HSM 543 Health Services Finance week 7 Course project

Answer
HSM-543-Health Services Finance_week 7 Course project_Answer
This term project gives you an opportunity to select an aspect of healthcare with which
you are familiar, and identify an issue in which there is an element that is not meeting
expectations. Then, drawing on the concepts and principles from readings, exercises,
current events, and class discussions, write a term paper of 8 to 10 pages in which you:
introduce the issue;
define the problem;
analyze the problem;
evaluate possible solutions;
develop an implementation plan; and
justify why and how your solution will solve the identified problem.
Your paper must include, but is not limited to, the following sections.
BACKGROUND: Describe the problem, organization, or situation you selected,
identify the specific issues of interest or controversy, and present background and facts
of the problem, organization, or situation that will enable the reader to clearly
understand the issue. For example, most health insurance in the United States is tied to
employment. Because of employers without benefits and unemployment, there are
approximately 47 million uninsured.
DEFINE THE PROBLEM: Identify and clearly state the problem or management
issue in which an element of the identified problem or situation is not meeting
expectations. Remember that what appears to be the problem may actually be just a
symptom of a bigger problem. Dig deep to be sure youve identified the real problems. If
there appears to be more than one problem or issue, decide if they are separate or
related issues. State the problem in the form of a question. SUGGESTION: Begin your
literature survey by accessing Kellers online library located in Student Resources
under Course Home.
PROBLEM ANALYSIS: This section should provide a detailed analysis of the causes
of the problem(s) or issue(s) you identified in Section II. A major objective is to clearly
illustrate how you are using the healthcare course concepts, as well as your professional
experiences and the results of your research, to better understand the causes of the
problem(s) or issue(s).
POSSIBLE SOLUTIONS: Explore solutions that could be appropriate ways to solve
the identified problem or issue, and document what you feel is the best alternative. Be
sure that these solutions are logical based on your analysis and that they each would
effectively treat the problem, not the symptoms. Also, discuss the anticipated outcomes
(both positive and negative) of implementing each of the possible solutions you
identified. Again, to use universal coverage as an example, how would it be funded? Just
saying we need universal coverage may be an accurate statement, but programs need
money. What taxes would you raise or what services would you cut to provide the
funding? How much is it going to cost, and how will it affect hospitals and other
providers?
SOLUTION IMPLEMENTATION: State your solution clearly and specifically.
Describe exactly what should be done and how it should be done, including by whom,
with whom, and in what sequence. Here are some points to keep in mind as you write
this section:

1) Have I indicated an awareness of the problem of implementation (the how aspect)?

2) Have I been specific enough?
3) For example, a general solution might state: The healthcare manager needs to
realize that his or her style should match the situation.
4) A specific solution would state what style is most appropriate for the situation, and
how you will attempt to have the manager realize the appropriate style.
5) What aspects of the problem remain unresolved by my solution?
6) Does my recommended solution and implementation plan address the problem or
issues and causes identified in the previous sections?
7) Does my solution consider and resolve the identified pros and cons?
8) How will I evaluate the effectiveness of the implemented recommended solution?
9) What process checks or procedures will I put into place to institutionalize the
improvement?
10) Could my solution cause other problems or issues? What risks are inherent in the
solution you recommend? What contingency plans do you recommend?
11) Assess the realism of your proposed action plan. For example, is there adequate
time, money, or other resources for your solution? In addition, does your solution place
too much reliance on other people being reasonable (i.e., on what YOU think is
reasonable)?
JUSTIFICATION: Justify why your recommended solution and its implementation
will solve the identified problem or issue in the organization or unit you selected.
referenced facts, quotes, and readings. Be sure your justification addresses identified
pros and cons.
REFERENCES: All citations in the paper must appear in the reference list, and all
references must be cited in the text of the paper.

MIS 589 Final Exam All Correct A+ Answer

MIS 589 Final Exam Complete A+ Answer
(TCO A) Organization XYZ has just been granted access to the LAN of the ABC
organization to access Web-based applications over the Internet. Organization ABC has
established what type of access?
(TCO B) The ________________ is a WAN network that includes hundreds of
thousands to millions of machines and users worldwide
(TCO B) Which of the following is considered a component of a network
(TCO C) Which is true about a network hub?
(TCO C) Hubs and switches also act as __________ to help prevent attenuation
(TCO D) A ___________ connect(s) two similar networks having the same network
protocol and chooses the best route between two networks when there are multiple
paths
(TCO D) In the case of Internet operation, a network access point is ______.
(TCO E) Your organization has been the victim of a recent DoS on one of your public
websites. Your CIO wants this problem to have minimal impact on your organization in
the future. What is the best technology to deploy to quickly detect and take action on a
DoS attack once it starts
(TCO E) Your organization has decided to host a web server that will be accessible by
the public. Organizational leadership is concerned about the web server being
compromised and thus allowing the remaining network to be compromised. You want to
come up with a solution to host and secure the Web server internally but still protect

your network. What should you do

(TCO F) The building block design approach is sometimes called ______.
(TCO F) Your company is new and finally has acquired an operating facility. You are in
change of designing the network. Organizational leadership has explained to you that
they want a network that is simplistic, standardized, and that can be implemented in
less than one year. What design option would best suit the needs of the organization
(TCO G) __________ policies attempt to allocate costs associated with a WAN or a
mainframe to specific users
(TCO A) Discuss and describe three trends in communications and networking
(TCO B) Discuss and support your opinions of why combining voice and data is a major
organizational challenge. Include your thoughts on its possible impacts on the
organization in terms of competitive advantage, internal organization, and so forth
(TCO C) Switched Ethernet networks dominate the landscape of computer networks
today. What improvements do Switched Ethernet networks have over its predecessor
Shared Ethernet networks? Be specific and answer in details
(TCO C) What are the preferred technologies used in the three technology layers in
backbone design? Describe each of the technologies in detail
(TCO D) What are the principal organizations responsible for Internet governance, and
what do they do
(TCO E) Viruses and worms are issues that any networking professional must face.
Compare and contrast viruses and worms. Be n
(TCO F) What are some major problems that can cause network designs to fail?
Provide the problems in detail
(TCO G) The total cost of ownership (TCO) is a measure of how much it costs per year
to keep one computer operating. TCO includes the cost of support staff to attach it to
the network, install software, administer the network (e.g., create user ids, backup user
data), provide training and technical support, and upgrade hardware and software. It
also includes the cost of time wasted by the user when problems occur or when the
user is attempting to learn new software. Discuss in detail at least three approaches that
can be used to reduce network costs

HRM 586 Labor Relations Final Exam Answer

HRM 586 Labor Relations Final Exam Answer
HRM 586 Labor Relations Final Exam Answer
1. (TCO A) You are the new leader of the local union at your company. There are many
new employees who have joined the union in the past year, and they have questions
about the way union membership works. These new employees are not sure about how
to be in the union and still interact with the boss. It seems to some of them that in their
non-union jobs, they would just say and do what it took to get their questions answered,
and they did not see much difference between themselves and the boss. Others want to
run to the union steward every time the boss says something they don t like. The
questions involve management rights and employee rights. Your job is to develop a
summary sheet which lists the content for a union meeting. Your summary should
include the basics of how unions operate and specifics on management rights and
employee rights in the union environment. (Points : 34)

2. (TCO B) There are a number of social, economic, and business factors that are either
helping or slowing down the development of the union movement. Describe the changes
in the political climate that have helped or hindered growth of unions. Identify key
legislation that has changed the way in which unions or companies operate in a union
setting. (Points : 34)
3. (TCO C) Labor Management relations have been affected by political and legal forces
since the mid 1900s. Describe laws that are relevant to negotiations. Which laws favor
employers, and which favor unions? Close out with a discussion of the importance of
these laws within the scope of the negotiating teams. (Points : 34)
4. (TCO D) Describe the differences of operations between the local unions and national
unions. How are each involved in helping union employees? Describe the interactions
between employees and representatives at both levels. (Points : 34)
5. (TCO E) The AFL-CIO and its leaders from the past help define the labor movement
in the U.S. and help define where the union movement is today. How have the AFL-CIO
(federation) national and local unions been involved politically? What impact has this
had on unions and legislation passed? (Points : 34)
1. (TCO I) When you examine a negotiated agreement, you will find a variety of issues
that can be put into the category of wages or economic concerns. However, the contract
is not limited to these issues. There are a variety of issues that go beyond economic
concerns, such as the union obligations. It is not just that management is required to
perform a certain way according to the requirements of the contract. It is often felt by
management that they are giving up everything in order to live by the contract. From a
management point of view, the union has taken control without obligation through the
function of the contract.
(a) Evaluate the obligations that the union might have under the contract in terms of
what they mean to the functioning of the union and management.
(b) Lay out a plan to help management implement its options if the union does not meet
its obligations. (Points : 34)
2. (TCO G) Two industries (Industry X and Industry Y) are run by labor unions. Even
though the unions overseeing these industries are considered honest and conscientious,
we have seen a large disparity in pay between the industries. In fact, the wages in
Industry X are now three times the rate as those of Industry Y. What factors account for
the differences in these two industries? (Points : 34)
3. (TCO F) The centerpiece of almost every negotiation is the issue of wages. The topic
has become complex and is typically the catalyst for a strike. Of course, the topic of
wages is multidimensional. Its not just the salary that union member are making that
impacts the profitability of the organization or the cost of products and services on the
market. There are other costs that go into making up the total reward paid to any
employee, including the union worker. It is this bigger picture of labor costs that
concerns management during negotiations. While the union is focusing on what they
can get in terms of total income to the union member, management is looking at the
impact of these cost on the total business picture.
(a) Compare the methods available for the adjustment of wages during the effective
period of the labor agreement. Make this comparison in light of the organization in

which you currently work or recently worked.

(b) From a management perspective, defend what you would judge to be the most
desirable arrangement for your organization. Be sure to include other factors around
the wage issue that might impact your decision. (Points : 38)
4. (TCO H) If the collective bargaining process is to be successful, it is important that
both sides come prepared to bargain. This means that both management and labor must
make plans and develop a strategy before they even look across the table at the other
party. It is often this preparation that determines to what extent one side gets its way
more than the other side. It is impossible to walk into negotiations without knowing the
costs that are potentially involved in the new contract arrangement. Clearly the union is
well-prepared with their wish list and with as many facts and figures as they can find to
bolster their position. Management does much the same thing to trade off items on the
table.
(a) Select what you consider to be the key pre-negotiation preparation steps that can be
taken by the union.
(b) Select what you consider to be the key pre-negotiation preparation steps that can be
taken by management.
(c) Compare and contrast the historical elements that help us understand the current
structure of the union. (Points : 34)

ACC 497 Final Exam Complete A+ Answer

ACC 497 Final Exam Complete All correct Answer
ACC 497 Final Exam
Section 1: Business Structure
1) The uniform law, issued in 1984 by the Committee on Corporate Laws of the
American Bar Association, that regulates the formation, operation, and termination of
corporations is
A. The Model Business Corporation Act
B. The Uniform Commercial Code
C. The Revised Model Business Commercial Code
D. The Standard Incorporation Act
2) Which of the following statements is true?
A. The exchange of stock for services rendered is not a taxable transaction.
B. The repeal of Sec. 351 would result in more existing businesses being incorporated.
C. Section 351 was enacted to allow taxpayers to incorporate without incurring adverse
tax consequences.
D. Section 351 is an example of a negative aspect of the corporate form of business
organization.
3) Which of the following statements is true?
A. Formation of a partnership requires legal documentation.

