General Questions

A random variable is normally distributed, with u = 300 KG and (o = 50 KG. How small is the sample if standard error mean can be no >20 KG?

1) A random variable is normally distributed, with u = 300 KG and (o = 50 KG. How small is the sample if standard error mean can be no >20 KG? 2) population normally o=2 = 4.0: 11, 6, 8, 12, and 13. Construct and interpret 90% and 95% confidence interval for population mean. 3) If grades in a class are normally a mean of 82 & standard deviation of 7. What is the probability randomly selected student in class will have grade lower than 65?

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You are a medical assistant in a family practice office. While working, you receive a call from a mother, whose 18 year old daughter is a patient at your office. The woman said her daughter had not been feeling well and saw the doctor yesterday but did not share any of the information she received from the doctor. The woman has asked you to give her all of the information from her daughter s chart. Answer the following questions:

You are a medical assistant in a family practice office. While working, you receive a call from a mother, whose 18 year old daughter is a patient at your office. The woman said her daughter had not been feeling well and saw the doctor yesterday but did not share any of the information she received from the doctor. The woman has asked you to give her all of the information from her daughter s chart. Answer the following questions: ?Can you give the woman medical information on her daughter? Why or why not? ?What legal and ethical concepts are present in this situation that can influence the way you decided to handle this? Explain.

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Jim s Landscaping is in a business of maintaining and improving yards in the surrounding areas. The company bases its overhead cost budgets on the following data: Variable overhead costs:

Jim s Landscaping is in a business of maintaining and improving yards in the surrounding areas. The company bases its overhead cost budgets on the following data: Variable overhead costs: Supplies $4 per yard Machine maintenance $2 per yard Chemicals $6 per yard Fixed Overhead: Salaries and wages $2,300 per month Depreciation $800 per month Utilities $400 per month Rent $1,100 per month In June the following actual costs were incurred for 83 yards: Supplies $320 Machine maintenance $180 Chemicals $500 Salaries and wages $2,500 Depreciation $800 Utilities $450 Rent $1,100 Construct a flexible budget performance report using the data provided: Show computations

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Selected sales and operating data for three divisions of three different companies are given below: Division X Division Y Division Z Sales $900,000 $750,000 $600,000 Average operating assets $600,000 $150,000 $200,000 Net operating income $54,000 $30,000 $10,000 Minimum required rate of return 10% 16% 8% a. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover.

Selected sales and operating data for three divisions of three different companies are given below: Division X Division Y Division Z Sales $900,000 $750,000 $600,000 Average operating assets $600,000 $150,000 $200,000 Net operating income $54,000 $30,000 $10,000 Minimum required rate of return 10% 16% 8% a. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. Show computations b. Compute the residual income for each division. Show computations c. Under which of these methods would they accept an opportunity with a 15% return. Show computations and details

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What specific features in Word are used to create two of the following components of a research paper? (select two only) The Title page Headers/Footers Paragraph formatting Citations and References Bullets and Lists List four different styles used in writing a research paper and discuss the merits of each. What are the ethical considerations to be followed in writing a research paper, and why are they important?

What specific features in Word are used to create two of the following components of a research paper? (select two only) The Title page Headers/Footers Paragraph formatting Citations and References Bullets and Lists List four different styles used in writing a research paper and discuss the merits of each. What are the ethical considerations to be followed in writing a research paper, and why are they important?

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You have been asked by management to explain the variances in costs under your inpatient capitated contract. The following data is provided. Budget Actual Inpatient Costs $12,568,500 $16,618,350 Members 42,000 42,000 Admission Rate 0.070 0.095 Case Mix Index 0.90 0.85 Cost per Case (CMI = 1.0) $4,750 $4,900

