Cracking the Code of Cost Accounting: Student Edition
39. 6.9 Consumers spend an average of $21 per week in cash without being aware of where it goes (data...
6.9 Consumers spend an average of $21 per week in cash without being aware of where it goes (data extracted from “Snapshots: A Hole in Our Pockets,” USA Today, January 18, 2010, p. 1A). Assume that the amount of cash spent without being aware of where it goes is normally distributed and that the standard deviation is $5. a. What is the probability that a randomly selected person will spend more than $25? b. What is the probability that a randomly selected person will spend between $10 and $20? c. Between what two values will the middle 95% of the amounts of cash spent fall?
40. Uhura Resort opened for business on June 1 with eight
Uhura Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows.
Other data:
1. The balance in prepaid insurance is a one-year premium paid on June 1, 2012.
2. An inventory count on August 31 shows $650 of supplies on hand.
3. Annual depreciation rates are buildings (4%) and equipment (10%). Salvage value is estimated to be 10% of cost.
4. Unearned Rent Revenue of $3,800 was earned prior to August 31.
5. Salaries of $375 were unpaid at August 31.
6. Rentals of $800 were due from tenants at August 31.
7. The mortgage interest rate is 8% per year.
Instructions
(a) Journalize the adjusting entries on August 31 for the 3-month period June 1–August 31. (Omit explanations.)
(b) Prepare an adjusted trial balance on August31.
41. Exercise 14-5 Straight Line: Recording bond issuance and discount amortization LO P1, P2 Dobbs Co...
Exercise 14-5 Straight Line: Recording bond issuance and discount amortization LO P1, P2 Dobbs Company issues 9%, two-year bonds, on December 31, 2015, with a par value of $96,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount Carrying Value $5,920 (0) 12/31/2015 $90,080 (1) 6/30/2016 4,440 91,560 (2) 12/31/2016 2,960 93,040 (3) 6/30/2017 1,480 94,520 (4) 12/31/2017 96,000 Use the above straight-line bond amortization table and prepare joumal entries for the following Required: (a)The issuance of bonds on December 31, 2015. view transaction list view general journal General Journal Debit Credit Dec. 31, 2015 Cash 90,080 5,920 Discount on bonds payable 96,000 Bonds payable
42. Exercise 7-6 Rachel Sells is unable to reconcile the bank balance at January 31. Rachel's reconci...
Please solve this problem: Exercise 7-6 Rachel Sells is unable to reconcile the bank balance at January 31. Rachel's reconciliation is shown here Cash balance per bank $3,677.2 Add: NSF check 450 Less: Bank service charge 28 $4,099.2 Adjusted balance per bank $3,975.2 Cash balance per books Less: Deposits in transit 590 Add: outstanding checks 770 4,155.2 Adjusted balance per books (a) What is the proper adjusted cash balance per bank? (Round answers to 2 decimal places, e.g. 52.75.) The proper adjusted cash balance per bank (b) What is the proper adjusted cash balance per books? (Round answers to 2 decimal places, e.g. 52.75.) The proper adjusted cash balance per books (c) Prepare the adjusting journal entries necessary to determine the adjusted cash balance per books. (Round answer titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 31
43. 62. In a responsibility accounting system, costs are classified into categories on the basis of a...
62. In a
responsibility accounting system, costs are classified into categories on the
basis of
a. fixed and variable costs.
b. prime and overhead costs.
c. administrative and nonadministrative costs.
d. controllable and noncontrollable costs.
63. When used
for performance evaluation, periodic internal reports based on a responsibility
accounting system should not
a. be related to the organization chart.
b. include allocated fixed overhead.
c. include variances between actual and budgeted controllable costs.
d. distinguish between controllable and noncontrollable costs.
64. A ____ is
a document that reflects the revenues and/or costs that are under the control
of a particular manager.
a. quality audit report
b. responsibility report
c. performance evaluation report
d. project report
65. The cost
object under the control of a manager is called a(n) ____ center.
a. cost
b. revenue
c. responsibility
d. investment
66. In
evaluating the performance of a profit center manager, he/she should be
evaluated on
a. all revenues and costs that can be traced directly to the unit.
b. all revenues and costs under his/her control.
c. the variable costs and the revenues of the unit.
d. the same costs and revenues on which the unit is evaluated.
