Accounting Expert Answers & Study Resources : Page 336

61) A firm that locates all systems development and operations at its headquarters is using a ________ system configuration. A) unilateral B) centralized C) decentralized D) networked 62) ________ typically develop a single information system, usually at the home base, and then replicate it around the world. A) Domestic exporters B) Multinational firms C) Franchisers D) Transnational firms 63) Which.

Answer the following questions using the information below: The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged: Alpha DivisionBeta DivisionGamma Division Sales$5,000,000(a)$2,300,000 Net operating income$3,000,000$1.300,000$.

71) Data is information that has been shaped into a form that is meaningful to human beings. 72) Feedback is output returned to appropriate members of the organization to help them evaluate or correct the input stage. 73) The world's largest and most widely used network is: A) usa.gov. B) the Web. C) the Internet. D).

71) Mass customization allows a company to offer individually tailored products using the same production resources as mass production. 72) You are the production manager for a manufacturer of bicycle parts. Which of the following tools or technologies would you use to improve production precision? A) value chain B) CAD software C) benchmarking D) industry.

1) A firm can be said to have competitive advantage when it has higher stock market valuations than its competitors. 2) A primary challenge in BPM is employee resistance. 3) Customers are one of the competitive forces that affect an organization's ability to compete. 4) A transparent marketplace means that there is high.

86) Define business process. What might be a business process used at a hospital? 87) Describe the four steps taken in solving a business problem. 88) What are the three dimensions to business problems? Give an example of each. 89) The department chain you work for has had numerous complaints about slow customer.

21) As discussed in the chapter opening case, the Giants' new ticketing information systems is an effort to achieve which of the primary business objectives? A) Customer and supplier intimacy B) Improved decision making C) Operational excellence D) New products and services 22) Journalist Thomas Friedman's description of the world as "flat" referred to: A) the.

14) Xenon Autocar Company manufactures automobiles. The Fastback Car Division sells its cars for $50,000 each to the general public. The fastback cars have manufacturing costs of $25,000 each for variable and $15,000 each for fixed costs. The division's total fixed manufacturing costs are $75,000,000 at the normal volume of.

17) Capital Investments has three divisions. Each division's required rate of return is 15%. Planned operating results for 20X5 are as follows: Division Operating income Investment A $15,000,000 $100,000,000 B $25,000,000 $125,000,000 C $11,000,000 $ 50,000,000 The company is planning an expansion, which will require each division to increase its investments by $25,000,000 and its income by $4,500,000. Required: a.Compute the current ROI.

12) Assume you are evaluating a manufacturing company. Match the various organizational activities and concepts with the performance measures listed. Some items may have more than one match. Activities: 1.Change in revenues 2.Cycle time 3.Economic order quantity 4.Manufacturing defects 5.Market share 6.New products 7.On-time delivery 8.Operating income 9.Product reliability 10.Time-to-market Performance measure:   __________a.Profitability __________b.Customer satisfaction __________c.Innovation __________d.Efficiency, quality, and time.

81) Define operational excellence. How can information systems help achieve it? 82) You work for an auto manufacturer and distributor. How could you use information systems to achieve greater customer intimacy? 83) What important managerial function is impaired by not having access to timely and accurate information? What is the effect of.

1) A report that measures financial and nonfinancial performance measures for various organization units in a single report is called a(n): A) balanced scorecard B) financial report scorecard C) imbalanced scorecard D) unbalanced scorecard 2) Customer-satisfaction measures are an example of the: A) goal-congruence approach B) balanced scorecard approach C).

58) Economic value added, unlike residual income, charges managers for the costs of their investments in long-term assets and working capital. 59) Companies that adopt the Economic Value Added concept define investment as total assets employed minus current liabilities. 60) In an Economic Added Value calculation, the corporate charge for.

61) A wiki is a type of collaborative: A) social network. B) blogging. C) virtual world. D) web site. 62) Second Life is an example of a: A) virtual world. B) wiki. C) social networking site. D) mind mapping tool. 63) The goal of social commerce applications is to: A) connect through personal and business profiles. B) use social media to connect.

7) Opportunity costs represent the cash flows directly associated with the production and transfer of the products and services. 8) Market-based transfer prices are ideal when there is no idle capacity.in the selling division. 9) If the product sold between divisions has no intermediate market, the opportunity cost of supplying.

31) Which of the following illustrates the use of information systems to focus on market niche? A) A hot tub dealer's use of information systems to determine which models and options its customers are most likely to buy B) A shoe manufacturer's use of information systems in selling custom, made-to-order shoes directly.