You have been asked by management to explain the variances in costs under your inpatient capitated contract. The following data is provided. Budget Actual Inpatient Costs $12,568,500 $16,618,350 Members 42,000 42,000 Admission Rate 0.070 0.095 Case Mix Index 0.90 0.85 Cost per Case (CMI = 1.0) $4,750 $4,900 Problem 1: What dollar amount of the total variance is attributed to Enrollment Variance? Problem 2: What dollar effect did the increased admission rate have on cost? Problem 3: The intensity of care delivered dropped from a budgeted case mix of 0.90 to an actual case mix of 0.85. What dollar effect did this have on actual costs? Problem 4: Costs per case increased to $4,900 from a budgeted value of $4,750. This increased actual total costs by what amount? Problem 5: Using the information in the table below, calculate the amount of the unfavorable rate variance. Then select the letter from the list below that shows the correct answer. Budgeted Actual Volume 200,000 190,000 Revenue per unit $40 $37 Revenue $8,000,000 $7,030,000 a) $400,000 b) $570,000 c) $970,000 d) $600,000 e) cannot calculate with given information Problem 6: Using the information in the table below, determine how much of the supplies variance is due to a change in volume. Then select the letter from the list below that shows the correct answer. Budgeted Actual Variance Volume 1,000 1,100 100 Supplies $10,000 $12,750 $2,750 Fixed labor $20,000 $22,250 $2,250 $5,000 a) $ 900 b) $1,000 c) $1,050 d) $1,250 e) $1,500

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Write a paper of no more than 1,400 words in APA format that accomplishes the following: Discuss the statistical analysis of the data you collected. Analyze how you would apply Six Sigma, Baldrige, or ISO to the issues the organization is facing with one of their processes. Discuss the potential challenges to validity and reliability of your research question, process, data, and analysis.

Write a paper of no more than 1,400 words in APA format that accomplishes the following: o Discuss the statistical analysis of the data you collected. o Analyze how you would apply Six Sigma, Baldrige, or ISO to the issues the organization is facing with one of their processes. o Discuss the potential challenges to validity and reliability of your research question, process, data, and analysis. o Outline the steps needed to minimize these challenges. o Present your data in one of the four appropriate general response types (rating, ranking, categorization, or sorting). o Classify your findings in order of power (nominal, ordinal, interval, and ratio). o Discuss how your analysis may be used to innovate the business process.

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The Willsey Merchandise Company has budgeted $40,000 in sales for the month of December. The company s cost of goods sold is 30% of sales. If the company has budgeted to purchase $18,000 in merchandise during December, then the budgeted change in inventory levels over the month of December is:

1. The Willsey Merchandise Company has budgeted $40,000 in sales for the month of December. The company s cost of goods sold is 30% of sales. If the company has budgeted to purchase $18,000 in merchandise during December, then the budgeted change in inventory levels over the month of December is:

a. $6,000 increase.
b. $10,000 decrease.
c. $22,000 decrease.
d. $15,000 increase.

2. The standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times are referred to as:

a. normal standards.
b. practical standards.
c. ideal standards.
d. budgeted standards.

3. Tower Company planned to produce 3,000 units of its single product, Titactium, during November. The standards for one unit of Titactium specify six pounds of materials at $0.30 per pound. Actual production in November was 3,100 units of Titactium. There was a favorable materials price variance of $380 and an unfavorable materials quantity variance of $120. Based on these variances, one could conclude that:

a. more materials were purchased than were used.
b. more materials were used than were purchased.
c. the actual cost per pound for materials was less than the standard cost per pound.
d. the actual usage of materials was less than the standard allowed.

4. Which of the following variances would be useful in calling attention to possible problems in the control of spending on overhead items?
variable fixed overhead overhead spending budget variance variance
a. No No
b. No Yes
c. Yes No
d. Yes Yes

5. The economic impact of the inability to reach a target denominator level of activity would best be measured by:

a. the amount of the volume variance.
b. the contribution margin lost by failing to meet the target
denominator level of activity.
c. the amount of the fixed overhead budget variance.
d. the amount of the variable overhead efficiency variance.

6. Turnover is computed by dividing average operating assets into:

a. invested capital.
b. total assets.
c. net operating income.
d. sales.

7. A company s return on investment is the:

a. margin divided by turnover.
b. margin multiplied by turnover.
c. turnover divided by average operating assets.
d. turnover multiplied by average operating assets.

8. Largo Company recorded for the past year sales of $750,000 and average operating assets of $375,000. What is the margin that Largo Company needed to earn in order to achieve an ROI of 15%?

a. 2.00%
b. 15.00%
c. 9.99%
d. 7.50%

9. Consider a decision facing a firm of either accepting or rejecting a special offer for one of its products. A cost that is not relevant is:

a. direct materials.
b. variable overhead.
c. fixed overhead that will be avoided if the special offer is accepted.
d. common fixed overhead that will continue if the special offer is not accepted.

