Term
A) Feedback consists of data or information concerning the performance of a system
B) The control component of a system makes any necessary adjustments to the input and processing components of the system to ensure that proper output is produced
C) The feedback component of a system monitors and evaluates information provided by the control component to determine whether the system is moving toward its goal
D) Input involves capturing and assembling elements that enter the system so that they can be processed |
|
Definition
| The feedback component of a system monitors and evaluates information provided by the control component to determine whether the system is moving toward its goal |
|
|
Term
| When the success of an information system is measured by its effectiveness, which of the following does not apply? |
|
Definition
| Minimizing the cost, time, and use of resources |
|
|
Term
| _______________ give direct computer support to managers during the decision-making process. |
|
Definition
|
|
Term
| In essence, e-business is considered an online exchange of _______________. |
|
Definition
|
|
Term
| Which of the following are the basic resources of information systems? |
|
Definition
| People, hardware, software, data, and networks |
|
|
Term
| The processing component of a system involves capturing and assembling elements that enter the system to be processed |
|
Definition
True
The input component of a system involves capturing and assembling elements that enter the system to be processed. |
|
|
Term
| Enterprise collaboration systems provide critical information from a wide variety of internal and external sources in easy-to-use displays to executives and managers |
|
Definition
True
Executive information systems provide critical information from a wide variety of internal and external sources in easy-to-use displays to executives and managers. Enterprise collaboration systems enhance team and workgroup communications and productivity. |
|
|
Term
| Information systems have always been needed to process data generated by, and used in, business operations |
|
Definition
|
|
Term
| When a firm strives to find ways to help its suppliers and customers reduce their costs, or to increase the costs of their competitors, it is pursuing a differentiation strategy |
|
Definition
|
|
Term
| Using case managers to handle almost all tasks in a business process, instead of splitting tasks among many different specialists, is an example of a self-directed cross-functional team |
|
Definition
|
|
Term
| The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements is called Reverse Engineering |
|
Definition
True
The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements is called Business Process Engineering |
|
|
Term
The five competitive forces that shape the structure of competition in an industry include all of the following except:
A) The rivalry of competitors
B) The restrictions imposed by government regulations
C) The threat of substitutes
D) The bargaining power of customers
E) The threat of new entrants |
|
Definition
|
|
Term
Establishing new business linkages and alliances with customers, suppliers, and competitors is an example of a(n) _______________ strategy.
A) alliance
B) differentiation
C) innovation
D) growth |
|
Definition
|
|
Term
| Investing in information systems technology to make a firm's customers or suppliers dependent on them for the continued use of innovative, mutually beneficial inter-organizational information systems is an example of _______________. |
|
Definition
|
|
Term
According to the text, all the following are types of agility, except:
A) Operational
B) Partnering
C) Customers
D) All of the choices are types of agility. |
|
Definition
| D. All of the choices are types of agility. |
|
|
Term
| If a company emphasizes the strategic business uses of information technology, its management would view _______________ as a major competitive differentiator. |
|
Definition
|
|
Term
| The level of change linked to business process reengineering can best be described as _______________. |
|
Definition
|
|
Term
| Knowledge Management Systems exploit two kinds of knowledge: |
|
Definition
|
|
Term
| Internet terminals depend on network servers for Windows as their operating systems |
|
Definition
False
Windows terminals depend on network servers for Windows software, while Internet terminals depend on the Internet or intranet servers for their operating systems. |
|
|
Term
| A major use of optical disks in mainframe and midrange systems is as primary storage, replacing RAM |
|
Definition
False
A major use of optical disks in mainframe and midrange systems is as secondary storage |
|
|
Term
All of the following contributed to the evolution of today's computers except:
A) The invention of the adding machine
B) The invention of a mechanical loom
C) Adapting punch cards for used with census taking
D) The invention of airplanes |
|
Definition
| The invention of airplane |
|
|
Term
Which one of the following statements would best describe a network server?
A) Supports applications with heavy mathematical computing and graphics display demands, such as computer-aided design (CAD)
B) Is used to coordinate telecommunications and resource sharing in local area networks (LANS) and Internet and intranet websites
C) Designed for convenient mobile communications and computing via touch screens
D) None of the choices are correct. |
|
Definition
| Is used to coordinate telecommunications and resource sharing in local area networks (LANS) and Internet and intranet websites |
|
|
Term
The function of an input device is to:
A) Convert data into electronic machine-readable form for entry into a computer system
B) Perform the arithmetic and logic functions required in computer processing
C) Convert electronic information produced by the computer system into human-intelligible form for presentation to end-users
D) Store the data and program instructions needed for processing |
|
Definition
| Convert data into electronic machine-readable form for entry into a computer system |
|
|
Term
Which of the following units would interpret software instructions and then transmit the directions that control the other components of the computer system?
A) Arithmetic-logic unit
B) Control unit
C) RAID unit
D) Fuzzy logic unit |
|
Definition
|
|
Term
Which of the following statements related to peripherals is true?
A) Smaller is better when it comes to storage capacity
B) CD drives are a necessity for software installation
C) Per-page costs are higher for laser printers than for inkjet printers
D) Flatbed scanners save desktop space |
|
Definition
| CD drives are a necessity for software installation |
|
|
Term
According to the text, which of the following is a mainstay of PDA technology?
A) iPod
B) iPhone
C) Network Servers
D) BlackBerry |
|
Definition
|
|
Term
| According to the text, the two categories of software are Application software and Custom software. |
|
Definition
False
The two categories of software are Application software and System software |
|
|
Term
| Java is an example of a compiled programming language |
|
Definition
False
Java is an example of an interpreted programming language. |
|
|
Term
According to the text, all of these statements regarding instant messaging (IM) are true except:
A) It is a hybrid technology of computer conferencing and electronic mail
B) Millions of end users depend on it to communicate with each other by sending and receiving file attachments
C) Messages pop up instantly in an IM window on the computer screens of everyone who is a member of a user's IM "buddy list," regardless of what they are working on at the time
D) IM software can be downloaded and its services implemented by subscribing to many popular IM systems |
|
Definition
| Millions of end users depend on it to communicate with each other by sending and receiving file attachments |
|
|
Term
The license to a software product gives the purchaser which of the following rights?
A) The right to resell copies of the software
B) The right to sell the original software
C) The right to duplicate the software
D) The right to modify the software |
|
Definition
| The right to sell the original software |
|
|
Term
Which of the following is not a characteristic of high-level languages?
A) They are easier to learn than assembler languages
B) They use less rigid rules, forms, and syntax than assembler languages
C) They require more computer time for translation into machine instructions than do assembler languages
D) They are machine-dependent |
|
Definition
| They are machine-dependent |
|
|
Term
A fourth generation language is _______________.
