1) The cost principle requires that when assets are acquired, they be recorded at __________.

2) "Generally accepted" in the phrase generally accepted accounting principles means that the principles __________.

3) The standards and rules that are recognized as a general guide for financial reporting are called __________.
4) 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?

5) 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?

6) 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?
7) What is the preparation of reports for each level of responsibility in the company's organization chart called?
8) Disney's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are

expected to increase $40,000, by how much will the company's net income increase?

9) The cost of an asset and its fair market value are __________.
10) Which one of the following is a product cost?
11) What exists when budgeted costs exceed actual results?
12) The income statement and balance sheet columns of Pine Company's worksheet reflects the following totals:
Income Statement Balance Sheet
Dr. Cr. Dr. Cr.
Totals $58,000 $48,000 $34,000 $44,000

Closing entries are necessary for __________.
13) Managerial accounting __________.

14) H55 Company sells two products, beer and wine. Beer has a 10 percent profit margin and wine has a 12 percent profit margin. Beer

has a 27 percent contribution margin and wine has a 25 percent contribution margin. If other factors are equal, which product should H55

push to customers?
15) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
16) Maurice receives $100 as a birthday gift. In deciding how to spend the money, he narrows his options down to four choices: Option A,

Option B, Option C, and Option D. Each option costs $100. Finally he decides on Option B. The opportunity cost of this decision is

__________.
17) A production possibilities frontier will be a straight line if __________.

18) In economics, the cost of something is __________.

19) A tax on an imported good is called a __________.
20) Which of the following statements about GDP is correct?

21) In computing GDP, market prices are used to value final goods and services because __________.

22) Which of the following statements about GDP is correct?

23) Which of the following is not correct?

24) The part of the balance of payments account that lists all long-term flows of payments is called the:
25) Edward Prescott and Finn Kydland won the Nobel Prize in Economics in 2004. One of their contributions was to argue that if a central

bank could convince people to expect zero inflation, then the Fed would be tempted to raise output by increasing inflation. This possibility

is known as __________.
26) In general, the longest lag for __________.
27) Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing; and (2) purchases of

newly-constructed homes. How are these two items accounted for when GDP is calculated?

28) Managers will utilize __________ skills with increasing frequency as they rise within an organization.
29) Which of these represent skills that managers need?

30) Building a dynamic organization is another way of describing which function of management?
31) Your roommate is interested in starting a business and everybody has been giving him different information about being an

entrepreneur. Since you have been studying about entrepreneurship and new ventures, which of these would you tell him is true?
32) 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:
33) A manager's ability to stimulate people to be high performers is referred to as:
34) A series of quality standards developed by a committee working under the International Organization for Standardization to improve

total quality in all businesses for the benefit of both producers and consumers is:
35) Japanese manufacturers' kaizen (continuous improvement) programs enable them to maintain:
36) Listening to employee suggestions, gaining support for organizational objectives and fostering an atmosphere of teamwork are all

considered:
37) The basic components of an effective sexual harassment policy include the following EXCEPT:
38) Teams that operate separately from the regular work structure and exist temporarily are known as:

39) The Aquatic Center, Inc. periodically reviews the goals of the company. During the process, The Aquatic Center managers analyze

their current strategies as compared to their competitors, determine goals that they will pursue and decide upon specific actions for each

area of the company to take in pursuit of these goals. The Aquatic Center managers have been engaged in the management function of:
40) As related to managing of human resources, diversity refers to:

41) __________ is the process of working with people and resources to accomplish organizational goals.
42) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5,

1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, the median is _____.
43) Use the following table to answer question:
P(S | W) is approximately _____.

44) Use the following table to answer question:
P(M A) is approximately _____.
45) Dullco Manufacturing claims that its alkaline batteries last forty hours on average in a certain type of portable CD player. Tests on a

random sample of 18 batteries showed a mean battery life of 37.8 hours with a standard deviation of 5.4 hours.
In determining the p-value for reporting the study's findings, which of the following is true?
46) William used a sample of 68 U.S. cities to estimate the relationship between Crime (annual property crimes per 100,000 persons) and

Income (median income per capita). His estimated regression equation was Crime = 428 + .050 Income.
Which outcomes would be likely in a bivariate regression on 45 randomly chosen U.S. cities in 2005 with
Y = number of robberies in each city (thousands of robberies) and
X = size of police force in each city (thousands of police)?
A. High R2 (due to city size). B. Positive slope (due to city size).
C. No correlation. D. Autocorrelation.
47) Twelve randomly-chosen students were asked how many times they had missed class during a certain semester, with this result: 2, 1, 5,

1, 1, 3, 4, 3, 1, 1, 5, 18.
For this sample, which measure of central tendency is least representative of the "typical" student?
48) Likely reasons for inaccurate control limits would include which of the following?
Max P = $20X + $30Y
and constraints of:
3X + 4Y = 24 (Constraint A)
5X - Y = 18 (Constraint B)

50) A project has three paths. A-B-C has a length of 25 days. A-D-C has a length of 15 days. Finally, A-E-C has a length of 20 days.

Which one of the following statements is TRUE?
51) Which one of the following statements concerning production and staffing plans is best?

52) While glancing over the sensitivity report, you note that the stitching labor has a shadow price of $10 and a lower limit of 24 hours

with an upper limit of 36 hours. If your original right hand value for stitching labor was 30 hours, you know that:

53) The costs of delivering products in the _____ channel are much higher than delivering products in the _____ channel.
54) When customers access a Web site and make purchases, they generate __________.
55) _____ is the integration of economic, social, cultural, and ecological facets of life, enabled by information.

56) Various organizations that promote fair and responsible use of information systems often develop __________.
57) What is _____ is not necessarily _____.
58) _____ provides users with a view of what is happening, where _____ addresses why it is happening.
59) Computer support is greatest for which of the following problems?
60) The management cockpit best exemplifies which type of system?
61) _____ is the efficient and effective execution of specific tasks.
62) Geocoding is __________.

63) At 8% compounded annually, how long will it take $750 to double?
64) Which of the following represents an attempt to measure the earnings of the firm's operations over a given time period?

65) A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows

(ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round

your answerwer to the nearest $10.)

66) Disadvantages of using current liabilities as opposed to long-term debt include:
67) Petrified Forest Skin Care, Inc. pays an annual perpetual dividend of $1.70 per share. If the stock is currently selling for $21.25 per

share, what is the expected rate of return on this stock?
68) Which of the following is most consistent with the hedging principle in working capital management?

69) An increase in future value can be caused by an increase in the __________.
70) If the quote for a forward exchange contract is greater than the computed price, the forward contract is:
71) Your company is considering an investment in a project which would require an initial outlay of $300,000 and produce expected cash

flows in Years 1 through 5 of $87,385 per year. You have determined that the current after-tax cost of the firm's capital (required rate of

return) for each source of financing is as follows:
Cost of debt 8%
Cost of preferred stock 12%