10. A plant operating at capacity would suggest that:

a. every machine and person in the plant is working at the maximum possible rate.
b. only some specific machines or processes are operating at the maximum rate possible.
c. fixed costs will need to change to accommodate increased demand.
d. managers should produce those products with the highest
contribution margin in order to deal with the constrained resource.

11. A study has been conducted to determine if Product A should be dropped. Sales of the product total $200,000 per year; variable expenses total $140,000 per year. Fixed expenses charged to the product total $90,000 per year. The company estimates that $40,000 of these fixed expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the company s overall net operating income would:

a. decrease by $20,000 per year.
b. increase by $20,000 per year.
c. decrease by $10,000 per year.
d. increase by $30,000 per year.

12. Suppose an investment has cash inflows of R dollars at the end of each year for two years. The present value of these cash inflows using a 12% discount rate will be:

a. greater than under a 10% discount rate.
b. less than under a 10% discount rate.
c. equal to that under a 10% discount rate.
d. sometimes greater than under a 10% discount rate and sometimes less; it depends on R.

13. Which one of the following statements about the payback method of capital budgeting is correct?

a. The payback method does not consider the time value of money.
b. The payback method considers cash flows after the payback has been reached.
c. The payback method uses discounted cash flow techniques.
d. The payback method will lead to the same decision as other methods of capital budgeting.

14. The Jason Company is considering the purchase of a machine that will increase revenues by $32,000 each year. Cash outflows for operating this machine will be $6,000 each year. The cost of the machine is $65,000. It is expected to have a useful life of five years with no salvage value. For this machine, the simple rate of return is:

a. 20%.
b. 40%.
c. 49.2%.
d. 9.2%.

15. Which of the following would be considered a use of cash for purpose of constructing a statement of cash flows?

a. selling the company s own common stock to investors.
b. issuing long term debt.
c. purchasing equipment.
d. amortizing a patent.

16. An increase in the prepaid expenses account of $1,000 over the course of a year would be shown on the company s statement of cash flows prepared under the indirect method as:

a. an addition to net income of $1,000 in order to arrive at net cash provided by operating activities.
b. a deduction from net income of $1,000 in order to arrive at net cash provided by operating activities.
c. an addition of $1,000 under financing activities.
d. a deduction of $1,000 under financing activities.

17. An increase in the bonds payable account of $200,000 over the course of a year would be shown on the company s statement of cash flows prepared under the indirect method as:

a. an addition of $200,000 under investing activities.
b. a deduction of $200,000 under investing activities.
c. an addition of $200,000 under financing activities.
d. a deduction of $200,000 under financing activities.

18. The gross margin percentage is most likely to be used to assess:

a. how quickly accounts receivables can be collected.
b. how quickly inventories are sold.
c. the efficiency of administrative departments.
d. the overall profitability of the company s products.

19. Which of the following is true regarding the calculation of return on total assets?

a. The numerator of the ratio consists only of net income.
b. The denominator of the ratio consists of the balance of total
assets at the end of the period under consideration.
c. The numerator of the ratio consists of net income plus interest expense times the tax rate.
d. The numerator of the ratio consists of net income plus interest expense times one minus the tax rate.

20. Sale of a piece of equipment at book value for cash will:

a. increase working capital.
b. decrease working capital.
c. decrease the debt to equity ratio.
d. increase net income.

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What is the value of a common stock if the growth rate is 8 percent, the most recent dividend was $2, and investors require a 15 percent return on similar investments?

1. What is the value of a common stock if the growth rate is 8 percent, the most recent dividend was $2, and investors
require a 15 percent return on similar investments?
A. $25.78 C. $28.57
B. $27.34 D. $30.85

2. Which of the following preferred stock properties would provide the best argument favoring purchase of preferred
stock by an investor?
A. When long term bond yields decline, the value of preferred stock can potentially rise.
B. Because preferred stock trading volume is lower than common stock trading volume, preferred stock prices are
less volatile than common stock prices.
C. The yield differential between preferred stock and bonds is smaller than would be expected on the basis of risk differentials.
D. Preferred stockholders receive preferential treatment over lower class, common stockholders when the corporation
earns sufficient profit to pay creditors and shareholders.
3. If a company fails to meet the terms of indenture, the company is
A. bankrupt. C. profitable.
B. in default. D. in registration.

