BUS 475 Final Exam Set 5
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6) 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? 7) Balance sheet accounts are considered to be __________. 8) Multinational corporations __________. 9) What effect do current technology changes have on managerial accounting? 10) The cost principle is the basis for preparing financial statements because it is __________. 11) Which one of the following items is not generally used in preparing a statement of cash flows? 12) The cost of an asset and its fair market value are __________. 13) 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? 14) A well-designed activity-based costing system starts with __________. 15) For a college student who wishes to calculate the true costs of going to college, the costs of room and board __________. 16) In computing GDP, market prices are used to value final goods and services because __________. 17) In economics, the cost of something is __________. 18) A logical starting point from which the study of international trade begins is __________. 19) When, in a particular market, the law of demand and the law of supply both apply, the imposition of a binding price ceiling in that market causes quantity demanded to be __________. 20) What you give up to obtain an item is called your __________. 21) One characteristic of an oligopoly market structure is: 22) 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 __________. 23) In general, the longest lag for __________. 24) The model of short-run economic fluctuations focuses on the price level and __________. 25) Real GDP __________. 26) 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? 27) Which of the following statements about GDP is correct? 28) Which of these refers to the practices aimed at discovering and harnessing an organization's intellectual resources?