A) a non-procedural language
B) a natural language
C) a symbolic language
D) a binary code language |
|
Definition
| A non-procedural language |
|
|
Term
| Any grouping of related records in tabular, or row and column form, is called an entity. |
|
Definition
False
Any grouping of related records in tabular, or row and column form is called a file. |
|
|
Term
| A database consolidates records into a common pool of data elements that provides data for a single application. |
|
Definition
False
A database consolidates records into a common pool of data elements that provides data for many applications. |
|
|
Term
| The network database model can relate data in any one file with data in another file, if both files share a common data element or field. |
|
Definition
False
The relational database model can relate data in any one file with data in another file, if both files share a common data element or field. |
|
|
Term
| The primary challenge of a distributed database is the time required to access the records. |
|
Definition
False
The primary challenge of a distributed database is the maintenance of data accuracy. |
|
|
Term
| The database management approach consolidates data records formerly in separate files into databases that can be accessed by a single application program. |
|
Definition
False
The database management approach consolidates data records formerly in separate files into databases that can be accessed by many different application programs. |
|
|
Term
Three basic operations can be performed on a relational database to create useful sets of data. The _______________ operation is used to create a subset of records that meet a stated criterion.
A) pick
B) filter
C) sort
D) select |
|
Definition
|
|
Term
The multidimensional database model is a variation of the _______________ model.
A) hierarchical
B) network
C) object-oriented
D) relational |
|
Definition
|
|
Term
An object does which of the following?
A) Combines the attributes and programs (operations) that can be performed on those attributes.
B) Separates the attributes and programs (operations) that can be performed on those attributes.
C) Has no effect on the attributes and programs (operations) that can be performed on those attributes.
D) None of the above are correct. |
|
Definition
| Combines the attributes and programs (operations) that can be performed on those attributes. |
|
|
Term
According to the text, the physical view of the data may also be called _______________.
A) the database view
B) the external view
C) the internal view
D) the technical view |
|
Definition
|
|
Term
Acquiring information from various operational and external databases and then cleaning and transforming it into data suitable for analysis involves _______________.
A) filtering out unwanted data
B) correcting incorrect data
C) aggregating data into new data subsets
D) All of the choices are correct. |
|
Definition
| All of the choices are correct |
|
|
Term
All the following were problems with the file processing approach, except:
A) data redundancy
B) lack of data integration
C) data independence
D) lack of data integrity |
|
Definition
|
|
Term
| Any grouping of related records in tabular, or row and column form, is called an entity. |
|
Definition
False
Any grouping of related records in tabular, or row and column form is called a file. |
|
|
Term
| A database consolidates records into a common pool of data elements that provides data for a single application. |
|
Definition
False
A database consolidates records into a common pool of data elements that provides data for many applications. |
|
|
Term
| The network database model can relate data in any one file with data in another file, if both files share a common data element or field. |
|
Definition
False
The relational database model can relate data in any one file with data in another file, if both files share a common data element or field. |
|
|
Term
| The primary challenge of a distributed database is the time required to access the records. |
|
Definition
False
The primary challenge of a distributed database is the maintenance of data accuracy. |
|
|
Term
| The database management approach consolidates data records formerly in separate files into databases that can be accessed by a single application program. |
|
Definition
False
The database management approach consolidates data records formerly in separate files into databases that can be accessed by many different application programs. |
|
|
Term
Three basic operations can be performed on a relational database to create useful sets of data. The _______________ operation is used to create a subset of records that meet a stated criterion.
A) pick
B) filter
C) sort
D) select |
|
Definition
|
|
Term
The multidimensional database model is a variation of the _______________ model.
A) hierarchical
B) network
C) object-oriented
D) relational |
|
Definition
|
|
Term
An object does which of the following?
A) Combines the attributes and programs (operations) that can be performed on those attributes.
B) Separates the attributes and programs (operations) that can be performed on those attributes.
C) Has no effect on the attributes and programs (operations) that can be performed on those attributes.
D) None of the above are correct. |
|
Definition
| Combines the attributes and programs (operations) that can be performed on those attributes. |
|
|
Term
According to the text, the physical view of the data may also be called _______________.
A) the database view
B) the external view
C) the internal view
D) the technical view |
|
Definition
|
|
Term
Acquiring information from various operational and external databases and then cleaning and transforming it into data suitable for analysis involves _______________.
A) filtering out unwanted data
B) correcting incorrect data
C) aggregating data into new data subsets
D) All of the choices are correct. |
|
Definition
| All of the choices are correct |
|
|
Term
All the following were problems with the file processing approach, except:
A) data redundancy
B) lack of data integration
C) data independence
D) lack of data integrity |
|
Definition
|
|
Term
If the host of a star network fails, control is taken over by the backup system.
A) True
B) False |
|
Definition
False
If the host of a star network fails, there is no backup processing and communications capability. |
|
|
Term
| Extranets are network links that use proprietary technologies to interconnect a business with its customers, suppliers, or other business partners |
|
Definition
False
Extranets are network links that use Internet technologies to interconnect a business with the intranets of its customers, suppliers, or other business partners |
|
|
Term
| A VPN is a secure, private network that avoids using the Internet. |
|
Definition
False
A VPN is a secure network that uses the Internet as its main backbone network |
|
|
Term
| In an OSI model, the translation layer supports end-to-end control, error checks, and ensures complete data transfer. |
|
Definition
False
In an OSI model, the transport layer supports end-to-end control, error checks, and ensures complete data transfer |
|
|
Term
| A network architecture is a standard set of rules and procedures for the control of communications in a network. |
|
Definition
False
A protocol is a standard set of rules and procedures for the control of communications in a network |
|
|
Term
When computers are networked, two industries converge, resulting in vastly more than the sum of the parts. The industries that converge are:
A) Networking and the Internet
B) Computing and communications
C) Telecommunications and software
D) Software and hardware |
|
Definition
| Computing and communications |
|
|
Term
The electronic movement of information over networks is referred to as _______________.
A) networking
B) packet transfers
C) telecommuting
D) telecommunications |
|
Definition
|
|
Term
Fiber-optic transmission, which uses pulses of laser-generated light, offers all of the following advantages over other forms of transmission except:
A) Lower infrastructure costs
B) Vastly greater communication capacity
C) Much faster transmission speeds
D) Freedom from electrical interference |
|
Definition
| Lower infrastructure costs |
|
|
Term
In January 2004, the Internet was estimated to have over 46 million connected servers, with a sustained growth rate in excess of _______________ servers per month.
A) 1,000
B) 50,000
C) 250,000
D) 1,000,000 |
|
Definition
|
|
Term
Network links that use Internet technologies to interconnect the intranet of a business with the intranets of its customers, suppliers, or other business partners are called _______________.