4. Which of the following is the best conclusion, given only the following information:
ZYX Corporation s earnings after taxes have declined by 3.13% from the year earlier. During the past three months, ZYX purchased from investors (retired) 7.5% of the corporation s outstanding preferred stock shares, which pay dividends at 5% of par.
A. ZYX Corporation s net income decline is largely attributable to the expense it incurred to purchase its preferred stock.
B. ZYX Corporation s preferred stock purchase should enhance earnings after taxes next year because it will earn 5% dividend income from its new preferred stock holdings.
C. ZYX Corporation s purchase of preferred stock had no effect on the firm s asset balance.
D. ZYX Corporation s purchase of preferred stock improved its capacity to pay preferred stock dividends.

5. A 20 year $1,000 bond has a coupon of 8 percent. What would be the price if the coupon is paid semiannually and comparable bonds yield 10 percent?
A. $1,000 C. $828
B. $895 D. $624

6. What is the value of a preferred stock that pays an annual dividend of $4 a share if competitive yields are 5 percent?
A. $80 C. $40
B. $60 D. $20

7. Which of the following bonds is supported by collateral?
A. Convertible bonds C. Equipment trust certificates
B. Income bonds D. Debentures

8. If a perpetual preferred stock pays a dividend of $5 a year, and yields rise
from 10 percent to 12 percent, the price of the stock will
A. rise from $50 to $60. C. rise from $41.67 to $50.
B. fall from $50 to $41.67. D. fall from $60 to $50.

9. Interest is exempt from federal income taxation on
A. equipment trust certificates.
B. zero coupon bonds.
C. federal bonds such as savings bonds.
D. state of Florida bonds.

10. A 30 year $1,000 bond has an annual coupon of 6 percent. What would be the current
yield if the bond sells for $622?
A. 9.6 percent C. 5.6 percent
B. 6 percent D. 5 percent

11. Dividends come at the expense of
A. interest. C. liabilities.
B. retained earnings. D. stock.

12. A 10 year $1,000 bond has a coupon of 9 percent. What would be the price if the coupon is paid annually and comparable bonds yield 10 percent?
A. $1,900 C. $1,000
B. $1,159 D. $938

13. An increase in investors required return will cause the value of a common stock to
A. rise. C. remain unchanged.
B. fall. D. remain stable or rise slightly.

14. If investors require a rate of return of 8 percent, what is the value of a perpetual preferred stock that pays a fixed dividend of $2?
A. $16 C. $32
B. $25 D. $50

15. A $1,000 bond has an annual coupon of 5 percent and a price of $692. Find the number of years to maturity if comparable bonds yield 10 percent.
A. 5 years C. 20 years
B. 10 years D. 30 years

16. A common stock costs $40.50, the current dividend is $1.50, and the growth in the value of the shares and the dividend is 8 percent. What is the annual rate of return on an investment in this stock?
A. 4.5 percent C. 10 percent
B. 8 percent D. 12 percent

17. Preferred stock and bonds are similar because
A. they both have voting power.
B. interest and dividend payments are legal obligations.
C. neither interest nor dividends are tax deductible.
D. both may be subject to a call option.

18. What is the value of a $100 par preferred stock that must be retired after 10 years if it pays a dividend of $5 annually and the investor requires a 6 percent rate of return?
A. $92 C. $110
B. $100 D. $122

19. A perpetual preferred stock pays a fixed dividend of $9 and sells for $100. What is the stock s rate of return?
A. 6.5 percent C. 11 percent
B. 9 percent D. 12.5 percent

20. The value of common stock depends on the
A. price of the stock.
B. retirement date.
C. present value of cash flows.
D. coupon rate.

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True/False Questions 1. Tax planning is the structuring of a transaction to reduce tax costs or increase tax savings in order to maximize its net present value.

True/False Questions

1. Tax planning is the structuring of a transaction to reduce tax costs or increase tax savings in order to maximize its net present value.

2. In a Chapter 11 bankruptcy proceeding, the company is liquidated and all of its assets are sold in a dissolution and cessation of the company s business activities.

3. A living trust has as its primary objective the avoidance of probate costs.

4. Footnotes to GAAP financial statements include the corporation s effective tax rate.

5. When a shareholder recognizes gain in a Section 351 exchange, the corporation s basis in the assets transferred increased by the amount of gain recognized by the shareholder.

6. Corporations, recognize gain, but not loss, on the distribution of property to shareholders during a corporate liquidation.

