Categories
GB 519 Unit 4 Quiz
$5.00

GB 519 Unit 4 Quiz

This Tutorial was purchased 1 times & rated No rating by student like you.

 

This Tutorial contains following Attachments

  • GB 519 Unit 4 Quiz.docx

UNIT 4 QUIZ

1. Question : The shadow price in a linear programming model is:

Student Answer:

Interesting from a mathematical standpoint, but not useful

from an accounting standpoint.

Equal to the current market price for an additional unit of the

related resource.

The price one would be willing to pay for an additional unit of

the scarce resource.

Greater than the market price for the related resource.

Zero for a binding constraint.

 

 

Question 2. Question : Determination of the optimum short-term product mix needs to

include an analysis of:

Student Answer:

Fully absorbed costs.

Production constraints.

Sales-mix costs.

Revenue forecasts.

Joint manufacturing costs.

 

 

Question 3. Question : All the following are characteristic of relevant costs except:

Student Answer:

They are generally variable.

They are not committed.

They are different in amount for different options.

They are costs that will be incurred in the future.

They are inventory-related costs.

 

 

UNIT 4 QUIZ

Question 4. Question : Which of the following statements regarding "opportunity costs"

is TRUE?

Student Answer:

These costs are recorded routinely by cost accounting

systems.

These costs relate to the benefit lost or foregone when a

chosen option (course of action) precludes the benefits from an

alternative option.

These costs are generally deductible for federal income tax

purposes.

In terms of most short-run decisions, they are irrelevant.

 

 

Question 5. Question : A useful device for solving production problems involving

multiple products and limited resources is:

Student Answer:

Gross profit per unit of product.

Contribution per unit of scarce resource.

Value-stream costing.

Relevant cost pricing.

The contribution income statement.

Question 6. Question : Relevant costs for a make-or-buy decision for a component part

include all of the following EXCEPT:

Student Answer:

Fixed salaries that will not be incurred if the part is

outsourced.

Payroll tax (unemployment insurance cost), because of

outsourcing.

Material-handling costs that can be eliminated if the part is

outsourced.

Special machinery for the part that has no resale value.

Current direct material costs for the part.

 

 

UNIT 4 QUIZ

Question 7. Question : Which one of the following is an advantage of the book

(accounting) rate of return method for analyzing capital

investment proposals?

Student Answer:

It is not affected by different accounting methods.

It is precise and objective.

Data for calculating the return are typically readily available.

The method explicitly adjusts for the time value of money.

The accounting rate of return is generally approximately equal

to a project's internal rate of return (IRR).

 

 

Question 8. Question : Which one of the following statements concerning capital

budgeting is not true?

Student Answer:

A basic objective underlying capital budgeting is to select

assets that will earn a satisfactory return.

Capital budgeting is the process of identifying, evaluating,

selecting, and controlling long-term investment projects.

Capital budgeting is based on precise estimates of future

events.

Capital budgeting involves estimating the revenues and costs

of each proposed project, evaluating their merits, and choosing

those worthy of investment.

 

UNIT 4 QUIZ

Question 9. Question : The after-tax cost of debt for purposes of estimating a company's

weighted-average cost of capital:

Student Answer:

Requires an estimate of the yield-to-maturity for long-term

bonds.

Is equal to the pretax cost of debt times t, where t = income

tax rate.

Is equal to the pretax cost of debt ÷ (1 - t), where t = income

tax rate.

Is approximated by the firm's short-term borrowing rate.

Is estimated using the Capital Asset Pricing Model (CAPM).

 

 

Question 10. Question : Which one of the following is an advantage of the payback

method?

Student Answer:

It provides a (rough) measure of risk.

It is linearly related to the net present value (NPV) of a

proposed project.

It considers all possible future cash flows.

It applies conventional discounting procedures to anticipated

future cash flows.

It allows managers to choose between competing projects with

different useful lives.

 

 

UNIT 4 QUIZ

Question 11. Question : When evaluating capital budgeting decision models, the payback

period emphasizes:

Student Answer:

Liquidity.

Profitability.

Cost of capital.

Average net income divided by average investment.

Average after-tax cash inflow divided by average investment.

 

 

Question 12. Question : In a discounted cash flow (DCF) analysis, a required incremental

investment in net working capital:

Student Answer:

Should be amortized over the useful life of the equipment.

Can be disregarded because the same amount of cash will be

recovered at the end of the project's life.

Should be treated as a recurring cash outflow over the life of

the project.

Should be treated as a reduction in the required cash outflow

in period 0.

Should be treated as an immediate cash outflow that is later

recovered when it is no longer needed.

 

 

UNIT 4 QUIZ

Question 13. Question : Pique Corporation wants to purchase a new machine for $300,000.

Management predicts that the machine can produce sales of

$200,000 each year for the next 5 years. Expenses are expected to

include direct materials, direct labor, and factory overhead

(excluding depreciation) totaling $80,000 per year. The firm uses

straight-line depreciation with no residual value for all depreciable

assets. Pique's combined income tax rate is 40%. Management

requires a minimum after-tax rate of return of 10% on all

investments.

