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BUSN 278 Week 3 Quiz

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BUSN 278 Week 3 Quiz

Question : 1(TCO 4) Sales commissions and salesperson salaries may be classified as
Student Answer: selling expenses.
 advertising expenses.
 depreciation expenses.
 both a & b.

 

 2.Question :(TCO 4) Which of the following statements regarding the risk associated with R&D activities is correct?
Student Answer: The amount of time between the R&D activity and the cash flows from the project does not affect risk.
 Greater risk is associated with improving existing products than creating new products.
 Risk increases as the time between the R&D activity and the cash flows from the project increases.
 Assessing risk is a trivial part of research and development.

 

 3.Question :(TCO 4) Costs that are necessary to meet short-term goals are called
Student Answer: controllable costs.
 discretionary costs.
 nondiscretionary costs.
 uncontrollable costs.

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 4.Question :(TCO 4) Each of the following are capital assets that should be included in the capital budget except
Student Answer: computers.
 supplies.
 equipment.
 furniture.

 

 5.Question :(TCO 4) Which of the following is not a capital expenditure?
Student Answer: Improving quality
 Purchasing inventory
 Marketing a new product
 Replacing equipment

 

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