11) Decision-support systems often use information from external sources. 12) ESSs are designed to serve the middle management of the organization. 13) ESSs are designed to incorporate data about external events, but they also draw summarized information from internal MIS and DSS. 14) ESSs are designed primarily to solve specific problems. 15) Information supplied.

85) Eternal Friend, a family-owned manufacturer of pet caskets, has grown exponentially over the last few years. However, they are having difficulty in preparing for future growth. The only information system used at Eternal Friend is an antiquated accounting system. The company has one manufacturing plant located in Arkansas, and.

21) Which of the following is not one of the competitive forces of Porter's model? A) Suppliers B) Other competitors C) External environment D) Customers 22) A manufacturer of deep-sea oil rigs may be least concerned about which of these marketplace forces? A) Product differentiation B) Traditional competitors C) Low number of suppliers D) New market entrants 23) Which of.

41) All of the following are considered primary activities of a firm except: A) inbound logistics. B) sales and marketing. C) procurement. D) service. 42) The support activities of a firm include: A) inbound logistics, technology, outbound logistics, sales and marketing, and service. B) inbound logistics, organization infrastructure, outbound logistics, technology, and procurement. C) organization infrastructure, human resources,.

3) Tying performance measures more closely to a manager's efforts: A) encourages the use of nonfinancial measures B) results in a strict use of financial ratios C) results in the salary component of compensation dominating the total compensation package D) Both A and C are correct. 4) Relative performance evaluation:.

1) Purchase of information systems and telecommunications equipment constituted more than half of all capital investment in the United States in 2013. 2) A business model describes how a company produces, delivers, and sells a product or service to create wealth. 3) Information systems consists of all the hardware and software that.

38) Springfield Corporation, whose tax rate is 40%, has two sources of funds: long-term debt with a market value of $8,000,000 and an interest rate of 8%, and equity capital with a market value of $12,000,000 and a cost of equity of 12%. Springfield has two operating divisions, the Blue.

69) Coptermagic Company supplies helicopters to corporate clients. Coptermagic has two sources of funds: long term debt with a market and book value of $32 million issued at an interest rate of 10%, and equity capital that has a market value of $18 million (book value of $8 million). The.

48) Return on investment is also called the accrual accounting rate of return. 49) Return on sales is calculated by dividing revenues by income. 50) Investment turnover is calculated as revenue divided by investment. 51) The three alternatives for increasing return on investment include increasing assets such as receivables, increasing revenues, and.

31) The average number of tickets sold daily online is an example of: A) input. B) raw data. C) meaningful information. D) output. 32) Output: A) is feedback that has been processed to create meaningful information. B) is information that is returned to appropriate members of the organization to help them evaluate the input stage. C) transfers raw.

51) Network economics: A) applies the law of diminishing returns to communities of users. B) applies traditional economics to networked users. C) sees the cost of adding new members as inconsequential. D) balances the high cost of adding new members to a community against the lower cost of using network infrastructure. 52) In network economics,.

1) Senior management is responsible for directing the day-to-day activities of the business. 2) Operational-level manufacturing systems deal with the firm's long-term manufacturing goals, such as where to locate a new plant. 3) Transaction processing systems are most commonly encountered at the senior management level of an organization. 4) TPS help managers monitor.

81) Identify the different types of systems used for the different levels of management in a business. 82) You are consulting on software purchases for a young translation agency, whose headquarters are in New Jersey, but who works with translators located globally. Headquarters needs to share documents with translators, and groups.

51) You manage the Information Systems department at a small startup Internet advertiser. You need to set up an inexpensive system that allows customers to see real-time statistics, such as views and click-throughs, about their current banner ads. Which type of system will most efficiently provide a solution? A) CRM B) Enterprise.

88) What is the connection between organizations, information systems, and business processes? 89) Define and give an example of a cross-functional business process within a firm. 90) The automotive parts supply company you work for, Auto4U, has noticed that one of its brands of hubcaps is not selling nearly as well as.

61) An information skill important for a marketing major would be: A) an understanding of online transaction and reporting systems. B) an understanding of product management enterprise systems. C) an understanding of supplier management enterprise systems. D) an understanding of enterprise systems that enhance leadership. 62) Consider an information system in a moving company that.

11) A network requires at least three computers and a shared resource. 12) An IT infrastructure provides the platform on which the firm can build its information systems. 13) UPS's use of Web-based tools that allow customers to embed UPS functions, such as tracking and cost calculations, into their own Web sites.

31) Which type of system would you use to change a production schedule if a key supplier was late in delivering goods? A) ESS B) TPS C) MIS D) DSS 32) A relocation control system that reports summaries on the total moving, house-hunting, and home financing costs for employees in all company divisions would fall.