7. Good Times Corporation is liquidating, and makes a final distribution to its sole shareholder, who has a tax basis of $50,000 in her corporate stock. The distribution consists of $250,000 cash. At the time of the liquidation, the corporation had corporate E&P of $750,000. The shareholder will recognize ordinary dividend income from the distribution.

8. Both the marketability discount rule and the minority interest rule can reduce the value of the gross estate.

9. In the European Union, the primary consumption tax is a value added tax (VAT) on business activities.

10. A partnership can operate a separate business through a Q Sub.

11. The nexus for collecting sales tax is different than the nexus for collecting income taxes.

12. Candle Maker Corporation distributes a mail order catalogue to customers all over the United States. The company recently opened a store in Florida. It must collect and remit sales tax to the state of Florida on sales made in the store and on catalogue sales to customers anywhere in the state of Florida.

13. The use of a trademark within a state establishes physical nexus within a state.

14. All of the states imposing an income tax have adopted different sets of statutes defining the computation of taxable income.

15. Property tax abatements are an example of a state tax incentive frequently used to entice business to locate in a jurisdiction.

16. The United States taxes its domestic corporations only on their U.S. source incomes.

17. Inventory of an accrual basis partnership is a hot asset that will cause gain from the sale of a partnership interest to be characterized as ordinary income.

18. If the foreign tax rate is higher than the U.S. tax rate, then all of the foreign income taxes paid will be allowed as a credit against the U.S. tax.

19. A branch operation in a foreign country is treated as a part of the U.S. corporation.

20. An advance pricing agreement (APA) is an agreement between a taxpayer and the IRS on the transfer pricing method to be used for any set of transactions to which the Section 482 rules might apply.

21. The recipient (donee) rather than the giver (donor) of a gift pays the gift tax.

22. Uncle Pete gave Mariah $50,000 so she could pay her tuition. This transfer is excluded from gift tax treatment.

23. Consolidated tax returns usually include both domestic and foreign subsidiaries of the controlling parent.

24. Dew Drop Trust had a $10,000 of dividend income and a $7,000 capital gain for the year. The trust is a simple trust. Under state law both income items must be allocated to accounting income.

25. In 2003, Marie, who is single, makes cash gifts of $15,000 to her daughter Joan, and $7,000 to her son Mike. Because Marie s total gifts average out to $11,000 per donee, she will have no taxable gifts.

26. Parent Corporation owns 100% of Subsidiary Corporation, which operates an active business. Parent s tax basis in the Subsidiary stock is $100,000. The Subsidiary has a tax basis in its assets of $500,000 and their FMV is $1,200,000. Parent liquidates Subsidiary into Parent. Subsidiary must recognize $700,000 taxable gain on the distribution of the property to Parent.

27. A permanent difference is included in the computation of book income for one year and taxable income in another.

28. Sharon had a $250,000 suspended ordinary loss because of the passive activity loss limitation rules. This year she recognized a $100,000 capital loss on the taxable liquidation of her interest in the entity. None of the suspended $250,000 ordinary loss can be deducted this year.

29. Harbor Corporation, which has assets with a total tax basis of $1,000,000 and a FMV of $3,000,000, merges into Artistic Corporation is a tax deferred Type A merger. Artistic takes a tax basis of $1,000,000 in the assets.

30. Goodwill purchased as part of a taxable acquisition is amortized over a period of 15 years.

31. After a qualifying reorganization, the former target shareholders are now shareholders in the acquiring corporation.

32. Korosa Corporation acquired all of the assets of XYZ Corporation in a tax deferred transaction. This included a business tax credit and a $500,000 NOL that Korosa Corporation can use against the future income generated by the XYZ Corporation assets.

33. A corporate division is nontaxable only if the parent corporation distributes stock representing at least 50% control of the subsidiary to the parent shareholders.

34. Albany Corporation distributes stock in its subsidiary, Yonkers Corporation, to its shareholders in a tax free corporate divisions structured as a spin off. The shareholders of Albany will allocate their total basis in the Albany stock between the Albany and Yonkers stock based on their relative FMV after the spin off.

35. An unlimited marital deduction is allowed for transfers at death to the decedent s spouse.

36. Diamond Inc. acquired all of the assets of Silver Company in a qualifying Type C reorganization. This included a capital loss carryover. Diamond had a capital gain last year. It can amend last year s return to use the capital loss to generate a refund.

