BUSN 278 Week 4 Midterm Exam | Complete Solutions (with well explained Answers), Already Graded A.

Document Content and Description Below

BUSN 278 Week 4 Midterm Exam (TCO 1) It is important that budgets be accepted by _____. division managers department heads supervisors All of the above TCO 2... ) The qualitative forecasting method that individually questions a panel of experts is _____. executive opinions sales force polling the Delphi method consumer surveys (TCO 3) Which of the following is not used to evaluate the accuracy of regression results? Correlation coefficient Mean square error Standard error of the estimate Coefficient of determination (TCO 4) Which of the following statements regarding research and development is incorrect? R & D should be greater in high-technology divisions. R & D should focus on the current products. R & D should be consistent with the department’s goals. A critical aspect of R&D is assessing risk. (TCO 5) Priority budgeting that ranks activities is known as _____. top-down budgeting bottom-up budgeting zero-base budgeting participative budgeting (TCO 6) Which of the following ignores the time value of money? Internal rate of return Profitability index Net present value Payback period (TCO 1) There are several approaches that may be used to develop the budget. Managers typically prefer an approach known as participative budgeting. Discuss this form of budgeting and identify its advantages and disadvantages. (TCO 2) There are a variety of forecasting techniques that a company may use. Identify and discuss the four main qualitatative approaches, including their advantages and disadvantages. (TCO 2) Use the table Manufacturing Capacity Utilization to answer the questions below. Part (a): What is the project manufacturing capacity utilization for Day 16 using a 3-day moving average? Part (b): What is the project manufacturing capacity utilization for Day 16 using a 6-day moving average? Part (c): Use the mean absolute deviation (MAD) and mean square error (MSE) to determine which average provides the better forecast. (TCO 3) Use the table “Food and Beverage Sales for Paul’s Pizzeria” to answer the questions below. Food and Beverage Sales for Paul’s Pizzeria Restaurant ($000s) Month First Year Second Year January 55 60 February 53 54 March 53 56 April 63 44 May 64 44 June 54 34 July 33 36 August 35 37 September 25 28 October 30 30 November 35 38 December 54 52 Part (a): Calculate the regression line and forecast sales for March of Year 3. Part (b): Calculate the seasonal forecast of sales for March of Year 3. Part (c): Which forecast do you think is most accurate and why? TCO 6) Jackson Company is considering two capital investment proposals. Estimates regarding each project are provided below. Part (a): Calculate the payback period for each project. Part (b): Calculate the net present value for each project. Part (c): Which project should Jackson Company accept and why? (TCO 6) Top Growth Farms, a farming cooperative, is considering purchasing a tractor for $468,000. The machine has a 10-year life and an estimated salvage value of $32,000. Top Growth uses straight-line depreciation. Top Growth estimates that the annual cash flow will be $78,000. The required rate of return is 9%. Part (a): Calculate the payback period. Part (b): Calculate the net present value. Part (c): Calculate the accounting rate of return. [Show More]

Last updated: 5 months ago

Preview 1 out of 7 pages