DeVry BUSN 278 Final Exam 100% Correct Answer
DeVry BUSN 278 Final Exam 100% Correct Answer
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1.(TCO 1) A common starting point in the budgeting process is
_____.(Points : 5)
expected future net income
past performance
to motivate the sales force
a clean slate, with no expectations
Question 2.2.(TCO 2) Groupthink is a primary disadvantage of which
qualitative forecasting method?(Points : 5)
Executive opinions
Sales force polling
Delphi method
Consumer surveys
Question 3.3.(TCO 3) Which of the following isnotan example of a
seasonal variation?(Points : 5)
Increased restaurant sales on Fridays and Saturdays
Increased retail sales in the fourth quarter
Increased sales of jet skis in the summer
Increased sales resulting from a special promotion
Projects
A
B
C
Initial Investment $40,000 $60,000
$80,000
Present value of
$60,000 $55,000 $100,000
cash inflows
Using the profitability index, rank the projects, starting with the most
attractive.(Points : 5)
month of low activity, 2,000 machine hours were run and power costs
amounted to $6,000. Using the high-low method, what is the estimated
fixed cost element of power costs?(Points : 5)
5.(TCO 8) Eastern Companys budgeted and actual sales for 2009 were as
follows.
Product
A
B
Budgeted Sales
Actual Sales
35,300 units at $2.00 per unit 32,700 units at $2.60 per unit
27,900 units at $5.00 per unit 29,200 units at $4.70 per unit
1: Payback period
2: Net present value
3: Profitability index
4: Internal rate of return
5: Accounting rate of return
(b): Indicate whether the investment should be accepted or rejected.(Points :
30)
August
September
October
$240,000
$270,000
$330,000
Farris estimates that it will collect 30% in the month of sale, 50% in the
month after the sale, and 18% in the second month following the sale. Two
percent of all sales are estimated to be bad debts.How much are Farris Co.'s
budgeted cash receipts for October?(Points : 30)
Power Cost
January
February
March
April
May
June
$24,400
30,300
29,000
22,340
19,900
14,900
13,900
17,600
16,800
13,200
11,600
6,600
Part (a): What is the estimated variable portion of power costs per factory
machine hour?
Part (b): What is the estimated fixed power cost each month?
Part (c): If it is estimated that 10,000 factory machine hours will be run in
July, what is the expectedtotal power cost for July?(Points : 30)
Part (a): Identify and describe the three types of cost behavior, including
examples of each.
Part (b): As a manager, which cost behavior would you prefer and
why?(Points : 20)
accounting manager, write a memo to Mr. Talbott, explaining why the ending
inventory figure should be extremely accurate, with as little slack as
possible.(Points : 20)
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