37. Income in respect of a decedent (IRD) is an asset that is also included in the decedent s estate.

38. Under the basic annualization method, a corporation s fourth estimated tax payment is based on its actual income for the first six months.

39. ABC Corporation paid $65 million to purchase the assets of Minotar, a retail business. The appraised value of the assets was $46 million. The extra $19 million is allocated to goodwill, which is amortizable over 15 years.

40. Property owned as joint tenants with rights of survivorship will NOT go through probate.

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Conduct a case analysis for Corona Beer (Modelo)and prepare a 4 to 5 page report to complete the following: * Identify and discuss the trends in the global beer markets. * Discuss how Modelo s international expansion was made possible through strategic partnerships with experienced distributors in local markets.

Conduct a case analysis for Corona Beer (Modelo)and prepare a 4 to 5 page report to complete the following: * Identify and discuss the trends in the global beer markets. * Discuss how Modelo s international expansion was made possible through strategic partnerships with experienced distributors in local markets. * Identify and discuss the next foreign market that Modelo should enter and with what strategy. * Discuss the challenges that Modelo faces from its competitor InBev, and how it might respond strategically to the industry giant. * Discuss whether or not Modelo should diversity its business. If so, what business should it enter and why?

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Alan Mulally, CEO, Ford Motor Company Student will read the case and write a 4 to 5 page report that answers the following: Discuss the role of leadership and how it can impact organizational performance.

Alan Mulally, CEO, Ford Motor Company Student will read the case and write a 4 to 5 page report that answers the following: 1. Discuss the role of leadership and how it can impact organizational performance. 2. Discuss Mulally s leadership style at Ford Motor Company and provide examples of how his actions fit this style. 3. Discuss how goal setting helped Ford improve its performance. 4. Assess Mulally on each element in communication openness including message transmission, trust, agendas and goals. 5. Evaluate the effectiveness of Mulally s leadership style and recommend whether he should continue with this style, or use a different style. The format of the report is to be as follows: o Typed, double spaced, Times New Roman font (size 12), one inch margins on all sides, APA format. o Type the question followed by your answer to the question. o In addition to the 4 to 5 pages required, a title page is to be included.

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Write a 3 to 5 pagte overview and evaluation of a national agency or local agency. Your evaluation should be written in two sections. The first section should describe the agency s unique aspects, strengths, services, approach to marketing communications, specialties, client list and so forth. The second section should be your opininon of the organization as a marketing communication firm. Include your perception of the organization.

Write a 3 to 5 pagte overview and evaluation of a national agency or local agency. Your evaluation should be written in two sections. The first section should describe the agency s unique aspects, strengths, services, approach to marketing communications, specialties, client list and so forth. The second section should be your opininon of the organization as a marketing communication firm. Include your perception of the organization.

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The cost of fire insurance for a manufacturing plant is generally considered to be a:

1. The cost of fire insurance for a manufacturing plant is generally considered to be a:

a. product cost.
b. period cost.
c. variable cost.
d. all of the above.

2. An opportunity cost is:

a. the difference in total costs which results from selecting one alternative instead of another.
b. the benefit forgone by selecting one alternative instead of another.
c. a cost which may be saved by not adopting an alternative.
d. a cost which may be shifted to the future with little or no effect on current operations.

3. In a job order cost system, the use of direct materials previously purchased usually is recorded as a debit to:

a. Work in Process inventory.
b. Finished Goods inventory.
c. Manufacturing Overhead.
d. Raw Materials inventory.

4. The balance in White Company s Work in Process inventory account was $15,000 on August 1 and $18,000 on August 31. The company incurred $30,000 in direct labor cost during August and requisitioned $25,000 in raw materials (all direct material). If the
sum of the debits to the Manufacturing Overhead account total $28,000 for the month, and if the sum of the credits totaled $30,000, then:

a. Finished Goods was debited for $82,000 during the month.
b. Finished Goods was credited for $83,000 during the month.
c. Manufacturing Overhead was underapplied by $2,000 at the end of the month.
d. Finished Goods was debited for $85,000 during the month.

5. If the estimated manufacturing overhead for the year was $24,000, and the applied overhead was $26,500, the actual manufacturing overhead cost for the year was:

a. $19,500.
b. $22,000.
c. $28,500.
d. $31,000.

