KADS, Inc. has spent $400,000 on research to develop a new computer game

Project Cash Flows

KADS, Inc. has spent $400,000 on research to develop a new computer game.  The firm is planning to spend $200,000 on a machine to produce the new game.  Shipping and installation costs of the machine will be capitalized and depreciated; they total $50,000.  The machine has an expected life of three years, a $75,000 estimated resale value, and falls under the MACRS seven-year class life.  Revenue from the new game is expected to be $600,000 per year, with costs of $250,000 per year.  The firm has a tax rate of 35 percent, an opportunity cost of capital of 15 percent, and it expects net working capital to increase by $100,000 at the beginning of the project.  What will the cash flows for this project be?

Here’s the SOLUTION


Posted in Homework Help | Comments Off

You are considering the purchase of one of two machines used in your manufacturing plant

EAC Approach

You are considering the purchase of one of two machines used in your manufacturing plant.  Machine A has a life of two years, costs $80 initially, and then $125 per year in maintenance costs.  Machine B costs $150 initially, has a life of three years, and requires $100 in annual maintenance costs.  Either machine must be replaced at the end of its life with an equivalent machine.  Which is the better machine for the firm?  The discount rate is 12 percent and the tax rate is zero.

One interation of each machine will consist of the following cash flows:

Year                     0        1          2          3
Machine A CFs -$80 -$125 -$125
Machine B CFs -$150 -$100 -$100 -$100

Here’s the SOLUTION

Posted in Homework Help | Comments Off

Devry LAS432 Midterm Exam (A+ Guaranteed)

Devry LAS432 Midterm Exam

Question 1.1. (TCO 1) The Neolithic Revolution was a result of (Points : 5)

controlled planting of crops.
domestication of animals.
development of irrigation systems.
All of the above

Question 2.2. (TCO 1) In the Neolithic Revolution, the growth of communities was a result of (Points : 5)

the use of steam as an energy source.
farming and the domestication of animals.
conquest and settlement.
new trade routes to the East.

Question 3.3. (TCOs 2 & 8) Rapid urbanization in Britain during the 19th century was the result of (Points : 5)

new enclosure laws in rural areas.
a shift from household production to factory production.
a growing dependence upon steam power.
All of the above

Question 4.4. (TCOs 2 & 8) Although telephone systems had much in common with telegraph systems, telephone technology was a more social technology because(Points : 5)

the telephone was a user-to-user technology.
the telegraph required trained interpreters as intermediaries.
the telegraph networked businesses and agencies.
All of the above

Question 5.5. (TCO 4) One of the characteristics of Wiki art is (Points : 5)

it is all the property of Wikipedia.
it’s collaborative and ever-changing.
that finished pieces are sold on an online forum.
that it allows professional artists a new medium.

Question 6.6. (TCO 11) Which of the following is NOT a scholarly resource? (Points : 5)

Journal of the American Medical Association


Chicago Tribune

Question 7.7. (TCO 8) In Britain, members of the industrial middle classes (Points : 5)

kept summer homes in the country to avoid deadly smog.
became Luddites and destroyed machines.
supported labor reforms in Parliament.
did not send their children to work in factories.

Question 8.8. (TCO 11) The intended reader of a scholarly resource would be (Points : 5)

All of the above

Question 9.9. (TCO 12) The term nanotechnology was first used to refer to (Points : 5)

genetically engineered crops.
production technology.
communication between multiple cells.
early personal computers.

Question 10.10. (TCO 12) In China, much research into genetically modified organisms is sponsored by the state, but in the west, research is (Points : 5)

primarily publicly funded.
left solely to research universities.
driven by a handful of large for-profit corporations.
guided by public input and consultation.

You must complete all three essays. These essays are worth 50 points each, so please take the time to think through your answers and review them before submitting.
These essays should be a minimum of five paragraphs in length each. They should contain a clear thesis statement in the first paragraph (an answer to the question!). Make sure your explanation is clear and that you provide specific examples. Any quotes from the readings or external materials must include quotation marks and an in-text citation. Failure to identify quoted material could result in a 0 for the exam and a formal academic dishonesty charge.