A) extranet links
B) Internet links
C) Web links
D) virtual private links |
|
Definition
|
|
Term
_______________ networks have become the predominant information architecture of enterprise-wide computing.
A) Client/server
B) Local area
C) Peer-to-peer
D) Wide area |
|
Definition
|
|
Term
A short-range wireless technology rapidly being built into computers and other devices, such as computer printers and scanners, is _______________.
A) Wi-Fi
B) Bluetooth
C) coaxial
D) LAN |
|
Definition
|
|
Term
The Internet's protocol suite is known as TCP/IP, which stands for:
A) Transmission Control Protocol/Internet Protocol
B) Transmission Connection Protocol/Internet Protocol
C) Transmission Control Protocol/Interconnection Protocol
D) None of the choices is correct. |
|
Definition
| Transmission Control Protocol/Internet Protocol |
|
|
Term
| E-commerce is much broader in scope than e-business, going beyond the use of the Net for transaction and electronic communication, to enabling any type of business activity |
|
Definition
False
E-business is much broader in scope than e-commerce. |
|
|
Term
| A transaction is any event where something of value is exchanged. |
|
Definition
False
Transactions are events that occur as part of doing business |
|
|
Term
| Computer-aided design (CAD) systems, and computer-aided process planning, are also used to help plan the types of material needed in the production process, called MRP, or material reduction planning. |
|
Definition
False
MRP stands for material requirements planning. |
|
|
Term
Which of the following correctly describes e-commerce?
A) A cross-functional integrated suite of software modules that supports the basic internal business processes of a company
B) Use of the Internet and other networks to support enterprise communications and collaboration
C) A cross-functional enterprise system that automates many of the customer-serving processes of a business
D) The buying, selling, marketing, and servicing of products, services, and information over the Internet and other networks |
|
Definition
| The buying, selling, marketing, and servicing of products, services, and information over the Internet and other networks |
|
|
Term
Today's enterprise applications are focused on accomplishing fundamental business processes in concert with a company's _______________.
A) supplier and customers
B) suppliers, customers, and partners
C) suppliers, customers, partners, and employees
D) None of the choices is correct. |
|
Definition
| suppliers, customers, partners, and employees |
|
|
Term
As described in the text, supply chain management focuses on:
A) Acquiring and retaining partners who can enhance the selling and distribution of a firm's products and services
B) Acquiring and retaining profitable customers via effective delivery of timely products
C) Developing the most efficient and effective sourcing and procurement processes with suppliers of the products and services needed by a business
D) Providing a firm's employees with the tools they need for group collaboration and decision support |
|
Definition
| Developing the most efficient and effective sourcing and procurement processes with suppliers of the products and services needed by a business |
|
|
Term
All of the following are considered finance business functions except:
A) Capital budgeting
B) Credit management
C) Accounts receivable
D) Financial forecasting |
|
Definition
|
|
Term
When a company customizes its Web advertising messages and promotion methods to appeal to people with very specific interests, such as basketball enthusiasts, it is applying a _______________ marketing component.
A) community
B) content
C) context
D) demographic |
|
Definition
|
|
Term
Which of the following is a strategic human resource system?
A) Turnover analysis
B) Career matching
C) Benefits administration
D) Succession planning |
|
Definition
|
|
Term
| PRM applications apply many of the same tools used in CRM systems |
|
Definition
|
|
Term
| According to the Real World case, _______________ CRM file(s) is/are preferable to _______________ CRM file(s). |
|
Definition
| a single customer master; multiple customer master |
|
|
Term
| When ERP systems can break down departmental and functional walls of business processes, it results in a more flexible organizational structure, managerial responsibilities, and work roles. This describes the key business benefit of |
|
Definition
|
|
Term
The interrelationships with suppliers, customers, distributors, and other businesses that are needed to design, build, and sell a product make up a network of business entities, relationships, and processes called a(n) _______________.
A) extranet
B) internet
C) supply chain
D) collaborative enterprise system |
|
Definition
|
|
Term
Giving customers what they want, when and how they want it, at the lowest cost are the Customer Value Goals of:
A) supply chain management
B) customer relationship management
C) enterprise resource management
D) marketing management |
|
Definition
|
|
Term
Which characteristic of a corporation is a disadvantage?
A.Double taxation
B.Limited liability
C.Mutual agency
D.None are disadvantages. |
|
Definition
|
|
Term
| The two basic sources of corporate capital are |
|
Definition
| paid-in capital and retained earnings |
|
|
Term
| Suppose Yummy Treats Bakery issues common stock in exchange for a building. Yummy Treats Bakery should record the building at |
|
Definition
|
|
Term
Winston 
Corporation has 
9,000 
shares of 
8%, 
$5 
par cumulative preferred stock and 
53,000 
shares of common stock outstanding. 
Winston 
declared no dividends in 
2013. 
In 
2014, 
Winston 
declares a total dividend of 
$53,000. 
How much of the dividends go to the common stockholders? |
|
Definition
|
|
Term
|
Definition
| has no effect on total equity |
|
|
Term
| A company's own stock that it has issued and repurchased is called |
|
Definition
|
|
Term
Question Help
Assume that a company paid 
$15 per share to purchase 1,200 shares of its $1 par common stock as treasury stock. The purchase of treasury stock. |
|
Definition
decreased total equity by 
$18,000. |
|
|
Term
Drewson Health Foods has 20,000 
shares of $3 par common stock outstanding, which was issued at $15 
per share. Drewson also has a deficit balance in Retained Earnings of 
$76,000. 
How much is Drewson's total stockholders' equity? |
|
Definition
|
|
Term
MajorNet Systems is a start-up company that makes connectors for high-speed Internet connections. The company has budgeted variable costs of $145 for each connector and fixed costs of $7,500 per month. MajorNet's static budget predicted production and sales of 100 connectors in August, but the company actually produced and sold only 84 connectors at a total cost of $21,000.
MajorNet Systems' managers could set direct labor standards based on |
|
Definition
A.
benchmarking.
B.
time-and-motion studies.
C.
continuous improvement.
D.
All of the above. |
|
|
Term
HyperNet Systems is a start-up company that makes connectors for high-speed Internet connections. HyperNet 
Systems has budgeted three hours of direct labor per connector, at a standard cost of $14 per hour. During August, technicians actually worked 
205 hours completing 80 connectors. All 80 connectors actually produced were sold. HyperNet paid the technicians $14.80 per hour.
What is HyperNet's 
direct labor cost variance for August? |
|
Definition
|
|
Term
MetaPro Systems is a start-up company that makes connectors for high-speed Internet connections. MetaPro 
has budgeted three hours of direct labor per connector, at a standard cost of $16 per hour. During August, technicians actually worked 194 
hours completing 75 connectors. All 
75 connectors actually produced were sold. MetaPro paid the technicians 
$16.80 per hour.