B. An individual engaged in the active conduct of a business must elect not to be taxed
as a partnership.
C. If two people (or business entities) work together to carry on any business or
financial operation with the intention of making a profit and sharing that profit as coowners, a partnership exists for federal income tax purposes.
D. The partnership form of business creates double-taxation because individual
partners are taxed, and the partnership is also taxed as a separate legal entity.
Section 2: Economic Concepts Essential to Obtaining an Understanding of an Entitys
Business and Industry
4) What effect would a decrease in interest rates by the Federal Reserve most likely
have in the nations manufacturing sector, all other factors remaining constant?
A. An increase in both production and employment
B. A decrease in both production and employment
C. An increase in production but a decrease in employment
D. A decrease in production, but an increase in employment
5) A table that shows the relationship between the price of a good and the quantity
demanded of that good is called
A. a price-quantity table
B. a complementary table
C. a demand schedule
D. an equilibrium schedule
6) If policymakers increase aggregate demand, the price level
A. falls, but unemployment rises
B. and unemployment fall
C. and unemployment rise
D. rises, but unemployment falls
Section 3: Financial Management
7) Which table would show the largest factor for an interest rate of 8% for five periods?
A. Future value of an ordinary annuity of 1
B. Present value of an ordinary annuity of 1
C. Future value of an annuity due of 1
D. Present value of an annuity due of 1
8) Financial service
A. is concerned with the duties of the financial manager
B. involves the design and delivery of advice and financial products
C. provides guidelines for the efficient operation of the business
D. handles accounting activities related to data processing
9) As the interest rate increases for any given period, the future value interest factor will
A. decrease
B. increase
C. remain unchanged
D. move toward 1

10) The specific cost of each source of long-term financing is based on ________ and
________ costs.
A. before-tax; historical
B. after-tax; historical
C. before-tax; book value
D. after-tax; current
11) At the operating break-even point, ________ equals zero.
A. sales revenue
B. fixed operating costs
C. variable operating costs
D. earnings before interest and taxes
Section 4: Information Technology (IT) Implications in the Business Environment
12) Justifying expenditures for new technologies is especially difficult because
A. you do not know how many jobs will be affected
B. expenses are often recurring and are difficult to estimate
C. many benefits are intangible and are not easily known or measured
D. justifying a new technology is no different from any other capital budgeting problem
13) The hardware of a computer system includes the computer itself and other devices
that help the computer perform its tasks. These other devices are commonly also called
A. helper equipment
B. peripheral equipment
C. secondary equipment
D. accessory equipment
14) Software that enables businesses and government agencies to transmit and
manipulate financial data on an organization-wide basis best describes
A. communication software
B. CAD software
C. enterprise resource planning (ERP) software
D. programming software
15) A simple diagram that shows estimated completion times versus actual completion
times for the various activities in a systems implementation project
A. an E-R diagram
B. a PERT chart
C. a Gantt chart
D. a Data flow diagram
16) What would be the best explanation for the absence of complete information on
computer crime?
A. Abuse is handled as an internal matter
B. Hesitant disclosure of abuse due to embarrassment
C. Documentation of abuses hasnt caught up with actual abuses
D. Most computer crime is not caught

Section 5: Planning and Measurement

17) Which of the following processes would be accounted for using a job order cost
system?
A. Milk pasteurization
B. Town home production
C. Textbook production
D. Canned spinach production
18) In traditional costing systems, overhead is generally applied based on
A. direct labor
B. machine hours
C. direct material dollars
D. units of production
19) If standard costs are incorporated into the accounting system
A. it may simplify the costing of inventories and reduce clerical costs
B. it can eliminate the need for the budgeting process
C. the accounting system will produce information which is less relevant than the
historical cost accounting system
D. approval of the stockholders is required
FINANCIAL ACCOUNTING AND REPORTING
Section 1: Concepts and standards for financial statements
20) Generally accepted accounting principles are
A. income tax regulations of the Internal Revenue Service.
B. standards that indicate how to report economic events.
C. theories that are based on physical laws of the universe.
D. principles that have been proven correct by academic researchers.
21) Luca Company overapplied manufacturing overhead during 2006. Which one of the
following is part of the year end entry to dispose of the overapplied amount assuming
the amount is material?
A. An increase to finished goods
B. A decrease to applied overhead
C. A decrease to work in process inventory
D. An increase to cost of goods sold
22) The cost to produce Part A was $10 per unit in 2005. During 2006, it has increased to
$11 per unit. In 2006, Supplier Company has offered to supply Part A for $9 per unit.
For the make-or-buy decision,
A. incremental revenues are $2 per unit
B. incremental costs are $1 per unit
C. net relevant costs are $1 per unit
D. differential costs are $2 per unit
23) Disneys variable costs are 30% of sales. The company is contemplating an
advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by
how much will the companys net income increase?
A. $18,000
B. $28,000

C. $12,000
D. $6,000
FINANCIAL ACCOUNTING AND REPORTING
Section 2: Typical items in financial statements
24) Kershaw Bookstore had 600 units on hand at January 1, costing $18 each. Purchases
and sales during the month of January were as follows:
Date Purchases Sales
Jan. 14 450 @ $28
17 300 @ $20
25 300 @ $22
29 300 @ $32
Kershaw does not maintain perpetual inventory records. According to a physical count,
450 units were on hand at January 31. The cost of the inventory at January 31, under
the LIFO method is:
A. $1,200.
B. $8,100.
C. $9,300.
D. $9,600.
25) The process of formally recording or incorporating an item in the financial
statements of an entity is
A. allocation
B. articulation.
C. realization.
D. recognition.
26) The primary purpose of the statement of cash flows is to provide information
A. about the operating, investing, and financing activities of an entity during a period.
B. that is useful in assessing cash flow prospects.
C. about the cash receipts and cash payments of an entity during a period.
D. about the entitys ability to meet its obligations, its ability to pay dividends, and its
needs for external financing.
27) Which of the following is considered cash?
A. Travel Advances
B. Money market checking accounts
C. Money market savings certificates
D. Postdated checks
28) A company offers a cash rebate of $1 on each $4 package of batteries sold during
2007. Historically, 10% of customers mail in the rebate form. During 2007, 6,000,000
packages of batteries are sold, and 210,000 $1 rebates are mailed to customers.
Assuming there is no beginning liability balance, what is the rebate expense and
liability, respectively, shown on the 2007 financial statements dated December 31?
A. $600,000; $600,000
B. $600,000; $390,000
C. $390,000; $390,000
D. $210,000; $390,000

29) Which of the following is a debt security?

A. Convertible bonds
B. Certificate of deposit
C. Loans receivable
D. US treasury bill
30) The balance in Newsprint Corp.s foreign exchange loss account was $10,000 on
December 31, 2008, before any necessary year-end adjustment relating to the following:
(1) Newsprint had a $15,000 debit resulting from the restatement in dollars of the
accounts of its wholly owned foreign subsidiary for the year ended December 31, 2008.
(2) Newsprint had an account payable to an unrelated foreign supplier, payable in the
suppliers local currency unit (LCU) on January 15, 2009. The U.S. dollarequivalent of
the payable was $50,000 on the December 1, 2008, invoice date and $53,000 on
December 31, 2008.
In Newsprints 2008 consolidated income statement, what amount should be included as
foreign exchange loss in computing net income, if the LCU is the functional currency
and the translation method is appropriate?
A. $28,000
B. $13,000
C. $25,000
D. $8,000
FINANCIAL ACCOUNTING AND REPORTING
Section 3: Specific types of transactions and events
31) Costs incurred internally to create intangibles are
A. capitalized.
B. capitalized if they have an indefinite life.
C. expensed as incurred.
D. expensed only if they have a limited life.
32) The amount to be recorded as the cost of an asset under capital lease is equal to the
A. present value of the minimum lease payments.
B. present value of the minimum lease payments or the fair value of the asset, whichever
is lower.
C. present value of the minimum lease payments plus the present value of any
unguaranteed residual value.
D. carrying value of the asset on the lessors books.
33) In computations of weighted average of shares outstanding, when a stock dividend
or stock split occurs, the additional shares are
A. weighted by the number of days outstanding.
B. weighted by the number of months outstanding.
C. considered outstanding at the beginning of the year.
D. considered outstanding at the beginning of the earliest year reported.
34) Debt securities that are accounted for at amortized cost, NOT fair value, are
A. held-to-maturity debt securities.
B. trading debt securities.
C. available-for-sale debt securities.
D. never-sell debt securities.

35) Elvis Company purchases inventory for $70,000 on March 19, 2008, and sells it to
Graceland Corporation for $95,000 on May 14, 2008. Graceland still holds the
inventory on December 31, 2008, and determines that its market value (replacement
cost) is $82,000 at that time. Graceland writes the inventory down from $95,000 to its
lower market value of $82,000 at the end of the year. Elvis owns 75% of Graceland.
Based on this information, what amount of inventory should be eliminated in the
consolidation workpaper for 2008?
A. $15,000
B. $14,000
C. $12,000
D. $13,000
FINANCIAL ACCOUNTING AND REPORTING
Section 4: Accounting and reporting for governmental entities
36) Which of the following objectives is considered the cornerstone of financial
reporting by a governmental entity?
A. Accountability
B. Budgetary compliance
C. Interperiod equity
D. Service efforts and accomplishments
37) Expenditures should be budgeted by character. An example of a character
classification is
A. current expenditures.
B. salaries
C. public safety.
D. police department.
38) Which of the following funds is accounted for on the modified accrual basis of
accounting?
A. General
B. Internal service
C. Proprietary
D. Pension trust
39) Several years ago, Durham City issued $1 million in zero coupon bonds due and
payable in 2010. The bonds were sold at an amount to yield investors 6% over the life of
the bonds. During the current year, how much interest expenditures would Durham
City recognize related to these bonds?
A. Difference between the present value of the bonds at the beginning of the period and
the present value of the bonds at the end of the period
B. Face amounts of bonds times 6%
C. Book value of bonds times 6%
D. The present value of the bonds at the beginning of the period minus the present value
of the bonds at the end of the period multiplied by 6%
40) As used in governmental accounting, interperiod equity refers to a concept of
A. providing the same level of services to citizens each year.
B. measuring whether current revenues are sufficient to pay for current services.
C. levying property taxes at the same rate each year.

D. requiring that general fund budgets be balanced each year.

41) The state has a legally separate State Building Authority, which has a board
appointed by the Governor. The authority issues debt in its name, holds title to
buildings in its name, and leases its building exclusively to the state. The authority
would be considered a(n)
A. primary government.
B. component unit.
C. related organization.
D. affiliated organization.
FINANCIAL ACCOUNTING AND REPORTING
Section 5: Accounting and reporting for nongovernmental and not-for-profit
organizations
42) Revenues of a not-for-profit organization should be reported as
A. increases in one of the three categories of net assets.
B. increases in unrestricted net assets.
C. increases in temporarily restricted net assets.
D. increases in permanently restricted net assets.
43) Financial statements for a church-supported college should be prepared according
to standards set by the
A. American Institute of Certified Public Accountants (AICPA).
B. Financial Accounting Standards Board (FASB).
C. Government Accounting Standards Board (GASB).
D. Securities and Exchange Commission (SEC).
44) For a not-for-profit hospital, which of the following financial statements is required?
A. Statement of financial position
B. Statement of revenues
C. Statement of retained earnings
D. Statement of functional expenses
REGULATION
Section 1: Ethics and Professional and Legal Responsibilities
45) What agency has the ultimate authority in defining independence for publicly
traded companies?
A. AICPA
B. SEC
C. Department of Justice
D. Congress
46) A report on internal control effectiveness by management of public companies is
required by which of the following:
A. The Sarbanes-Oxley Act of 2002
B. The PCAOB
C. The AICPA
D. Only auditors are required to report on internal control effectiveness
47) Once sufficient predication has been established, what is the first step a fraud
examiner following the fraud theory approach should take?

A. Create a hypothesis.
B. Analyze data.
C. Interview witnesses.
D. Interview the suspect.
48) Which of the following best describes the objective of a fraud examination?
A. Make recommendations to management about how to prevent fraud.
B. Determine whether financial statements are free of misstatements because of fraud.
C. Express an opinion on the guilt or innocence of a suspect.
D. Determine whether a crime has been committed, and if so, who is responsible.
REGULATION
Section 2: Business Law
49) Damages intended to punish a defendant and deter the defendant and others from
engaging in the same tortious conduct in the future are called
A. penalty damages.
B. retribution damages.
C. punitive damages.
D. nominal damages.
50) Where a contract calls for action that violates a statute, in a breach of contract case
the court will
A. impose the appropriate criminal penalty.
B. ignore the contract and leave the parties where they are.
C. order both parties to return any consideration received.
D. order payments so that the parties to the illegal contract share any losses equally.
51) Teds Gifts and Sweets enters into a written contract with Bannon Candies to supply
Teds with 60 boxes containing a dozen coconut clusters each month for sale to the
public. The agreement contained an integration clause. Before the first delivery under
the contract, Ted and his warehouse manager called Debbie, the Bannons account
representative, to request that the candies be delivered in special Valentines Day boxes.
Debbie told Ted, Dont worry, Ill tell the shipping department to take care of that.
When the candies were delivered, they were in standard cardboard boxes. Ted called
Bannon and threatened to sue for breach of contract. Will Ted prevail in his suit?
A. Yes, Ted made a valid modification to the parties original agreement.
B. No, Ted should have written a letter to change the type of boxes in the contract.
C. Yes, Ted will prevail because he has a witness to the telephone call.
D. No, Ted will not prevail because his attempt to modify the agreement was not
effective.
52) Jane and Bill are married. They purchase a house and lot as tenants by the entirety.
Then Jane is killed in a car accident. Her will leaves everything to her sister, Ruth. What
will happen to Janes interest in the property?
A. Ruth will own the property with Bill as tenants by the entirety.
B. Ruth will own the property with Bill as joint tenants.
C. Bill will be the sole owner of the property.
D. Bill will have to buy out Ruths interest in the property.

