BUSOBA 2321 MIDTERM
UPDATED ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS
Question 1.
characteristics of
ANSWER
a good decision -based on logic -considers all options and info available -sometimes gives
unfavorable results
Question 2.
5 steps of the decision
ANSWER
making process 1) define problem
2) list all alternatives (options, rows)
3) identify outcomes (states of nature, columns) for each alternative
4) identify payoff for each combo of alternatives and outcome
5) pick a technique
Question 3.
profit =
ANSWER
revenue - cost
Question 4.
revenue =
ANSWER
Price x Quantity
Question 5.
costs =
ANSWER
fixed costs + (quantity x variable costs)
, Question 6.
Profit line equation
ANSWER
(P-VC) x Q - FC
Question 7.
break even point graph
ANSWER
FC= intercept (P-VC)= slope x intercept = break even point
Question 8.
indifference point
ANSWER
when total costs are equal to profit
Question 9.
indifference point
ANSWER
equation (with price) (Pa-VCa)Q-FCa=(Pb-VCb)Q-FCb
UPDATED ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS
Question 1.
characteristics of
ANSWER
a good decision -based on logic -considers all options and info available -sometimes gives
unfavorable results
Question 2.
5 steps of the decision
ANSWER
making process 1) define problem
2) list all alternatives (options, rows)
3) identify outcomes (states of nature, columns) for each alternative
4) identify payoff for each combo of alternatives and outcome
5) pick a technique
Question 3.
profit =
ANSWER
revenue - cost
Question 4.
revenue =
ANSWER
Price x Quantity
Question 5.
costs =
ANSWER
fixed costs + (quantity x variable costs)
, Question 6.
Profit line equation
ANSWER
(P-VC) x Q - FC
Question 7.
break even point graph
ANSWER
FC= intercept (P-VC)= slope x intercept = break even point
Question 8.
indifference point
ANSWER
when total costs are equal to profit
Question 9.
indifference point
ANSWER
equation (with price) (Pa-VCa)Q-FCa=(Pb-VCb)Q-FCb