67. If a
division is set up as an autonomous profit center, then goods should not be transferred
a. in at a cost-based transfer price.
b. out at a cost-based transfer price.
c. in or out at cost-based transfer price.
d. to other divisions in the same company.
68.
Performance evaluation measures in an organization
a. affect the motivation of subunit managers to transact with one
another.
b. always promote goal congruence.
c. are less motivating to managers than overall organizational goals.
d. must be the same for all managers to eliminate suboptimization.
69. A
management decision may be beneficial for a given profit center, but notfor the entire company. From the
overall company viewpoint, this decision would lead to
a. goal congruence.
b. centralization.
c. suboptimization.
d. maximization.
70. A major
benefit of cost-based transfers is that
a. it is easy to agree on a definition of cost.
b. costs can be measured accurately.
c. opportunity costs can be included.
d. they provide incentives to control costs.
71. An
internal reconciliation account is not
required for internal transfers based on
a. market value.
b. dual prices.
c. negotiated prices.
d. cost.
44. on, located in Manitoba, will be enhancing the group benefits plan offered to employees in two...
on, located in Manitoba, will be enhancing the group benefits plan offered to employees in two months by adding accidental death and dismemberment (AD&D) coverage and vision care coverage. The organization will pay 50% of the cost of the AD&D premiums and 50% of the cost of the vision care premiums, with the employees paying the other 50% of each premium. The Manager of Finance, Laura Bruce, has requested that you, as the Payroll Supervisor, prepare a communication for the employees, explaining how these new benefits will impact their net pay.
Limitations:Prepare your response (200 – 350 words) using your name, correct spelling, grammar and punctuation. You will be penalized if you are excessively over or under the suggested word count. Your response must be stated in your own words and should be based on the course material, your experiences, knowledge gained through the course and at least one external government resource.
Any responses taken directly from the external government resource or course material will not be accepted. Information referenced from the government resource(s) and the course material must be cited. For example:
if you are referencing the Canada Revenue Agency’s Employers' Guide - PayrollDeductions and Remittances – T4001, state the URL where the information can be found, https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4001.html and the page number, if applicableif you are referencing the course material, state the course name, chapter and page number where the information can be found (for example, PF1, 1-1)
45. list the three main divisions of any manufacturing business and explain who would take charge of...
list the three main divisions of any manufacturing business and explain who would take charge of each division and what employees would be needed to work in each division
46. Brijesh is negotiating with Sara, who wants to purchase his car. The only issue is price. This is an
Brijesh is negotiating with Sara, who wants to purchase his
car. The only issue is price. This is an example of a (select one):
POSITION-BASED NEGOTIATION.
INTEREST-BASED NEGOTIATION.
DISPUTE-RESOLUTION NEGOTIATION.
ALL OF THE ABOVE
TWO OF THE ABOVE
NONE OF THE ABOVE
1
point
2.
In the “House on Elm Street†negotiation, Pat could pay no
more than 250,000 for the house. This is Pat’s (select one):
STRETCH GOAL.
MOST-LIKELY PRICE.
RESERVATION PRICE.
BATNA.
ZOPA.
NONE OF THE ABOVE.
1
point
3.
Jing and Tim have parking spaces next to each other at the
apartment complex where they live. Tim claims that Jing dented his car when she
was driving out of her space. They are negotiating with each other, trying to
resolve this dispute. This type of negotiation tends to (select one):
BE ADVERSARIAL.
LOOK TO THE PAST.
BE INTEREST-BASED.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
4.
Boris is involved in a business dispute with his partner
Kaylee. Someone has suggested that they should use a third party process to
resolve the dispute. The following are examples of third party processes
(select one):
ARBITRATION
MEDIATION
LITIGATION
ALL OF THE ABOVE
TWO OF THE ABOVE
NONE OF THE ABOVE
1
point
5.
Someone else has suggested that Boris and Kaylee (#4 above)
should use an ADR process. The following are examples of ADR processes (select
one):
ARBITRATION
MEDIATION
LITIGATION
ALL OF THE ABOVE
TWO OF THE ABOVE
NONE OF THE ABOVE
1
point
6.
Tommaso owns a business and is involved in a dispute with
one of his suppliers, Sharmin. Because Tommaso is certain that he is right, he
wants to use a rights-oriented process to resolve the dispute. Examples of
rights-oriented processes are (select one):
ARBITRATION
MEDIATION
NEGOTIATION
TWO OF THE ABOVE
ALL OF THE ABOVE
NONE OF THE ABOVE
1
point
7.
