,000 in new equipment. The equipment has a 5-year life and an estimated salvage value of $75,000. What is the accounting rate of return on this investment? (Points : 5) 28.3% 13.3% 15% 43.3% 11. (TCO 6) A company has a minimum required rate of return of 9%. It is considering investing in a project that costs $175,000 and is expected to generate cash inflows of $70,000 at the end of each year for 3 years. The approximate net present value of this project is _____. (Points : 5) $177,170 $35,000 $17,718 $2,191 Question 12. 12. (TCO 7) Which one of the following is not needed in preparing a production budget? (Points : 5) Budgeted unit sales Budgeted raw materials Beginning finished goods units Ending finished goods units Question 13. 13. (TCO 7) A company budgeted unit sales of 102,000 units for January, 2008 and 120,000 units for February, 2008. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month's budgeted unit sales. If there were 30,600 units of inventory on hand on December 31, 2007, how many units should be produced in January, 2008 in order for the company to meet its goals? (Points : 5) 107,400 units 102,000 units 96,600 units 138,000 units Question 14. 14. (TCO 8) Which of the following is not a cause of profit variance? (Points : 5) Changes in sales price Changes in sales mix Changes in sales volume All of the above are causes of profit variance. [Show More]

Last updated: 1 year ago

Preview 1 out of 3 pages