What is MetaPro's direct labor efficiency variance for August? |
|
Definition
|
|
Term
| The person probably most responsible for the direct labor efficiency variance is? |
|
Definition
|
|
Term
The purposes of the cash flow statement are to
a. determine ability to pay liabilities and dividends.
b. evaluate management decisions.
c. predict future cash flows
d. all of the above |
|
Definition
|
|
Term
The main categories of cash flow activities are
a. current and long-term
b. direct and indirect
c. non-cash investing and financing.
d. operating, investing, and financing |
|
Definition
| operating, investing, and financing |
|
|
Term
Operating activities are most closely related to
a. long-term assets.
b. long-term liabilities and stockholders equity
c. dividends and treasury stock.
d. current assets and current liabilities. |
|
Definition
| current assets and current liabilities |
|
|
Term
which item does not appear on a statement of cash flows prepared by the indirect method?
a. Gain on sale of land
b. Depreciation expense
c. Net income
d. Collections from customers |
|
Definition
| collections from customers |
|
|
Term
Super Market earned net income of $58,000 after deducting depreciation of $3,000 and all other expenses. Current assets decreased by $2000, and current liabilities increased by $4000. How much was Super Market's cash provided by operating activities (indirect method)?
A. $53,000
B. $63,000
C. $49,000
D. $67,000 |
|
Definition
|
|
Term
Beg 87,000 57,000 disposals
Acquisitions 390,000
End 420,000
Cine Creation sold plant assets at a $16,000 loss. Where on the statement of cash flows should Cine Creation report the sale of plant assets? How much should the business report for the sale?
a. Investing cash flows - cash receipt of $31,000
b. Investing cash flows - cash receipt of $63,000
C. Investing cash flows - cash receipt of $47,000
d. Financing cash flows- cash receipt of $47,000 |
|
Definition
| Investing cash flows - cash receipt of $31,000 |
|
|
Term
Java King, Inc. expects net cash flow from operating activities to be $140,000,and the company plans purchases of equipment of $86,000 and repurchases of stock of $20,000. What is Java King's free cash flow?
a. $54,000
b. $86,000
c. $140,000
d. $34,000 |
|
Definition
|
|
Term
Holmes Furniture Center has accounts receivable of $26,000 at the beginning of the year and $50,000 at year-end. Revenue for the year totaled $120,000. How much cash did the business collect from customers?
a. $120,000
b. $144,000
c. $70,000
d. $96,000 |
|
Definition
|
|
Term
If accrued liabilities increased during the year, which of the following is correct when using a spreadsheet to complete the statement of cash flows (indirect method)?
a. increase in Accrued Liabilities would be debited
b. Accrued Liabilities would be debited
c. Increase in Accrued Liabilities would be credited
d. None of the above is correct. |
|
Definition
| Increase in Accrued Liabilities would be debited. |
|
|
Term
Statement of Cash flows can be used to?
a. predict future cash flows
b. evaluate management decisions.
c. predict ability of the company to pay debts and dividends.
d. all of the above |
|
Definition
|
|
Term
|
Definition
|
|
Term
| Software is the general term used to describe the various kinds of programs that operate computers and related peripheral devices. |
|
Definition
|
|
Term
| According to the text, the two categories of software are Application software and Custom software. |
|
Definition
|
|
Term
| Information systems are a vital component of successful businesses and organizations. |
|
Definition
|
|
Term
| Cash registers at many fast-food restaurants are part of a large information system that can track products sold, inventory levels, and the amount of money in the cash drawer. |
|
Definition
|
|
Term
| Gaining a strategic advantage over competitors requires innovative application of information technologies. |
|
Definition
|
|
Term
| Executive information systems were developed to limit the data to which top executives had access. |
|
Definition
|
|
Term
| Information systems have always been needed to process data generated by, and used in, business operations. |
|
Definition
|
|
Term
| Enterprise collaboration systems provide critical information from a wide variety of internal and external sources in easy-to-use displays to executives and managers. |
|
Definition
|
|
Term
| Strategic information systems can provide expert advice for operational chores, such as equipment diagnostics or for managerial decisions |
|
Definition
|
|
Term
| Within the information system development cycle, designers of applications base their design on an analysis of the business requirements of the organization. |
|
Definition
|
|
Term
| The processing component of a system involves capturing and assembling elements that enter the system to be processed. |
|
Definition
|
|
Term
| In the context of the information systems model, the generic concept of "software" includes sets of operating instructions called "programs," and the set of information processing instructions called "procedures." |
|
Definition
|
|
Term
Information technology can help all kinds of businesses improve the efficiency and effectiveness of _______________.
A) business process
B) managerial decision making
C) workgroup collaboration
D) All of the choices are correct. |
|
Definition
|
|
Term
Which of the following are the basic resources of information systems?
A) Input, output, processing, storage, and dissemination
B) People, hardware, software, data, and networks
C) Computers, networks, printers, end users, and developers
D) None of the choices are correct. |
|
Definition
| People, hardware, software, data, and networks |
|
|
Term
Within the context of an information system, which of the following would be considered a typical end user?
A) Managers
B) Accountants
C) Customers
D) All of the choices are correct. |
|
Definition
|
|
Term
In essence, e-business is considered an online exchange of _______________.
A) value
B) goods
C) resources
D) information |
|
Definition
|
|
Term
A business firm's operations support systems should efficiently _______________.
A) update corporate databases
B) process business transactions
C) control industrial processes
D) All of the choices are correct |
|
Definition
|
|
Term
A manager needs to have summary sales information, organized by product line, before making a purchasing decision. This type of information would most likely come from a _______________ system.
A) transaction processing
B) enterprise collaboration
C) management information
D) process control |
|
Definition
|
|
Term
_______________ give direct computer support to managers during the decision-making process.
A) Enterprise collaboration systems
B) Management information systems
C) Decision support systems
D) All the choices are correct |
|
Definition
|
|
Term
The major thrust of knowledge management systems (KMS) is to:
A) Develop computer systems with capabilities normally associated with human intelligence, such as reasoning, learning, and problem solving
B) Develop computer systems in order to help knowledge workers create, organize, and share important business knowledge wherever and whenever needed
C) Develop computer systems that support and shape the competitive position and strategies of an enterprise
D) Develop computer systems that provide a variety of composite or cross-functional capabilities |
|
Definition
| Develop computer systems in order to help knowledge workers create, organize, and share important business knowledge wherever and whenever needed |
|
|
Term
Which of the following statements does not apply to the system concept?