53) Which of the following is a correct statement of the requirements for a bona fide
occupational qualification?
A. Job related and cost effective
B. Job related and nondiscriminatory
C. Job related and a business necessity
D. Rationally based and evenly applied
54) Which of the following statements accurately describes the workers compensation
rules?
A. The employer can avoid liability if the injured employee was contributory negligent.
B. The employer is liable for employment-related injuries only if negligent.
C. The employee will collect for all work-related injuries and will not need to prove
negligence on the part of the employer.
D. The employee has the choice to sue or proceed under the workers compensation
statute.
REGULATION
Section 3: Federal Tax Procedures and Accounting Issues
55) When a company holds between 20% and 50% of the outstanding stock of an
investee, which of the following statements applies?
A. The investor should always use the equity method to account for its investment.
B. The investor should use the equity method to account for its investment unless
circumstances indicate that it is unable to exercise significant influence over the
investee.
C. The investor must use the fair-value method unless it can clearly demonstrate the
ability to exercise significant influence over the investee.
D. The investor should always use the fair-value method to account for its investment.
56) On December 31, 2008, Kean Company changed its method of accounting for
inventory from weighted-average cost method to the FIFO method. This change caused
the 2008 beginning inventory to increase by $420,000. The cumulative effect of this
accounting change to be reported for the year ended December 31, 2008, assuming a
40% tax rate, is
A. $420,000.
B. $252,000.
C. $168,000.
D. $0.
57) Which of the following serves as the highest authority for tax research, planning,
and compliance activities?
A. Internal Revenue Code
B. Income Tax Regulations
C. Revenue rulings
D. Revenue procedure
58) The retail inventory method is based on the assumption that the
A. final inventory and the total of goods available for sale contain the same proportion
of high-cost and low-cost ratio goods.
B. ratio of gross margin to sales is approximately the same each period.

C. ratio of cost to retail changes at a constant rate.

D. proportions of markups and markdowns to selling price are the same.
59) When an item of expense is paid and recorded in advance, it is normally called
A. a prepaid expense.
B. an accrued expense.
C. an estimated expense.
D. a cash expense.
REGULATION
Section 4: Federal Taxation of Property Transactions
60) Antonio owns land held for investment with a basis of $28,000. The city of Lafayette
exercises the right of eminent domain and Antonio receives a payment of $48,000. What
is Antonios realized gain?
A. $0
B. $20,000
C. $28,000
D. $48,000
61) In April 2009 of this year, Emma acquired a machine for $50,000 for use in her
business. The machine is classified as 7-year property. Emma elects out of bonus
depreciation and does not expense the asset under Sec. 179. Emmas depreciation on the
machine this year is
A. $5,000.
B. $7,145.
C. $10,000.
D. $50,000.
62) During the current year, a corporation sells equipment for $300,000 that it had
purchased and placed in service in 2007. The equipment cost $270,000, and $60,000 of
depreciation deductions was allowed. The results of the sale are
A. ordinary income of $90,000.
B. Sec. 1231 gain of $90,000.
C. ordinary income of $60,000 and LTCG of $30,000.
D. ordinary income of $60,000 and Sec. 1231 gain of $30,000.
63) Susie owns a ranch in Wyoming, which Pat offers to purchase. Susie is not willing to
sell the ranch but is willing to exchange the ranch for an apartment complex in
Louisiana. The complex is available for sale. Pat purchases the apartment complex in
Louisiana from Jody and transfers it to Susie in exchange for Susies ranch. The ranch
and the complex each have a $1,000,000 fair market value. Which of the following is
true?
A. The transaction qualifies as a like-kind exchange for Pat but not for Susie.
B. The transaction qualifies as a like-kind exchange for both Pat and Susie.
C. The transaction qualifies as a like-kind exchange for Susie but not for Pat.
D. The transaction does not qualify as a like-kind exchange for either Pat or Susie.
REGULATION
Section 5: Federal Taxation Individuals
64) A married person who files a separate return can claim a personal exemption for his

or her spouse if the spouse is not the dependent of another and has
A. gross income that is less than the personal exemption.
B. adjusted gross income that is less than the personal exemption.
C. no gross income.
D. no taxable income.
65) Ricky has rented a house from Sarah since last year. The rent is usually $800 per
month, but Sarah reduced the monthly rent down to $600 for all 12 months this year in
exchange for Ricky constructing an addition to the house. The addition has a fair
market value of $3,500. How much total rental income must Sarah report this year?
A. $7,200
B. $9,600
C. $10,700
D. $14,200
66) Alex is a calendar-year sole proprietor. He began business on December 1 of this
year. He uses the accrual method of accounting. Alex had the following collections in the
same month: He collected $7,000 in December from clients who paid cash for services to
be performed next year. He collected $5,000 in December for services performed during
December, which he deposited in an operating account on December 31 of this year. He
collected $9,000 in December on accounts receivable for services performed in
December, which he deposited in an operating account on January 2 of next year. What
is the amount Alex must include in his income for December?
A. $7,000
B. $12,000
C. $14,000
D. $21,000
67) Bianca is beneficiary of an $80,000 insurance policy on her fathers life. Upon his
death, she may elect to receive the proceeds in 5 yearly installments of $17,500 or may
take the $80,000 lump sum. She elects to take the lump sum payment. What are the tax
consequences in year one?
A. All $17,500 each year is taxable.
B. $7,500 interest is taxable in the first year.
C. There is no taxable income.
D. $1,500 of the $17,500 payment is taxable each year.
68) Nonrefundable tax credits
A. only offset a taxpayers tax liability.
B. may only be used if the taxpayer is receiving a refund.
C. have expired but may be reinstated with new tax legislation.
D. allow the excess over the taxpayers tax liability to be paid to the taxpayer.
69) Paul makes the following property transfers in the current year: $22,000 cash to his
wife, $34,000 cash to a qualified charity, $120,000 house to his son, and $3,000 computer
to an unrelated friend. The total of Pauls taxable gifts, assuming he does not elect gift
splitting with his spouse, subject to the unified transfer tax, is
A. $107,000.
B. $123,000.

C. $145,000.
D. $179,000.
REGULATION
Section 6: Federal Taxation-Entities
70) Which of the following best describes the weight of a revenue ruling?
A. Revenue rulings carry more weight than regulations.
B. Revenue rulings carry more weight than federal court decisions.
C. Regulations carry more weight than revenue rulings.
D. Revenue rulings should never be used as authority because they only apply to the
taxpayer requesting the ruling.
71) Which of the following statements is true?
A. A corporations fiscal year generally ends on the last day of the month.
B. A fiscal year may end on December 31.
C. A new corporation can elect a fiscal year that runs from February 16 to February 15
of the following year.
D. A corporations first tax year must cover a full 12-month period.
72) One consequence of a property distribution by a corporation to a shareholder is
A. the amount of the distribution is increased by any liability assumed by the
shareholder.
B. the holding period of the distributed property includes the holding period of the
distributing corporation.
C. the shareholders basis in the distributed property is the same as the distributing
corporations basis.
D. any liabilities assumed by the shareholder do not reduce the shareholders basis.
73) Joshua owns 100% of Steeler Corporations stock. Joshuas basis in the stock is
$8,000. Steeler Corporation has E&P of $40,000. If Steeler Corporation redeems 60% of
Joshuas stock for $50,000, Joshua must report dividend income of
A. $0.
B. $8,000.
C. $40,000.
D. $50,000.
74) In computing the ordinary income of a partnership, a deduction is allowed for
A. net Sec. 1231 losses
B. bad debts
C. foreign income taxes paid
D. charitable contributions
75) Which of the following would terminate a Subchapter S election?
A. Estate becomes a shareholder.
B. Grantor trust becomes a shareholder.
C. Voting trust becomes a shareholder.
D. Partnership becomes a shareholder.
AUDITING AND ATTESTATION
Section 1: Plan the Engagement, Evaluate the Prospective Client and Engagement,

Decide Whether to Accept or Continue the Client and the Engagement, and Enter into
an Agreement with the Client
76) The function of auditing is
A. to locate every financial error
B. to provide interested parties with added assurance that the financials are not
materially inaccurate
C. to provide more precise accounting information for accurate tax reporting
D. to locate every dollar misappropriated
77) Auditing is based on the assumption that financial data are verifiable. Data are
verifiable when two or more qualified individuals,
A. working together, prove, beyond doubt, the datas accuracy
B. working independently, reach similar conclusions
C. working independently, prove, beyond doubt, the datas truthfulness
D. working together, agree on the datas accuracy
78) Statement on Quality Control Standards No. 2 identifies certain quality control
elements that should be considered when performing which types of services?
A. Auditing, accounting, and review services
B. Auditing, tax, and review services
C. Accounting, tax, and review services
D. Auditing, accounting, and tax services
79) Internal auditors are primarily involved with
A. compliance audits
B. operational audits
C. compliance audits and operational audits
D. financial statement audits
80) The statement that the reviewer is not aware of any material modifications that
should be made to the statements in order for them to be in conformity with GAAP is
known as
A. reasonable assurance
B. negligent performance
C. negative assurance
D. necessary ignorance
81) The assessment of inherent risk requires considering matters that have a pervasive
effect on assertions for all or many accounts and matters that may pertain only to
assertions for specific accounts. Which of the following is an example of a pervasive
effects matter?
A. Complexity of calculations
B. Management turnover, reputation, and accounting skills
C. Susceptibility to misappropriation
D. Sensitivity of operating results to economic factors
AUDITING AND ATTESTATION
Section 2: Consider Internal Control in Both Manual and Computerized Environments
82) Specific audit objectives are normally
A. the same as the categories of managements financial statement assertions

B. developed for each item in the financial statements and derived from the categories of
managements financial statement assertions
C. managements assertion of fairness.
D. broken down into eight types.
83) The Committee of Sponsoring Organizations (COSO) report identified five
interrelated components of internal control. Since then, a sixth category has been
identified, which is
A. monitoring
B. risk assessment
C. information and communication
D. antifraud programs and controls
84) Which of the following necessary controls would address a potential misstatement
arising from a voucher being paid twice?
A. Periodic independent bank reconciliations
B. Electronic cancellation of vouchers and supporting information when a check is
issued
C. Separate duties for approving payment vouchers and signing checks
D. A computer comparing the sum of checks issued with the entry to cash disbursements
85) An effective accounting system should identify and record only the valid transaction
of the entity that occurred in the current period, which relates to the
A. rights and obligations assertion
B. presentation and disclosure assertion
C. valuation or allocation assertion
D. existence or occurrence assertion
AUDITING AND ATTESTATION
Section 3: Obtain and Document Information to Form a Basis for Conclusions
86) One of the six steps involved in performing analytical procedures includes the
following:
A. Understand the role of analytical procedures in planning and performing the audit.
B. Understand the relationship between materiality and audit evidence.
C. Analyze data and identify significant differences.
D. Perform the calculations using industry data.
87) In a normal audit, the relationship between the level of materiality used to plan the
engagement and the level of materiality used to evaluate evidence is that
A. they must be identical
B. the former may be higher or lower than the latter
C. the former is higher than the latter
D. the former is lower than the latter
88) Use of auditor judgment or of a risk matrix is necessary in revising planned
detection risk whenever
A. risk assessments are not quantified
B. assessed control risk at the account balance level does not support the planned level
of control risk

C. control risk is assessed above the minimum

D. control risk is assessed below the maximum
89) In the audit risk model, audit sampling applies to
A. detection risk
B. inherent risk and control risk
C. control risk and detection risk
D. inherent risk and detection risk
90) Audit sampling is involved whenever an auditor
A. examines 100% of the population
B. makes an inference about a population characteristic based on a partial examination
of that population
C. performs tests of controls
D. performs tests of details
91) How can long-term assets best be tested for ownership?
A. Examining documents of title
B. Reviewing the ledger to ensure the item is listed
C. Inquiring with management
D. Reviewing prior year workpapers
92) How can long-term assets best be tested for current present value?
A. Reviewing the depreciation schedule for accuracy and completeness
B. Physically examining the assets and appraising the assets
C. Applying time value of money analysis
D. Performing an analytical review
AUDITING AND ATTESTATION
Section 4: Review the Engagement to Provide Reasonable Assurance That Objectives
Are Achieved and Evaluate Information Obtained to Reach and to Document
Engagement Conclusions
93) Because of the effects of circulation, some audit evidence is more reliable than other
evidence. Which of the following is generally considered to be most reliable?
A. Purchase requisitions
B. Suppliers invoices
C. Receipted bank deposit slips
D. Cutoff bank statements
94) Which of the following accounts in a merchandising company is affected by both the
revenue cycle and another cycle?
A. Sales
B. Sales returns and allowances
C. Inventory
D. Accounts receivable
95) The auditors strategy in performing test counts during the inventory observation is
to
A. concentrate tests on high-dollar items and take a representative sample of other items
B. test all high dollar items
C. randomly select all test items