Kelly is negotiating a complex deal with Santiago, but they
are making little progress. They should consider the following processes, which
have been used for deal making (select one):
MEDIATION
LITIGATION
ARBITRATION
ALL OF THE ABOVE
TWO OF THE ABOVE
NONE OF THE ABOVE
1
point
8.
Cai is preparing for a cross-cultural negotiation with
Yosuke. In preparing for this negotiation, he wants to make sure that he
understands Yosuke’s “deep culture.†This means understanding the other side’s
(select one):
VALUES.
BELIEFS.
NEGOTIATING STYLE.
ALL OF THE ABOVE
TWO OF THE ABOVE
NONE OF THE ABOVE
1
point
9.
Elena is negotiating the purchase of a kitchen table from
her neighbor Beixi. Her goal is to acquire it for 250 and she will begin the
negotiations by offering 150. If Elena cannot negotiate a price of 300 or less
for the table, she will purchase a new table from a store for 400. Beixi’s goal
is to sell the table for 350. She will counter Elena’s initial offer by
countering with 400. If Beixi cannot get at least 275 from Elena for the table,
she will sell it to her nephew for 200. (Select one):
ELENA’S STRETCH GOAL IS 150 AND BEIJI’S STRETCH GOAL IS 200.
ELENA’S STRETCH GOAL IS 400 AND BEIJI’S STRETCH GOAL IS 400.
ELENA’S STRETCH GOAL IS 250 AND BEIJI’S STRETCH GOAL IS 400.
ELENA’S STRETCH GOAL IS 300 AND BEIXI’S STRETCH GOAL IS 350.
ELENA’S STRETCH GOAL IS 250 AND BEIXI’S STRETCH GOAL IS 275.
NONE OF THE ABOVE
1
point
10.
Based on only the facts in #9, (select one):
ELENA’S RESERVATION PRICE IS 400 AND BEIXI’S RESERVATION
PRICE IS 275.
ELENA’S RESERVATION PRICE IS 300 AND BEIXI’S RESERVATION
PRICE IS 275.
ELENA’S RESERVATION PRICE IS 400 AND BEIXI’S RESERVATION
PRICE IS 200.
ELENA’S RESERVATION PRICE IS 250 AND BEIXI’S RESERVATION
PRICE IS 200.
ELENA’S RESERVATION PRICE IS 150 AND BEIXI’S RESERVATION
PRICE IS 350.
NONE OF THE ABOVE
1
point
11.
Based on only the facts in #9 (select one):
THIS IS AN INTEREST-BASED NEGOTIATION.
THIS IS A POSITION-BASED NEGOTIATION.
THIS IS A DEAL-MAKING NEGOTIATION.
ALL OF THE ABOVE
TWO OF THE ABOVE
NONE OF THE ABOVE
1
point
12.
Based on only the facts in #9 (select one):
ELENA’S BATNA IS 300 AND BEIXI’S BATNA IS 275.
ELENA’S BATNA IS 150 AND BEIXI’S BATNA IS 400.
ELENA’S BATNA IS 400 AND BEIXI’S BATNA IS 250.
ELENA’S BATNA IS 250 AND BEIXI’S BATNA IS 350.
ELENA’S BATNA IS 300 AND BEIXI’S BATNA IS 200.
NONE OF THE ABOVE
1
point
13.
Based on only the facts in #9 the ZOPA ranges from (select
one):
250 TO 400.
275 TO 300.
150 TO 250.
250 TO 350.
150 TO 400.
150 TO 275.
1
point
14.
Clyde owns a business and needs to hire a temporary employee
for one month, beginning November 16. On November 1, he sent Bonnie a written
job offer that stated the November 16 start date. Bonnie accepted Clyde’s offer
with a written reply on November 2 but said that she could not start until
November 18. Clyde sent her a written response on November 3 stating that
November 18 was fine with him. Assuming that all other details regarding
employment (such as salary, hours, etc.) were spelled out in their messages,
Bonnie and Clyde (select one):
FORMED A CONTRACT ON NOVEMBER 1.
FORMED A CONTRACT ON NOVEMBER 2.
FORMED A CONTRACT ON NOVEMBER 3.
FORMED A CONTRACT ON NOVEMBER 16.
FORMED A CONTRACT ON NOVEMBER 18.
HAVE NOT FORMED A CONTRACT.
1
point
15.
