MBA Exit Exam questions & answers
rated A+
ABC Analysis - ANS ✔✔inventory control system that divides inventory into three classes: A, B,
and C, depending on the value of importance
Accelerated depreciation method - ANS ✔✔allows asset to take on greater depreciation during
early years of asset's life, defers some of the taxes until later years
Acceptable Quality Level (AQL) - ANS ✔✔quality standard that allows for a prespecified number
of defects
acceptance - ANS ✔✔an assent to an offer in accordance with its terms
accounting exposure - ANS ✔✔The risk resulting from the effects of changes in foreign
exchange rates on the translated value of a firm's financial statement accounts denominated in
a given foreign currency.
Accounting Rate of Return - ANS ✔✔annual after-tax net income / annual average investment;
AKA simple ROR or unadjusted ROR
Accounts Receivable Turnover - ANS ✔✔annual credit sales/ avg. accounts receivable
Acid Test Ratio - ANS ✔✔(Current Assets - Inventory) / Current Liabilities. More stringent
measure of liquidity than current ratio, AKA quick ratio
,Activity-based costing (ABC) - ANS ✔✔A method of cost accounting designed to identify
streams of activity and then to allocate costs across particular business processes according to
the amount of time employees devote to particular activities.
activity based management - ANS ✔✔Method of management decision-making that uses
activity-based costing information to improve customer satisfaction and profitability.
After Tax Cash Flow (ATCF) - ANS ✔✔net cash flow after taxes have been subtracted
Agency relationship - ANS ✔✔consensual arrangement between 2 persons whereby one agrees
to act for the benefit of and under control of the other person
Aggregate Production Planning - ANS ✔✔balances production, inventory, resources and
demand
American Terms - ANS ✔✔The foreign exchange rate quotation that represents the number of
American dollars that can be bought with one unit of local currency.
Amortized Loan - ANS ✔✔a loan paid off in equal installments and includes varying portions of
principal and interest during its term
Analysis of variances (variance analysis) - ANS ✔✔analysis and investigation of causes for
variances between standard costs and actual costs. Variance is favorable if actual costs <
standard costs
Variance is unfavorable if actual costs > standard costs
Annual report - ANS ✔✔audited document issued annually by all publicly listed corporations to
their SH in accordance with SEC regulations. contains info on financial results and overall
performance of the previous fiscal year and comments on future outlook
, application program - ANS ✔✔the computer software designed to process data in an IS.
Performs tasks and solves problems applicable to a manager's work
appreciation - ANS ✔✔An increase in the value of a currency
Arbitrage Pricing Model - ANS ✔✔Theory that relates stock returns and risk. A security's return
varies from expected amounts when there are unanticipated changes in basic economic forces
(industrial production, inflation, interest rates, and high and low risk bonds)
Asset turnover - ANS ✔✔sales / assets; measure of efficiency of asset management
assignable causes of variation - ANS ✔✔causes of poor quality that pertain to materials,
machines, or operators, which can be remedied
assignment problem - ANS ✔✔Problem of determining how the assignments should be made in
order to minimize total costs.
Attribute Mapping - ANS ✔✔A technique for identifying new products by mapping product-line
attributes; searching for "attribute space" or possible new attribute combinations for new
products.
B2B e-commerce - ANS ✔✔using B2B trading networks, auction sites, spot exchanges, online
product catalogs, barter sites, and other online resources to reach new customers, serve current
customers more effectively, and obtain buying efficiencies and better prices
B2C e-commerce - ANS ✔✔online selling of goods and services to final customers
Baby Boomers - ANS ✔✔The 78 million people born during the baby boom, following World
War II and lasting until the early 1960s
rated A+
ABC Analysis - ANS ✔✔inventory control system that divides inventory into three classes: A, B,
and C, depending on the value of importance
Accelerated depreciation method - ANS ✔✔allows asset to take on greater depreciation during
early years of asset's life, defers some of the taxes until later years
Acceptable Quality Level (AQL) - ANS ✔✔quality standard that allows for a prespecified number
of defects
acceptance - ANS ✔✔an assent to an offer in accordance with its terms
accounting exposure - ANS ✔✔The risk resulting from the effects of changes in foreign
exchange rates on the translated value of a firm's financial statement accounts denominated in
a given foreign currency.
Accounting Rate of Return - ANS ✔✔annual after-tax net income / annual average investment;
AKA simple ROR or unadjusted ROR
Accounts Receivable Turnover - ANS ✔✔annual credit sales/ avg. accounts receivable
Acid Test Ratio - ANS ✔✔(Current Assets - Inventory) / Current Liabilities. More stringent
measure of liquidity than current ratio, AKA quick ratio
,Activity-based costing (ABC) - ANS ✔✔A method of cost accounting designed to identify
streams of activity and then to allocate costs across particular business processes according to
the amount of time employees devote to particular activities.
activity based management - ANS ✔✔Method of management decision-making that uses
activity-based costing information to improve customer satisfaction and profitability.
After Tax Cash Flow (ATCF) - ANS ✔✔net cash flow after taxes have been subtracted
Agency relationship - ANS ✔✔consensual arrangement between 2 persons whereby one agrees
to act for the benefit of and under control of the other person
Aggregate Production Planning - ANS ✔✔balances production, inventory, resources and
demand
American Terms - ANS ✔✔The foreign exchange rate quotation that represents the number of
American dollars that can be bought with one unit of local currency.
Amortized Loan - ANS ✔✔a loan paid off in equal installments and includes varying portions of
principal and interest during its term
Analysis of variances (variance analysis) - ANS ✔✔analysis and investigation of causes for
variances between standard costs and actual costs. Variance is favorable if actual costs <
standard costs
Variance is unfavorable if actual costs > standard costs
Annual report - ANS ✔✔audited document issued annually by all publicly listed corporations to
their SH in accordance with SEC regulations. contains info on financial results and overall
performance of the previous fiscal year and comments on future outlook
, application program - ANS ✔✔the computer software designed to process data in an IS.
Performs tasks and solves problems applicable to a manager's work
appreciation - ANS ✔✔An increase in the value of a currency
Arbitrage Pricing Model - ANS ✔✔Theory that relates stock returns and risk. A security's return
varies from expected amounts when there are unanticipated changes in basic economic forces
(industrial production, inflation, interest rates, and high and low risk bonds)
Asset turnover - ANS ✔✔sales / assets; measure of efficiency of asset management
assignable causes of variation - ANS ✔✔causes of poor quality that pertain to materials,
machines, or operators, which can be remedied
assignment problem - ANS ✔✔Problem of determining how the assignments should be made in
order to minimize total costs.
Attribute Mapping - ANS ✔✔A technique for identifying new products by mapping product-line
attributes; searching for "attribute space" or possible new attribute combinations for new
products.
B2B e-commerce - ANS ✔✔using B2B trading networks, auction sites, spot exchanges, online
product catalogs, barter sites, and other online resources to reach new customers, serve current
customers more effectively, and obtain buying efficiencies and better prices
B2C e-commerce - ANS ✔✔online selling of goods and services to final customers
Baby Boomers - ANS ✔✔The 78 million people born during the baby boom, following World
War II and lasting until the early 1960s