D. concentrate tests in areas where employees seem to be disregarding the inventory

instructions
96) Which one of the following analytical procedures may indicate possible inventory
obsolescence problems when ratios are large?
A. Inventory turnover
B. Finished goods produced to raw material used
C. Inventory growth to cost of sales growth
D. Finished goods produced to direct labor
97) The control of all funds during the count of cash on hand is meant primarily to
prevent
A. transfers by the client
B. any chance of double counting
C. unauthorized disbursements
D. client personnel from viewing the count procedure
Section 5: Prepare Communications to Satisfy Engagement Objectives
98) Whether the entity maintains effective controls to provide reasonable assurance that
private customer information obtained because of e-commerce is protected is defined as
A. transaction integrity
B. information protection
C. risk assessment
D. performance measurement
99) A lawyers refusal to respond to a letter of audit inquiry normally requires the
auditor to
A. issue a qualified opinion or a disclaimer of opinion
B. issue an unqualified opinion with an explanatory paragraph
C. issue a qualified or adverse opinion
D. issue a standard three-paragraph unqualified opinion
100) Which of the following is a tort?
A. Breach of contract
B. A wrongful act that does not injure another persons property, body, or reputation
C. Gross negligence
D. Unintentional error where appropriate degree of care was exercised and no one was
injured

ACCT 504 Week 8 Final Exam All four sets 1_2_3 and 4
Answer
ACCT 504 Week 8 Final Exam All four sets 1_2_3 and 4 Complete A+ Answer
Set 1
Question 1. 1. (TCOs A, B, and C) Which type of corporate information is not available
to investors? (Points : 3)
Dividend history

Forecast of cash needs for the upcoming year

Cash provided by investing activities
Beginning cash balance
Question 2. 2. (TCO C) Debt securities sold to investors that must be repaid at a
particular date some years in the future are called (Points : 3)
accounts payable.
notes receivable.
taxes payable.
bonds payable.
Question 3. 3. (TCO C) Buying and selling products are examples of (Points : 3)
operating activities.
investing activities.
financing activities.
delivering activities.
Question 4. 4. (TCO A) The cost of assets consumed or services used is also known as
(Points : 3)
a revenue.
an expense.
a liability.
an asset.
Question 5. 5. (TCO C) Finley Company recorded the following cash transactions for
the year.
Paid $90,000 for salaries
Paid $40,000 to purchase office equipment
Paid $10,000 for utilities
Paid $4,000 in dividends
Collected $150,000 from customers
What was Finleys net cash provided by operating activities? (Points : 3)
$50,000
$10,000
$60,000
$46,000
Question 6. 6. (TCO A) On a classified balance sheet, prepaid insurance is classified as
(Points : 3)
an intangible asset.
property, plant, and equipment.
a current asset.
a long-term investment.
Question 7. 7. (TCO A) An intangible asset (Points : 3)
may have the capacity to earn revenue for its owner.
is worthless because it has no physical substance.
is converted into a tangible asset during the operating cycle.
cannot be reported on the balance sheet because it lacks physical substance.
Question 8. 8. (TCO A) The following are selected account balances on December 31,
2010.

-Land (location of the corporations office building): $100,000

-Land (held for future use): 150,000
-Corporate Office Building: 600,000
-Inventory: 200,000
-Equipment: 450,000
-Office Furniture: 100,000
-Accumulated Depreciation: 300,000
What is the total NET amount of property, plant, and equipment that will appear on the
balance sheet? (Points : 3)
$1,300,000
$1,100,000
$1,600,000
$950,000
Question 9. 9. (TCO B) For 2010, Landford Corporation reported net income of
$30,000; net sales $400,000; and average share outstanding 6,000. There were no
preferred stock dividends. What was the 2010 earnings per share? (Points : 3)
$4.66
$0.20
$66.67
$5.00
Question 10. 10. (TCO B) At December 31, 2010, Shorts Company had retained
earnings of $2,184,000. During 2010 they issued stock for $98,000, and paid dividends of
$34,000. Net income for 2010 was $402,000. The retained earnings balance at the
beginning of 2010 was: (Points : 3)
$2,552,000
$1,816,000
$1,914,000
$2,454,000
Question 11. 11. (TCO D) Money collected from customers before the work is done is
treated as (Points : 3)
prepaid expenses.
accrued revenues.
unearned revenues.
accrued expenses.
Question 12. 12. (TCO D) An account is a part of the financial information system and
is described by all except which one of the following? (Points : 3)
An account has a debit and credit side.
An account has to be in paper form.
An account has a zero or nonzero balance.
An account has a title.
Question 13. 13. (TCO D) Which of the following describes the classification and normal
balance of the retained earnings account? (Points : 3)
Asset, debit
Stockholders equity, credit
Revenues, credit
Expense, debit
Question 14. 14. (TCO D) In recording an accounting transaction in a double-entry
system (Points : 3)
the number of debit accounts must equal the number of credit accounts.
there must always be entries made on both sides of the accounting equation.

the amount of the debits must equal the amount of the credits.
there must only be two accounts affected by any transaction.
Question 15. 15. (TCO D) Which of the following accounts follows the rules of debit and
credit in relation to increases and decreases in the opposite manner? (Points : 3)
Prepaid insurance and dividends
Dividends and medical fees earned
Interest payable and common stock
Advertising expense and land
Question 16. 16. (TCO E) An accounting time period that is 1 year in length is called
(Points : 3)
a fiscal year.
an interim period.
the time period assumption.
a reporting period.
Question 17. 17. (TCO E) In a service-type business, revenue is considered earned
(Points : 3)
at the end of the month.
at the end of the year.
when the service is performed.
when cash is received.
Question 18. 18. (TCO E) Why do generally accepted accounting principles require the
application of the revenue recognition principle? (Points : 3)
Failure to apply the revenue recognition principle could lead to an overstatement of
revenue.
It is easy to apply the revenue recognition principle because revenue issues are always
easy to identify and resolve.
Recording revenue when cash is received is an objective application of the revenue
recognition principle.
Accounting software has made the revenue recognition easy to apply.
Question 19. 19. (TCO E) The following is selected information from G Corporation for
the fiscal year ending October 31, 2010.
-Cash received from customers: $150,000
-Revenue earned: 175,000
-Cash paid for expenses: 85,000
-Expenses incurred: 100,000
Based on the accrual basis of accounting, what is G Corporations net income for the
year ending October 31, 2010? (Points : 3)
$57,000
$75,000
$41,000
$85,000
Question 20. 20. (TCO E) Accounts often need to be adjusted because (Points : 3)
there are never enough accounts to record all the transactions.
many transactions affect more than one time period.
there are always errors made in recording transactions.
management cant decide what they want to report.

Question 21. 21. (TCOs A and B) Which of the following expressions is incorrect?
(Points : 3)
Gross profit operating expenses = net income
Sales cost of goods sold operating expenses = net income
Net income + operating expenses = gross profit
Operating expenses cost of goods sold = gross profit
Question 22. 22. (TCO B) Hunter Company purchased merchandise inventory with an
invoice price of $12,000 and credit terms of 2/10, n/30. What is the net cost of the goods
if Hunter Company pays within the discount period? (Points : 3)
$11,040
$10,800
$11,760
$12,000
Question 23. 23. (TCOs A and B) Jakes Market recorded the following events involving
a recent purchase of merchandise.
-Received goods for $20,000, terms 2/10, n/30.
-Returned $400 of the shipment for credit.
-Paid $100 freight on the shipment.
-Paid the invoice within the discount period.
As a result of these events, the companys merchandise inventory (Points : 3)
increased by $19,208.
increased by $19,700.
increased by $19,306.
increased by $19,308.
Question 24. 24. (TCO A) If goods in transit are shipped FOB destination (Points : 3)
the seller has legal title to the goods until they are delivered.
the buyer has legal title to the goods until they are delivered.
the transportation company has legal title to the goods while the goods are in transit.
no one has legal title to the goods until they are delivered.
Question 25. 25. (TCO A) Which statement is false? (Points : 3)
Taking a physical inventory involves actually counting, weighing, or measuring each
kind of inventory on hand.
No matter whether a periodic or perpetual inventory system is used, all companies need
to determine inventory quantities at the end of each accounting period.
An inventory count is generally more accurate when goods are not being sold or
received during the counting.
Companies that use a perpetual inventory system must take a physical inventory to
determine inventory on hand on the balance-sheet date and to determine cost of goods
sold for the accounting period.
Question 26. 26. (TCO A) Of the following companies, which one would not likely
employ the specific identification method for inventory costing? (Points : 3)
Music store specializing in piano sales
Custom jewelry store
Antique shop

Hardware store
Question 27. 27. (TCO A) Which of the following statements is correct with respect to
inventories? (Points : 3)
The FIFO method assumes that the costs of the earliest goods acquired are the last to be
sold.
It is generally good business management to sell the most recently acquired goods first.
Under FIFO, the ending inventory is based on the latest units purchased.
FIFO seldom coincides with the actual physical flow of inventory.
Question 28. 28. (TCO A) In periods of rising prices, the inventory method which results
in the inventory value on the balance sheet that is closest to current cost is the (Points :
3)
FIFO method.
LIFO method.
average cost method.
tax method.
Question 29. 29. (TCO B) In a perpetual inventory system, cost of goods sold is recorded
(Points : 3)
on a daily basis.
on a monthly basis.
on an annual basis.
each time a sale occurs.
Question 30. 30. (TCO B) The primary source of revenue for a retailer is (Points : 3)
investment income.
service revenue.
the sale of merchandise.
the sale of plant assets the company owns.
Question 31. 31. (TCO D) An account is an important accounting record where financial
information is stored until needed. Briefly explain (1) the nature of an account, (2) the
different types of accounts, and (3) the manner in which an account is increased and
decreased, and the normal balance of each type of accounts. (Points : 25)
Question 32. 32. (TCOs B and E) The adjusted trial balance of Gertz Company included
the following selected accounts.
Debit Credit
Sales $575,000
Sales returns and allowances $ 50,000
Sales discounts 9,500
Cost of goods sold 347,000
Freight-out 2,000
Advertising expense 15,000
Interest expense 19,000
Store salaries expense 74,000
Utilities expense 18,000
Depreciation expense 3,500
Interest revenue 25,000
Instructions:

1.Use the above information to prepare a multiple-step income statement for the year
ended December 31, 2010.
2.Calculate the profit margin ratio and gross profit rate. To qualify for full credit, you
must state the formula you are using, show your computations, and explain your
findings.
(Points : 35)
Set 2
1. Which of the following is an advantage of corporations relative to partnerships and
sole proprietorships?
Reduced legal liability for investors
Harder to transfer ownership
Lower taxes
Most common form of organization
2. Dividends _____.
represent an expense and are an operating activity
represent an obligation and are an operating activity
represent a distribution of earnings and are a financing activity
represent an asset and are an investing activity
3. Below is a partial list of account balances for LBJ Company:
Cash $15,000
Prepaid insurance 5,000
Accounts receivable 2,500
Accounts payable 3,000
Notes payable 6,000
Common stock 10,000
Dividends 500
Revenues 15,000
Expenses 13,000
What did LBJ Company show as total debits?
$34,000
$36,000
$70,000
$31,000
4. Under the accrual basis of accounting, revenues are recorded and reported _____.
when companies receive payments for jobs performed or products provided
when companies have provided products or performed services
when companies receive payments prior to providing products or performing services
when companies receive payments after providing products or performing services
5. In a period of increasing prices, which inventory cost flow assumption will result in
the highest amount of net income?