Amanda is beginning to negotiate the sale of her car to
Anuj. In deciding whether to make the first offer, the most important
psychological tool that she needs to consider is (select one):
THE CONTRAST PRINCIPLE.
REACTIVE DEVALUATION.
ANCHORING.
RECIPROCITY.
WHETHER THE OTHER SIDE IS AUTHORIZED TO MAKE A DEAL.
NONE OF THE ABOVE.
1
point
16.
Jessica manufactures components for a product. She has sued
one of her customers, Michael, in the United States for payment. Michael claims
that the components that Jessica delivered were defective. They are now
negotiating a possible settlement. Jessica is asking the court to award her
400,000 in damages and she agreed to pay her attorney a 30% contingency fee.
There is a 50% chance that she will win. If they go to court, she estimates
that Michael’s attorney’s fees will total 80,000. Based on a decision tree
calculation, the value of Jessica’s litigation BATNA based only on these facts
is (select one):
400,000.
280,000.
200,000.
140,000.
110,000.
NONE OF THE ABOVE.
1
point
17.
Same facts as #16, except that Jessica files her lawsuit
outside the US in a country that uses a “loser pays” rule. Instead of
hiring her attorney on a contingency fee, she agrees to pay the attorney a
fixed fee of 90,000. Based on a decision tree calculation, the value of
Jessica’s litigation BATNA based on these revised facts is (select one):
200,000.
155,000.
115,000.
110,000.
70,000
NONE OF THE ABOVE.
1
point
18.
Harinee is negotiating to sell her car to Sam. During
negotiations, Sam asks Harinee whether the car has ever been damaged in an
accident. Harinee says “absolutely not.†This is a lie. She was involved in a
serious accident in which a passenger in her car was killed. After the accident
she had the car completely repaired and the damage is not noticeable. Based on
Harinee’s answer, Sam bought the car but later discovered the lie. Harinee has
violated which of the following legal rules (select one):
FIDUCIARY DUTY
UNCONSCIONABILITY
FRAUD
ALL OF THE ABOVE
TWO OF THE ABOVE
NONE OF THE ABOVE
1
point
19.
Mark works in sales for Company X and is paid a commission
on his sales. After negotiations he enters into a contract to sell a product to
a customer at a price that is much higher than what other sales people could
negotiate. His boss sends Mark an email stating that she is very pleased with
the deal. Despite the high price, the customer is also pleased with the deal
and pays Mark a bonus. When Mark’s company later learns about the bonus the
company (select one):
CAN REFUSE TO PAY HIS COMMISSION BECAUSE THE
UNCONSCIONABILITY RULE.
CAN REFUSE TO PAY HIS COMMISSION BECAUSE OF THE FRAUD RULE.
CAN REFUSE TO PAY HIS COMMISSION BECAUSE OF THE FIDUCIARY
DUTY RULE.
CAN REFUSE TO PAY HIS COMMISSION BECAUSE OF THE GOLDEN RULE.
IN THIS SITUATION, MUST PAY THE COMMISSION.
NONE OF THE ABOVE
1
point
20.
To increase your power in a negotiation you should (select
one):
ALWAYS MAKE THE FIRST OFFER.
USE REACTIVE DEVALUATION.
RELY ON CONFIRMING EVIDENCE WHEN PREPARING FOR THE
NEGOTIATION.
ASK THE OTHER SIDE LOTS OF QUESTIONS
USE OVERCONFIDENCE WHEN MAKING DECISIONS RELATING TO THE
NEGOTIATION.
NONE OF THE ABOVE
1
point
21.
Your BATNA strategy should always include (select one):
DISCLOSING YOUR BATNA.
WEAKENING THE OTHER SIDE’S BATNA.
STRENGTHENING YOUR BATNA.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
22.
Company A hired Nick as an agent and gave him a letter
authorizing him to make purchases on behalf of the company. In a separate
email, the company explained to Nick that he could only make purchases for
100,000 or less. In other words, 100,000 was the reservation price for his
negotiations. Nick proceeded to negotiate a contract with a new supplier, B, in
which he purchased goods for 95,000. Nick showed B the letter of authority from
the company but did not mention the 100,000 limitation that the company
explained in the email. Select one:
COMPANY A IS BOUND BY THE CONTRACT BECAUSE NICK HAD EXPRESS
AUTHORITY.
COMPANY A IS BOUND BY THE CONTRACT BECAUSE NICK HAD APPARENT
AUTHORITY.