(TCOs 1 & 2) What are some of the key impacts of the Industrial Revolution? You may discuss not only ones which came about within the time-span attributed to the Industrial Revolution, but also those which stretched long past the end of that particular historical era. (Points: 50)

Question 2. 2. (TCOs 4 & 8) Define and compare at least two of the ethical theories described by Baase. What are their strengths? In what areas do they lack? Do these theories hold up within our modern, technological society? (Points : 50)

Question 3. 3. (TCOs 3 & 4) How have changes in technology affected the recording industry and our understanding of what it means to be a professional musician? How have changes in technology affected our access to recorded music and the control exercised by traditional distributors? How will all these changes affect cultural trends and our expectations of music as an art form? Provide specific examples. (Points : 50)

Here’s the SOLUTION

Posted in Homework Help | Comments Off

Devry MIS535 Final Exam (A+ Guaranteed)

Devry MIS535 Final Exam

Page 1

Question 1.1. (TCO A) Which of the following objectives best describes the business strategy behind the development of smart grid initiatives by power companies, as discussed in the chapter case? (Points : 4)

Operational excellence
New products and services
Competitive advantage
Customer support

Question 2.2. (TCO B) The interaction between information systems and organizations is influenced (Points : 5)

primarily by the decision making of middle- and senior-managers.
by many factors, including structure, politics, culture, and environment.
by two main microeconomic forces: capital and labor.
primarily by the organization’s business processes and culture.

Question 3.3. (TCO C) Which of the following is not one of the main problems with a traditional file environment? (Points : 4)

Data inconsistency
Program-data independence
Lack of flexibility in creating ad-hoc reports
Poor security

Question 4.4. (TCO D) Corporate network infrastructure is simplified in a cloud computing environment because (Points : 4)

people are able to do less.
corporate LANs are no longer necessary.
application, database, and web servers are moved to the cloud.
mobile and Wi-Fi networks are no longer supported.

Question 5.5. (TCO E) A client computer networked to a server computer, with processing split between the two types of machines, is called a(n) (Points : 5)

service-oriented architecture.
on-demand architecture.
multitiered client/server architecture.
two-tiered client/server architecture.

Question 6.6. (TCO F) What is the “Manifesto for Agile Software Development”? (Points : 4)

A document that defines the new processes to be used in software development
A document that outlines why traditional software development practices don’t work
A document that refines the current software processes
A document that defines a radically new approach to software development

Question 7.7. (TCO G) Many users are attacked because they (Points : 4)

do not apply operating system security updates.
leave their computers running.
do not update browser plug-ins.
download illegal music and movies.

Page 2

Question 1. 1. (TCO A) You are starting a small bike messenger company. Given your type of services (hand-delivering packages within a small geographical area), could your firm be a digital firm? If so, what would make this a digital firm? (Points : 25)

Question 2. 2. (TCO B) You are an analyst for a firm that imports and distributes specialty oils and vinegars, and your company wants you to evaluate its options for taking advantage of cutting-edge business analytics. What are its choices? What will you recommend? (Points : 25)

Question 3. 3. (TCO C) The small publishing company you work for wants to create a new database for storing information about all of its author contracts. What factors will influence how you design the database? (Points : 25)

Question 4. 4. (TCO D) How does packet switching work? (Points : 25)

Question 5. 5. (TCO E) Identify and describe five or more of the current trends in contemporary software platforms. (Points : 25)

Question 6. 6. (TCO F) Americlinic, a national chain of budget healthcare clinics, is creating an information system that will allow patients and doctors at participating franchises to communicate online. The goal of the system is to allow doctors to respond to minor health questions quickly and more efficiently, saving patients unnecessary visits to the clinic. This will be a major procedural change. What steps would you recommend to this company to ensure the user acceptance of the system? (Points : 20)

Question 7. 7. (TCO G) What are the security challenges faced by wireless networks? (Points : 25)

