MSIS 3223 Final Exam Review OKSTATE
with Complete Solutions
Variable cost = - ANSWER-Unit Variable Cost * Quantity Produced (Descriptive Model)
Total Cost = - ANSWER-Fixed Cost + Variable Cost * Quantity Produced
Also written as FC + VC * QP = TC
(Descriptive Model)
Logic suggests that variable cost is the unit variable cost times the quantity of item
produced. - ANSWER-True
__________ has an influence on profit by predicting how many units of a product will be
sold. - ANSWER-Demand
______________produced is a decision option typically based on demand. - ANSWER-
Quantity
The spreadsheet model for ________ is revenue - variable cost - fixed cost. -
ANSWER-Profit
Profit = Revenue - Variable Cost - Fixed Cost
___________ ____________ allow you to easily evaluate what-if questions by changing
input values and recalculating model outputs - ANSWER-Spreadsheet Models
Systematic approaches to what-if analysis that are available in Excel make the process
easier and more useful. - ANSWER-True
(Data tables-Scenario Manager-Goal Seek)
Multiple outputs may be evaluated using _______________. For example, profit and
revenue. - ANSWER-one way data tables
_____________can evaluate only one output variable. To evaluate multiple output
variables, you must construct ___________________. - ANSWER-Two-way tables;
multiple two-way tables
You will have a spreadsheet with a net income model similar to the one on p.385 Figure
11.5. Based on this spreadsheet, there will be six multiple choice questions. (KNOW
HOW TO ANSWER) - ANSWER-- Identify the formula to calculate net income based on
the data values shown on the spreadsheet?
, (earnings before taxes - taxes)
You will have a spreadsheet with a net income model similar to the one on p.385 Figure
11.5. Based on this spreadsheet, there will be six multiple choice questions. (KNOW
HOW TO ANSWER) - ANSWER-- Identify the formula which would be used to calculate
the gross profit using only the data values in the spreadsheet? (sales - cost of goods
sold)
You will have a spreadsheet with a net income model similar to the one on p.385 Figure
11.5. Based on this spreadsheet, there will be six multiple choice questions. (KNOW
HOW TO ANSWER) - ANSWER-- Identify the formula which would be used to calculate
the operating expenses using only the data values in the spreadsheet?
(sum of administrative, selling, and depreciation expenses)
You will have a spreadsheet with a net income model similar to the one on p.385 Figure
11.5. Based on this spreadsheet, there will be six multiple choice questions. (KNOW
HOW TO ANSWER) - ANSWER-- Identify the formula which would be used to calculate
the net operating income using only the model values in the spreadsheet?
(gross profit - operating expenses)
You will have a spreadsheet with a net income model similar to the one on p.385 Figure
11.5. Based on this spreadsheet, there will be six multiple choice questions. (KNOW
HOW TO ANSWER) - ANSWER-- Identify the formula which would be used to calculate
earnings before taxes using both the data and model values in the spreadsheet?
(net operating income - interest expense)
You will have a spreadsheet with a net income model similar to the one on p.385 Figure
11.5. Based on this spreadsheet, there will be six multiple choice questions. (KNOW
HOW TO ANSWER) - ANSWER-- Identify the formula which would be used to calculate
the net income value using information in both the data and model sections in the
spreadsheet?
(sales - cost of goods sold)
___________ focus on understanding the future. - ANSWER-Predictive Models
____________________ focus on predicting financial performance, customer retention,
and product sales. - ANSWER-Practical business models
_______________ are often used to plan inventory sales. - ANSWER-Sales levels
________________ usually involve multiple time periods. - ANSWER-Predictive models
_______________ incorporate the uncertainty element. - ANSWER-Predictive models
T/F: In predictive modeling, verification refers to how well a model represents reality. -
ANSWER-False, that is validity
with Complete Solutions
Variable cost = - ANSWER-Unit Variable Cost * Quantity Produced (Descriptive Model)
Total Cost = - ANSWER-Fixed Cost + Variable Cost * Quantity Produced
Also written as FC + VC * QP = TC
(Descriptive Model)
Logic suggests that variable cost is the unit variable cost times the quantity of item
produced. - ANSWER-True
__________ has an influence on profit by predicting how many units of a product will be
sold. - ANSWER-Demand
______________produced is a decision option typically based on demand. - ANSWER-
Quantity
The spreadsheet model for ________ is revenue - variable cost - fixed cost. -
ANSWER-Profit
Profit = Revenue - Variable Cost - Fixed Cost
___________ ____________ allow you to easily evaluate what-if questions by changing
input values and recalculating model outputs - ANSWER-Spreadsheet Models
Systematic approaches to what-if analysis that are available in Excel make the process
easier and more useful. - ANSWER-True
(Data tables-Scenario Manager-Goal Seek)
Multiple outputs may be evaluated using _______________. For example, profit and
revenue. - ANSWER-one way data tables
_____________can evaluate only one output variable. To evaluate multiple output
variables, you must construct ___________________. - ANSWER-Two-way tables;
multiple two-way tables
You will have a spreadsheet with a net income model similar to the one on p.385 Figure
11.5. Based on this spreadsheet, there will be six multiple choice questions. (KNOW
HOW TO ANSWER) - ANSWER-- Identify the formula to calculate net income based on
the data values shown on the spreadsheet?
, (earnings before taxes - taxes)
You will have a spreadsheet with a net income model similar to the one on p.385 Figure
11.5. Based on this spreadsheet, there will be six multiple choice questions. (KNOW
HOW TO ANSWER) - ANSWER-- Identify the formula which would be used to calculate
the gross profit using only the data values in the spreadsheet? (sales - cost of goods
sold)
You will have a spreadsheet with a net income model similar to the one on p.385 Figure
11.5. Based on this spreadsheet, there will be six multiple choice questions. (KNOW
HOW TO ANSWER) - ANSWER-- Identify the formula which would be used to calculate
the operating expenses using only the data values in the spreadsheet?
(sum of administrative, selling, and depreciation expenses)
You will have a spreadsheet with a net income model similar to the one on p.385 Figure
11.5. Based on this spreadsheet, there will be six multiple choice questions. (KNOW
HOW TO ANSWER) - ANSWER-- Identify the formula which would be used to calculate
the net operating income using only the model values in the spreadsheet?
(gross profit - operating expenses)
You will have a spreadsheet with a net income model similar to the one on p.385 Figure
11.5. Based on this spreadsheet, there will be six multiple choice questions. (KNOW
HOW TO ANSWER) - ANSWER-- Identify the formula which would be used to calculate
earnings before taxes using both the data and model values in the spreadsheet?
(net operating income - interest expense)
You will have a spreadsheet with a net income model similar to the one on p.385 Figure
11.5. Based on this spreadsheet, there will be six multiple choice questions. (KNOW
HOW TO ANSWER) - ANSWER-- Identify the formula which would be used to calculate
the net income value using information in both the data and model sections in the
spreadsheet?
(sales - cost of goods sold)
___________ focus on understanding the future. - ANSWER-Predictive Models
____________________ focus on predicting financial performance, customer retention,
and product sales. - ANSWER-Practical business models
_______________ are often used to plan inventory sales. - ANSWER-Sales levels
________________ usually involve multiple time periods. - ANSWER-Predictive models
_______________ incorporate the uncertainty element. - ANSWER-Predictive models
T/F: In predictive modeling, verification refers to how well a model represents reality. -
ANSWER-False, that is validity
