Archive for December 2018

To make good decisions you need all but:

To make good decisions you need all but:



a. Good information
b. The ability to recognize the consequences of various actions
c. Efficient ways to condense this information
d. Methods to help compare alternatives


Answer: b. The ability to recognize the consequences of various actions

Variances occur because:

Variances occur because:



a. Rounding errors in accounting software.
b. Most managers hate budgeting and do not put the time and effort into it to do it right.
c. Tax accounting requires a lot of guesswork.
d. Prices are different that what was expected.


Answer: d. Prices are different that what was expected.

Which question does variance analysis answer?

Which question does variance analysis answer? 



a. What costs did the business have for financing?
b. What is the value of everything the business owns?
c. How do our actual expenses compare to our budgeted expenses?
d. From where does the cash originate?


Answer: c. How do our actual expenses compare to our budgeted expenses?

The schedule or budget that combines data calculated in the production, direct material, direct labor and manufacturing overhead budgets is the _______.

The schedule or budget that combines data calculated in the production, direct material, direct labor and manufacturing overhead budgets is the _______.



a. Cost of goods manufactured and sold
b. The budgeted income statement
c. The manifesting overhead budget
d. The budgeted cash receipts


Answer: a. Cost of goods manufactured and sold

A budget is useful for:

A budget is useful for:



a. Measuring your performance
b. Warning you when to take corrective action
c. Helping you recognize resource restraints
d. All of the above


Answer: d. All of the above

Brandy made and sold decorative floral arrangements. For each arrangement, she purchased a container in which to hold the arrangement, silk flowers, and ribbon, which averaged $30 per arrangement. It took her about one hour to complete each and she set her hourly rate at $20/hour. This makes $50 her ____________________.

Brandy made and sold decorative floral arrangements. For each arrangement, she purchased a container in which to hold the arrangement, silk flowers, and ribbon, which averaged $30 per arrangement. It took her about one hour to complete each and she set her hourly rate at $20/hour. This makes $50 her ____________________.



a. Variable costs
b. Fixed costs
c. Economies of scale
d. Breakeven


Answer: a. Variable costs

The cash flow statement is a good tool for finding out:

The cash flow statement is a good tool for finding out: 



a. The business's profitability
b. The assets and liabilities of a firm
c. The sources and uses of cash
d. The amount of money the firm's owners leave in the business


Answer: c. The sources and uses of cash

Which question does the balance sheet answer?

Which question does the balance sheet answer?



a. What costs did the business have for financing?
b. What is the value of everything the business owns?
c. How do our actual expenses compare to our budgeted expenses?
d. From where does the cash originate?


Answer: b. What is the value of everything the business owns?

The balance sheet is a good tool for finding out:

The balance sheet is a good tool for finding out: 



a. The business's profitability
b. The assets and liabilities of a firm
c. The sources and uses of cash
d. The amount of money the firm's owners leave in the business


Answer: b. The assets and liabilities of a firm

What is one of the questions the income statement answers?

What is one of the questions the income statement answers?



a. What costs did the business have for financing?
b. What is the value of everything the business owns?
c. How do our actual expenses compare to our budgeted expenses?
d. From where does the cash originate?


Answer: a. What costs did the business have for financing?

The income statement is the best source for finding out:

The income statement is the best source for finding out:



a. The business's profitability
b. The assets and liabilities of a firm
c. The sources and uses of cash
d. The amount of money the firm's owners leave in the business


Answer: a. The business's profitability

Articulation means:

Articulation means:



a. That you follow good accounting practices
b. That the information in your financial statements flows from one to another
c. That your financial statements are in acceptable format
d. That your accounting system meets up to the demands of investors and the IRS.


Answer: b. That the information in your financial statements flows from one to another

Why would you use a computerized accounting system?

Why would you use a computerized accounting system?



a. To learn a new skill
b. To exhibit external legitimacy
c. To have sharp looking reports
d. To ensure the accuracy of your accounting


Answer: d. To ensure the accuracy of your accounting

Accurate and relevant data is part of_______.

Accurate and relevant data is part of_______.



a. Going concern
b. Business entity
c. Accounting equation
d. Information usefulness


Answer: d. Information usefulness

The three types of accounting include all but:

The three types of accounting include all but:



a. Managerial accounting
b. Cost accounting
c. Financial accounting
d. Tax accounting


Answer: b. Cost accounting

Which of the following is true of leasing issues?

Which of the following is true of leasing issues? 



A. Landlords do not have the right to move a business elsewhere at their discretion.

B. It costs more to limit the landlord's ability to lease to competing businesses.

C. It is irrelevant to look for stores in a landlord's property that match your business hours.

D. There are no penalties or problems for rent default.


Answer: B. It costs more to limit the landlord's ability to lease to competing businesses.