Here’s the SOLUTION

Posted in Homework Help | Comments Off

You have just been hired by SecuriDoor Corporation, the manufacturer of a revolutionary

Activity and Spending Variances

You have just been hired by SecuriDoor Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for April
                                                         Cost Formula                                              Actual Cost in April           
Utilities                                  $16,500 plus $0.15 per machine –hour          $21,300
Maintenance                        $38,600 plus $1.80 per machine -hour           $68,400
Supplies                                 $0.50 per machine -hour                                   $9,800
Indirect Labor                       $94,300 plus $1.20 per machine -hour           $119,200
Depreciation                         $68,000                                                                 $69,700
During April, the company worked 18,000 machine-hours and produced 12,000 units. The company had originally planned to work 20,000 machine-hours during April. 
1. Prepare a report showing the activity variances for April. Explain what these variances mean.
2. Prepare a report showing the spending variances for April. Explain what these variances mean.
Posted in Homework Help | Comments Off

Crydon, Incorporated manufactures an advanced swim fin for scuba divers

Integration of Sales, Production, and Direct Materials Budgets

Crydon, Incorporated manufactures an advanced swim fin for scuba divers. Management  is now preparing detailed budgets for the third quarter, July through September, and has assembled the following information to assist in preparing the budget:

a. The Marketing Department has estimated sales as follows for the remainder of the year (in pairs of swim fins): The selling price of the swim is $50 per pair


July                                            6,000        October                         4,000


August                                      7,000        November                     3,000


September                               5,000       December                      3,000


b. All sales are on account. Based on past experience, sales are expected to be collected in the following pattern:


 40% in the month of sale


50% in the month following sale


10% uncollectible


The beginning accounts receivable balance 9excluding uncollectible amounts) on July 1 will be $130,000.


c. The company maintains finished goods inventories equal to 10% of the following month’s sales. The inventory of finished goods on July 1 will be 600 pairs.


d. Each pair of swim fins requires 2 pounds of geico compound. To prevent shortages, the company would like the inventory of geico compound on hand at the end of each month to be equal to 20% of the following month’s production needs. The inventory of geico compound on hand on July 1 will be 2,440 pounds.


e. Geico compound costs $2.50 per pound. Crydon pays for 60% of its purchase in the month of purchase; the remainder is paid for in the following month. The accounts payable balance for geico compound purchases will be $11,400 on July 1.




1. Prepare a sales budget, by month and in total, for the third quarter. (Show your budget in both pairs of swim fins and dollars.) Also prepare a schedule of expected cash collections, by month and in total, for the third quarter.

2. Prepare a production budget for each of the months July through October.

3. Prepare a direct materials budget for geico compound, by month and in total, for the third quarter. Also prepare a schedule of expected cash disbursements for geico compound, by month and in total, for the third quarter.
Posted in Homework Help | Comments Off

Janus Products, Inc. is a merchandising company that sells binders, paper

Cash Budget with Supporting Schedules

Janus Products, Inc. is a merchandising company that sells binders, paper, and other school supplies. The company is planning its cash needs for the third quarter. In the past, Janus Products has had to borrow money during the third quarter to support peak sales of back-to-school materials, which occur during August. The following information has been assembled to assist in preparing a cash budget for the quarter:

a. Budgeted monthly absorption costing income statements for July-October are as follows:

                                                                              July         August       September       October

Sales                                                                   $40,000   $70,000     $50,000             $45,000

Cost of goods sold                                             24,000     42,000        30,000               27,000

Gross margin                                                      16,000     28,000        20,000               18,000             

Selling and administrative expenses:

Selling expenses                                                  7,200      11,700         8,500                 7,300

Administrative expenses                                    5,600       7,200          6,100                 5,900

Total selling and administrative expenses     12,800     18,900        14,600              13,200 

Net operating income                                       $3,200      $9,100       $5,400              $4,800

*Includes $2,000 depreciation each month

b. Sales are 20% for cash and 80% on credit.