LIFO
The average cost method
FIFO
Income tax expense for the period will be the same under all assumptions.
6. Equipment was purchased for $55,000 on January 1, 2011. Freight charges of $2,200
were incurred and there was a cost of $1,800 for installation. It is estimated the
equipment will have a $5,500 salvage value at the end of its 5-year useful life.
Depreciation expense for 2011 using the straight-line method will be _____.
$10,340
$10,700
$10,260
$9,900
7. Payne Corporation issues 100 twenty-year, 6%, $1,000 bonds dated July 1, 2010, at
94. The journal entry to record the issuance will show a _____.
debit to Cash of $100,000
credit to Bonds Payable of $94,000
credit to Premium on Bonds Payable of $4,000
debit to Discount on Bonds Payable of $6,000
8. Accounts receivable arising from sales to customers amounted to $80,000 and
$120,000 at the beginning and end of the year, respectively. Income reported on the
income statement for the year was $2,000,000. Exclusive of the effect of other
adjustments, the cash flows from operating activities to be reported on the statement of
cash flows is _____.
$2,040,000
$2,000,000
$1,200,000
$1,960,000
9. If you are making comparisons within a company to detect changes in financial
relationships and significant trends, you are performing what type of analysis?
Industry averages analysis
Intercompany analysis
Common-size analysis
Intracompany analysis

10. The formula for performing horizontal analysis is _____.

(Current Year Amount minus Base Year Amount) divided by Current Year Amount
Base Year Amount divided by Current Year Amount
Current Year Amount minus Base Year Amount
(Current Year Amount minus Base Year Amount) divided by Base Year Amount
11.Horizontal analysis of comparative financial statements includes the _____.
development of common-size statements
calculation of liquidity ratios
calculation of dollar amount changes and percentage changes from the previous year to
the current year
evaluation of financial statement data that expresses each item in a financial statement
as a percentage of a base amount
12. A common measure of solvency is the _____.
asset turnover
current cash debt coverage ratio
cash debt coverage ratio
current ratio
13. Stockholders would be most interested in which of the following ratios?
Days in inventory
Free cash flow
Current ratio
Average collection period
14. To calculate the market value of a bond, we need to _____.
multiply the bond price times the interest rate
calculate the present value of the principal only
calculate the present value of the interest only

calculate the present value of both the principal and interest payments
15. (TCO A) Use the following partial financial statement information below to calculate
the liquidity and profitability ratios. This information can be used to correctly solve
each of the ratios below.
Average common shares $10,000 Current liabilities $100,000 Capital expenditures
20,000 Net income 21,000
Cash provided by operations 28,000 Net sales 150,000
Common stock dividends paid 5,000 Total liabilities 105,000 Current assets 150,000
Total assets 175,000 Instructions: Compute the following.
a) Current ratio
b) Working capital
c) Earnings per share
d) Debt-to-total-assets ratio
e) Free cash flow
Must show the formula you are using, show your computations, and explain the
meaning of each of your ratio results.
16.) Please indicate which section of the statement of cash flows should contain each of
the following items and whether each item would result in an inflow or outflow of cash.
The sections are Operating, Investing, and Financing.
a) Payment of dividends
b) Bought assets needed to operate the business
c) Depreciation of equipment
d) Increase in inventory
e) Sale of building
17. (TCOs D, E) Please prepare the following journal entries. Indicate which account
should be debited with the abbreviation DR in front of the account name and which
account should be credited with the abbreviation CR in front of the account name along
with the dollar amount of the debit and credit.
a) Investors invested $600,000 in exchange for 30,000 shares of common stock.
b) Company paid rent of $3,000
c) Company billed $5,000 for services performed
d) Company purchased supplies of $3,000
e) Company received $20,000 for services not yet performed
18) (TCO D) Your friend Dean has hired you to evaluate the following internal control
procedures.
a) Explain to your friend whether each of the numbered items below is an internal
control strength or weakness. You must also state which principle relates to each of the
internal controls.
b) For the weaknesses, you also need to state a recommendation for improvement.
1. Bonding of the cashiers is not required because all of the cashiers have significant
experience.
2. The treasurer is the only one allowed to sign checks.

3. All employees may operate cash registers.

4. Blank checks are stored in the safe.
5. Supervisors count cash receipts daily.
19) The following items are taken from the financial statements of Grove Company for
2010.
Accounts payable $ 18,500 Accounts receivable 4,000
Accumulated depreciation 4,800 Bonds payable 18,000
Cash 24,000 Common stock 25,000
Cost of coods sold 13,000 Depreciation expense 4,800
Dividends 5,300 Equipment 48,000
Interest expense 2,500 Patents 7,500
Retained earnings, January 1 16,000 Salaries expense 5,200 Sales revenue 36,500
Supplies 4,500
Instructions: Prepare an income statement and a retained earnings statement for Grove
Company.
Set 3:
1. (TCO B) The following selected data was retrieved from the Wal-Mart, Inc. financial
statements for the year ending January 31, 2013:
Accounts Payable
$38,080
Accounts Receivable
6,768
Cash
7,781
Common Stock
3,952
Cost of Goods Sold

352,488
Income Tax Expense
7,981
Interest Expenses
2,064
Membership Revenues
3,048
Net Sales
466,114
Operating, Selling and Administrative Expenses
88,873
Retained Earnings
72,978
Required:
Using the information provided above:
1. Prepare a multiple-step income statement
2. Calculate the Profit Margin, and Gross profit rate for the company. Be sure to
provide the formula you are using, show your calculations, and discuss your
findings/results.
(Points : 36)
3. (TCO C) Please review the following real-world Hewlett Packard Statement of Cash
flows and address the 2 questions below:
Cash flow from operating activities
In millions
In millions
For the year ended 2012
For the year ended 2011
Net (loss) earnings
$(12,650)

$7,074
Depreciation and amortization
5,095
4,984
Impairment of goodwill and purchased intangible assets
18,035
885
Stock-based compensation expense
635
685
Provision for doubtful accounts
142
81
Provision for inventory
277
217
Restructuring charges
2,266
645
Deferred taxes on earnings
(711)
166
Excess tax benefit from stock-based competition
(12)
(163)

Other, net
265
(46)
Accounts and financing receivables
1,269
(227)
Inventory
890
(1,252)
Accounts payable
(1,414)
275
Taxes on earnings
(320)
610
Restructuring
(840)
(1,002)
Other assets and liabilities
(2,356)
(293)
Net cash provided by operating activities
10,571
12,639
Cash flows from investing activities:

Investment in property, plant, and equipment

(3,706)
(4,539)
Proceeds from sale of property, plant, and equipment
617
999
Purchases of available-for-sale securities and other investments
(972)
(96)
Maturities and sales of available-for-sale securities and other investment
662
68
Payments in connection with business acquisitions, net of cash acquired
(141)
(10,480)
Proceeds from business divestiture, net
87
89
Net cash used in investing activities
(3,453)
(13,959)
Cash flow from financing activities:
(Payments) issuance of commercial paper and notes payable, net
(2,775)
(1,270)

Issuance of debt
5,154
11,942
Payment of debt
(4,333)
(2,336)
Issuance of common stock under employee stock plans
716
896
Repurchase of common stock
(1,619)
(10,117)
Excess tax benefit from stock-based compensation
12
163
Cash dividends paid
(1,015)
(844)
Net cash used in financing activities
(3,860)
(1,566)
Increase (decrease) in cash and cash equivalents
3,258
(2,886)
Cash and cash equivalents at beginning of period

8,043
10,929
Cash and cash equivalents at end of period
$11,301
$8,043
Required:
1) Please calculate the percentage increase or decrease in cash for the operating,
investing, and financing sections and explain the major reasons for the increase or
decrease for each of these sections.
2) Please calculate the free cash flow for 2012 and explain the meaning of this ratio.
(Points : 36)
5. (TCO F) Please review the following real-world ratios for Johnson & Johnson and
Pfizer for the year ended 2012 and address the 2 questions below.
Ratio Name
Johnson & Johnson
Pfizer
Profit margin
16.1%
24.7%
Inventory turnover ratio
3.1
1.7
Average collection period
59.4 days
69.1 days
Cash debt coverage ratio
.27
.16

Debt to Total assets

46.6%
127.5%
Required:
1) Please explain the meaning of each of the Pfizer ratios above.
2) Please state which company performed better for each ratio.
(Points : 36)
QCM
1. (TCO A) An advantage of the corporate form of business is that _____. (Points : 5)
it has limited life
its owners personal resources are at stake
its ownership is easily transferable via the sale of shares of stock
it is simple to establish
2. (TCO A) The Dividends account _____. (Points : 5)
is increased with a debit
is decreased with a credit
is not an expense account
All of the above
3. (TCOs A, B) Below is a partial list of account balances for Denton Company:
Cash $7,000
Prepaid insurance 700
Accounts receivable 3,500
Accounts payable 2,800
Notes payable 4,200
Common stock 1,400
Dividends 700
Revenues 21,000
Expenses 17,500
What did Denton Company show as total credits? (Points : 5)
$30,100
$29,400
$28,700
$30,800
4. (TCOs B, E) A small and private company may be able to justify using a cash basis of
accounting if it has _____. (Points : 5)

sales under $1,000,000

no accountants on staff
insignificant receivables and payables
all sales and purchases on account
5. (TCO D) Two companies report the same cost of goods available for sale, but each
employs a different inventory costing method. If the price of goods has increased during
the period, then the company using _____. (Points : 5)
LIFO will have the highest ending inventory
FIFO will have the highest cost of goods sold
FIFO will have the highest ending inventory
LIFO will have the lowest cost of goods sold
6. (TCO A, E) Equipment was purchased for $17,000 on January 1, 2006. Freight
charges amounted to $700 and there was a cost of $2,000 for building a foundation and
installing the equipment. It is estimated that the equipment will have a $3,000 salvage
value at the end of its 5-year useful life. What is the amount of accumulated
depreciation at December 31, 2007, if the straight-line method of depreciation is used?
(Points : 5)
$6,680
$3,340
$2,860
$5,720
7. (TCOs D, G) Lopez Corporation issues 500 ten-year, 8%, $1,000 bonds dated January
1, 2007, at 96. The journal entry to record the issuance will show a _____. (Points : 5)
debit to Cash of $500,000
credit to Discount on Bonds Payable for $20,000
credit to Bonds Payable for $480,000
debit to Cash for $480,000
8. (TCO C) Accounts receivable arising from sales to customers amounted to $80,000
and $70,000 at the beginning and end of the year, respectively. Income reported on the
income statement for the year was $240,000. Exclusive of the effect of other
adjustments, the cash flows from operating activities to be reported on the statement of
cash flows is _____. (Points : 5)
$240,000
$250,000
$310,000
$230,000
9. (TCO F) If you are comparing the 2010 income statement numbers with the income
statement numbers from 2009 and 2008, you are conducting a _____. (Points : 5)
common-size analysis
horizontal analysis

vertical analysis
ratio analysis
10. (TCO F) Vertical analysis is also known as _____. (Points : 5)
perpendicular analysis
common-size analysis
trend analysis
straight-line analysis
11. (TCO F) Which one of the following is not a characteristic generally evaluated in
ratio analysis? (Points : 5)
Liquidity
Profitability
Marketability of the product
Solvency
12. (TCO F) A common measure of profitability is the _____. (Points : 5)
current ratio
current cash debt coverage ratio
return on common stockholders equity ratio
debt to total assets
13. (TCO F) Long-term creditors are usually most interested in evaluating _____.
(Points : 5)
liquidity
marketability
profitability
solvency
14. (TCO G) To calculate the market value of a bond, we need to _____. (Points : 5)
find out the present value of all of the future cash payments promised by the bond
calculate the present value of the principal only
calculate the present value of the interest only
multiply the bond price by the interest rate
Set 4:
Week 8 : Final Exam Final Exam
Page 1
Question 1. 1. (TCO A) Which one of the following is an advantage of corporations
relative to partnerships and sole proprietorships? (Points : 5)
Reduced legal liability for investors
Harder to transfer ownership

Lower taxes
Most common form of organization
Question 2. 2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5)
the most common form of distribution is a cash dividend
the Dividends account will be increased with a credit
the Retained Earnings account will be directly increased with a debit
the Dividends account will be decreased with a debit
Question 3. 3. (TCOs A, B) Below is a partial list of account balances for Cerner
Company:
Cash $5,000
Prepaid insurance 500
Accounts receivable 2,500
Accounts payable 2,000
Notes payable 3,000
Common stock 1,000
Dividends 500
Revenues 15,000
Expenses 12,500
What did Cerner Company show as total credits? (Points : 5)
$21,500
$21,000
$20,500
$22,000
Question 4. 4. (TCOs B, E) Using accrual accounting, expenses are recorded and
reported only _____. (Points : 5)
when they are incurred, whether or not cash is paid
when they are incurred and paid at the same time
if they are paid before they are incurred
if they are paid after they are incurred
Question 5. 5. (TCO D) Three companies report the same cost of goods available for
sale, but each employs a different inventory costing method. If the price of goods has
increased during the period, then the company using _____. (Points : 5)
LIFO will have the highest ending inventory
FIFO will have the highest cost of goods sold
All three companies will have the same value for ending inventory.
average cost will have an ending inventory value that falls between FIFO and LIFO
Question 6. 6. (TCOs A, E) Equipment with a cost of $192,000 has an estimated salvage
value of $18,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated
by the straight-line method. What is the amount of depreciation for the first full year,
during which the equipment was used 3,300 hours? (Points : 5)
$48,000
$52,500

