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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