Practice questions for Major Field test

The rate of return on which one of the following is used as the risk-free rate?

U.S. Treasury bill

​_____ creates a complete set of technical specifications that can be used to construct an information system.

Systems development

Gemma Corporation sells a single product for $40 per unit. Last year, the company's sales revenue was $2,950,000 and its net operating income was $1,000,000. If fixed expenses totaled $770,000 for the year, the break-even point in sales dollars was:

$1,925,000

Which of the following is not present in a time series?

cross-sectional pattern

Job 910 was recently completed and the following data was recorded on its job cost sheet: Direct materials $5,234 Direct labor-hours 62 labor-hours Direct labor wage rate $18.50 per labor-hour Machine-hours 125 machine-hours The Corporation applies manufacturing overhead based on machine-hours and the calculated predetermined overhead rate is $32 per machine-hour. The total cost for Job 910 should be:

$10,381

The ending Retained Earnings balance of Lambert Inc. was $13.9 million this year. The company's net income earned during the year is $9.2 million and the dividends declared were $6.1 million. What was the beginning balance in Retained Earnings?

$10.8 million

Marcelo now has $100. How much would he have after 4 years, if he leaves it invested at 5 percent interest with annual compounding?

$121.55

Spates, Inc. manufactures and sells two products: Product A and Product B. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below. Expected Units DLH Per Unit Total DLH Product A 100 6 600 Product B 100 5 500 Total direct labor-hours 1,100 Spates, Inc.'s expected total manufacturing overhead is $266,988. If the company allocates all of its overhead based on direct labor-hours, how much overhead should be allocated to Product A?

$145,629.82

Abbe Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 2,700 units and of Product B is 1,500 units. There are three activity cost pools, with estimated costs and expected activity as follows: Cost pool 1, 2, 3 Estimated Cost 92,0632,$116,7393, $128,1861 Expected Activity Product A 2002, 3200, 1080 Product B 2100, 1900, 1060 Total 4300, 5100, 2140 What is the total expected overhead cost for Product B?

$151,946

A stock is expected to pay a dividend of $1.00 at the end of the year. The required rate of return is 10%, and the expected constant growth rate is 5%. What is the stock's current price?

$20

The Widget Factory is planning to sell 250,000 units for $2.00 per unit and will break even at this level of sales. Variable expenses will total $125,000. What are the company's fixed expenses at this level of sales?

$375,000

AT&T Inc. recently issued bonds that mature in 10 years. They have a par value of $1,000 and an annual coupon of 5%. If the current market interest rate is 7.0%, at what price should the bonds sell? (Round the answer up).

$860

A company reports income tax expense of $1,700,000. Income taxes payable at the beginning and end of the year are $425,000 and $276,000, respectively. On its Statement of Cash Flows the company reports cash from operating activities using the indirect method. What amount should the company show as the adjustment for income taxes for operating cash flows?

($149,000)

Suppose that 60 percent of the voters in a particular region support a candidate. Find the probability that a sample of 1,000 voters would yield a sample proportion in favor of the candidate within 4 percentage points of the actual proportion.

.9902

If n = 15 and p = .4, then the standard deviation of the binomial distribution is

1.8974

The Brown Shoe Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 55,000 units in its beginning work in process inventory that were 60% complete with respect to conversion costs and 100% complete with respect to materials. An additional 75,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 44,300 units in the ending work in process inventory of the Assembly Department that were 100% complete with respect to materials costs and 35% complete with respect to conversion costs. What were the equivalent units for materials costs in the Assembly Department for the month?

130,000

Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT?

A project's NPV increases as the WACC declines.

Important skills required for an effective team include which of the following:

All of the above

Which of the following are examples of major developments that affect world trade and global marketing?

All of the abovr

Brad's daughter has been repeatedly asking her dad to get her a new video game for Christmas. In mid-November Brad receives a flyer in the mail that says limited quantities of the video game will be available during Best Buy's Black Friday sale. The flyer also has a 20% off coupon for people who shop on Black Friday. After discussing the sale with his wife, Brad decides to camp outside of Best Buy so he can purchase a copy of the game during the Black Friday sale. Which one of the factors below appears to have influenced Brad's decision to buy the video game?

All of these factors appear to have influenced Brad

Marketing managers at HEB decided to segment their curbside delivery consumers by purchase frequency (bi-monthly, monthly, or weekly). Which one of the strategies below best describes HEB's market segmentation approach?

Behavioral segmentation

_____ says that if the sample size is sufficiently large, then the sample means are approximately normally distributed

Central Limit Theorem

Evelyn Garcia has proven herself to be an able manager. Her department routinely works with the HR department to develop and maintain a well-designed performance management system that evolves as her company's strategic plan evolves. Her teams report clarity on the company's strategic goals and objectives, and implementation and results are regarded as highly effective. In addition, her 360 feedback reports indicate her subordinates believe she is fair, focused on fixing problems and guiding course correction, and recognizes and rewards individual contributions that are meaningful to them. Coworkers say the secrets of her success are her ability to measure results, compare results to expectations, and take corrective action to bring results into line, and her understanding of the basic "management processes." Evelyn's ability to effectively monitor progress and take corrective action when needed to ensure that objectives are achieved is evidence that she excels at which management function?