A) Feedback consists of data or information concerning the performance of a system
B) The control component of a system makes any necessary adjustments to the input and processing components of the system to ensure that proper output is produced
C) The feedback component of a system monitors and evaluates information provided by the control component to determine whether the system is moving toward its goal
D) Input involves capturing and assembling elements that enter the system so that they can be processed |
|
Definition
| The feedback component of a system monitors and evaluates information provided by the control component to determine whether the system is moving toward its goal |
|
|
Term
| Information systems can contribute much more to an enterprise than ensuring efficient business operations; they can change the way businesses compete |
|
Definition
|
|
Term
| When a firm strives to find ways to help its suppliers and customers reduce their costs, or to increase the costs of their competitors, it is pursuing a differentiation strategy. |
|
Definition
|
|
Term
| Investments in information technology can allow a business to lock in customers and suppliers by building valuable relationships with them. |
|
Definition
|
|
Term
| As an additional competitive strategy, a firm can create barriers to entry that would discourage customers from entering a market. |
|
Definition
|
|
Term
| One of the ways an organization can build a customer-focused business is to build customer value and loyalty using Internet technologies. This strategy would include building a Web community of customers, employees, and partners. |
|
Definition
|
|
Term
| The value chain concept divides the activities of a firm into a set of primary processes and a set of complimentary processes |
|
Definition
|
|
Term
| Using case managers to handle almost all tasks in a business process, instead of splitting tasks among many different specialists, is an example of a self-directed cross-functional team |
|
Definition
|
|
Term
| The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements is called Reverse Engineering |
|
Definition
|
|
Term
| A virtual company may be able to share infrastructure and risk with alliance partners |
|
Definition
|
|
Term
| One of the biggest drawbacks of using knowledge management systems (KMS) is that they are not designed to provide rapid feedback to knowledge workers |
|
Definition
|
|
Term
The five competitive forces that shape the structure of competition in an industry include all of the following except:
A) The rivalry of competitors
B) The restrictions imposed by government regulations
C) The threat of substitutes
D) The bargaining power of customers
E) The threat of new entrants |
|
Definition
| The restrictions imposed by government regulations |
|
|
Term
Establishing new business linkages and alliances with customers, suppliers, and competitors is an example of a(n) _______________ strategy.
A) alliance
B) differentiation
C) innovation
D) growth |
|
Definition
|
|
Term
A company implements information systems linked by the Internet and extranets to support strategic business relationships with customers, suppliers, and other business partners. This is an example of using information technology to pursue a(n) _______________ strategy.
A) cost leadership
B) differentiation
C) innovation
D) alliance |
|
Definition
|
|
Term
Investing in information systems technology to make a firm's customers or suppliers dependent on them for the continued use of innovative, mutually beneficial inter-organizational information systems is an example of _______________.
A) reducing barriers to entry
B) reducing switching costs
C) creating switching costs
D) improving the value chain |
|
Definition
|
|
Term
According to the text, all the following are types of agility, except:
A) Operational
B) Partnering
C) Customers
D) All of the choices are types of agility. |
|
Definition
|
|
Term
If a company emphasizes the strategic business uses of information technology, its management would view _______________ as a major competitive differentiator.
A) human resources
B) accounting
C) IT
D) new products |
|
Definition
|
|
Term
The level of change linked to business process reengineering can best be described as _______________.
A) incremental
B) cyclical
C) radical
D) sequential |
|
Definition
|
|
Term
To be an agile company, a business must implement all of the following competition strategies except:
A) Leverage the impact of people and information
B) Enrich customers with solutions to their problems
C) Resist change and uncertainty
D) Cooperate with customers, suppliers, and competitors |
|
Definition
| Resist change and uncertainty |
|
|
Term
Becoming a knowledge-creating company or a learning organization means:
A) Consistently creating new business knowledge
B) Disseminating knowledge widely throughout the company
C) Quickly building the new knowledge into products and services
D) All of the choices are correct. |
|
Definition
|
|
Term
Knowledge Management Systems exploit two kinds of knowledge:
A) Explicit and tacit
B) Internal and external
C) Facts and perceptions
D) None of the choices are correct. |
|
Definition
|
|
Term
Developing e-commerce capabilities is a competitive necessity for most businesses today.
A) True
B) False |
|
Definition
|
|
Term
One-to-one marketing is Web advertising where a person is recognized as an individual user and given a personalized view of the Website.
A) True
B) False |
|
Definition
|
|
Term
Both Dell Computer and Cisco Systems use multimedia catalogs to sell build-to-order computers and network processors to online customers.
A) True
B) False |
|
Definition
|
|
Term
B2C e-commerce is moving toward a full-service model where customers are assisted by online operators and service associates, who help them configure and customize the products and services they wish to buy.
A) True
B) False |
|
Definition
|
|
Term
On the Internet, the barriers of time, distance, and form are broken down, and businesses are able to transact the sale of goods and services 24 hours a day, 7 days a week, 365 days a year with consumers all over the world.
A) True
B) False |
|
Definition
|
|
Term
Many Web stores increase their market reach by being part of Web banner exchange programs with other Web retailers.
A) True
B) False |
|
Definition
|
|
Term
Providing links to related websites from your Web store can earn commission income from the affiliate marketing programs of other Web retailers.
A) True
B) False |
|
Definition
|
|
Term
Business-to-business e-commerce is the retail side of the commercial process, where businesses buy, sell, or trade with their retail customers.
A) True
B) False |
|
Definition
|
|
Term
Business-to-business e-commerce is the retail side of the commercial process, where businesses buy, sell, or trade with their retail customers.
A) True
B) False |
|
Definition
|
|
Term
The integration of Web-enabled e-commerce applications within Office Depot's traditional store and catalog operations has had no influence on the traffic at their physical stores.
A) True
B) False |
|
Definition
|
|
Term
An e-commerce channel is the marketing or sales channel created by a company to conduct and manage its chosen e-commerce activities.
A) True
B) False |
|
Definition
|
|
Term
Business-to-business (B2B) commerce involves:
A) Developing attractive electronic marketplaces with which to entice customers
B) Both electronic business marketplaces and direct market links between businesses
C) Consumers buying and selling with each other via online auctions, as well as personal advertising of products or services at personal or electronic newspaper websites
D) None of the choices are correct. |
|
Definition
| Both electronic business marketplaces and direct market links between businesses |
|
|
Term
All of the following are aspects of search management except:
A) Dynamic content generation
B) Content-based search
C) Parametric-based search
D) Role- and rule-based search |
|
Definition
| Dynamic content generation |
|
|
Term
Most e-commerce applications are _______________ systems that respond to a multitude of events, from a new customer's first website access, to payment and delivery processes, and to numerous customer relationship and supply chain management activities.
A) knowledge management based
B) groupware
C) event-driven
D) workflow based |
|
Definition
|
|
Term
When you make an online purchase on the Internet, your credit card information is vulnerable to interception by _______________, software that can recognize credit card number formats.
A) spies
B) interceptors
C) sniffers
D) scouts |
|
Definition
|
|
Term
The statement "Business-to-consumer sites should offer customers an attractive Web storefront, shopping areas, and multimedia product catalogs" reflects the _______________ success factor for retailing on the Web.