$49,500
$43,500
Question 7. 7. (TCOs D, G) Joyce Corporation issues 1,000 ten-year, 8%, $1,000 bonds
dated January 1, 2007, at 102. The journal entry to record the issuance will show a
_____. (Points : 5)
debit to Cash of $1,020,000
debit to Discount on Bonds Payable for $20,000
credit to Bonds Payable for $1,020,000
credit to Cash for $1,000,000
Question 8. 8. (TCO C) Accounts receivable arising from sales to customers amounted
to $35,000 and $40,000 at the beginning and end of the year, respectively. Income
reported on the income statement for the year was $120,000. Exclusive of the effect of
other adjustments, the cash flows from operating activities to be reported on the
statement of cash flows is _____. (Points : 5)
$120,000
$125,000
$155,000
$115,000
Question 9. 9. (TCO F) If you are comparing the 2010 income statement numbers with
the income statement numbers from 2009 and 2008, you are conducting a _____. (Points
: 5)
common-size analysis
horizontal analysis
vertical analysis
ratio analysis
Question 10. 10. (TCO F) Comparisons of data within a company are an example of the
following comparative basis. (Points : 5)
Industry averages
Intercompany
Intracompany
Interregional
Question 11. 11. (TCO F) In vertical analysis, the base amount for studying salary and
wages expense is generally _____. (Points : 5)
net sales
salary and wages expense in a previous year
gross profit
net income
Question 12. 12. (TCO F) Short-term creditors are usually most interested in assessing
_____. (Points : 5)
solvency
liquidity
marketability
profitability

Question 13. 13. (TCO F) Return-on-assets ratio is most closely related to _____. (Points
: 5)
profit margin and debt-to-total-assets ratio
profit margin and asset-turnover ratio
times interest earned and debt-to-stockholders equity ratio
profit margin and free cash flow
Question 14. 14. (TCO G) The present value of a bond is a function of which factors
below? (Points : 5)
The market interest rate
The length of time until the amounts are received
The dollar amounts to be received
All of the above
Page 2
Question 1. 1.
(TCO A) Below you will find selected information (in millions) from Coca-Cola Co.s
2012 Annual Report:
Income Taxes Payable $471
Short-term Investments and Marketable Securities 8,109
Cash 8,442
Other non-current Liabilities 10,449
Common Stock 1,760
Receivables 4,812
Other Current Assets 2,973
Long-term Investments 10,448
Other Non-current Assets 3,585
Property, Plant and Equipment 23,486
Trademarks 6,527
Other Intangible Assets 20,810
Allowance for Doubtful Accounts 53
Accumulated Depreciation 9,010
Accounts Payable 8,680
Short Term Notes Payable 17,874
Prepaid Expenses 2,781
Other Current Liabilities 796
Long-Term Liabilities 14,736
Paid-in-Capital in Excess of Par Value 11,379
Retained Earnings 55,038
Inventories 3,264
Treasury Stock 35,009
Other information taken from the Annual Report:
Sales Revenue for 2012 $48,017
Cost of Goods Sold for 2012 19,053
Net Income for 2012 9,019
Inventory Balance on 12/31/11 3,092
Net Accounts Receivable Balance on 12/31/11 4,920

Total Assets on 12/31/11 79,974

Equity Balance on 12/31/11 31,921
Required:
1. Using the information provided prepare a Balance Sheet. Separate the current assets
from non-current assets and provide a total for each. Also separate the current liabilities
from the non-current liabilities and provide a total for each.
2. Using the Balance Sheet from your answer above, calculate the Current Ratio and
Return on common stockholders equity ratio. (Make sure to show all your work).
(Points : 36)
Question 2. 2.
(TCO B) The following selected data was retrieved from the Wal-Mart, Inc. financial
statements for the year ending January 31, 2013:
Accounts Payable $38,080
Accounts Receivable 6,768
Cash 7,781
Common Stock 3,952
Cost of Goods Sold 352,488
Income Tax Expense 7,981
Interest Expenses 2,064
Membership Revenues 3,048
Net Sales 466,114
Operating, Selling and Administrative Expenses 88,873
Retained Earnings 72,978
Required:
Using the information provided above:
1. Prepare a multiple-step income statement
2. Calculate the Profit Margin, and Gross profit rate for the company. Be sure to
provide the formula you are using, show your calculations, and discuss your
findings/results.
(Points : 36)
Question 3. 3. (TCO C) Please review the following real-world Hewlett Packard
Statement of Cash flows and address the 2 questions below:
Cash flow from operating activities In millions In millions
For the year ended 2012 For the year ended 2011
Net (loss) earnings $(12,650) $7,074
Depreciation and amortization 5,095 4,984
Impairment of goodwill and purchased intangible assets 18,035 885
Stock-based compensation expense 635 685
Provision for doubtful accounts 142 81
Provision for inventory 277 217
Restructuring charges 2,266 645
Deferred taxes on earnings (711) 166
Excess tax benefit from stock-based competition (12) (163)
Other, net 265 (46)
Accounts and financing receivables 1,269 (227)

Inventory 890 (1,252)

Accounts payable (1,414) 275
Taxes on earnings (320) 610
Restructuring (840) (1,002)
Other assets and liabilities (2,356) (293)
Net cash provided by operating activities 10,571 12,639
Cash flows from investing activities:
Investment in property, plant, and equipment (3,706) (4,539)
Proceeds from sale of property, plant, and equipment 617 999
Purchases of available-for-sale securities and other investments (972) (96)
Maturities and sales of available-for-sale securities and other investment 662 68
Payments in connection with business acquisitions, net of cash acquired (141) (10,480)
Proceeds from business divestiture, net 87 89
Net cash used in investing activities (3,453) (13,959)
Cash flow from financing activities:
(Payments) issuance of commercial paper and notes payable, net (2,775) (1,270)
Issuance of debt 5,154 11,942
Payment of debt (4,333) (2,336)
Issuance of common stock under employee stock plans 716 896
Repurchase of common stock (1,619) (10,117)
Excess tax benefit from stock-based compensation 12 163
Cash dividends paid (1,015) (844)
Net cash used in financing activities (3,860) (1,566)
Increase (decrease) in cash and cash equivalents 3,258 (2,886)
Cash and cash equivalents at beginning of period 8,043 10,929
Cash and cash equivalents at end of period $11,301 $8,043
Required:
1) Please calculate the percentage increase or decrease in cash for the total line of the
operating, investing, and financing sections bolded above and explain the major reasons
for the increase or decrease for each of these sections.
2) Please calculate the free cash flow for 2012 and explain the meaning of this ratio.
(Points : 36)
Question 4. 4. (TCO D) You are CFO of Goforit, Inc., a wholesale distribution company
specializing in emerging technologies. Your CEO is a brilliant marketer, but relies on
you to explain issues and choices in accounting and finance. She has heard from other
members of a CEO organization to which she belongs that a companys net income can
vary widely depending on which accounting choices are made from the GAAP menu.
Assuming the goal is to maximize net income, choose an accounting treatment from
each of the following scenarios, and explain to your CEO why the choice will produce
the desired effect on reported Net Income for the current year. Include in your answer
the effect of the choice on both the income statement and balance sheet.
Required:
a. Goforit carries significant electronics inventory in a competitive environment where
prices are actually falling. Which inventory valuation method would you choose
LIFO, FIFO, or average cost? Assume that unit purchases exceed unit sales.

b. Goforit has a large investment in warehouse equipment including conveyor belts,

forklifts, and automated packaging systems. Which depreciation method would you
choose: Straight line (SL) or double declining balance (DDB)?
(Points : 36)
Question 5. 5. (TCO F) Please review the following real-world ratios for Johnson &
Johnson and Pfizer for the year ended 2012 and address the 2 questions below.
Ratio Name Johnson & Johnson Pfizer
Profit margin 16.1% 24.7%
Inventory turnover ratio 3.1 1.7
Average collection period 59.4 days 69.1 days
Cash debt coverage ratio .27 .16
Debt to Total assets 46.6% 127.5%
Required:
1) Please explain the meaning of each of the Pfizer ratios above.
2) Please state which company performed better for each ratio.
(Points : 36)

MIS 535 Managerial Appls of Info Tech Week 8 Final

Exam answer
MIS 535 Managerial Appls of Info Tech Week 8 Final Exam answer
Week 8 : Wk8 Final Exam
1. (TCO A) Based on the examples in the chapter, if you were asked to formulate a plan
for a regional drive-in restaurant chains efforts to use information technology to
develop a loyal customer base, what would be the best use of information technology
from the list below? (Points : 10)
Use IT to increase supplier loyalty.
Use IT to increase operational efficiency.
Use IT to create new products and business models.
Use IT to achieve customer intimacy.
2. (TCO B) ________ are visual tools for presenting performance data in a BI system.
(Points : 10)
Dashboards and scorecards
Parameterized reports
Reports and the drill-down feature
Scenarios and models
3. (TCO C) A DBMS makes the (Points : 10)
physical database available for different logical views.
logical database available for different analytical views.
physical database available for different analytical views.
logical database available for different physical views.

4. (TCO D) Cloud computing requires (Points : 10)

less energy consumption
additional servers and thus additional energy to communicate through the Internet to
the cloud
IT organizations to increase staffing levels
Employees to have fewer applications and databases
5. (TCO E) Enterprise applications have become easier to install because: (Points : 10)
they have been reduced in function
vendors have modularized the applications so they can be rolled out a module at a time
vendors have changed their design to make the application more adaptable to diverse
business processes
Users have become more familiar with how to use the applications
6. (TCO F) In the traditional systems development lifecycle, end users (Points : 10)
are important and ongoing members of the team from the original analysis phase
through maintenance.
are important only in the testing phases.
have no input.
are limited to providing information requirements and reviewing the technical staffs
work.
7. (TCO G) Electronic data are more susceptible to destruction, fraud, error, and misuse
because information systems concentrate data in computer files that (Points : 10)
are usually bound up in legacy systems that are difficult to access and difficult to correct
in case of error.
are not secure because the technology to secure them did not exist at the time the files
were created.
have the potential to be accessed by large numbers of people and by groups outside of
the organization.
are frequently available on the Internet.
Page 2
1. (TCO G) Discuss the issue of security challenges on the Internet as that issue applies
to a global enterprise. List at least 5 Internet security challenges. (Points : 40)
2. (TCO F) What qualities of object-oriented development make this method especially
suitable for Internet applications? (Points : 40)
3. (TCO E) Explain why standards are so important in information technology? What
standards have been important for the growth of Internet technologies? (Points : 40)
4. (TCO D) What is cloud computing and how do you think its developments could
impact businesses? (Points : 40)
5. (TCO C) IF you were to design the new contracts database for a publishing house
what fields do you anticipate needing? Which of these fields might be in use in other
databases used by the company? (Points : 40)

6. (TCO B) You are advising the owner of Small town Computer, a new, local computer
repair store that also builds custom computers to order. What competitive strategies
could Small town Computer exert? Which ones will it have difficulty exercising? (Points
: 40)
7. TCO (A) You work for an auto manufacturer and distributor. How could you use
information systems to achieve greater customer intimacy? (Points : 40)

HRM 599 Benefits Week 8 Final Exam set 1 and set 2

Answer
HRM 599 Benefits Week 8 Final Exam set 1 and set 2 A+ Answer
Set 1
1. Question : (TCO A) What are some of the legal and regulatory influences on
discretionary benefits?
2. Question : (TCO B) Give a brief overview of the main provisions of HIPAA.
3. Question : (TCO C) Discuss the two forms of employer-sponsored disability coverage.
Analyze the potential advantages of each for the employee and for the employer.
4. Question : (TCO D) Your companys CEO is interested in implementing a new dental
plan for employees and has asked you to do some research. The CEO wants you to
report back to him in 3 weeks with the following information: What are the three main
types of dental care plans? Discuss each plan and make a recommendation for your
company.
5. Question : (TCO E) Discuss the various FASB rulings associated with retiree health
insurance.
6. Question : (TCO F) You have recently been hired as an employee benefit consultant
and have been asked to recommend the establishment of either a defined contribution
or a defined benefit plan. Given the following employer objectives, which type of plan
would you recommend? Specify the type of retirement plan you would recommend.
Explain how your recommendation would handle the employers objectives.
Employer objectives include majority of employees are young would like to encourage
long potential service concerned about providing retirement income, capital
accumulation, and/or estate benefits concerned about limiting their funding costs and
administrative expenses.
7. Question : (TCO G) Discuss the concept of good business sense of benefits
communication and the primary objectives of an organizations benefits communication
program.
8.Question : (TCO H) Family assistance programs help employees with caring for loved
ones, both young and old. Briefly describe the three types of family assistance programs
and their benefits.

Set 2
Question 1. Briefly outline the key provisions of the Pension Protection Act of 2006.
Question 2. What are some of the legal and regulatory influences on discretionary
benefits?
Question 3. Discuss and compare multiple-payer versus single-payer systems in the
United States.
Question 4. What are the main characteristics of long-term disability insurance?
Question 5. Compare the basic structure of a profit sharing plan, thrift/savings plan, a
401(K) plan, and an employee stock ownership plan. Why would an employer choose to
implement each one of these plans over the other?
Question 6. Discuss the various FASB rulings associated with retiree health insurance.
Question 7: Discuss the concept of good business sense of benefits communication and
the primary objectives of an organizations benefits communication program.
Question 8. Employers must provide some disclosure information regarding their
benefits plan as spelled out by ERISA. One of those requirements includes a summary
plan description, or SPD. What is an SPD? Briefly discuss the information that SPDs
must provide.
Question 9. Family assistance programs help employees with caring for loved ones, both
young and old. Briefly describe the three types of family assistance programs and their
benefits.

