GLOBUS QUIZ 2 COMPREHENSIVE STUDY
GUIDE 2026
◉ Assume a company's Income Statement for a given quarter is as
follows: Sales Revenues (50,000), Production Costs (26,500),
Delivery Costs (1,600), Marketing Costs (8,500), Administrative
Expenses (2,000), Operating Profit (14,400), Net Interest (750),
Income Before Taxes (13,650), Taxes (4,095), Net Income (9,555).
Based on the above data, which of the following statements is false?.
Answer: Delivery costs are 2.8% of revenues and represent the
company's smallest cost component.
◉ One of the benefits of pursuing a strategy of social responsibility
and corporate citizenship is. Answer: An enhanced image rating,
provided company spending for socially responsible activities is
meaningful and is sustained over a multi-year period.
◉ Which of the following is NOT an action company co-managers
can take to boost a subpar ROE?. Answer: Issue additional shares of
stock and use the proceeds to pay down the debt outstanding on the
company's line of credit.
◉ Which one of the following actions is usually a dependable and
appealing way for managers to try to boost their company's EPS?.
Answer: Achieve a differentiation-based competitive advantage over
, rivals in both the entry-level and multi-featured camera segments
that company managers are savvy enough to sustain; as the market
demand for digital cameras grows worldwide and the company
exploits its competitive advantage to win additional sales, the profit
margins from a growing sales volume of entry-level and multi-
featured digital cameras typically results in increase in EPS.
◉ The industry-low, industry-average, and industry-high
benchmarks for camera costs and operating profits on pp. 5-6 of
each issue of the GLO-BUS Statistical Review.. Answer: Are worth
careful scrutiny by the managers of all companies because when the
benchmarking data signals that a company's costs/operating profits
for one or more of the benchmarks are clearly out-of-line (or
unappealing), managers are well advised to take corrective action in
the next decision round.
◉ According to the depreciation rates used by the company and
described in the Production Cost Report, if a company adds 50 new
workstations at a cost of $75,000 each and also spends $10 million
for an addition to its assembly plant to accommodate the new
workstations, than its annual depreciation costs will rise by. Answer:
$550,000
◉ Assume a company's Income Statement for a given period has the
following entries: Sales Revenues (50,000), Production Costs
(26,500), Delivery Costs (1,600), Marketing Costs (8,500),
Administrative Expenses (3,000), Operating Profit (13,400), Net
GUIDE 2026
◉ Assume a company's Income Statement for a given quarter is as
follows: Sales Revenues (50,000), Production Costs (26,500),
Delivery Costs (1,600), Marketing Costs (8,500), Administrative
Expenses (2,000), Operating Profit (14,400), Net Interest (750),
Income Before Taxes (13,650), Taxes (4,095), Net Income (9,555).
Based on the above data, which of the following statements is false?.
Answer: Delivery costs are 2.8% of revenues and represent the
company's smallest cost component.
◉ One of the benefits of pursuing a strategy of social responsibility
and corporate citizenship is. Answer: An enhanced image rating,
provided company spending for socially responsible activities is
meaningful and is sustained over a multi-year period.
◉ Which of the following is NOT an action company co-managers
can take to boost a subpar ROE?. Answer: Issue additional shares of
stock and use the proceeds to pay down the debt outstanding on the
company's line of credit.
◉ Which one of the following actions is usually a dependable and
appealing way for managers to try to boost their company's EPS?.
Answer: Achieve a differentiation-based competitive advantage over
, rivals in both the entry-level and multi-featured camera segments
that company managers are savvy enough to sustain; as the market
demand for digital cameras grows worldwide and the company
exploits its competitive advantage to win additional sales, the profit
margins from a growing sales volume of entry-level and multi-
featured digital cameras typically results in increase in EPS.
◉ The industry-low, industry-average, and industry-high
benchmarks for camera costs and operating profits on pp. 5-6 of
each issue of the GLO-BUS Statistical Review.. Answer: Are worth
careful scrutiny by the managers of all companies because when the
benchmarking data signals that a company's costs/operating profits
for one or more of the benchmarks are clearly out-of-line (or
unappealing), managers are well advised to take corrective action in
the next decision round.
◉ According to the depreciation rates used by the company and
described in the Production Cost Report, if a company adds 50 new
workstations at a cost of $75,000 each and also spends $10 million
for an addition to its assembly plant to accommodate the new
workstations, than its annual depreciation costs will rise by. Answer:
$550,000
◉ Assume a company's Income Statement for a given period has the
following entries: Sales Revenues (50,000), Production Costs
(26,500), Delivery Costs (1,600), Marketing Costs (8,500),
Administrative Expenses (3,000), Operating Profit (13,400), Net
