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BUSN 278 Week 8 Final Exam 2021

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BUSN 278 Week 8 Final Exam 2021/ BUSN 278 Week 8 Final Exam 2021/ BUSN 278 Week 8 Final Exam 2021/ BUSN 278 Week 8 Final Exam 2021

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  • July 20, 2021
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BUSN 278 Week 8 Final Exam
1. (TCO 1) A common starting point in the budgeting process is _____. (Points : 5)


expected future net income


past performance


to motivate the sales force


a clean slate, with no expectations


Question 2. 2. (TCO 2) “Groupthink” is a primary disadvantage of which qualitative forecasting method? (Points : 5)


Executive opinions


Sales force polling


Delphi method


Consumer surveys


Question 3. 3. (TCO 3) Which of the following is not an example of a seasonal variation?(Points : 5)


Increased restaurant sales on Fridays and Saturdays


Increased retail sales in the fourth quarter


Increased sales of jet skis in the summer


Increased sales resulting from a special promotion


Question 4. 4. (TCO 4) Which of the following statements regarding the risk associated with R & D activities is
incorrect? (Points : 5)


The amount of time between the R & D activity and the cash flows from the project does not affect risk.


Greater risk is associated with creating new products than with improving existing products.

, Risk increases as the time between the R & D activity and the cash flows from the project increases.


Assessing risk is a vital part of research and development.


Question 5. 5. (TCO 5) Program budgeting does not include _____.


(Points : 5)


controlling


programming


budgeting


planning


Question 6. 6. (TCO 6) The payback period technique _____.


(Points : 5)


should be used as a final screening tool


can be the only basis for the capital budgeting decision


is relatively easy to compute and understand


considers the expected profitability of a project


Question 7. 7. (TCO 6) The profitability index is computed by dividing the _____.


(Points : 5)


total cash flows by the initial investment


present value of cash inflows by the present value of each outflow


nitial investment by the total cash flows

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