6. Departmental overhead rates may not correctly assign overhead costs due to:

a. the use of direct labor hours in allocating overhead costs to products rather than machine time or quantity of materials used.
b. the high correlation between direct labor hours and the incurrence of overhead costs.
c. overreliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, lot size, or complexity of production.
d. difficulties associated with identifying cost pools for the first stage of the allocation process.

7. The clerical activity associated with processing purchase orders to produce an order for a standard product is an example of a:

a. Unit level activity.
b. Batch level activity.
c. Product level activity.
d. Facility level activity.

8. Worker recreational facilities is an example of a cost that would ordinarily be considered to be:

a. Unit level.
b. Batch level.
c. Product level.
d. Facility level.

9. David Company uses the weighted average method in its process costing system. The first processing department, the Welding Department, started the month with 20,000 units that were 80% complete with respect to conversion costs. The conversion cost in
this beginning work in process inventory was $123,200. An additional 65,000 units were started into production during the month. There were 19,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $389,250 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for
the month? (Round off to three decimal places.)

a. $7.547
b. $7.700
c. $4.634
d. $5.988

10. Baker Company uses the weighted average method in its process costing system. The Assembly Department started the month with 8,000 units in its beginning work in process inventory that were 90% complete with respect to conversion costs. An additional 95,000
units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 11,000 units in the ending work in process inventory of the Assembly Department that were 90% complete with respect to
conversion costs. What were the equivalent units of production for conversion costs in
the Assembly Department for the month?

a. 94,700
b. 101,900
c. 98,000
d. 92,000

11. Process costing would be appropriate for each of the following except:

a. custom furniture.
b. oil refining.
c. grain milling.
d. newsprint production.

12. Expense A is a fixed cost; expense B is a variable cost. During the current year the activity level has increased, but is still within the relevant range. In terms of cost per unit of activity, we would expect that:

a. expense A has remained unchanged.
b. expense B has decreased.
c. expense A has decreased.
d. expense B has increased.

13. An increase in the activity level within the relevant range results in:

a. an increase in fixed cost per unit.
b. a proportionate increase in total fixed costs.
c. an unchanged fixed cost per unit.
d. a decrease in fixed cost per unit.

14. In describing the cost formula equation Y = a + bX, which of the following statements is correct?

a. X is the dependent variable.
b. a is the fixed component.
c. In the high low method, b equals change in activity divided by change in costs.
d. As X increases Y decreases.

15. Contribution margin is the excess of revenues over:

a. cost of goods sold.
b. manufacturing cost.
c. all direct costs.
d. all variable costs.

16. Given the cost formula Y = $17,500 + $4X, at what level of activity will total cost be $42,500?

a. 10,625 units.
b. 4,375 units.
c. 6,250 units.
d. 5,250 units.

17. Once the break even point is reached:

a. the total contribution margin changes from negative to positive.
b. net income will increase by the unit contribution margin for each additional item sold.
c. variable expenses will remain constant in total.
d. the contribution margin ratio begins to decrease.

18. Marston Enterprises sells three chemicals: petrol, septine, and tridol. Petrol s unit contribution margin is higher than septine s which is higher than tridol s. Which one of the following events is most likely to increase the company s overall break even point?

a. The installation of new computer controlled equipment and subsequent lay off of assembly line workers.
b. A decrease in tridol s selling price.
c. An increase in the overall market demand for septine.
d. A change in the relative market demand for the products, with the increase favoring petrol relative to septine and tridol.

19. The break even point in sales for Rice Company is $360,000 and the company s contribution margin ratio is 30%. If Rice Company desires an income of $84,000, sales would have to total:

a. $280,000.
b. $640,000.
c. $480,000.
d. $560,000.

20. Which of the following is not a benefit of budgeting?

a. It uncovers potential bottlenecks before they occur.
b. It coordinates the activities of the entire organization by integrating the plans and objectives of the various parts.
c. It ensures that accounting records comply with generally accepted accounting principles.
d. It provides benchmarks for evaluating subsequent performance.

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Discuss in a 2 page paper:Characterize the primary components of police management and describe in what way the typical police manager might strengthen and weaken a typical patrol officer s delivery of police services.

Discuss in a 2 page paper:Characterize the primary components of police management and describe in what way the typical police manager might strengthen and weaken a typical patrol officer s delivery of police services.

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