ETS MFT BUSINESS EXAM

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ETS MFT BUSINESS EXAM

ACTUAL EXAM WITH CORRECT SOLUTIONS.

The principal difference between variable costing and

absorption costing centers on:

• whether variable manufacturing costs should be included as

product costs

• whether fixed manufacturing costs should be included as

product costs

• whether fixed manufacturing costs and fixed selling and

administrative costs should be included as product costs

• none of these. - correct answer- B

General Bikes is debating which marketing research options to employ. The traditional person-to-person methods have been effective; however, the new director of market research is campaigning for online-based research. What argument for this method might he/she use?

a) Consumers are more relaxed at home in front of their

computers, therefore it is more likely the responses will be truthful 1 / 4

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b) Online research has been standardized for each industry,

making it easier to understand them

c) A well-designed, Internet-based marketing research project

can cost less and yield information faster than offline research

d) Person-to-person methods most often incorporate

researcher bias into the surveys and observations - correct answer- C

Which of the following is an appropriate Federal Reserve action to stimulate the United States economy?

a) Selling government bonds on the open market

b) Increasing the discount rate

c) Reducing the reserve requirement

d) Cutting taxes - correct answer- C

A small number of people with complementary skills who are committed to a common purpose, a set of performance goals, 2 / 4

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and an approach for which they hold themselves mutually accountable is referred to as a

• committee

• task force

• group

• team - correct answer- D

A company is considering producing a product for a new market. The fixed costs required for manufacturing and delivering the product is $50,000. Labor and material costs are estimated to be approximately $25.00 per product. If the product is sold for $35.00 each, the firm's break-even volume

would be:

• 50,000 units

• 5,000 units

• 2500 units

• 500 units - correct answer- B
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A problem associated with equity theory is that:

• it focuses on providing incentives for the long run when most

workers are mainly concerned with incentives that apply to their current situation

• managers have a hard time applying it to real-world

situations because of its abstract nature

• worker motivation is based on perceptions of fairness, and

the perceptions workers have about their contributions are not always accurate

• it is concerned with the nature of the job itself rather than

with what motivates the workers who perform the job - correct answer- C

All of the financial statements are for a period of time except the

a) Income statement

b) Owner's equity statement

c) Balance sheet

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