COMPANY A IS NOT BOUND BY THE CONTRACT BECAUSE OF
ILLEGALITY.
COMPANY A IS NOT BOUND BY THE CONTRACT BECAUSE OF
UNCONSCIONABILITY.
COMPANY A IS NOT BOUND BY THE CONTRACT BECAUSE OF FRAUD.
NONE OF THE ABOVE.
1
point
23.
Same fact as #22, except that Nick agreed to pay 105,000 in
the contract with B. Select one.
COMPANY A IS BOUND BY THE CONTRACT BECAUSE NICK HAD EXPRESS
AUTHORITY.
COMPANY A IS BOUND BY THE CONTRACT BECAUSE NICK HAD APPARENT
AUTHORITY.
COMPANY A IS NOT BOUND BY THE CONTRACT BECAUSE OF
ILLEGALITY.
COMPANY A IS NOT BOUND BY THE CONTRACT BECAUSE OF
UNCONSCIONABILITY.
COMPANY A IS NOT BOUND BY THE CONTRACT BECAUSE OF FRAUD.
NONE OF THE ABOVE
1
point
24.
The best way to avoid the fixed pie assumption is to (select
one):
DEVALUE PROPOSALS MADE BY THE OTHER SIDE.
USE A LARGE STRETCH GOAL.
SEARCH FOR INTERESTS OF BOTH SIDES THAT AREN’T IN CONFLICT.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
25.
Eshan is preparing for a negotiation to sell his house to
Jose. He thinks that the ZOPA range is 250 to 300 when it is really 225 to 325.
This is an example of (select one):
REACTIVE DEVALUATION.
OVERCONFIDENCE.
THE CONTRAST PRINCIPLE.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
26.
Malavica is negotiating to purchase some equipment from Eric
for her start-up business. During the negotiation she makes a concession to
Eric regarding the delivery date. (The delivery date requested by Eric caused
no problems for Malavica.) In gratitude for her concession, Eric agrees to
extend the warranty on the equipment he is selling her for an additional time
period. This is an example of (select one):
ANCHORING.
RECIPROCITY.
AVAILABILITY.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
27.
Bailey recently moved to France and is negotiating the
purchase of a house in a suburb of Paris from a French owner. She has retained
her US citizenship. Her contract is governed by (select one):
CIVIL LAW.
COMMON LAW.
THE UNITED NATIONS CONVENTION ON CONTRACTS FOR THE
INTERNATIONAL SALE OF GOODS.
THE UNIFORM COMMERCIAL CODE.
ALL OF THE ABOVE.
NONE OF THE ABOVE.
1
point
28.
Jing is negotiating to sell her business to Pedro. They have
reached agreement on most of the terms of the sale and have just signed an
agreement in principle. Agreements in principle are (select one):
ALWAYS BINDING CONTRACTS.
NEVER BINDING CONTRACTS.
CAN BE BINDING CONTRACTS, DEPENDING ON THE CIRCUMSTANCES.
STATEMENTS SUMMARIZING THE ETHICAL BELIEFS OF THE TWO SIDES.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
29.
Sarah signed an agreement to rent an apartment from a
landlord who also signed the agreement. During the lease negotiations, the
landlord agreed to provide Sarah with extra storage space in the basement of
the apartment building but this promise was not included in the agreement. The
landlord now tells Sarah that he will not provide the extra space. If the
landlord admits making the promise, under the parol evidence rule (select one):
HE IS LEGALLY REQUIRED TO PROVIDE THE EXTRA SPACE BECAUSE
CONSIDERATION IS MISSING.
HE IS LEGALLY REQUIRED TO PROVIDE THE EXTRA SPACE BECAUSE OF
HIS FIDUCIARY DUTY TO SARAH.
HE IS LEGALLY REQUIRED TO PROVIDE THE EXTRA SPACE BECAUSE OF
THE OVERCONFIDENCE TRAP.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
30.
After both sides signed the lease in #29, the landlord asked
Sarah if she would be willing to delay the move-in date by two days. She agreed
and they amended the lease. In this situation (select one):
THERE IS NO CONSIDERATION FOR SARAH’S ADDITIONAL PROMISE.
THERE IS CONSIDERATION FOR SARAH’S ADDITIONAL PROMISE
BECAUSE OF THE ILLEGALITY PRINCIPLE.