MGMT 550 Managerial Communication Week 8 Final

Exam Answer
MGMT 550 Managerial Communication Week 8 Final Exam Complete A+ Answer
Question 1. 1. (TCO D) How would you respond to a claim by a customer for something
that is clearly not your companys fault? Customer Joe Samuel forgot to cancel his hotel
reservation. When he received his credit card bill, he saw that he was charged for a
night that he did not spend in the hotel. He was clearly upset. Instead of contacting
customer service or the hotel, he went to the Internet and started blogging his
complaints on the travel websites and Twitter. How would you handle this situation?
How would you resolve the issue and respond to the customers concerns both
personally and online? What would you say?
Question 2. 2. (TCO E) Should email be used to deliver bad news or should bad news be
handled person to person or over the phone? What are some of the advantages when
delivering the bad news by email?
Question 3. 3. (TCO F) What type of information should be included on your resume?

Question 4. 4. (TCO G) Now that you have completed your group project powerpoint
presentation, put yourself into the shoes of the CEOs sitting in the audience. Do you
believe that they would agree to your social media plan proposal? In hindsight, what
would you have done differently?
Question 5. 5. (TCO C) Should you use humor in a presentation? How could
inappropriate humor in a presentation damage your credibility? Should you eliminate
all humor?
Page 2
Question 1. 1. Describe at least four guidelines to remember when asking questions in a
routine request.
Question 2. 2. What are the four main criteria for evaluating the quality of Internet
resources? What are the basic concepts for each criterion?
Question 3. 3. List five of the top ten pet peeves that recruiters listed as issues when
reading rsums.
Question 4. 4. What are the five general guidelines for writing goodwill messages?
Question 5. 5. List the three directions of communication and describe the types of
communication that occur in each. Explain one problem that can occur in each
direction.

HRM 593 Employment Law Final Exam Set 1 and 2

Complete Answer
HRM 593 Employment Law Final Exam Set 1 and 2 Complete Answer
Week 8 : Final Exam Final Exam
Page 1
1. Carla Thomas, a nonsmoker, often encouraged her co-workers to quit smoking. Her
new manager, Paul, a smoker, was annoyed by what he considered her constant nagging.
He moved her desk from a separate room with a window to a cubicle surrounded by
smokers, who smoked all day. Paul refused Carlas request to create a no-smoking area
in the office and he refused her request to be moved back to the separate room. After
four weeks of breathing secondhand smoke, Carla quit. What, if any, recourse does
Carla have against her former employer? Explain the possible legal theories for
recovery, if any.
(Points : 40)
2. Mary Smith was an employee of Thomas Contracts, a pipeline construction company.
Mary was supervised by H.D. Thomas, son of the owner of the business. She became
involved in an affair with Thomas, who was married. Thomas ended the affair and
subsequently fired Mary based on her performance since the affair began.

Mary filed a suit against Thomas Contracts, alleging that her discharge was due to
gender discrimination, sex discrimination, and in violation of Title VII. Analyze and
determine what important facts you would need to know in order to ascertain Marys
likelihood of success here.
(Points : 50)
3. An ambulance service transports disabled individuals on a non-emergency basis. Jane
was hired as a night dispatcher. She worked at home, and was required to be on duty to
take calls for service from 5:00 p.m. to 8:00 a.m., Monday through Thursday, and from
9:00 p.m. Friday to 7:00 a.m. on Monday. She was paid $550 per month. She was not
given any special training, she was simply instructed how to fill in record sheets, and
how to call the ambulance crew to notify them of the service request. Jane was free to
engage in personal business as long as it did not interfere with the calls, and was able to
leave her home as long as she made sure that someone was available to answer the
phone.
The ambulance company claimed that Jane was an independent contractor and was
exempt from the FLSAs overtime and wage requirements. Jane filed suit to collect
overtime and minimum wage back pay under the FLSA. Determine whether she will
succeed. If you determine that she will succeed, explain the remedies available. Support
your position with any applicable laws.
(Points : 50)
4. A & Z, Co. had a workplace policy of prohibiting the hiring of family members of
current employees. On a number of occasions, however, the male children of current
male employees had been hired, but no female children had ever been hired, even
though many applied. Also, no children, male or female, of any current female
employee, had ever been hired, even though, again, many had applied.
The female child of a current male employee files a lawsuit. Determine the legal basis
for the claim and assess the likelihood of prevailing against A & Z, Co. Also from an
employer perspective, what suggestions would you make in terms of best practices to
minimize future legal liability? Utilize applicable law in your response if possible.
(Points : 50)
5. After noticing some items stolen from the store, a manager asked an employee, Frank,
to take a polygraph test. Frank refused, claiming that he did not steal anything and he
was asserting his rights of privacy to not assert to the test. Frank also reminded Jeff
that he did not have access to the area where the stolen items were kept. Jeff, while
reminding Frank that employees have no right to privacy in the workplace, fired Frank
because he refused to take the polygraph test. Frank intends to file suit. Assess the
likelihood that Frank will prevail in the suit.
(Points : 40)
6. 39-year-old Jim, who works for a new 5 year company that employs 30 individuals,
feels that he is being discriminated against at work because of his age. Besides the CEO,
he is the only other employee who is over the age of 30. Despite a stellar work record, he
has recently been demoted and he often hears other employees referring to anyone over
30 as over-the-hill. Jim feels very uncomfortable at work. Assess whether Jim can bring
a valid claim of age discrimination in this situation. What will the employer say in its

defense? Give some management tips to this company as it relates to avoiding age
related claims in the future. (Points : 50)
Set 2
1. (TCO A) Nix has worked for ABC, Inc. for ten years. During the entire period of
Nixs employment, his performance had never been formally evaluated or criticized; he
was never denied a raise or bonus. The company was doing extremely well, constantly
hiring new employees. During the busiest time of the year, Nix told his boss that he had
jury duty. Nix attended jury duty. Nix was terminated for refusing to decline to appear
for jury duty. Even though the term of Nixs employment is not specified by contract,
does Nix have a cause of action against his employer arising out of the termination?
Identify and analyze the possible causes of action available to Nix and the likelihood of
prevailing in the litigation. Utilize applicable law to support your conclusions. (Points:
30)
2. (TCO B) Denora Sarin, a Cambodian immigrant and a practicing Buddhist, was
employed as a systems engineer with Raytheon Company. Shortly after Sarin was
assigned to work on a particular project, Goldberg, one of the workers, approached and
taunted Sarin saying, Whats Buddhism? What kind of Buddha do you worshipthe
skinny Buddha or the fat one? I want to fight you. You dont fight me back. Sarin also
claimed to be physically harassed by another employee, but after Sarin reported the
conduct to his supervisor, it was not repeated.
3. (TCO C) Matt worked for CTE as a management analyst. Matt suffered a heart
attack and took medical leave from his job. Prior to the heart attack, his supervisor
opened his locked drawer at work and found prescription drugs that were not
prescribed to Matt. The supervisor thought Matt had been acting a bit strangely but
decided he would confront him about it later. The supervisor did not confront Matt
before the heart attack.
After six months, Matt was able to return to work on a part-time basis. Matt worked
reduced hours for the next year. CTE was forced to reduce its workforce to cut costs.
CTE conducted a performance appraisal of all managerial employees and discharged
those with the lowest performance ratings. Matt, because of his part-time status, had
one of the lowest performance ratings. The company did not look at performance prorata based on hours worked. Matt sued and alleged that he was wrongfully terminated
in violation of the ADA. Matt alleged that his termination was a result of his disability.
Identify and analyze the potential claims and defenses. Utilize case law to support your
responses and conclusions.
(Points: 30)
4. (TCO D) A wrecking and heavy moving firm was moving a barn. As the barn was
being towed across a field, it came close to three 7,200 volt power lines. A ball of fire was
observed where the barns lighting rod either came to close to or actually touched, one
of the power lines. Two employees were electrocuted and three more were injured.
Analyzing the fact pattern, determine whether the company violated OSHAs general
duty clause, or was this merely an unfortunate accident? Assuming that passing close to

the wires was unavoidable, identify the steps that the company might have taken to
avoid the tragedy. (Points: 30)
5. (TCO E) Jerry Swanson owned Swanson Custom Cabinets. He works exclusively for
Custom Kitchen Designs, Inc., building all of the cabinets for their clients. Mr. Swanson
was injured on the job and filed a workers compensation claim which listed Custom
Kitchen Designs as his employer. Based upon the foregoing, will Mr. Swanson be
deemed an employee or an independent contractor? Analyze the fact pattern in
conjunction with the legal factors that impact the employee versus independent
contractor determination. Determine and explain the implications of this determination
on Mr. Swansons workers compensation claim. Incorporate applicable law as you
analyze and interpret the scenario in conjunction with the legal elements of the claims.
6. (TCO F) The retirees were employed by White Farms while the company was an
affiliate of the White Motor Corporation. The dispute concerned the White Motor
Corporation Insurance Plan for Salaried Employees, a non-funded, noncontributory
benefit plan that provided life, health, and welfare insurance, prescription drugs,
hearing aid benefits, and dental care to retirees and their eligible dependents. White
Motor employees periodically received booklets describing their benefits under these
plans.
The 1980 booklet described insurance provided and carried the explicit disclaimer that
it was not the contract of insurance. The booklet differentiated between different
categories of salaried employees and appeared to have been prepared for distribution to
both active and retired employees.
The 1985 booklet was addressed specifically to retired employees. Much of the information in the booklet made no distinction between the Welfare Benefit Plan and the
Pension Plan, and its summary of an alleged cancellation clause referred to both plans:
The Company fully intends to continue your plans indefinitely. However, the Company
does reserve the right to change the Plans, and, if necessary to discontinue them. If it is
necessary to discontinue the Pension Plan, the assets of the Pension Fund will be used to
provide benefits according to the Plan document.
No similar clause appeared in the 1980booklet.
While the company was undergoing court supervised reorganization under Chapter 11
of the Bankruptcy Code, it decided to discontinue its noncontributory insurance
coverage for its retired employees.
On the basis of the facts presented, assess whether the company is free to discontinue its
noncontributory insurance coverage for its retired employees. Explain your conclusion
and use applicable law to support your response.
7. (TCO G) Gomez, the hiring manager at a Sizzler restaurant in Arizona, extended an
offer to Rodriquez after having a long-distance telephone conversation with him while
Rodriquez was in California working for a Sizzler restaurant there. On Rodriquezs
arrival, Gomez asked to see evidence of Rodriquezs authorization to work in the United
States. Rodriquez offered a drivers license and what looked like a Social Security card.

Gomez did not look at the back of the card nor compare it to the example in the
Immigration and Naturalization handbook. In fact, Rodriquezs card was a forgery, and
the INS has assessed a fine against Sizzler restaurant, claiming that Gomez knew or
should have known that the card was false. Determine whether Sizzler is liable under
the IRCA. Identify and integrate applicable law and statutory authority to provide
validity for your response. (Points: 30)
8. (TCO H) A & Z, Co. had a workplace policy of prohibiting the hiring of family
members of current employees. On a number of occasions, however, the male children
of current male employees had been hired, but no female children have ever been hired,
even though many applied. Also, no children, male or female, of any current female
employee, had ever been hired, even though, again, many had applied.
The female child of a current male employee files a lawsuit. Determine the legal basis
for the claim and assess the likelihood of prevailing against A & Z, Co. From an
employer perspective, what suggestions would you make in terms of best practices to
minimize future legal liability? Utilize applicable law in your response. (Points: 30)

PROJ 592 Proj Cost and Schedule Control Week 8 Final

Exam Complete A+ Set 1_set 2 and set 3 Answer
PROJ 592 Proj Cost and Schedule Control Week 8 Final Exam Complete A+ Set 1_set 2
and set 3 Answer
Proj 592 Week 8 Final Exam Answer
SET 1
Page: | 1 2 3 |
Question 1. | Question : | (TCO B) Estimating Procedures
(a) You are the project manager for a new high-rise office building. You are working on
estimating the exterior landscaping for the new development. The landscaping requires
the use of a special landscape stone. Based on recent experience, the most likely price for
the material is $120.00/ton. However, the price for this stone is volatile, and the price
fluctuates over time based on market conditions and material availability. The most
optimistic price estimate is $100.00/ton, and the most pessimistic estimate is $200.00/ton.
What is the expected price of the material?
(b) In addition to price fluctuations, you are also uncertain of how much of the material
will be required for the project. Scope changes and site conditions will affect the amount
of material actually needed. The most likely amount required is 36 tons. However, as
little as 32 tons or as much as 44 tons might be required.What is the expected amount of
the material needed for the project? Round to two decimal places.
(c) Using the estimates from (a) & (b) what is the expected cost for the material over the
life of the project using the COMPLEX method?
Question 2. | Question : | (TCO B) Contingency Allowance:
You are a project manager for the development of Motorolas new 4G, HD, Touch
Screen Cell Phone which is supposed to take the cell phone industry by storm. Listed
below are the initial cost estimates for the materials and labor for one of the phones:

