Question 11.11. The aggregate demand curve: (Points : 2)

Is down-sloping because production costs decline as real output increases. Shows the amount of real output that will be purchased at each possible price level. Is up-sloping because a higher price level is necessary to make production profitable as production costs rise. Shows the amount of expenditures required to induce the production of each possible level of real output.

Question 12.12. The BB Company plans to sell 300,000 units annually of a certain new product at a projected sales price of $10 per unit. The new product's variable cost is $6 per unit, and annual fixed costs are $800,000. The company is also considering the impact of setting the new product's price at $12 per unit. At that new price, how many units would have to be sold in order for the BB Company to make the same pre-tax income for the new product as it is currently projecting? (Points : 2)

240,000. 250,000. 260,000. 200,000.

Question 13.13. The following information pertains to a byproduct called Moy: Sales in Year 2 5,000 Selling price per unit $6 Selling costs per unit 2 Processing costs 0 Inventory of Moy was recorded at net realizable value when produced in Year 1. No units of Moy were produced in Year 2. What amount should be recognized as profit on Moys Year 2 sales? (Points : 2)

$20,000. $0. $30,000. $10,000.

Question 14.14. In connection with a standard cost system being developed by Flint Co., the following information is being considered with regard to standard hours allowed for output of one unit of product: To measure controllable production inefficiencies, what is the best basis for Flint to use in establishing standard hours allowed? (Points : 2)

1.85. 1.50. 1.60. 1.25.

Question 15.15. The following data were available from Mith Co.'s records on December 31, Year 1: Finished goods inventory, 1/1/Year 1 $120,000 Finished goods inventory, 12/31/Year 1 110,000 Cost of goods manufactured 520,000 Loss on sale of plant equipment 50,000 The cost of goods sold for Year 1 was: (Points : 2)

$520,000. $530,000. $580,000. $510,000.

Question 16.16. If the Federal Reserve wanted to increase the money supply, it might: (Points : 2)

Increase the reserve requirement. Buy U.S. securities directly from the Treasury. Buy U.S. securities on the open market. Sell U.S. securities on the open market.

Question 17.17. A software program prompts the input clerk that an account number is incorrect. This prompt is most likely based on what input control? (Points : 2)

Formatted input. Reasonableness test. Check digit. Hash total.

Question 18.18. The overall cost of capital is the: (Points : 2)

Minimum rate a firm must earn on high risk projects. Average rate of return a firm earns on its assets. Rate of return on assets that covers the costs associated with the funds employed. Cost of the firms equity capital at which the market value of the firm will remain unchanged.

Question 19.19. Shaw Corporation is considering a plant expansion that will increase its sales and net income. The following data represents managements estimate of the impact the proposal will have on the company: Current Proposal Cash $100,000 $120,000 Accounts payable $350,000 $430,000 Accounts receivable $400,000 $500,000 Inventory $380,000 $460,000 Marketable securities $200,000 $200,000 Mortgage payment (current) $175,000 $325,000 Fixed assets $2,500,000 $3,500,000 Net income $500,000 $650,000 The effect of the plant expansion on Shaws working capital would be a(n): (Points : 2)

increase of $30,000. decrease of $150,000. decrease of $30,000. increase of $120,000.