c. Credit sales are collected over a three-month period with 10% collected in the month of sale, 70% in the month following sale, and 20% in the second month following sale. May sales totaled $30,000, and June sales totaled $36,000.

d. Inventory purchases are paid for within 15 days. Therefore, 50% of a month’s inventory purchases are paid for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable for inventory purchases at June 30 total $11,700.

e. The company maintains its ending inventory levels at 75% of the cost of the merchandise to be sold in the following month. The merchandise inventory at June 30 is $18,000.

f. Land costing $4,500 will be purchased in July.

g. Dividends of $1,000 will be declared and paid in September.

h. The cash balance on June 30 is $8,000; the company must maintain a cash balance of at least this amount at the end of each month.

i. The company has an agreement with a local bank that allows it to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $40,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.


1. Prepare a schedule of expected cash collections for July, August, and September and for the quarter in total.

2. Prepare the following for merchandise inventory:

a. A merchandise purchases budget for July, August, and September.

b. A schedule of expected cash disbursements for merchandise purchases for July, August, and September and for the quarter in total.

3. Prepare a cash budget for July, August, and September and for the quarter in total.
Posted in Homework Help | Comments Off

Seaport BUSC110 Quiz 3 (A+ Guaranteed)

Seaport BUSC110 Quiz 3

1. What is legal is not necessarily ethical and what is ethical is not necessarily legal.


2. The agency problem in corporate governance is about how to get managers’ interests well aligned with the shareholders’ interests.


3. According to utilitarianism, _____.

results, not rules, are emphasized
ethical action arises from doing one’s duty
duties are defined by rational thought
emphasis is on what is the fair way to distribute goods among a group of people
people give up certain rights to government in exchange for security
4. Which of the following is true according to Aristotle and the Virtue theory?

Aristotle believed that as all activity was aimed at some goal or perceived good, no ranking was required among those goals or goods.
Aristotle rejected wealth, pleasure, and fame as the distinguishing feature of humans as opposed to other species.
Happiness is living according to passive use of reason.
The emphasis on virtue theory has gradually been reducing while more attention is being given to the utilitarian and deontological approaches to ethics.
Happiness cannot be associated with reason.

5. The manager’s fiduciary duty refers to _____.

the duty of managers to maximize returns to employees
the legally prescribed duties which make their employment possible
the moral duty managers have to act as responsible agents to the owners
managers resisting hostile takeover bids
managers managing by number

6. _____ helps companies embrace the idea that profit and prosperity must go hand in hand with social justice and environmental stewardship.

Social contract
Stakeholder theory
Conscious capitalism
Virtue ethics

7. It is possible to become someone’s partner without intending to or even realizing that partnership has been created.


8. Partnership is limited to a direct association between human beings.


9. A _____ is the association of two or more people carrying on a business as co-owners for profit.

limited liability company
agency relationship

10. The concept of a business firm as a legal person, with existence and accountability separate from its owners stems from _____.

entity theory
aggregate theory
concession theory
conduit theory
appropriation theory

11. The Uniform Partnership Act and the Revised Uniform Partnership Act do not dictate what relations among partners must be.


12. The Revised Uniform Partnership Act (RUPA), generally, requires the judgment creditor to exhaust the partnership’s assets before going after the separate assets of a partner.


13. For tortuous acts, the partners are said to be jointly and severally liable under both Uniform Partnership Act (UPA) and Revised Uniform Partnership Act (RUPA), and the plaintiff may separately sue one or more partners.


14. _____ is the highest duty of good faith and trust, imposed on partners as to each other and the firm.

Embezzlement duty
Larceny duty
Escrow duty
Escheat duty
Fiduciary duty

15. A court order that directs a partnership to pay a partner’s judgment creditor the distribution that the partner would normally receive is called _____.

doctrine of estoppel
order of relief
proof of claim
performance bond
charging order

16. Sub-S corporations, limited liability partnerships, and limited liability limited partnerships are all entities.


17. The partnership law imposed personal liability on the partners because people tend to be more careful when they are personally liable for their own mistakes and bad judgment.