ITEM | COST ESTIMATE | TYPE OF ESTIMATE |

Case | $15.00 | Order of Magnitude |
Handset | $12.00 | Definitive |
Labor | $2.00 | Definitive |
Speaker | $2.50 | Budget |
Mouthpiece | $5.50 | Budget |
Antenna | $1.70 | Definitive |
Keypad | $3.00 | Order of Magnitude |
Circuit boards (handset) | $6.50 | Budget |
Circuit boards (base unit) | $8.50 | Definitive |
Battery | $1.20 | Order of Magnitude |
Charger | $16.00 | Order of Magnitude |
Total cost | $73.90 | NA |
The estimating department currently defines estimate accuracy as follows:
Order of Magnitude | -25%, +75% |
Budget | -10%, +25% |
Definitive | -5%, +10% |
(a) What contingency cost budget do you recommend for the product?
(b) The target retail price for the new telephone is $165.00 per unit. The markup
demanded by retailers is 50%. Based on cost factors, write a brief rationale for
acceptance or rejection of the project, including any recommendations you have
regarding the cost estimates.
Page: | 1 2 3 |
Question 3. | Question : | (TCO C) Work Breakdown Structure WBS
Eurocash has decided to develop a mutual fund comprised almost entirely of East
European companies with a high growth potential. The process of developing a new
mutual fund begins with concept development, which includes establishing a clear
definition of the projects objectives that is agreed upon by senior management and
developing a marketing strategy.
* A business analysis is then performed that includes assessments of market feasibility,
internal feasibility (budgetary resource requirements), and regulatory feasibility. * If
the proposed fund passes the business analysis, the fund design is developed. * The
design process consists of product design, service design, internal review and
authorization, and SEC registration (assuming a U.S. market). * As the design process
nears completion, generally recognized as a positive preliminary review by the SEC,
employee training is performed. * After completion of the employee training and final
regulatory approval, the product is launched, and post-launch reviews are conducted at
predetermined intervals.
Prepare a work breakdown structure (WBS) for this project with activities
corresponding to a two level task and sub-task hierarchy. Provide columns showing the
WBS code and activities. Number and indent the WBS codes so that the level of each
activity is clearly identified.
Question 4. | Question : | (TCO A) Budgeting processes and techniques
A company builds custom yachts for the high-end boating market. They develop and
build these custom designs as a single individualized unit. The orders are generated by

the marketing and sales department with help from the owners, who participate in the
management of the company. Each new order is assigned to a project team which starts
by making an estimate to the customer before a contract is signed. The project teams
have a great deal of experience in these projects. As would be expected, the owners are
hands-on and have opinions on the estimates. The marketing folks also provide
suggestions on what the customer is willing to pay.
What are some processes and techniques that you would suggest to make the budgeting
process work well? Start with general but also provide some specifics as relate to
creating detailed project budgets. Be sure to justify why you think your
recommendations will work.
Page: | 1 2 3 |
Question 1. | Question : | (TCO C) Schedule Crashing
Using the network below and the additional information provided, find:
(a) The crash cost per day per activity.
(b) Which activities should be crashed to meet a project deadline of 13 days at minimum
cost? State the number of days you will crash each activity.
(c) What is the additional cost to crash the project?
Critical path = B-C-D = 14
Activity | Normal time | Normal total cost | Crash time | Crash total cost |
A | 5 | 300 | 3 | 380 |
B | 3 | 250 | 1 | 330 |
C | 6 | 400 | 4 | 700 |
D | 5 | 150 | 3 | 250 |
Question 2. | Question : | (TCO E) Responsibility Assignment Matrix
Projects often cross many functional boundaries with team members reporting to
different functional managers. This cross functional aspect can create problems with
roles and responsibilities. You decide to use a Responsibility Assignment Matrix (RAM)
to help with this situation. Your manager is wondering why you are spending your time
on this tool when you already have resources assigned to tasks in your schedule.
(a) Why is the RAM such an effective tool for Project Managers?
(b) What are some of the typical responsibilities assigned on a RAM? |
Question 3. | Question : | (TCO E) Resource Allocation/Leveling
The following data were obtained from a project to expand a school: Activity | Duration
| Predecessors | Resources / cost |
A | 2 Weeks | | 2 Excavators/$800 day each |
B | 3 Weeks | | 2 Dump Trucks/$600 day each |
C | 2 Weeks | B | 2 Concrete Mixers/$250 day each |
D | 3 Weeks | A, C | 2 Cranes/$2,000 day each |
E | 2 Weeks | B | 1 High-lift/$500 day each |
F | 1 Weeks | B | 2 Excavators/$800 day each |
G | 3 Weeks | F | 2 Cranes/$2,000 day each |
The contractor has access to the listed quantity of machines of each type available at the
listed cost each. The operations cannot be split. Additional equipment can be rented at
a 50% cost premium if needed.
(a) Identify any resource conflicts in the above project. State the activities involved, the
time frame of the conflict(s), the resources in conflict and the quantity of resource
involved.

(b) What is the least cost method of resolving the conflict(s), assuming the project
duration must not be extended? What additional cost, if any, will be incurred?
Page: | 1 2 3 |
Question 1. | Question : | (TCO G) Estimate At Completion forecast (EAC)
A project has been estimated to take eight weeks and cost $65,000. The critical path is A
D. Cost and earned value data are provided below:
| | EV | PV | | | AC | | | | Budget | BCWP | BCWS | SV | SPI | ACWP | CV | CPI |
A | $8,500 | $8,500 | $8,500 | $ | 1.00 | $7,500 | $1,000 | 1.13 |
B | $15,000 | $15,000 | $15,000 | $ | 1.00 | $13,000 | $2,000 | 1.15 |
C | $6,800 | $2,530 | $2,700 | ($170) | 0.94 | $4,000 | ($1,470) | 0.63 |
D | $18,000 | $900 | $3,000 | ($2,100) | 0.30 | $1,200 | ($300) | 0.75 |
E | $16,000 | $0 | $0 | $ | | $0 | $ | |
Project: | $64,300 | 26,930 | 29,200 | ($2,270) | 0.92 | $25,700 | $730 | 1.05 |
(i) Calculate the Estimate At Completion (EAC) considering future performance will be
back on schedule and budget.
(ii) Calculate EAC considering that the project will continue to perform as it has to
date.
(iii) Using either of these two numbers discuss the status of the project and if the project
manager needs to take corrective actions. Justify your comments. |
Question 2. | Question : | (TCO F) Earned Value
The following data were obtained from a project to design a new software package:
Activity | Duration | Predecessors | Budgeted Cost |
A | 3 Days | | $8,320 |
B | 6 Days | | $11,740 |
C | 4 Days | A | $11,550 |
D | 2 Days | C, B | $7,850 |
E | 3 Days | A | $10,750 |
F | 2 Days | D, E | $8,600 |
At the end of day 4, the status of the project is as follows: Activity | % Complete | Actual
Cost |
A | 100% | $7,200 |
B | 80% | $10,370 |
C | 25% | $8,250 |
D | 0% | $0 |
E | 80% | $8,560 |
F | 0% | $0 |
(a) Calculate the Cost and Schedule Variances and Indexes (CV, SV, CPI, SPI) for tasks
A, B, C, D, and E.
(b) Write a brief analysis of the status of the project at this time, including task level,
project level, and critical path. |
SET 2
Final Exam Page 1
1. (TCO B) Estimating Procedures
(a) You are the project manager for a new high rise office building. You are working on
estimating the exterior landscaping for the new development. The landscaping requires

the use of a special landscape stone. Based on recent experience the most likely price for
the material is $120.00/ton. However, the price for this stone is volatile, and the price
fluctuates over time based on market conditions and material availability. The most
optimistic price estimate is $80.00/ton, and the most pessimistic estimate is $180.00/ton.
(Note there are 3 data points in for this estimate.)What is the expected price of the
material?
(b) In addition to price fluctuations, you are also uncertain of how much of the material
will be required for the project. Scope changes and site conditions will affect the amount
of material actually needed. The most likely amount required is 36 tons. However, as
little as 28 tons, and as much as 56 tons might be required.What is the expected amount
of the material needed for the project?
(c) Using the estimates from (a) & (b), what is the expected cost for the material over the
life of the project using the COMPLEX method?(Points : 30)
2. (TCO B) Contingency Allowance:
You are a project manager for the development of Motorolas new 4G, HD, Touch
Screen Cell Phone which is supposed to take the cell phone industry by storm. Listed
below are the initial cost estimates for the materials and labor for one of the phones:
ITEM | COST
ESTIMATE | TYPE OF ESTIMATE |
Case | $10.00 | Order of Magnitude |
Handset | $12.00 | Definitive |
Labor | $2.00 | Definitive |
Speaker | $2.50 | Budget |
Mouthpiece | $5.50 | Budget |
Antenna | $1.70 | Definitive |
Keypad | $3.00 | Order of Magnitude |
Circuit boards (handset) | $6.50 | Budget |
Circuit boards (base unit) | $8.50 | Definitive |
Battery | $1.20 | Order of Magnitude |
Charger | $16.00 | Order of Magnitude |
Total | $68.90 | NA |
The estimating department currently defines estimate accuracy as follows:
Order of Magnitude | -25%, +75% |
Budget | -10%, +25% |
Definitive | -5%, +10% |
(a) What contingency cost budget do you recommend for the product?
(b) The target retail price for the new telephone is $165.00 per unit. The markup
demanded by retailers is 75%. Based on cost factors, write a brief rationale for
acceptance or rejection of the project, including any recommendations you have
regarding the cost estimates. (Points : 30)
3. (TCO C) Work Breakdown Structure WBS
Eurocash has decided to develop a mutual fund comprised almost entirely of East
European companies with a high growth potential. The process of developing a new
mutual fund begins with concept development, which includes establishing a clear
definition of the projects objectives that is agreed upon by senior management and
developing a marketing strategy.
* A business analysis is then performed that includes assessments of market feasibility,
internal feasibility (budgetary resource requirements), and regulatory feasibility. * If

the proposed fund passes the business analysis, the fund design is developed. * The
design process consists of product design, service design, internal review and
authorization, and SEC registration (assuming a U.S. market). * As the design process
nears completion, generally recognized as a positive preliminary review by the SEC,
employee training is performed. * After completion of the employee training and final
regulatory approval, the product is launched, and post-launch reviews are conducted at
predetermined intervals.
Prepare a work breakdown structure (WBS) for this project with activities
corresponding to a two level task and sub-task hierarchy. Provide columns showing the
WBS code and activities. Number and indent the WBS codes so that the level of each
activity is clearly identified. (Points : 30)
4. (TCO A) Budgeting processes and techniques
A company builds custom yachts for the high-end boating market. They develop and
build these custom designs as a single individualized unit. The orders are generated by
the marketing and sales department with help from the owners, who participate in the
management of the company. Each new order is assigned to a project team which starts
by making an estimate to the customer before a contract is signed. The project teams
have a great deal of experience in these projects.
As would be expected, the owners are hands-on and have opinions on the estimates. The
marketing folks also provide suggestions on what the customer is willing to pay.
What are some processes and techniques that you would suggest to make the budgeting
process work well? Start with general but also provide some specifics as relate to
creating detailed project budgets. Be sure to justify why you think your
recommendations will work. (Points : 30)
Page: 1 2 3 |
1. (TCO C) Schedule Crashing
Using the network below and the additional information provided, find:
(a) The crash cost per day per activity.
(b) Which activities should be crashed to meet a project deadline of 13 days at minimum
cost? State the number of days you will crash each activity.
(c) What is the additional cost to crash the project?
Critical path = B-C-D = 14
Activity | Normal time | Normal total cost | Crash time | Crash total cost |
A | 5 | 300 | 3 | 380 |
B | 3 | 250 | 1 | 330 |
C | 6 | 400 | 4 | 700 |
D | 5 | 150 | 3 | 250 |
(Points : 30)
2. (TCO E) Responsibility Allocation Matrix
Projects often cross many functional boundaries with team members reporting to
different functional managers. This cross functional aspect can create problems with
roles and responsibilities. You decide to use a Responsibility Assignment Matrix (RAM)
to help with this situation. Your manager is wondering why you are spending your time
on this tool when you already have resources assigned to tasks in your schedule.
(a) Why is the RAM such an effective tool for Project Managers?
(b) What are some of the typical responsibilities assigned on a RAM? (Points : 30)

3. (TCO E) Resource Allocation/Leveling

The following data were obtained from a project to design a new software package:
Activity | Duration | Predecessors | Personnel / