MSIS 3223 Final Exam Questions &
Answers(RATED A+)
Variable Cost - ANSWERUnit Variable Cost * Quantity Produced
Total Cost - ANSWERFixed Cost + Variable Cost * Quantity Produced
(Also written as C=F+VQ) p. 380
Logic suggests that variable cost is... - ANSWERthe unit variable cost times the quantity of item
produced.
Demand has an influence on... - ANSWERprofit
- by predicting how many units of a product will be sold
-Quantity produced is a decision option typically based on demand.
Quantity Produced - ANSWERa decision option typically based on demand.
The Spreadsheet model for Profit - ANSWERRevenue - variable cost - fixed cost
(Profit = Revenue - Variable Cost - Fixed Cost)
p. 383
One-way data tables - ANSWERMultiple outputs may be evaluated using one way data tables.
For example, profit and revenue.
Two-way data tables - ANSWERcan evaluate only one output variable
, - To evaluate multiple output variables, you must construct multiple two-way tables.
p 408-410
Calculations/Formulas based on an Example Spreadsheet - ANSWER•Identify the formula to calculate
net income based on the data values shown on the spreadsheet?
•Identify the formula which would be used to calculate the gross profit using only the data values in
the spreadsheet?
•Identify the formula which would be used to calculate the operating expenses using only the data
values in the spreadsheet?
•Identify the formula which would be used to calculate the net operating income using only the
model values in the spreadsheet?
•Identify the formula which would be used to calculate earnings before taxes using both the data
and model values in the spreadsheet?
•Identify the formula which would be used to calculate the net income value using information in
both the data and model sections in the spreadsheet?
•
Predictive models focus on... - ANSWERunderstanding the future.
Practical business models focus on... - ANSWERpredicting financial performance, customer retention,
and product sales.
Sales levels are often used to plan... - ANSWERinventory levels
Predictive models usually involve... - ANSWERmultiple time periods
Predictive models incorporate the... - ANSWERuncertainty element
Optimization - ANSWERthe process of selecting values of decision variables that minimize or
maximize some quantity of interest.
Answers(RATED A+)
Variable Cost - ANSWERUnit Variable Cost * Quantity Produced
Total Cost - ANSWERFixed Cost + Variable Cost * Quantity Produced
(Also written as C=F+VQ) p. 380
Logic suggests that variable cost is... - ANSWERthe unit variable cost times the quantity of item
produced.
Demand has an influence on... - ANSWERprofit
- by predicting how many units of a product will be sold
-Quantity produced is a decision option typically based on demand.
Quantity Produced - ANSWERa decision option typically based on demand.
The Spreadsheet model for Profit - ANSWERRevenue - variable cost - fixed cost
(Profit = Revenue - Variable Cost - Fixed Cost)
p. 383
One-way data tables - ANSWERMultiple outputs may be evaluated using one way data tables.
For example, profit and revenue.
Two-way data tables - ANSWERcan evaluate only one output variable
, - To evaluate multiple output variables, you must construct multiple two-way tables.
p 408-410
Calculations/Formulas based on an Example Spreadsheet - ANSWER•Identify the formula to calculate
net income based on the data values shown on the spreadsheet?
•Identify the formula which would be used to calculate the gross profit using only the data values in
the spreadsheet?
•Identify the formula which would be used to calculate the operating expenses using only the data
values in the spreadsheet?
•Identify the formula which would be used to calculate the net operating income using only the
model values in the spreadsheet?
•Identify the formula which would be used to calculate earnings before taxes using both the data
and model values in the spreadsheet?
•Identify the formula which would be used to calculate the net income value using information in
both the data and model sections in the spreadsheet?
•
Predictive models focus on... - ANSWERunderstanding the future.
Practical business models focus on... - ANSWERpredicting financial performance, customer retention,
and product sales.
Sales levels are often used to plan... - ANSWERinventory levels
Predictive models usually involve... - ANSWERmultiple time periods
Predictive models incorporate the... - ANSWERuncertainty element
Optimization - ANSWERthe process of selecting values of decision variables that minimize or
maximize some quantity of interest.