A) performance and service efficiency
B) selection and value
C) offering incentives to purchase
D) look and feel |
|
Definition
|
|
Term
The term _______________ describes a company website that offers multimedia company information, but no storefront for online purchases.
A) Infoware
B) Brochureware
C) Kiosk advertising
D) Catalog |
|
Definition
|
|
Term
All of the following are ways to protect the users of a website except:
A) Redundant servers and power
B) Using password protection
C) Encrypted order processing
D) Network firewalls and security monitors |
|
Definition
| redundant servers and power |
|
|
Term
A third-party market-maker company who brings buyers and sellers together in catalog, exchange, and auction markets, and in e-business and e-commerce transactions, is a(n) _______________.
A) B2C e-commerce portal
B) Content manager
C) Market generator
D) Infomediary |
|
Definition
|
|
Term
The framework of the classic managerial pyramid applies even in today's downsized, flattened, or nonhierarchical organizations.
A) True
B) False |
|
Definition
|
|
Term
Management information systems provide information and decision support techniques to analyze specific problems or opportunities.
A) True
B) False |
|
Definition
|
|
Term
Few business stakeholders expect easy or instant access to information or to Web-enabled self-service data analysis.
A) True
B) False |
|
Definition
|
|
Term
According to the text, a supermarket performing a basket analysis discovered that diapers and milk sell well together on Thursdays.
A) True
B) False |
|
Definition
|
|
Term
According to the text, Executive Information Systems, once used only at upper levels of the organization, are now used to provide decision-making tools at all levels of the organization.
A) True
B) False |
|
Definition
|
|
Term
The goal of AI is to develop computers that can simulate the ability to think, as well as see, hear, walk, talk, and feel.
A) True
B) False |
|
Definition
|
|
Term
In many organizations, hypermedia databases at corporate intranet Web sites have become the centralized database repositories for storage and dissemination of business knowledge.
A) True
B) False |
|
Definition
|
|
Term
Intelligent agent software uses Darwinian, randomizing, and other mathematics functions to simulate evolutionary processes that can generate increasingly better solutions to problems.
A) True
B) False |
|
Definition
|
|
Term
A genetic algorithm is an artificial intelligence routine that helps users accomplish many kinds of tasks in e-business and e-commerce; it is a software surrogate for an end user or a process that fulfills a stated need or activity.
A) True
B) False |
|
Definition
|
|
Term
Increasingly, business professionals in self-directed teams, as well as business unit managers _______________ for their subunits of the company.
A) develop short- and medium-range plans
B) develop schedules and budgets
C) specify the policies, procedures, and business objectives
D) All of the choices are correct |
|
Definition
| All of the choices are correct |
|
|
Term
Linear programming, multiple regression forecasting, and capital budgeting models may be stored in a DSS model base in the form of _______________.
A) spreadsheet models or templates
B) statistical and mathematical programs
C) program modules
D) All of the choices are correct. |
|
Definition
| All of the choices are correct |
|
|
Term
_______________ refers to the ability to look at the database from different viewpoints.
A) Consolidation
B) Drill-down
C) Slicing and dicing
D) Filtration |
|
Definition
|
|
Term
_______________ software analyzes vast stores of historical business data that have been prepared for analysis in corporate data warehouses and tries to discover patterns, trends, and correlations hidden in the data.
A) Goal seeking analysis
B) Optimization analysis
C) Data mining
D) Sensitivity analysis |
|
Definition
|
|
Term
The knowledge contained in knowledge bases frequently takes the form of any of the following except:
A) Tests
B) Best practices
C) Business solutions
D) Policies |
|
Definition
|
|
Term
Being able to talk to computers in conversational human languages and have them "understand" us as easily as we understand each other is a goal of which domain of artificial intelligence?
A) Genetic algorithms
B) Neural networks
C) Robotics
D) Natural interfaces |
|
Definition
|
|
Term
Which of the following is an example of a commercial application of a decision support application of AI?
A) Intelligent human-computer interface systems that can understand spoken language and gestures, and facilitate problem solving by supporting organization-wide collaborations
B) Natural language technology to retrieve any sort of online information in response to English questions
C) Database mining for marketing trend analysis, financial forecasting, maintenance cost reduction, and more
D) AI-based intranet and Internet systems that distill vast amounts of information into simple presentations |
|
Definition
| Intelligent human-computer interface systems that can understand spoken language and gestures, and facilitate problem solving by supporting organization-wide collaborations |
|
|
Term
_______________ are statements that typically take the form of a premise and a conclusion. For example, IF John is an analyst, THEN he needs a workstation.
A) Rules
B) Cases
C) Frames
D) Objects |
|
Definition
|
|
Term
_______________ involves combining parts of several good processes.
A) An algorithm
B) Crossover
C) Selection
D) Mutation |
|
Definition
|
|
Term
_______________ is (are) a method of reasoning that resembles human reasoning, in that it allows for approximate values and inferences and incomplete or ambiguous data.
A) Intelligent agents
B) Genetic algorithms
C) Neural networks
D) Fuzzy logic |
|
Definition
|
|
Term
Just knowing the importance and structure of e-business is often enough to propel a company to transition from an old business design to a new e-business design.
A) True
B) False |
|
Definition
|
|
Term
The scenario approach to planning has gained in popularity as a less formal, but more realistic, strategic planning methodology for use by business professionals.
A) True
B) False |
|
Definition
|
|
Term
Almost any business executive is aware of disastrous projects that had to be written off, often after large cost overruns, because the new system simply did not work.
A) True
B) False |
|
Definition
|
|
Term
Done properly, a business model forces entrepreneurs and managers to think rigorously and systematically about the value and viability of business initiatives.
A) True
B) False |
|
Definition
|
|
Term
The form of an IT organization depends on the management philosophy and business/IT strategies formulated during the strategic planning process.
A) True
B) False |
|
Definition
|
|
Term
The business application planning process begins before the strategic phase of business/IT planning occurs.
A) True
B) False |
|
Definition
|
|
Term
Application developers use business process engineering methods to define how strategic business requirements are to be implemented.
A) True
B) False |
|
Definition
|
|
Term
A customer relationship management application is designed to make communication with and marketing to customers an easier process, but it does little else.
A) True
B) False |
|
Definition
|
|
Term
The end users of an application are often members of the system development team or they do their own development work.
A) True
B) False |
|
Definition
|
|
Term
People are a major focus of organizational change management.
A) True
B) False |
|
Definition
|
|
Term
The organizational planning process is followed by implementation, which is monitored by control measures, which provides _______________ for planning.
A) incentives
B) feedback
C) directions
D) a roadmap |
|
Definition
|
|
Term
All the following are components of an organizational planning process, except:
A) team building, modeling, and consensus
B) evaluating an organization's accomplishments and acquired resources
C) focusing on suppliers and customers for lowest costs and highest profits
D) building a shared vision and identifying the goals to be achieved |
|
Definition
| focusing on suppliers and customers for lowest costs and highest profits |
|
|
Term
The development of an organization's mission, goals, strategies, and policies is the process of _______________.