THERE IS CONSIDERATION FOR SARAH’S ADDITIONAL PROMISE
BECAUSE OF FIDUCIARY DUTY REQUIREMENTS.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
31.
Kathryn and Jose are involved in a business dispute that is
going to arbitration. In the typical arbitration (select one):
THE ARBITRATOR ACTS AS A FACILITATOR.
THE ARBITRATOR DECIDES WHO WINS AND WHO LOSES.
THE ARBITRATOR ATTEMPTS TO BRING THE PARTIES TOGETHER TO
TRANSFORM THEIR RELATIONSHIP.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
32.
In #31, Kathryn and Jose decide to try mediation instead of
arbitration. They can select one of the following, which are the typical types
of mediation (select one):
FACILIATIVE.
BASEBALL.
EVALUATIVE.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
33.
In #31, assume that Kathryn and Jose are trying to decide
whether to resolve their dispute either by one-on-one negotiation or by
mediation. Negotiation and mediation are similar except that with mediation
(select one):
A THIRD PARTY IS PRESENT TO MAKE A DECISION.
WITNESSES TESTIFY UNDER OATH.
MEDIATORS GENERALLY FOLLOW COURT PROCEDURE.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE
1
point
34.
Jed is negotiating a business deal with Steve. They think
that there might not be a ZOPA, in which case they are wasting their time. The
best process for finding out whether there is a ZOPA is (select one):
AVOIDANCE.
ARBITRATION.
MEDIATION.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
35.
In every price negotiation, there is (select one):
A ZOPA.
A BATNA.
A RESERVATION PRICE.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
36.
If the losing party in an arbitration appeals the decision
to the court system, the court will (select one):
ALWAYS REVIEW THE DECISION.
NEVER REVIEW THE DECISION.
IN SOME SITUATIONS REVIEW THE DECISION.
INCARCERATE THE LOSING PARTY.
USUALLY ORDER A NEW ARBITRATION.
TWO OF THE ABOVE.
1
point
37.
Arbitration is very similar to litigation except that with
arbitration (select one):
YOU AND THE OTHER SIDE SELECT YOUR OWN THIRD PARTY (THE
ARBITRATOR).
THE PROCEEDINGS ARE PRIVATE.
THE TECHNICAL RULES OF LITIGATION ARE NOT FOLLOWED.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
38.
ADR screens are used to (select one):
DECIDE WHETHER TO USE AN ADR PLEDGE.
DECIDE WHETHER TO USE A BINDING OR A NON-BINDING PROCESS
WHEN RESOLVING A DISPUTE.
HIDE YOUR BATNA FROM THE OTHER SIDE.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
39.
The following statement(s) is (are) correct (select one):
YOU SHOULD ALWAYS ASK THE OTHER SIDE TO MAKE THE FIRST
OFFER.
WHEN NEGOTIATING WITH AN AGENT WHO REPRESENTS THE OTHER
SIDE, YOU SHOULD ALWAYS ASK THE AGENT TO CONFIRM THAT SHE HAS AUTHORITY TO
REPRESENT THE OTHER SIDE.
YOU SHOULD NEVER REVEAL YOUR BATNA TO THE OTHER SIDE.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
40.
Maria is the head of human resources for a mid-size company.
She is involved in a budget dispute with Max, the head of the finance
department. Max wants to cut back on Maria’s budget for next year. Maria claims
that she needs the current budget to meet the HR needs of the three other
departments in the company (information technology, operations, and marketing).
This is an ideal situation for Maria to use (select one):
APPARENT AUTHORITY.
COALITION BUILDING.
REACTIVE DEVALUATION TO DEVALUE THE PROPOSAL MADE BY MAX.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
41.
Aashka is negotiating to sell her car to Juana. During the
negotiation, Aashka tells Juana that someone else has offered to purchase the
car for 5000. In fact, no one else has made an offer to purchase the car. Based
on Aashka’s statement, Juana agrees to purchase the car for 5200. If Juana
later learns of Aashka’s lie and decides to sue her: (select one):
SHE CANNOT RECOVER DAMAGES FOR FRAUD BECAUSE SHE SHOULD
EXPECT SELLERS TO USE THIS TYPE OF DECEPTION.
SHE CAN RECOVER DAMAGES BECAUSE AASHKA BREACHED HER
FIDUCIARY DUTY.
