Bus 302 l Study guides, Class notes & Summaries

Because of scarcity, every economic decision involves Answer> a trade-off. Ryan spends an hour studying instead of going for a bike ride. Assume studying and bike riding were Ryan's only options for that hour. The opportunity cost to him of studying is: Answer> the enjoyment and exercise he would have received from bike riding. The gains from trade are: Answer> a result of more efficient resource allocation. Which of the following would not tend to lower the price of VCRs? A...

Budget - Answer The budget is a financial plan. The budgeted sales and cost data help managers plan the hotel's target profit (revenues - expenses) Manager should use budget for which? - Answer Control operations Break-even sales in units - Answer The number of units you need to sales in break-even. Break-even Point - Answer The sales level at which operating income is zero.

f the price elasticity of demand for CSUN sweatshirts is 1.5, then - Answer an increase in price will cause total consumer expenditures on CSUN sweatshirts to fall Economic profit is equal to - Answer total revenue minus the opportunity cost of producing goods and services. Your friend is thinking of opening a video store. She estimates it would cost $500,000 a year to rent the store and buy video stock. She is planning to quit her $50,000 a year job as an accountant to run the store. Her ...

Which of the following would not be a negative production externality associated with tire production? - Answer the rubber used to make tires could be used to make something else Your friend is thinking of opening a video store. She estimates it would cost $500,000 a year to rent the store and buy video stock. She is planning to quit her $50,000 a year job as an accountant to run the store. If there are no other costs of operation and the store's revenue is $530,000, the accounting profit...

Mirror Image Rule - Answer acceptance must reflect offer Merchant Contract Rules - Answer 1. offer expressly limited acceptance to its own terms 2. new terms would materially alter the offer 3. notice of objection to the new terms within a reasonable time after receiving the acceptance

A company sells pretzels for $1.50/bag. Their February ending inventory was $1,600. Marketing prepares the following forecast: January 15,000 bags February 12,000 bags March 16,000 bags Total 43,000 bags Projected sales for April are 13,000 bags. Try to maintain 10% of the next month's forecasted sales in inventory. What is the projected for March? Answer> 13,000*10%= 1,300 March: 16,000 Feb ending inv: (1,600) =1,300+16,000-1,600 = 15,700 Same info as no 1. What is the sales b...

Comparing actual outcomes with budget outcomes, then following up, is an example of a Answer> Controlling activities Which of the following is typically a starting point for the budget process? Answer> a sales budget Tax accounting is generally most used by: Answer> Internal revenue service (IRS) Management accountant place more emphases on which of the following Answer> future activities Which of the following organization would be most likely to accept a process costing...

The Unique Bookshelf Company is considering the purchase of a custom delivery van costing approximately $50,000. Using a discount rate of 20%, the present value of future cost savings is estimated at $51,200. To yield the 20% return, the actual cost of the van should not exceed the $50,000 estimate by more than: - Answer $12000

Offer Requirements Answer> 1. intent to contract 2. definiteness of terms 3. communicated *NOT ADS Firm Offer Requirements (Merchant Rule) Answer> 1. be made by an offeror who is merchant 2. be contained in a signed writing 3. give assurances that the offer will be kept open (max 90 days) Unilateral Contract Answer> when only one party makes a promise *rewards program, lost dog Bilateral Contract Answer> both parties make promises and the contract is formed after they ...

Budgets are Answer> Used by individual, staffs, managers department. Management accountant place more emphasis on which of the following: Answer> future activities A listing of line item that the organization will use to classify its accounting information is? Answer> balance sheet The primary purpose for carrying on "cost accounting activity" is Answer> To plan operation Cost volume profit (CVP) analysis to answer which of the following Answer> ALL The amount of ove...