For a cost to be relevant, it must:

A. not be a differential cost.
B. differ between decision alternatives.
C. not influence a decision.
D. have already been incurred.


Answer: B

Business

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If a residual plot looks like a parabola, what should you try adding to the model?

a. Try replacing y by its logarithm. b. Nothing, the residual plot should look like a parabola. c. Try adding x2 to the model. d. Try replacing x with its square root.

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The first step in problem solving is

a. determination of the correct analytical solution procedure. b. definition of decision variables. c. the identification of a difference between the actual and desired state of affairs. d. implementation.

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Judy, a college graduate, is looking for a job. Previously, she never paid attention to any job advertisements. Now, however, she keeps an eye out for job advertisements in newspapers, outside offices, and on the Internet. This is a result of a common perception filter known as ________.

A. interest B. stereotyping C. expectation D. projection

Business

The following information is for Cleveland Company:  End of YearBeginning ofYearAccounts receivable $138,500?  $198,000? Prepaid rent  55,000?   26,500? Long term investments  151,500?   179,000? Dividends payable  53,600?   69,200? Salaries payable  175,000?   183,200? Long term notes payable  356,400?   383,800? Additional data for the current year:(1) Sales on account for the period were $228,000. (2) Operating expenses for the period were $127,000. Based on this limited information, what was the net cash inflow from operating activities?

A. $123,800 B. $101,000 C. $36,700 D. $59,500

Business