SHE CAN RECOVER HER ATTORNEY FEES FROM AASHKA IF SHE
LITIGATES THE CASE IN THE UNITED STATES AND WINS.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
42.
Peter and Michelle are recent business school graduates with
very few resources. They decided to start a business as partners. Michelle was
a much better negotiator than Peter (because she had taken a MOOC called
“Successful Negotiationâ€!). She persuaded Peter to sign a partnership agreement
that was extremely unfair to him. He should be able to back out of the
agreement because (select one):
MICHELLE COMMITTED FRAUD.
THE AGREEMENT IS UNCONSCIONABLE.
MICHELLE BREACHED THE ANCHORING RULE.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
43.
Decision trees can be used to (select one):
CALCULATE BATNAS IN DISPUTE-RESOLUTION NEGOTIATIONS.
CALCULATE BATNAS IN DEAL-MAKING NEGOTIATIONS.
DEVELOP ATTRACTIVE LANDSCAPING IN PARKS.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
44.
You are a consultant. Company M has been involved in a
number of disputes with its suppliers and customers. The company hires you to
establish an ADR system. As part of this system you should consider encouraging
the company to (select one):
ADOPT AN ADR PLEDGE.
USE SCREENS TO SELECT AN APPROPRIATE DISPUTE-RESOLUTION
PROCESS.
INCLUDE ADR CLAUSES IN CONTRACTS WITH ITS SUPPLIERS AND
CUSTOMERS.
ALL OF THE ABOVE.
TWO OF THE ABOVE.
NONE OF THE ABOVE.
1
point
45.
In the “House on Elm Street†negotiation, if Tracy did not
tell Pat that the basement might have a leak, this would be an example of
(select one):
UNCONSCIONABILITY.
BREACH OF FIDUCIARY DUTY.
ILLEGAL USE OF A BATNA.
ALL OF THE ABOVE
TWO OF THE ABOVE
NONE OF THE ABOVE
47. Green Valley Company prepared the following trial balance at the end of its first year of operati...
Green Valley Company prepared the following trial balance at the end of its first year of operations ending December 31. To simplify the case, the amounts given are in thousands of dollars. UNADJUSTED Account Titles Credit Debit Cash Accounts receivable 31 Prepaid insurance 26 Machinery 93 Accumulated depreciation Accounts payable 27 Wages payable Income taxes payable Common stock (9,000 shares Additional paid-in capital 73 Retained earnings 25 141 Revenues (not detailed) Expenses (not detailed) 41 Totals 250 250 Other data not yet recorded at December 31 include: a. Insurance expired during the current year, $11. b. Wages payable, $15. c. Depreciation expense for the current year, $17 d. Income tax expense, $10. Required: 1. Using the adjusted balances, prepare an income statement for the current year. (Enter your answers in thousands. Round "Earnings per share" to 2 decimal places.) GREEN VALLEY COMPANY Income Statement (in thousands of dollars) Earnings per share
48. Multiple choice
1. Which of the following are considered to be primary activities in a value chain analysis as outlined by Porter? (Points: 5)
Inbound logistics
Procurement
Human resource management
Firm's infrastructure
2. The concept of the value chain was developed by: (Points: 5)
Milton Friedman.
Peter Drucker.
Michael Porter.
Tom Peters.
3. All of the following constitute primary activities EXCEPT: (Points: 5)
procurement.
marketing and sales.
outbound logistics.
operations.
4. All of the following constitute support activities EXCEPT: (Points: 5)
technological development.
firm's infrastructure.
operations.
human resource management.
49. What information is necessary before a financial planner can assist a person in constructing an...
What information is necessary before a financial planner can assist a person in constructing an investment policy statement?
50. The Bengal Coal Co. Ltd. holds a lease of coal mines for a period of ten years, commencing from...
The Bengal Coal Co. Ltd. holds a lease of coal mines for a period of ten years, commencing from 1st January 2009. According to the lease, the company is to pay 75 paise as royalty per ton with a minimum rent of ~ 15,000 per year. Shortworkings can, however, be recovered out of the royalty in excess of the minimum rent of the next two years only. For the year of a strike the minimum rent is to be reduced to 60%. The output in tons for the 6 years is as under:
2009 ---- 10,000; 2010 ---- 12,000; 2011 ---- 25,000; 2012 ---- 20,000; 2013 ---- 50,000; and 2014 15,000 (strike).
Write up the necessary Ledger Accounts in the books of Bengal Coal Co. Ltd.