Controlling

In preparing a statement of cash flows under the indirect method, an decrease in accounts payable would be reported as a(n):

Decrease in cash in the operating activities section.

Leslie needs a new computer. She knows she wants a Toshiba laptop with a web camera that costs less than $1000. Which one of the stages of the consumer decision making process is illustrated in this example?

Evaluation of alternatives

A management information system (MIS) is exactly the same as a transaction processing system (TPS); the two terms can be used interchangeably.

False

Systems software consists of programs that help users solve particular computing problems.

False

When a loan is amortized, a relatively high percentage of the payment goes to reduce the outstanding principal in the early years, and the principal repayment's percentage declines in the loan's later years.

False

Windows 10 is an example of application software.

False

Frank owns a small vending machine company in South Texas. His drivers service businesses, such as hospitals, office buildings, car dealerships, and airports. To save money on gasoline, Frank groups his customers by their zip codes. Which type of market segmentation did Frank use?

Geographic segmentation

Normally, which asset displays the highest fluctuations over time?

Stocks.

When Maria ordered lasagna for the first time at the Olive Garden, her meal was hot and delicious. Two weeks later, she returned to the same Olive Garden and ordered lasagna again. This time her meal was bland and cold. This example illustrates which one of the service characteristics listed below?

Heterogeneity

In exchange for a royalty fee, Hasbro (a major U.S. toy manufacturer), agrees to internationally distribute products based on characters from Disney's trademarked movies Frozen 2 and Star Wars. In this example, which one of the international marketing strategies listed below did Hasbro choose?

Licensing

The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to

Maximize the stock price per share over the long run.

Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow.

More than $110

Which one of the following is generally considered to be the best form of analysis if you have to select a single method to analyze a variety of investment opportunities?

Net present value

You are part of the team to implement new software at XYZ Inc. The employees at XYZ Inc. trust the results of the old software programs, but are cautious about accepting the outcomes of the proposed new software programs. What software implementation strategy would you recommend in this situation?

Parallel start up

Managers typically perform their managerial functions in what order?

Planning, organizing, leading, controlling

Dan owns a mid-size landscaping business. Each month he asks his office manager to provide him with a report with the number of new customers, average sale per customer, and total monthly sales. Which one of the following best describes the data being analyzed each month?

Primary quantitative data

Carol, who does not own a car, wants to make a cash deposit at her bank. Because the lobby of the bank is closed, Carol rides her bike to one of the drive-thru lanes. The bank's representative tells Carol that only customers in cars or trucks are allowed to use the drive-thru lanes - so Carol will need to return tomorrow when the bank's lobby is open. Which one of the 7Ps of service marketing does this example best illustrate?

Process

If the interest rate falls, what should happen to bond prices?

Rise

Joe owns and operates a popular local restaurant in San Antonio. When he approaches his bank for a loan to buy a new food truck, the manager asks Joe to provide a business plan by the end of the month. Because he is a small business owner, Joe has limited time and money to collect information for his business plan. Which one of the following types of data best suits Joe's research needs?

Secondary data

Businesses and organizations that hope to create and manage an effective, harmonious multicultural work force should remember the importance of the following:

Setting a good example, communicating in writing, offering training programs, recognizing individual differences, actively seeking input from minority groups, and offering effective reward systems

The financial statement that shows the changes in ownership interest in a company over an interval of time is called the:

Statement of Changes in Stockholders' Equity

Jane is working on items to consider for a strategic-level SWOT analysis for her company. She should consider which of the following:

The focus should be on internal strengths and weaknesses, as well as external threats and opportunities.

Which of the following statements describes the main function of the stock market?

The stock market brings people who want to buy stocks together with those who want to sell stocks.

A user interface makes an expert system easier to develop and use.

True

As a result of compounding, the effective annual rate on a bank deposit (or a loan) is always equal to or greater than the nominal rate on the deposit (or loan).

True

Starting to invest early for retirement increases the benefits of compound interest.

True

The Internet is the infrastructure on which the Web exists.

True

The present value of a future sum decreases as either the discount rate or the number of periods per year increases, other things held constant.

True

The primary function of application software is to apply the power of the computer to enable people, workgroups, and the entire enterprise to solve problems and perform specific tasks.

True

Web client software, such as Chrome, Firefox, Internet Explorer, Safari, and Opera, that are used to view Web pages are known as _____.

Web browsers

The addition law is potentially helpful when we are interested in computing the probability of

the union of two events

_______ are unorganized facts and figures, whereas information is data converted into a form that helps people make appropriate decisions and do their jobs more effectively.

data

Transmitting a message through the appropriate channels, soliciting feedback and verification so that the message received is as close in meaning as possible to the message intended, is:

effective communication

The world-wide-web uses _____ protocol for transmitting content​.

hyper-text transfer

If the lower control limit of a P chart is negative,

it is set to zero.

The ____________ include forming, storming, norming, performing and adjourning.

stages of group development

Using a naive forecasting method, the forecast for next month's sales volume equals

the most recent month's sales volume.

Setting the upper and lower control limits in a control chart farther from the center line results in a

​lower probability of a Type II error.