41) Data management technology consists of: A) the physical hardware and media used by an organization for storing data. B) the detailed, preprogrammed instructions that control and coordinate the computer hardware components in an information system. C) the software governing the organization of data on physical storage media. D) the hardware and software used.

71) A firm depends heavily on its ________ to supply capital, labor, customers, new technology, services and products, stable markets and legal systems, and general educational resources. A) HR department B) environment C) culture D) knowledge workers 72) The primary goal of social business is to deepen interactions with employees and customers. 73) A cross-functional business.

Answer the following questions using the information below: Carriage Incorporated manufactures horse carriages. The company has two divisions, Wheels and Assembly. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 2009: ASSETS INCOME Book value Current value Book value Current value Wheels $485,000 $550,000 $120,000 $140,000 Assembly $750,000 $1,200,000 $160,000 $172,500 The company is currently using.

13) Managers only employ one task as a part of their job, and thus evaluation of how well they do is simple to accomplish. 14) The only criticism of team-based compensation is that the incentives for individual employees to excel are diminished, harming overall performance. 15) The Coffee Division of American.

23) What is the Tractor Division's investment turnover? A) .50 B) 1.0 C) 2.0 D) 2.5 24) What is the Tiller Division's investment turnover? A) .50 B) .833 C) 1.2 D) 1.5 25) Costs recognized in particular situations that are NOT recognized by accrual accounting procedures are: A) opportunity costs B) imputed costs C) cash accounting costs.

6) The Home Office Company makes all types of office desks. The Computer Desk Division is currently producing 10,000 desks per year with a capacity of 15,000. The variable costs assigned to each desk are $300 and annual fixed costs of the division are $900,000. The computer desk sells for.

81) What is BPM? What are the steps involved in practicing BPM? 82) Value chain analysis is useful at the business level to highlight specific activities in the business where information systems are most likely to have a strategic impact. Discuss this model, identify the activities, and describe how the model.

1) Which of the following is a difference between a diagnostic control system and an interactive control system? A) A diagnostic control system focuses on meeting expectations, while an interactive control system focuses on standards of ethical behavior. B) A diagnostic control system focuses on standards of ethical behavior while an.

41) From your reading of the case study discussing TELUS's employee learning initiatives, which of the following statements best expresses their experience? A) Converting the learning environment from formal classes to a collaborative learning can achieve significant reductions in an organization's learning budget. B) Employees learn more rapidly in a well-designed, structured.

21) The five basic entities that make up any business are suppliers, customers, employees, products and services, and: A) its environment. B) manufacturing and production. C) sales and marketing. D) invoices and payments. 22) Promoting the organization's products or services is a responsibility of the ________ function. A) finance and accounting B) human resources C) manufacturing and production D).

51) In choosing the best solution for a business problem, one of the most important considerations is: A) change management. B) existing resources and skills. C) employee training. D) outcome measurement. 52) The final step in the four-step model of business problem solving is: A) outcome. B) implementation. C) change management. D) feedback. 53) Which of the following would not.

5) During the past twelve months, the Aaron Corporation had a net income of $25,000. What is the amount of the investment if the return on investment is 20%? A) $50,000 B) $100,000 C) $125,000 D) $250,000 6) During the past twelve months, the Zenith Corporation had a net income.

6) Additional factors that arise in multinational transfer pricing include tariffs and customs duties levied on imports of products into a country. 7) Tax considerations should play no part in determining a transfer price between international divisions of a firm. 8) It is possible to increase the overall after-tax profit.

11) In the age of the Internet, Porter's traditional competitive forces model is still at work, but competitive rivalry has become much more intense. 12) In the value chain model, primary activities are most directly related to the production and distribution of the firm's products and services that create value for.

66) Provide the missing data for the following situations: Red Division White Division Blue Division Sales $? $10,000,000 $? Net operating income $200,000 $400,000 $288,000 Operating assets $? $? $1,600,000 Return on investment 0.16 0.10 ? Return on sales 0.04 ? 0.12 Investment turnover ? ? 1.5 67) Hargrave Products has three divisions, which operate autonomously. Their results for 20X5 were as follows: East West International Sales $30,000,000 $40,000,000 $50,000,000 Cost of goods sold 15,000,000 25,000,000 37,000,000 Operating income 4,500,000 4,750,000 5,000,000 Investment base 30,000,000 30,500,000 31,000,000 The company's desired rate of return is 15%. Required: a.Compute.

1) When managers set and measure target levels of performance A) historical-cost-based accounting measures are usually adequate for evaluating economic returns on new investments. B) historical-cost ROIs cannot be used to evaluate current performance. C) the timing of feedback is not dependent on the sophistication of the organization’s information technology. D) the timing of.