BUS 278

BUS 278 WEEK 4 QUESTIONS 100 % CORRECT Question 1. Question : (TCO 1) The type of budget that is updated on a regular basis is known as a _____. Question 2. Question : (TCO 2) The quantitative forecasting method that uses actual sales from recent time periods to predict future sales, assuming each period has equal influence on the prediction of future sales, is the _____. (TCO 3) The regression statistic that measures how many standar

20 Other / Other ashford university / BUS 278 22 Aug 2015

BUS 278 WEEK 4 MID TERM EXAM QUESTION 12 100% CORRECT TCO 6 Mimi Company is considering a capital investment of $250,000 in new equipment. The equipment is expected to have a 5-year useful life with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net income and cash inflows are expected to be $25,000 and $75,000, respectively. Mimi's minimum required rate of return is 10%. P

3 Other / Other ashford university / BUS 278 22 Aug 2015

BUS 278 WEEK 4 MID TERM EXAM QUESTION 11 100% CORRECT TCO 6 Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below. Project Soup Project Nuts Initial Investment $600,000 $900,000 Annual Net Income $30,000 $63,000 Annual Cash Inflow $150,000 $213,000 Salvage Value $0 $0 Estimated Useful Life 5 years 6 years The company requires a 10% rate of return on all new investments

3 Other / Other ashford university / BUS 278 22 Aug 2015

BUS 278 WEEK 4 MID TERM EXAM QUESTION 4 100% CORRECT TCO 4 Marketing costs include _____

2 Other / Other ashford university / BUS 278 22 Aug 2015

BUS 278 WEEK 4 MID TERM EXAM QUESTION 3 100% CORRECT TCO 3 Before performing linear regression, it is important to ensure that a linear relationship exists between the dependent and independent variables by plotting observed data on a diagram called the _____.

2 Other / Other ashford university / BUS 278 22 Aug 2015

BUS 278 WEEK 4 MID TERM Question 12 TCO 6 Top Growth Farms, a farming cooperative, is considering purchasing a tractor for $468,000. The machine has a 10-year life and an estimated salvage value of $32,000. Top Growth uses straight-line depreciation. Top Growth estimates that the annual cash flow will be $78,000. The required rate of return is 9%. Part (a): Calculate the payback period. Part (b): Calculate the net present value. Part (c):

3 Other / Other ashford university / BUS 278 22 Aug 2015

BUS 278 WEEK 4 MID TERM Question 10 TCO 3 Use the table Food and Beverage Sales for Luigis Italian Restaurant to answer the questions below. Food and Beverage Sales for Luigi’s Italian Restaurant ($000s) Month First Year Second Year January 218 237 February 212 215 March 209 223 April 251 174 May 256 174 June 216 135 July 131 142 August 137 145 September 99 110 October 117 117 November 137 151 December 213 208

3 Other / Other ashford university / BUS 278 22 Aug 2015

BUS 278 WEEK 4 MID TERM Question 7 TCO 1 There are several approaches that may be used to develop the budget. Managers typically prefer an approach known as participative budgeting. Discuss this form of budgeting and identify its advantages and disadvantages.

3 Other / Other ashford university / BUS 278 22 Aug 2015

BUS 278 WEEK 4 MID TERM Question 5 The lowest unit within a company for which a budget is prepared is called the _____

2 Other / Other ashford university / BUS 278 22 Aug 2015

BUS 278 WEEK 4 MID TERM Question 3 The regression statistic that measures how many standard errors the coefficient is from zero is the _____.

2 Other / Other ashford university / BUS 278 22 Aug 2015