ETS MFT BUSINESS EXAM STUDY GUIDE
QUESTIONS AND ANSWERS 2025
The principal difference between variable costing and absorption costing centers
on:
a) whether variable manufacturing costs should be included as product costs
b) whether fixed manufacturing costs should be included as product costs
c) whether fixed manufacturing costs and fixed selling and administrative costs
should be included as product costs
d) none of these. -Correct Answer ✔B
General Bikes is debating which marketing research options to employ. The
traditional person-to-person methods have been effective; however, the new
director of market research is campaigning for online-based research. What
argument for this method might he/she use?
a) Consumers are more relaxed at home in front of their computers, therefore it is
more likely the responses will be truthful
b) Online research has been standardized for each industry, making it easier to
understand them
c) A well-designed, Internet-based marketing research project can cost less and
yield information faster than offline research
d) Person-to-person methods most often incorporate researcher bias into the
surveys and observations -Correct Answer ✔C
ETS MFT BUSINESS EXAM
,ETS MFT BUSINESS EXAM
Which of the following is an appropriate Federal Reserve action to stimulate the
United States economy?
a) Selling government bonds on the open market
b) Increasing the discount rate
c) Reducing the reserve requirement
d) Cutting taxes -Correct Answer ✔C
A small number of people with complementary skills who are committed to a
common purpose, a set of performance goals, and an approach for which they hold
themselves mutually accountable is referred to as a
a) committee
b) task force
c) group
d) team -Correct Answer ✔D
A company is considering producing a product for a new market. The fixed costs
required for manufacturing and delivering the product is $50,000. Labor and
material costs are estimated to be approximately $25.00 per product. If the product
is sold for $35.00 each, the firm's break-even volume would be:
a) 50,000 units
b) 5,000 units
c) 2500 units
ETS MFT BUSINESS EXAM
,ETS MFT BUSINESS EXAM
d) 500 units -Correct Answer ✔B
A problem associated with equity theory is that:
a) it focuses on providing incentives for the long run when most workers are
mainly concerned with incentives that apply to their current situation
b) managers have a hard time applying it to real-world situations because of its
abstract nature
c) worker motivation is based on perceptions of fairness, and the perceptions
workers have about their contributions are not always accurate
d) it is concerned with the nature of the job itself rather than with what motivates
the workers who perform the job -Correct Answer ✔C
All of the financial statements are for a period of time except the
a) Income statement
b) Owner's equity statement
c) Balance sheet
d) Statement of cash flows -Correct Answer ✔C
By assembling computers only after customers have paid them for, resulting in a
lower finished goods inventory, Dell Computer Co. achieved:
a) Increased quality
b) A competitive advantage
c) Increased responsiveness
ETS MFT BUSINESS EXAM
, ETS MFT BUSINESS EXAM
d) Increased innovation
e) None of the above -Correct Answer ✔B
The Bill of Rights refers to:
a) the inalienable rights found at the beginning of the Constitution
b) the first ten amendments to the Constitution
c) a specific listing of individual rights found in the original text of the
Constitution.
d) a grouping of individual rights set forth by the United States Supreme Court
shortly after the Constitution was ratified by the states -Correct Answer ✔B
Fiedler proposes that all of the following determine whether a task- or relationship-
oriented style is more effective except:
a) Situational favorableness
b) Leader-member relations
c) Task structure
d) Position power -Correct Answer ✔A
Which one of the following statements is correct given the following exchange
rates?
US $ per 1 foreign unit
Country FRI THU
South Africa 0.1028 0.1023
ETS MFT BUSINESS EXAM