We know that the ________ method of budgeting is being employed when an experienced marketing manager responds to a new employee's question, "How was the ad budget established last year?" by saying, "The same way it's always been done; I just have an instinct about how much should be budgeted where."
A. contribution margin
B. arbitrary allocation
C. competitive parity
D. percentage of sales
E. return on investment
Answer: B
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The ability to think analytically is associated with ______ skills.
A. comprehension B. conceptual C. human D. abstract E. intuitive
Failure to adjust for accrued wages at year end will result in an
a. overstatement of liabilities. b. understatement of assets. c. understatement of stockholders' equity. d. overstatement of net income.
Suppose the debt ratio is 50%, the interest rate on new debt is 8%, the current cost of equity is 16%, and the tax rate is 40%. An increase in the debt ratio to 60% would have to decrease the weighted average cost of capital (WACC).
Answer the following statement true (T) or false (F)
Involving customers and suppliers in product development, establishing a stage-gate funnel process, and creating cross-functional teams are value chain strategies that
A. sacrifice efficiency for greater organizational buy-in. B. elevate management oversight. C. increase product innovation. D. ensure internal and external demands are met. E. exchange productivity for faster delivery.