ETS MFT BUSINESS EXAM ETS-MFTB
EXAM NV2 QUESTIONS & VERIFIED
COMPLETE SOLUTIONS
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
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
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
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
EXAM NV2 QUESTIONS & VERIFIED
COMPLETE SOLUTIONS
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
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
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
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