18. The original source of limited partnership law is the _____ that was drafted in 1916.

Uniform Limited Partnership Act (ULPA)
Revised Uniform Limited Partnership Act
National Conference of Commissioners on Uniform Laws
Companies Act
Limited Liability Partnership Act

19. It is required that the limited liability company (LLC) members file a _____ with the secretary of the state during its creation.

certificate of stare decisis
certificate of organization
certificate of ultra vires
certificate of derivative action
certificate of parens patriae

20. When the limited liability company (LLC) is manager managed, _____.

all members have actual and apparent authority to bind the LLC to contracts on its behalf
all member votes have equal weights
non-manager members also have duty of care and fiduciary duty
only managers have the legal authority to bind the firm
firm decisions that are extraordinary can be taken only by its manager members

21. The corporate veil creates a separate, legally recognized corporate entity and shields the people behind the corporation from personal liability.


22. Failure to follow corporate formalities may subject stockholders to personal liability.


23. Choosing the particular venue in which to incorporate is the first critical decision to be made after deciding to incorporate.


24. Public corporations are also known as _____ corporations.

closely held

25. An officer can be held strictly liable for his corporation’s violation of the regulations, regardless of the fact that he or she had no knowledge about it.


26. Shareholders are permitted to adopt, amend, and repeal the corporation’s bylaws.


27. The Sarbanes-Oxley Act of 2002 states that a corporate officer or a director cannot be fired without a particular clause.


28. A majority of the members of the board constitutes a quorum, unless the articles of incorporation specify a larger number.


29. Who among the following have little decision making authority in a corporation?

A company’s director
A company’s employee
A company’s manager
A company’s officer
A company’s stockholder

30. The _____ doctrine is a doctrine holding that certain legal consequences attach to an attempt by a corporation to carry out acts that are outside its lawful powers.

promissory estoppel
delectus respondeat
family purpose
ultra vires
inter vivos

31. Drafters of the Sherman Act based the act on a common-law policy against monopolies and other infringements on competition.


32. The Clayton Act was enacted in 1914 to plug the loopholes in the Sherman Act.


33. Like the Sherman Act, the Federal Trade Commission Act is a civil statute, involving no criminal penalties.


34. Possessing a monopoly is not per se unlawful.


35. The Sherman Antitrust Act of 1890 was formed to:

forbid combinations in restraint of trade and monopolizing
forbid employers from interacting with workers in the private sector who create labor unions
limit the formation of yellow-dog contracts
set enhanced standards for all U.S. public company boards, management and public accounting firms.
limit the formation of runaway shop agreements

36. _____ is a remedy used to break up a firm into smaller, independent units, where the firm has exercised its monopoly power.

Money laundering

37. The first principle of Federal Trade Commission action is that it gauges deceptive acts and practices as interpreted by the general public, not by the more sophisticated.


38. If a fact not disclosed has a bearing on a consumer’s decision whether to purchase the product, its omission might be tantamount to deception.


39. The Federal Trade Commission can order a company to remove or modify a deceptive trade name.


40. In the _____ Act of 1912, Congress for the first time empowered a federal agency to investigate and deter acts of unfair competition.

Federal Protective Service
Federal Emergency Management
Federal Trade Commission
Federal Law Enforcement Training
Federal Housing Administration

Here’s the SOLUTION

Posted in Homework Help | Comments Off

Strayer FIN100 Week 5 Quiz 3 (A+ Guaranteed)

Strayer FIN100 Week 5 Quiz 3

1. Which of the following will only be executed if the order’s price conditions are met?

An unlimited order
A trade
A limit order
A spread

2. A 5.5 percent corporate coupon bond is callable in four years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond? (Assume annual interest payments.)


3. Which of the following terms is the chance that the bond issuer will not be able to make timely payments?

Interest rate risk
Liquidity of interest rate risk
Term structure of interest rates
Credit quality risk

4. Which of the following is a true statement?

If interest rates fall, corporate bonds will have decreasing values.
If interest rates fall, U.S. Treasury bonds will have decreasing values.
If interest rates fall, no bonds will enjoy rising values.
If interest rates fall, all bonds will enjoy rising values.