A) strategic planning
B) operational planning
C) tactical planning
D) enterprise resource planning |
|
Definition
|
|
Term
The question, "does the Internet alter the process or service mix that embodies the firm's products?" represents which component of the e-business model?
A) Customer Value
B) Pricing
C) Scope
D) Sustainability |
|
Definition
|
|
Term
Balanced scorecard is a strategic management system that balances a financial perspective with a _______________ perspective.
A) customer
B) growth
C) learning
D) All the choices are correct |
|
Definition
| All of the choices are correct |
|
|
Term
The _______________ quadrant of a strategic positioning matrix represents a low amount of internal company, customer, and competitor connectivity and use of IT via the Internet and other networks.
A) global market penetration
B) product and service transformation
C) cost and efficiency improvements
D) performance improvement in business effectiveness |
|
Definition
| cost and efficiency improvements |
|
|
Term
Using the Internet for electronic commerce transaction processing with customers at company websites and e-commerce auctions and exchanges for suppliers are typical examples of the _______________ quadrant of a strategic positioning matrix.
A) global market penetration
B) product and service transformation
C) cost and efficiency improvements
D) performance improvement in business effectiveness |
|
Definition
| product and service transformation |
|
|
Term
All of the following are examples of e-Business strategies, except:
A) Transaction intermediary
B) Self-service innovator
C) Low cost leadership
D) Channel mastery |
|
Definition
|
|
Term
Which of the following is an operational dimension of change management?
A) Change leaders
B) Executive sponsorship and support
C) Technology selection
D) Supplier partnership |
|
Definition
|
|
Term
The change management model given in the text suggests that the business vision created in the strategic planning phase should be communicated to the people in the organization by means of _______________.
A) formal notations on departmental bulletin boards
B) individual emails
C) management directives
D) a compelling change story |
|
Definition
| a compelling change story |
|
|
Term
Daniel's bonds payable carry a stated interest rate of 5%, and the market rate of interest is 7%. The price of the Daniels bonds will be at
a. a discount
b. a premium
c. par value
d. face value |
|
Definition
|
|
Term
A bond that matures in installments at regular intervals is a
a. term bond
b. periodic bond
c. terminal bond
d. serial bond |
|
Definition
|
|
Term
The debt to equity ratio is calculated as
a. total liabilities/Total equity
b. Total assets / Total equity
c. current liabilities/ total equity
d. total liabilities/ total assets |
|
Definition
| Total liabilities/ total equity |
|
|
Term
Which of the following is one of the purposes of the statement of cash flows
a. to evaluate management decisions
b. to predict the growth of a company's assets
c. to predict future net income
d. to evaluate the company's earnings per share |
|
Definition
| to evaluate management desisions |
|
|
Term
The main categories of cash flow activities are
a. non cash investing and financing
b. direct and indirect
c. operating, investing, and financing
d. current and long-term |
|
Definition
| operating, investing, and financing |
|
|
Term
Operating activities are most closely related to
a. long term assets
b. long-term liabilities and stockholders' equity
c. dividends and treasury stock
d. current assets and current liabilities |
|
Definition
| current assets and current liabilities |
|
|
Term
which item does not appear on a statement of cash flows prepared by the indirect method.
a. collections from customers
b. net income
c. depreciation expense
d. gain on sale of land |
|
Definition
| collections from customers |
|
|
Term
Mountain Water Corp, issued common stock of $28,000. In what section(s) would these transactions be recorded?
a. financing activities cash receipt, $28,000
b. Financing activities payment of note (28,000)
c. Non-cash investing and financing activities, 28,000
d. both a and b are correct |
|
Definition
| Non-cash investing and financing activities |
|
|
Term
If accrued liabilities increased during the year, which of the following is correct when using a spreadsheet to complete the statement of cash flows (indirect method)?
a. increase in accrued liabilities would be debited.
b. increase in accrued liabilities would be credited.
c. accrued liabilities would be debited
d. none of the above is correct |
|
Definition
| Increase in Accrued Liabilities would be debited. |
|
|
Term
Which is not a characteristic of management accounting information
a. emphasizes relevance
b. emphasizes the external financial statements
c. Provides detailed information about individual parts of the company
d. focuses on the future |
|
Definition
| Emphasizes the external financial statements |
|
|
Term
World class businesses use which of these systems to integrate all of a company's worldwide functions, departments, and data into a single system?
a. just in time management
b. enterprise resource planning
c. cost standards
d. all of the above |
|
Definition
| Enterprise resource planning |
|
|
Term
Today's business environment is characterized by
a. global competition
b. time based competition
c. a shift towards a service economy
d. Items a, b and c are correct |
|
Definition
| Items a, b and c are correct |
|
|
Term
A management accountant who avoids conflicts of interest meets the ethical standard of
a. competence
b. confidentiality
c. credibility
d. integrity |
|
Definition
|
|
Term
Which of the following accounts does a manufacturing company have that a service company does not have?
a. retained earnings
b. advertising expense
c. cost of goods sold
d. salaries payable |
|
Definition
|
|
Term
Which of the following is a direct cost of manufacturing a sport boat?
a. salary of an engineer who rearranges plant layout
b. cost of boat engine
c. cost of customer service hotline
d. depreciation on plant and equipment |
|
Definition
|
|
Term
Which of the following is NOT part of manufacturing overhead for producing a computer?
a. manufacturing plant property taxes
b. manufacturing plant utilities
c. depreciation of delivery trucks
d. insurance on plant and equipment |
|
Definition
| depreciation of delivery trucks |
|
|
Term
Which of the following statements is true of management accounting?
a. management accounting information must comply with Generally accepted accounting principles
b. The primary users of management accounting are the external stakeholders of a company
c. management accounting information requires an external audit by an independent CPA
d. management accounting information is used to help managers plan and control their operations. |
|
Definition
| Management accounting information is used to help managers plan and control their operations |
|
|
Term
Which of the following is a philosophy designed to integrate all organizational areas in order to provide customers with superior products and services, while meeting organizational goals throughout the value chain?
a. just in time management
b. Enterprise resource planning
c. supply chain management
d. total quality management |
|
Definition
|
|
Term
Period costs are the:
a. costs that are incurred and expensed during the same accounting period.
b. costs related to production of products the company purchases and sells
c. same as manufacturing overhead costs.
d. current assets and liabilities reported on the balance sheet. |
|
Definition
| costs that are incurred and expensed during the same accounting period |
|
|
Term
Goods that are produced by a manufacturing company and are ready to sell are recorded in the:
a. work in process inventory account.
