ETS MAJOR FIELD TEST IN BUSINESS UPDATED ACTUAL Questions And
Correct Answers
C
Terms in this set (457)
In marketing research, a firm might consider using a) secondary data usually cost less
secondary data over primary data because
a) secondary data usually cost less
b) secondary data are usually more accurate
c) primary data are usually non specific
d) primary data are likely to be outdated
In organizational decision making, managers are able to a) enforcement of internal policies
exercise the greatest degree of discretion in the
a) enforcement of internal policies
b) settlement of legal disputes
c) restructuring of outstanding loans
d) compliance with federal regulations
The term "net working capital" refers to (C) current assets less short-term liabilities
(A) inventories, receivables, and current notes and
investments
(B) assets divided by liabilities
(C) current assets less short-term liabilities
(D) net assets left over after subtracting cost of goods
sold
Dreamland Pillow Company sells the "Old Softy" model (D) 700
for $20 each. One pillow requires two pounds of raw
material and one hour of direct labor to manufacture. VC = (2 lbs*$3)+$4 = $10
FC = $2,000+$4,000 = $6,000
Raw material costs $3 per pound and direct production CM per unit = $20-(VC) $10=$10
labor is paid $4 per hour. Fixed supervisory costs are $1,000 = (units sold*$10)-$6,000
$2,000 per month and Dreamland rents its factory on a
five-year lease for $4,000 per month. All costs are Units sold = ($1,000+$6,000)/$10 = 700 pillows
considered costs of production.
How many pillows must Dreamland produce and sell
each month to earn a monthly gross profit of $1,000?
(A) 300
(B) 350
(C) 600
(D) 700
, Dreamland Pillow Company sells the "Old Softy" model (C) 625
for $20 each. One pillow requires two pounds of raw
material and one hour of direct labor to manufacture. Dreamland VC per unit = $12
FC = $4,000
Raw material costs $3 per pound and direct production CM per unit = $20-(VC) $12=$8
labor is paid $4 per hour. Fixed supervisory costs are (GP) $1,000 = (units sold*$8)-$4,000
$2,000 per month and Dreamland rents its factory on a
five-year lease for $4,000 per month. All costs are Units sold = ($1,000+$4,000)/$8 = 625 pillows
considered costs of production.
Another firm has offered to produce "Old Softy" pillows
and sell them to Dreamland for $12 each. Dreamland
cannot avoid the factory lease payments, but can avoid
all labor costs if it does not produce these pillows. Under
these conditions, how many "Old Softy" pillows must
Dreamland sell to earn monthly gross profits of $1,000?
(A) 417
(B) 500
(C) 625
(D) 875
Which of the following statements about a systems (D) It documents the logical design of an information system.
flowchart is true?
(A) It is used in systems design to define and describe
each piece of data.
(B) It is a method of writing programs using only three
basic constructs: sequence, selection, and repetition.
(C) It documents the sequence of processing steps that
take place in an information system.
(D) It documents the logical design of an information
system.
Which of the following statements about the tort of (C) It requires proof of some intentional conduct.
negligence is true?
(A) It cannot be used as a basis for liability for defective
products.
(B) It is a strict liability tort with no defenses.
(C) It requires proof of some intentional conduct.
(D) It requires proof of breach of a statutory or common-
law duty.
Correct Answers
C
Terms in this set (457)
In marketing research, a firm might consider using a) secondary data usually cost less
secondary data over primary data because
a) secondary data usually cost less
b) secondary data are usually more accurate
c) primary data are usually non specific
d) primary data are likely to be outdated
In organizational decision making, managers are able to a) enforcement of internal policies
exercise the greatest degree of discretion in the
a) enforcement of internal policies
b) settlement of legal disputes
c) restructuring of outstanding loans
d) compliance with federal regulations
The term "net working capital" refers to (C) current assets less short-term liabilities
(A) inventories, receivables, and current notes and
investments
(B) assets divided by liabilities
(C) current assets less short-term liabilities
(D) net assets left over after subtracting cost of goods
sold
Dreamland Pillow Company sells the "Old Softy" model (D) 700
for $20 each. One pillow requires two pounds of raw
material and one hour of direct labor to manufacture. VC = (2 lbs*$3)+$4 = $10
FC = $2,000+$4,000 = $6,000
Raw material costs $3 per pound and direct production CM per unit = $20-(VC) $10=$10
labor is paid $4 per hour. Fixed supervisory costs are $1,000 = (units sold*$10)-$6,000
$2,000 per month and Dreamland rents its factory on a
five-year lease for $4,000 per month. All costs are Units sold = ($1,000+$6,000)/$10 = 700 pillows
considered costs of production.
How many pillows must Dreamland produce and sell
each month to earn a monthly gross profit of $1,000?
(A) 300
(B) 350
(C) 600
(D) 700
, Dreamland Pillow Company sells the "Old Softy" model (C) 625
for $20 each. One pillow requires two pounds of raw
material and one hour of direct labor to manufacture. Dreamland VC per unit = $12
FC = $4,000
Raw material costs $3 per pound and direct production CM per unit = $20-(VC) $12=$8
labor is paid $4 per hour. Fixed supervisory costs are (GP) $1,000 = (units sold*$8)-$4,000
$2,000 per month and Dreamland rents its factory on a
five-year lease for $4,000 per month. All costs are Units sold = ($1,000+$4,000)/$8 = 625 pillows
considered costs of production.
Another firm has offered to produce "Old Softy" pillows
and sell them to Dreamland for $12 each. Dreamland
cannot avoid the factory lease payments, but can avoid
all labor costs if it does not produce these pillows. Under
these conditions, how many "Old Softy" pillows must
Dreamland sell to earn monthly gross profits of $1,000?
(A) 417
(B) 500
(C) 625
(D) 875
Which of the following statements about a systems (D) It documents the logical design of an information system.
flowchart is true?
(A) It is used in systems design to define and describe
each piece of data.
(B) It is a method of writing programs using only three
basic constructs: sequence, selection, and repetition.
(C) It documents the sequence of processing steps that
take place in an information system.
(D) It documents the logical design of an information
system.
Which of the following statements about the tort of (C) It requires proof of some intentional conduct.
negligence is true?
(A) It cannot be used as a basis for liability for defective
products.
(B) It is a strict liability tort with no defenses.
(C) It requires proof of some intentional conduct.
(D) It requires proof of breach of a statutory or common-
law duty.