5. At your discount brokerage firm, it costs $9.95 per stock trade. How much money do you need to buy 100 shares of Ralph Lauren (RL), which trades at $85.13?


6. As residual claimants, which of these investors claim any cash flows to the firm that remain after the firm pays all other claims?

Common stockholders
Preferred stockholders

7. You would like to sell 100 shares of Pfizer, Inc. (PFE). The current bid and ask quotes are $27.22 and $27.25, respectively. You place a limit sell-order at $27.24. If the trade executes, how much money do you receive from the buyer?


8. A fast growing firm recently paid a dividend of $0.50 per share. The dividend is expected to increase at a 25 percent rate for the next 3 years. Afterwards, a more stable 12 percent growth rate can be assumed. If a 15 percent discount rate is appropriate for this stock, what is its value?


9. Consider the following three bond quotes; a Treasury note quoted at 87:25, and a corporate bond quoted at 102.42, and a municipal bond quoted at 101.45. If the Treasury and corporate bonds have a par value of $1,000 and the municipal bond has a par value of $5,000, what is the price of these three bonds in dollars?

$877.81, $1,024.20, $5,072.50, respectively
$872.50, $1,000, $1,000, respectively
$1000, $1,000, $1,000, respectively
$1,000, $1,024.20, $1,001.45, respectively

10. Which of the following terms is a comparison of market yields on securities, assuming all characteristics except maturity are the same?

Credit quality risk
Liquidity of interest rate risk
Term structure of interest rates
Interest rate risk

11. Which of the following is a legal contract that outlines the precise terms between the issuer and the bondholder?

Enforcement codes

12. Which of the following is a debt security whose payments originate from other loans, such as credit card debt, auto loans, and home equity loans?

Credit quality securities
Junk bonds
Asset-backed securities

13.The Dow Jones Industrial Average (DJIA) includes:

500 firms that are the largest in their respective economic sectors.
all of the stock listed on the New York Stock Exchange.
30 of the largest (market capitalization) and most active companies in the U.S. economy.
500 firms that are the largest as ranked by Fortune Magazine.

14. On November 26, 2007, The Dow Jones Industrial Average closed at 12,743.40, which was down 237.44 that day. What was the return (in percent) of the stock market that day?

+1.83 percent
-0.02 percent
+0.02 percent
-1.83 percent

15. Which of these investors earn returns from receiving dividends and from stock price appreciation?

Investment bankers

16. Pfizer, Inc. (PFE) has earnings per share of $2.09 and a P/E ratio of 11.02. What is the stock price?


17. We can estimate a stock’s value by:

using the book value of the total stockholder equity section.
discounting the future dividends and future stock price appreciation.
compounding the past dividends and past stock price appreciation.
using the book value of the total assets divided by the number of shares outstanding.

18. Which of these statements is false?

The bond market is larger than the stock market.
Bonds are always less risky than stocks.
Some bonds offer high potential for rewards and, consequently, higher risk.
Bonds are more important capital sources than stocks for companies and governments.

19. Which of the following determines the dollar amount of interest paid to bondholders?

Market rate
Call premium
Original issue discount
Coupon rate

20. Determine the interest payment for the following three bonds: 5.5 percent coupon corporate bond (paid semi-annually), 6.45 percent coupon Treasury note, and a corporate zero coupon bond maturing in 10 years. (Assume a $1,000 par value.)

$55.00, $64.50, $0, respectively
$5.50, $6.45, $0, respectively
$27.50, $32.25, $100, respectively
$27.50, $32.25, $0, respectively

Here’s the SOLUTION

Posted in Homework Help | Comments Off

Rutgers BUS 300 Quiz 1 (A+ Guaranteed)

Rutgers BUS 300 Quiz 1

1. Which of the following aspects of a company would not be considered a critical success factor, for a company that competes on differentiation?