What is the present value payback period, rounded to one-tenth of

a year? (Note: PV factors for 10% are as follows: year 1 = 0.909;

year 2 = 0.826; year 3 = 0.751; year 4 = 0.683; year 5 = 0.621; the

PV annuity factor for 10%, 5 years = 3.791.)

Student Answer:

2.5 years.

3.0 years.

3.3 years.

3.6 years.

4.0 years.

 

 

Question 14. Question : A truck, costing $25,000 and uninsured, was wrecked the very

first day it was used. It can either be disposed of for $5,000 cash

and be replaced with a similar truck costing $27,000, or rebuilt for

$20,000 and be brand new as far as operating characteristics and

looks are concerned. The net relevant cost of the replacing option

is:

Student Answer:

$5,000.

$20,000.

$22,000.

$25,000.

UNIT 4 QUIZ

 

 

Question 15. Question : Carmino Company is considering an investment in equipment that

will generate an after-tax income of $6,000 for each year of its

four-year life. The asset has no salvage value. The firm is in the

40% tax bracket. The net book value (NBV) of the investment at

the beginning of each year will be as follows:

Year 1 = $30,000

Year 2 = 15,000

Year 3 = 7,500

Year 4 = 3,750

The amount of after-tax cash inflow from the asset in Year 3 is:

Student Answer:

$6,600.

$7,500.

$8,100.

$9,000.

$9,750.

 

Write a review

Order Id


Order Id will be kept Confidential
Your Name:


Your Review:
Rating:   A   B   C   D   F  

Enter the code in the box below:



Related Tutorials
$5.00

This Tutorial was purchased 0 times & rated No rating by student like you.

UNIT 5 QUIZ 1. Question : When a firm determines the desired cost for a product or service, given a competitive market price, in order to earn a desired profit, the firm is exercising: Student Answer: Target costing. Life cycle costing. Variable costing. Absorption cos..
$5.00

This Tutorial was purchased 2 times & rated B+ by student like you.

UNIT 3 QUIZ 1. Question : Which of the following provides the most accurate cost estimation? Student Answer: Regression analysis with R-squared of 0.12. Regression analysis with F value of 1.2 High-low method. Regression analysis with R squared of 0.89.   ..
$5.00

This Tutorial was purchased 1 times & rated No rating by student like you.

UNIT 2 QUIZ 1. Question : At the end of a fiscal year, overapplied factory overhead should be: Student Answer: Debited to Cost of Goods sold. Credited to Cost of Goods sold. Debited to Cost of Good Manufactured. None of the above.   Question 2. Question : ..
$5.00

This Tutorial was purchased 0 times & rated No rating by student like you.

UNIT 1 QUIZ 1. Question : Corporate management is required to identify and solve problems from a cross-functional view. Instead of viewing a problem as related to a specific business function, management solves these problems by combining skills from different functions simult..
$15.00

This Tutorial was purchased 2 times & rated B+ by student like you.

1. Question : A strategy map is:   Question 2. Question : Which of the following aspects of the contemporary business environment involves using statistical methods such as regression or correlation analysis to predict consumer behavior, to measure customer satisfaction, or to develo..
$6.00

This Tutorial was purchased 1 times & rated No rating by student like you.

Unit 6 Assignment   BRIEF Exercise 18-22 Problem 20-37 ..
$6.00

This Tutorial was purchased 0 times & rated No rating by student like you.

Unit 5 Assignment   Exercise 14-40 Problem 15-53  ..
$6.00

This Tutorial was purchased 4 times & rated A+ by student like you.

Unit 4 Assignment 2   The second and final part of the case study is due at the end of Unit 4. Part 2 of the case study is a PowerPoint presentation with voiceover recording. The Voiceover will be the narrative you would be presenting as if this were a live presentation. You will, in..
$6.00

This Tutorial was purchased 3 times & rated A+ by student like you.

Unit 4 Assignment 1       1.      Read the following article Agans, R., & Shaffer, L. (1994). The hindsight bias: The role of the availability heuristic and perceived risk. Basic and Applied Social Psychology, 15(4), 439-449. “ This article c..
$6.00

This Tutorial was purchased 3 times & rated B+ by student like you.

Unit 3 Assignment 2 (Part 1 Case Study)   Part 1 of the Project, due at the end of this unit, requires you to complete an analysis of an organization. This evaluation will provide the basis for Part 2 of the Project. “The Organization” may be understood and used in three ways: 1) You..
$6.00

This Tutorial was purchased 0 times & rated No rating by student like you.

Unit 3 Assignment 1   Exercise 9-33 Exercise 10-50 ..
$6.00

This Tutorial was purchased 1 times & rated No rating by student like you.

Unit 2 Assignment   Exercise 4-35 Exercise 5-29  ..
$6.00

This Tutorial was purchased 3 times & rated A+ by student like you.

Exercise 1-33 Problem 2-56 Problem 3-52 Problem 3 (Case A) ..