ETS MFT BUSINESS EXAM

ETS MFT BUSINESS EXAM 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. General Bikes is debating which marketing research options to employ. The traditional personto-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 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 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 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 breakeven volume would be: a) 50,000 units b) 5,000 units c) 2500 units d) 500 units 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 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 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 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 c) a specific listing of individual rights found in the original text of the Constitution. d) a grouping of individual rights set forth by the United States Supreme Court shortly after the Constitution was ratified by the states Fiedler proposes that all of the following determine whether a task- or relationship-oriented style is more effective except: a) Situational favorableness b) Leader-member relations c) Task structure d) Position power Which one of the following statements is correct given the following exchange rates? US $ per 1 foreign unit Country FRI THU South Africa 0.1028 0.1023 Thailand 0.0284 0.0286 a) On Thursday, one U.S. dollar was equal to 0.1023 South African rand. b) On Friday, one Thai baht was equal to $35.21. c) Both the South African rand and the Thai baht appreciated against the U.S. dollar from Thursday to Friday. d) The South African rand appreciated from Thursday to Friday against the U.S. dollar. e) The U.S. dollar depreciated from Thursday to Friday against the Thai baht. Family branding refers to a group of a) similar brands of products from different makers b) different brands of products from different makers within the same industry c) different products marketed under a single brand name d) similar products sold by small, family-owned firms A project has a net present value of zero. Which one of the following best describes this project? a) The project has a zero percent rate of return. b) The project requires no initial cash investment. c) The project has no cash flows. d) The summation of all of the project's cash flows is zero. e) The project's cash inflows equal its cash outflows in current dollar terms A firm that would like to know whether it has enough cash to meet its bills would be most likely to use which category of financial ratio? a) Liquidity b) Leverage c) Efficiency d) Profitability A major competitor of XYZ, Inc. suddenly creates a new type of product that makes XYZ's products obsolete. This is an example of which type of force in the environment? a) General environment b) Task environment c) Economic environment d) Legal environment e) Political environment Which of the following is not one of the four primary functional areas of a firm? a) human resources b) legal c) marketing d) operations When employees use email, word processors, electronic scheduling / calendars, they are using which of the following? a) Transaction processing systems b) Process control systems c) Office automation systems d) Decision support systems Which of the following statements about a systems flowchart is true? a) It is used in systems design to define and describe each piece of data. b) It is a method of writing programs using only three basic constructs: sequence, selection, and repetition. c) It documents the sequence of processing steps that take place in an information system. d) It documents the logical design of an information system. The primary purpose of the statement of cash flows is to report a) A company's investing transactions b) A company's financing transactions c) Information about cash receipts and cash payments of a company