Which of the following is true of high customer contact businesses?

Which of the following is true of high customer contact businesses? 



A. Remote location services are examples of high customer contact businesses.

B. Traffic generators reduce customer traffic to the target market area.

C. Businesses providing a strong contrast to existing competition in the same area increase customer traffic.

D. Customer ease is not critical in high customer contact businesses.


Answer: C. Businesses providing a strong contrast to existing competition in the same area increase customer traffic.

Which of the following is true of business locations?

Which of the following is true of business locations? 



A. Target market customers are essential factors for selecting business locations.

B. Most entrepreneurs prefer their business locations to be outside their hometown.

C. The cost of moving a company across town or across the country is cheap.

D. Proximity of competitors does not affect choice of business locations.


Answer: A. Target market customers are essential factors for selecting business locations.

Which of the following statements is true of exporting?

Which of the following statements is true of exporting? 



A. Agents and export trading companies are extensively used in direct exporting.

B. Unstable governments and economies are a good market to export goods.

C. Shipping documentation and paperwork are generic to all products and countries.

D. Insurance is essential for export payments to overcome the risk of default.


Answer: D. Insurance is essential for export payments to overcome the risk of default.

Which of the following is true of payment procedures?

Which of the following is true of payment procedures? 





A. A letter of credit can be exercised only with specified shipping documents.

B. Providing credit to customers is a risk to the customers.

C. Up-front cash payment is a risk to the customers.

D. A documentary draft involves only two parties—the company and the customer.


Answer: C. Up-front cash payment is a risk to the customers.

_____ are specialists in export-related activities including tariff schedules, shipping, insurance, packing, transportation arrangements, customs clearing, and other export details.

_____ are specialists in export-related activities including tariff schedules, shipping, insurance, packing, transportation arrangements, customs clearing, and other export details. 



A. Born internationals

B. Freight forwarders

C. Contract manufacturers

D. Traffic generators


Answer: B. Freight forwarders

While teaching strategy at Farrell University, Jessica developed an interactive strategy-simulation game to inculcate the concept of strategy to her students. She found that they were able to grasp the concept much better from the game rather than from reading books. For two years Jessica used the game to teach students. Eventually she removed possible glitches and perfected the game. She wanted students at other universities to benefit from the simulation. The result was the launch of Simulate Strategy, Inc. Some of Jessica's students suggested that she create a Web site for Simulate Strategy, Inc. Her company is fairly new and opening a Web site immediately would expose her company to customers from around the world. In this scenario, Simulate Strategy is an example of a _____.

While teaching strategy at Farrell University, Jessica developed an interactive strategy-simulation game to inculcate the concept of strategy to her students. She found that they were able to grasp the concept much better from the game rather than from reading books. For two years Jessica used the game to teach students. Eventually she removed possible glitches and perfected the game. She wanted students at other universities to benefit from the simulation. The result was the launch of Simulate Strategy, Inc. Some of Jessica's students suggested that she create a Web site for Simulate Strategy, Inc. Her company is fairly new and opening a Web site immediately would expose her company to customers from around the world. In this scenario, Simulate Strategy is an example of a _____. 



A. freight forwarder

B. born international

C. sheltered workshop

D. contract manufacturer


Answer: B. born international

Which of the following statements is true of nondirect distribution?

Which of the following statements is true of nondirect distribution? 



A. A product's final price is more than the manufacturing cost if intermediaries are involved.

B. An agent sells products to consumers or end-users, typically in small quantities.

C. Distributors and wholesalers tend to take on start-up products due to zero setup charges.

D. A retailer represents a manufacturer's product to other business-to-business middleman firms.


Answer: A. A product's final price is more than the manufacturing cost if intermediaries are involved.

In _____, an advertisement is placed in a magazine, newspaper, radio, billboard, or television and includes an order blank with a phone number, e-mail, or snail-mail address, using which customers can place immediate orders.

In _____, an advertisement is placed in a magazine, newspaper, radio, billboard, or television and includes an order blank with a phone number, e-mail, or snail-mail address, using which customers can place immediate orders. 



A. telemarketing

B. direct response advertising

C. guerilla marketing

D. direct selling


Answer: B. direct response advertising

Which of the following statements is true of telemarketing?

Which of the following statements is true of telemarketing? 



A. Outbound telemarketing is the result of direct response advertising.

B. It is the least expensive form of direct marketing.

C. It is found to be a very annoying form of marketing to most customers.

D. Inbound telemarketing involves the company calling customers.


Answer: C. It is found to be a very annoying form of marketing to most customers.

