Which one of the following is not a key assumption of perfect competition?
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1 .Blaster, Inc., a manufacturer of portableradios, purchases the components from subcontractors to use to assemble into acomplete radio. Each radio requires three units each of Part XBEZ52, which hasa standard cost of USD1.45 per unit. During May Year 1, Blaster experienced thefollowing with respect to part XBEZ52. Units Purchases (USD18,000) 12,000 Consumed in manufacturing 10,000 Radios manufactured 3,000 During May Year 1, Blaster Inc. incurred a purchase price variance of:
A USD600 favorable. B USD450 favorable. C USD600 unfavorable. D USD450 unfavorable.
2 .An increase in the discount rate would cause:
A The money supply to decrease and interest rates to fall. B The money supply to decrease and interest rates to rise. C The money supply to increase and interest rates to rise. D The money supply to increase and interest rates to fall.
3 .A standard costing system is most often used by a firm in conjunction with:
A Job order cost systems. B Participative management programs. C Management by objectives. D Flexible budgets.
4 .Which of the following economic terms describes a general decline in prices for goods and services?
A Expansion. B Inflation. C Deflation. D Recession.
5 .Based on past experience, a company hasdeveloped the following budget formula for estimating its shipping expenses.The company's shipments average 12 pounds per shipment. Shipping costs = USD16,000 + (USD0.50 × pounds shipped) The plannedactivity and actual activity regarding orders and shipments for the currentmonth are given in the following schedule. Plan Actual Sales orders 800 780 Shipments 800 820 Units shipped 8,000 9,000 Sales USD120,000 USD144,000 Total pounds shipped 9,600 12,300 The actual shipping costs for the month amounted to USD21,000. The appropriate monthly flexible budget allowance for shipping costs for the purpose of performance evaluation would be:
A USD20,920 B USD20,800 C USD22,150 D USD21,000
7 .Mo' Joe Coffee Shops is concerned as to whether its brand name is working and wants to compute its market share variance to measure the effect of the company's market share on the company's contribution margin. Mo' Joe sold 90,000 units compared to a budgeted 120,000 units in a market that regularly commands 500,000 units in sales. The budgeted contribution margin per unit is US88 while the actual contribution margin achieved was USD.56 per unit. Mo' Joe's market share variance is:
A USD26,400 B (USD16,800) C USD16,800 D (USD26,400)
8 .Entry into monopolistic competition is:
A Rare, as significant capital is required. B Relatively easy, with only a few obstacles. C Frequent, as no obstacles exist. D Difficult, with significant obstacles.
9 .Although there is no single format for the balanced scorecard, the report generally includes a variety of measurements associated with objectives classified by critical success factors. Critical success factors often include:
A Financial, internal business process, customer, and human resource considerations. B Sales, net income, cash flow, and return on investment performance. C Shareholder satisfaction, customer satisfaction, vendor satisfaction, and employee satisfaction issues. D Throughput and lifecycle times.
10 .If a group of consumers decide to boycott a particular product, the expected result would be:
A An increase in product supply because of increased availability. B A decrease in the demand for the product. C An increase in the product price to make up lost revenue. D That companies in the industry would experience higher economic profits.