A. Cutting edge research and development.
B. Excellent customer service
C. Award-winning product quality
D. Continually beating competitors to the market with new, innovative products
E. High level of production efficiency

2. The competitive strategy of cost leadership allows a firm to outperform competitors by producing products or services:

A. With lowered quality standards, thus reducing overall costs.
B. In smaller operational units.
C. At lower cost achieved by increased productivity.
D. With attractive added features making the product more expensive, or “the cost leader”.
E. That are heavily promoted and heavily warranted.

3. Cost management information typically is the responsibility of the:

A. Chief Financial Officer.
B. Controller.
C. Treasurer.
D. Chief Information Officer.

4. Which one of the following critical success customer factors is best measured by warranty expense?

A. Quality.
B. Dealer and distributor efficiency and effectiveness
C. Timeliness of delivery3
D. Customer satisfaction

5. All of the following actions enhance the new focus on making management accounting information more relevant in helping a firm achieve strategic goals, except:

Increasing emphasis on the management accountant as a business partner.
Increasing emphasis on external financial reporting.
Decreasing emphasis on financial statement inventory cost valuation.
Increasing emphasis on timely and useful information.
Increasing emphasis on detailed and accurate costing methods such as ABC costing.

6. According to the IMA Code of Ethics, what should a management accountant do if a significant ethical situation can’t be resolved?

The accountant should confront the guilty party and demand the unethical action be stopped.
The accountant should try to rationalize and understand the position of the other party.
The accountant should say nothing about the matter until he or she has retired.
The accountant should first discuss the matter with the immediate supervisor.

7. In SWOT analysis, strengths and weaknesses are most easily identified by looking:

At the firm as a potential customer.
Inside the firm at its specific resources.
At the firm’s competition.
At the firm’s product.
Outside the firm from a consultant’s perspective.

8. RTP Corp. is developing a new computer processor to compete against Intel’s successful product line. RTP has already determined the market price and the required profit margin on each processor sold in order to be successful. Which costing method will RTP most likely use to reduce costs and obtain the desired results?

Target Costing.
Product costing.
Relevant costing.
Cost management.

9. The balanced scorecard can be made more effective by developing it at a detail level so that employees:

Can see how it is put together.
Appreciate all the effort that goes into its preparation.
Respect management for including them in its formulation.
Can see how their actions contribute to the success of the firm.
Do not feel left out.

10. Cost management has moved from a traditional role of product costing and operational control to a broader strategic focus, which places an emphasis on:

Competitive pricing.
Domestic marketing.
Short-term thinking.
Strategic thinking.
Independent judgment.

11. Which of the following is the primary user of management accounting information regarding business units?

Company management.
Industry and governmental organizations.

12. The balanced scorecard:

A. Is not comprehensive, since it doesn’t include all the CSFs which contribute to competitive B. success.
B. Helps focus managers’ attention to bottom line profits.
C. Is forward looking, stressing nonfinancial measures that can lead to benefits in the future.
D. Fails to reflect environmental and social effects of the firm’s operations.
E. Is heavily weighted toward the financial critical success factors (CSFs).

13. Which of the following could be considered part of the value chain in a service firm?

A. Inspection of product.
B. Advertising.
C. Raw materials.
D.  Customer service.
E. Advertising and customer service.

14. Which of the following is not considered part of the Institute of Management Accountants’ definition of management accounting?

A. Partnering in management decision making.
B. Devising planning and performance management systems.
C. Gathering, summarizing, analyzing, and providing information.
D. Providing expertise in financial reporting and control.
E. Assisting management in the formulation and implementation of an organization’s strategy.

15. The following problems have occurred at your company: management seems to be making decisions based on guesses and intuition, there’s a lack of clarity concerning direction and goals, and profitable opportunities are being missed. What is your company suffering from?

A. A lack of strategic information; management has not determined its strategic competitive position.
B. Managers have too much information.
C. The company is not familiar with business reengineering and value chain analysis.
D. The company has an inappropriate mission statement.

Here’s the SOLUTION

Posted in Homework Help | Comments Off