BUS-475-Final-Exam 1 answer below »

"Generally accepted" in the phrase generally accepted accounting principles means that the principles

A. have been approved for use by the managements of business firms

B. have been approved by the Internal Revenue Service

C. have substantial authoritative support

D. are proven theories of accounting Hess, Inc. sells a single product with a contribution margin of $12 per unit and fixed costs of $74,400 and sales for the current year of $100,000. How much is Hess s break even point?

A. 2,133 units

B. 4,600 units

C. 6,200 units

D. $25,600 As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?

A. The western division s vice president s salary

B. Factory janitor

C. Cost of landscaping the corporate office

D. General corporate liability insurance The cost of an asset and its fair market value are __________.

A. the same on the date of acquisition

B. never the same

C. the same when the asset is sold

D. irrelevant when the asset is used by the business in its operations One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers?

A. $90,000

B. $150,000

C. $60,000

D. $75,000

To move the allocation of resources closer to the social optimum, policymakers should typically try to induce firms in an oligopoly to __________.

A. cooperate rather than compete with each other

B. collude with each other

C. form various degrees of cartels

D. compete rather than cooperate with each other The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:

A. Managerial ethics

B. Recruiting

C. Employment

D. Diversity

E. Selection Sam's Used Cars uses the specific identification method of costing inventory. During March, Sam purchased three cars for $6,000, $7,500, and $9,750, respectively. During March, two cars are sold for $9,000 each. Sam determines that at March 31, the $9,750 car is still on hand. What is Sam s gross profit for March?

A. $4,500

B. $8,250

C. $5,250

D. $750 Which one of the following items is not generally used in preparing a statement of cash flows?

A. Additional information

B. Comparative balance sheets

C. Current income statement

D. Adjusted trial balance Which list below best describes the major services performed by public accountants?

A. Cost accounting, production scheduling, recruiting

B. Auditing, taxation, management consulting

C. Employee training, auditing, bookkeeping

D. Bookkeeping, mergers, budgets In the market for foreign-currency exchange in the open economy macroeconomic model, the amount of net capital outflow represents the quantity of dollars __________.

A. supplied for the purpose of buying assets abroad

B. supplied for the purpose of selling assets domestically

C. demanded for the purpose of buying U.S. net exports of goods and services

D. demanded for the purpose of importing foreign goods and services The primary purpose of the statement of cash flows is to __________.

A. facilitate banking relationships

B. provide information about the investing and financing activities during a period

C. prove that revenues exceed expenses if there is a net income

D. provide information about the cash receipts and cash payments during a period

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