Since the 1970s, the percentage of Americans covered by defined benefit plans has been decreasing while the percentage of Americans covered by defined
... [Show More] contribution plans has been increasing. (t/f) - True
"The Surplus" episode of this TV show is a good example of the "spend it or lose it" mentality that sometimes occurs within companies. - The Office
Management uses budgets to express its plans and to assess how well the organization meets or exceeds its goals.
(t/f) - True
In the example with the twins in the Introduction to Investing Lecture, Brooke, the twin who invested three times as much as her sister, ended up with less money in her retirement account than her sister Abbey. (t/f) - True
A good rule of thumb to avoid investment scams is that if something sounds too good to be true, it probably is. (t/f) - True
Susan's employer offers a 401(k) plan with a 4% employer match, and Susan earns $80,000. Therefore, the most Susan can contribute to her 401(k) plan during the year is $3,200. (t/f) - False
Calculating interest on the principal and on all the interest earned to date is called compound interest. (t/f) - True
According to experts, the stock market's historical average rate of return is somewhere between 7% and 10%. (t/f) - True
An advantage of investing in mutual funds is that you have purchased a mix of stocks and bonds which is therefore less risky than investing all of your money in onecompany's stock. (t/f) - True
Investors are able to earn 7% to 10% annual interest by putting their money into a bank savings account. (t/f) - False
According to a 2016 study by the Economic Policy Institute, 90% of American families have retirement savings of at least $100,000. (t/f) - False
If you leave a company, you do not lose the amount you contributed to your 401(k) plan. (t/f) - True
What type of variance results when the actual fixed overhead costs incurred are greater than the budgeted fixed overhead costs?
A.
Favorable fixed overhead budget variance
B.
Unfavorable fixed overhead budget variance
C.
Unfavorable fixed overhead volume variance
D.
Favorable fixed overhead volume variance - B. Unfavorable fixed overhead budget variance
Which variance is directly impacted if a worker drops the raw material during production and the raw material must be discarded?
.
Direct labor rate variance
B.
Direct labor efficiency variance
C.
Direct materials quantity variance
D.
Direct materials price variance - C. Direct materials quantity variance
If the Standard Quantity Allowed (SQA) for direct labor is less than the Actual Quantity (AQ) used, the efficiency variance is favorable. (t/f) - False
All favorable variances are investigated when using management by exception. (t/f) - False
The subscription sales manager at The New York Times may be in charge of a(n):
A.
revenue center.
B.
cost center.
C.
profit center.
D.
investment center. - A. Revenue Center
The flexible budget variance is the difference between actual results and the flexible budget. (t/f) - True
A favorable flexible budget variance for variable expenses would indicate that:
A.
more units were actually sold than the company had originally budgeted to sell.
B.
fewer units were actually sold than the company had anticipated.
C.
actual variable expenses of the company were less than the flexible budget variable expenses.
D.
actual variable expenses were higher than the flexible budget variable expenses. - C. actual variable expenses of the company were less than the flexible budget variable expenses.
The local Burger King restaurant is likely classified as a revenue center. (t/f) - False
The number of new products developed may be an example of measuring which perspective of the balanced scorecard?
A.
Financial
B.
Internal business
C.
Learning and growth
D.
Customer - B.
Internal business
Offshoring and outsourcing mean the same thing. (t/f) - False
When making product mix decisions, companies are most profitable when they maximize production of the product with the highest contribution margin per unit of constraint. (t/f) - True
Which of the following hotels would be a price setter?
A.
Econo Lodge
B.
Motel 6
C.
Ritz Carlton
D.
Super 8 - C. Ritz Carlton
Which of the following best describes a "sunk cost"?
A.
A factor that restricts the production or sale of a product
B.
Expected future data that differ among alternatives
C.
Benefits foregone by choosing a particular alternative course of action
D.
Costs that were incurred in the past and cannot be changed - D.
Costs that were incurred in the past and cannot [Show Less]