Multiple choice questions on Break even analysis, Decision making.

1. The assembly line workers at Precision Tools have been given the authority to make many decisions about their jobs. Precision Tool can be said to have:

a.         A high degree of decentralization

b.        A high degree of centralization

c.         A broad span of management

d.        A narrow span of management

2.  Which of the following IS NOT one of the necessary conditions for perfect competition?

a.         Complete information

b.        Large number of firms

c.         Differentiated products

d.        Asset valuation

3.   Depreciation is a process of:

a.         Asset devaluation

b.        Cost allocation

c.         Cost accumulation

d.        Asset valuation

4.   You are watching a television commercial for a new automobile. You do not notice it has dual airbags, side impact bars, and antilock brakes, but notice that it dos have a high-performance engine that will take it to high speed. This is an example of:

a.         Motivation

b.        Attitude formation

c.         Conformance

d.        Perception

5. A health inspector has five different schools to choose from for a site visit, but you only have time observe the conditions of three schools on particular day. If the order of the visit to any of the schools is not important, how many possible arrangements of visits could be made from the 5 schools?

a.         5

b.        10

c.         15

d.        20

6.  The common law elements of a contract are:

a.         Offer, acceptance, consideration

b.        Offer , acceptance, writing

c.         Offer, agreement, execution

d.        Offer, promise, acceptance

7.   Which of these is primarily responsible for operational goals and plans within the organization?

a.         Middle management

b.        Board of directors

c.         First-line supervisors

d.        Senior management

8.  Breakeven analysis is used to:

a.         Determine the breakeven number in dollars

b.        Determine the breakeven number in units

c.         Calculate the number of unit sales for a given net income

d.        All of the above

e.         Only a and b

9. An error in the physical count of goods on hand at the end of a period resulted in a $10,000 overstatement of the ending inventory.  The effect of this error in the current period is:

10.  Risks in the foreign exchange market include all EXCEPT:

a.         National balance of payment

b.        Universal currency converter

c.         Tariffs

d.        National monetary and fiscal policies