While teaching strategy at Farrell University, Jessica developed an interactive strategy-simulation game to help her students understand its concepts. She found that they were able to grasp the concept much better from the game rather than from reading books. For two years, Jessica used the game to teach students. Eventually she removed possible glitches and perfected the game. She wanted students at other universities to benefit from the simulation. The result was the launch of Simulate Strategy, Inc. Given that Jessica has a very limited budget, which of the following forms of direct mail will be most appropriate for her to adopt?

While teaching strategy at Farrell University, Jessica developed an interactive strategy-simulation game to help her students understand its concepts. She found that they were able to grasp the concept much better from the game rather than from reading books. For two years, Jessica used the game to teach students. Eventually she removed possible glitches and perfected the game. She wanted students at other universities to benefit from the simulation. The result was the launch of Simulate Strategy, Inc. Given that Jessica has a very limited budget, which of the following forms of direct mail will be most appropriate for her to adopt? 



A. Brochure

B. Direct response advertising

C. E-mail

D. Telemarketing


Answer: C. E-mail

Which of the following statements is true of catalogs?

Which of the following statements is true of catalogs? 



A. Catalogs do not target particular types of consumers.

B. Creating and disseminating catalogs online increases company costs.

C. Most part-time entrepreneurs typically use existing catalogs for their products.

D. Catalogs do not focus on any particular types of products.


Answer: C. Most part-time entrepreneurs typically use existing catalogs for their products.

Which of the following statements is true of a direct mail approach?

Which of the following statements is true of a direct mail approach? 



A. It is a challenge to find the right market using this method.

B. It involves major inventory investments.

C. It is seen by most customers as a form of home invasion.

D. It does not need adequate preparation before selling a product.


Answer: A. It is a challenge to find the right market using this method.

Which of the following is a modern form of direct mail?

Which of the following is a modern form of direct mail? 



A. Catalogs and brochures

B. Direct faxing and e-mailing

C. Sales letters and mail orders

D. Postcards and leaflets


Answer: B. Direct faxing and e-mailing

A _____ is a form of direct mail.

A _____ is a form of direct mail. 



A. door-to-door sale

B. party sale

C. brochure

D. vending machine


Answer: C. brochure

_____ refers to a method of selling in which catalogs, brochures, letters, videos, and other pieces of marketing materials are shipped straight to customers from which they can mail, call, or e-mail an order.

_____ refers to a method of selling in which catalogs, brochures, letters, videos, and other pieces of marketing materials are shipped straight to customers from which they can mail, call, or e-mail an order. 



A. Guerilla marketing

B. Direct sales

C. Contract manufacturing

D. Direct mail


Answer: D. Direct mail

Which of the following statements about handling an early termination is true?

Which of the following statements about handling an early termination is true? 



A. The bailout clause doesn't not help in handling easy terminations if sales do not meet an agreed-to level.

B. It is good to set up a long-term lease initially.

C. A "cap" or limit on how long to continue paying rent aids in easy lease termination.

D. If business falters, there is no obligation to continue paying monthly rent.


Answer: C. A "cap" or limit on how long to continue paying rent aids in easy lease termination.

Which of the following statements is true of service locations?

Which of the following statements is true of service locations? 




A. Services at a remote location can be located anywhere in the world.

B. Office cleaning is an example of services at a mutually accessible location.

C. Services at a remote location needs frequent face-to-face client involvement.

D. Services at a mutually accessible location are ideal for home-based businesses.


Answer: A. Services at a remote location can be located anywhere in the world.

While teaching strategy at Farrell University, Jessica developed an interactive strategy-simulation game to inculcate the concept of strategy to her students. She found that they were able to grasp the concept much better from the game rather than from reading books. For two years Jessica used the game to teach students. Eventually she removed possible glitches and perfected the game. She wanted students at other universities to benefit from the simulation. The result was the launch of Simulate Strategy, Inc. Jessica places an advertisement about her product with her e-mail and contact information in the "Chronicle of Higher Education," a leading publication for University professors. Which of the following marketing strategies exemplifies this scenario?

While teaching strategy at Farrell University, Jessica developed an interactive strategy-simulation game to inculcate the concept of strategy to her students. She found that they were able to grasp the concept much better from the game rather than from reading books. For two years Jessica used the game to teach students. Eventually she removed possible glitches and perfected the game. She wanted students at other universities to benefit from the simulation. The result was the launch of Simulate Strategy, Inc. Jessica places an advertisement about her product with her e-mail and contact information in the "Chronicle of Higher Education," a leading publication for University professors. Which of the following marketing strategies exemplifies this scenario? 



A. Guerilla marketing

B. Telemarketing

C. Direct sales

D. Direct response advertising


Answer: D. Direct response advertising

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