Multiple choice questions on Inflation, EOQ and Basic accounts.

1.       International trade can be restricted by a government-imposed tax on imports.  This tax is called a(n)

a)      Tariff

b)      Quota

c)       Embargo

d)      Regulatory restriction

2.       In period of inflation, phantom or paper profits may be reports as a result of using the:

a)      FIFO costing assumption

b)      Perpetual inventory method

c)       LIDO costing assumption

d)      Periodic inventory method

3.       When visiting teenagers' room in Mexico City, Tokyo, London, or New York, it is impossible to tell what nation the rooms are in because teens buy a common gallery of products: Tommy Hilfiger apparel, Nike athletic shoes, Cover Girl makeup, and NBA-related merchandise.  Overall, this similarity represents:

a)      International living

b)      A global marketing strategy

c)       A multi-domestic marketing strategy

d)      An Americanization of fashion and culture

4.       In a recent survey, it was found that of 1000 tourists to the state of Ohio, 40% had visited Toledo and 65% had visited Cleveland metro.  If 30% had been to BOTH Toledo AND Cleveland, how many had visited either Toledo OR Cleveland?

a)      30%

b)      70%

c)       75%

d)      Nearly 100%

5.       Intellectual property rights may be protected by:

a)      Patents and copyrights

b)      Trademarks and service marks

c)       Publications and exposition

d)      Both a and b

6.       The historical management perspective characterized by the application of mathematics, statistics and related quantitative methods is known as:

a)      The classical perspective

b)      The management science perspective

c)       The behavioral science perspective

d)      The administrative principles perspective

7.       Gunther Corporation anticipates sales of 130,000 units per year, ordering cost of $10.00, and carrying costs of $1.006 per unit.  Gunther feels that through aggressive inventory management procedures they can lower their carrying cost to $.990.  This will:

a)      Increase the economic order quantity

b)      Decrease the economic order quantity

c)       Have no impact on the economic ordering quantity

d)      Cannot be determined with the given information

8.       An increase in nominal GDP implies:

a)      An increase in the price level

b)      An increase in output

c)       An increase in both price level and output

d)      An increase in either the price level or output or both

9.        If prepaid expenses are initially recorded in expense accounts and have not all been used at the end of the accounting period, then failure to make an adjusting entry will cause:

a)      Assets to be understated

b)      Assets to be overstated

c)       Expenses to understated

d)      Contra-expense to overstated

10.    SLB Enterprise mines and markets coal to Rocky Mountain Utilities. Rocky Mountain Utilities then uses the coals to generate electricity, which it makes to its customers.  This would be an example of:

a)      Relational marketing

b)      Institutional marketing

c)       Business marketing

d)      Reseller marketing