b. Manufacturing overhead account
c. materials inventory account
d. finished goods inventory account |
|
Definition
| Finished goods inventory account |
|
|
Term
| Would an advertising agency use job order or process costing? What about a cell phone manufacturer? |
|
Definition
| Advertising agency - job order costing; cell phone manufacturer - process costing |
|
|
Term
When a manufacturing company uses direct materials, is assigns the cost be debiting?
a. work in process inventory
b. manufacturing overhead
c. raw materials inventory
d. direct materials |
|
Definition
| Work in process inventory |
|
|
Term
When a manufacturing company uses indirect materials, it accumulates the cost by debiting
a. raw materials inventory
b. work in process inventory
c. Indirect materials
d manufacturing overhead |
|
Definition
|
|
Term
When a manufacturing company uses direct labor, it assigns the cost by debiting
a. wages payable
b. work in process inventory
c. manufacturing overhead.
d. direct labor |
|
Definition
| work in process inventory |
|
|
Term
A manufacturing company completed work on a job. The cost of the job is transferred into _______with a ______?
a. work in process inventory; debit
b. finished goods inventory; debit
c. finished goods inventory; credit
d. cost of goods sold; credit |
|
Definition
| Finished goods inventory; debit |
|
|
Term
For which of the following reasons would David Laugherty, owner of the Laugherty associates law firm, want to know the total costs of a job (serving a particular client)?
a. for inventory valuation
b. for external reporting
c. to determine the fees to charge clients
d. a, b, and c are correct |
|
Definition
| to determine the fees to charge clients |
|
|
Term
Which of the following would use a process costing system rather than a job order costing system.
a. a home remodeling contractor
b. a music production studio
c. a health care provider
d. a paint manufacturer |
|
Definition
|
|
Term
Which of the following accounts would be debited in the journal entry to record the requisition of direct materials?
a. work in process inventory
b. cost of goods sold
c. raw materials inventory
d. finished goods inventory |
|
Definition
| work in process inventory |
|
|
Term
The journal entry to record direct labor costs actually incurred involves a debit to the:
a. raw materials inventory account
b. work in process inventory account
c. manufacturing overhead account
d. wages payable account |
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Definition
| work in process inventory account |
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Term
Which company is least likely to use a process costing system?
a. paper manufacturer
b. accounting firm
c. petroleum processor
d. soft drink bottler |
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Definition
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Term
Which characteristic is the same in both job order costing systems and process costing systems?
a. number of work in process inventory accounts.
b. method of record keeping
c. flow of costs through the accounts
d. types of product costs |
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Definition
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Term
Conversion costs are
a. direct materials plus manufacturing overhead.
b. direct materials plus direct labor
c. direct labor plus manufacturing overhead.
d. indirect materials plus indirect labor. |
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Definition
| direct labor plus manufacturing overhead |
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Term
The manager of Gilbert Company used the production cost report to compare budgeted costs to actual costs and then based bonuses on the results. this is an example of using the reports to
a. identify profitable products.
b. evaluate performance
c. control costs
d. prepare financial statements |
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Definition
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Term
Which of the following statements correctly describes the term conversion costs?
a. the cost to convert finished goods to sales to customers
b. the cost of direct materials, direct labor, and manufacturing overhead costs incurred during production
c. the cost of direct labor combined with manufacturing overhead
d. the cost incurred for direct and indirect materials during the production |
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Definition
| the cost of direct labor combined with manufacturing overhead |
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Term
Which of the following is a step in the preparation of a production cost report?
a. assignment of costs to nits completed and units in process
b. summarization of the flow of physical units to the suppliers.
c. computation of expected units of production.
d. computation of amount of materials required for production. |
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Definition
| assignment of costs to units completed and units in process |
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Term
For Frank's Funky Sounds, straight line depreciation on the trucks is a
a. variable cost
b. fixed cost
c. high low cost
d. mixed cost |
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Definition
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Term
On a CVP graph, the total cost line intersects the vertical (dollars)axis at
a. the origin
b. the level of the fixed costs
c. the breakeven point
d. the level of the variable costs |
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Definition
| the level of the fixed costs |
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Term
If a company increases it selling price per unit for Product A. the new breakeven point will
a. increase
b. decrease
c. remain the same
d. more information is needed |
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Definition
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Term
If a company increases its fixed costs for Product B, then the contribution margin per unit will.
a. increase
b. decrease
c. remain the same
d. more information is needed |
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Definition
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Term
A company can expect to receive which of the following benefits when it uses a budgeting process?
a. the budget provides manages with a benchmark against which to compare actual results for performance evaluation.
b. the budget helps motivate employees to achieve sales growth and cost-reduction goals.
c. the planning required to develop the budget helps managers foresee and avoid potential problems before they occur.
d. All of the above |
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Definition
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Term
A company prepares a five year budget. This budget would be considered a
a. flexible budget
b. operational budget
c. master budget
d. strategic budget |
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Definition
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Term
Which of the following is the cornerstone of the master budget>
a. the budgeted balance sheet
b. the sales budget
c. the production budget
d. the selling and administrative budget |
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Definition
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Term
The budgeted statement of cash flows is part of which element of the master budget?
a. The financial budget
b. the capital expenditures budget
c. the operating budget
d. none of the above |
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Definition
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Term
Which of the following expenses would NOT appear in the cash budget?
a. wages expense
b. Interest expense
c. marketing expense
d. depreciation expense |
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Definition
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Term
Information technology has made it easier for managers to perform all of the following tasks EXCEPT
a. sensitivity analyses
b. removing budgetary slack from the budget.
c. preparing performance reports that identify variances between actual and budgeted revenues and costs
d. combining individual units budgets into the companywide budget |
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Definition
| removing budgetary slack from the budget |
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Term
Which of the following is an example of the coordination and communication function of a budget
a. employees are motivated to achieve the goals set by the budget.
b. budget figures are used to evaluate the performance of managers
c. the budget outlines a specific course of action for the coming period
d. a budget demands integrated input from different business units and functions. |
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Definition
| A budget demands integrated input from different business units and functions |
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Term
Which of the following budgets focuses on the income statement and its supporting schedules?
a. the capital expenditures budget
b. the cash budget
c. the operating budget
d. the sales budget |
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Definition
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Term
Which of the following is true of the sales budget?
a. it is used in the production budget
b. it shows the value of expected production in a period
c. it provides sales values that are used to prepare financial statements for external reporting purposes
d. it captures the variable and fixed expenses of the business |
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Definition
| It is used in the production budget |
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Term
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Definition
| Backed by specific assets that have been pledged as collateral |
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Term
| Debenture (unsecured Bonds) |
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Definition
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Term
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Definition
| The bond principal is due in full at a single maturity date |
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Term
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Definition
| The bond principal is repaid in installments over the maturity period |
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Term
|
Definition
| stated rate = market rate |
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Term
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Definition
| stated rate is less than market rate |
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Term
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Definition
| stated rate higher than market rate |
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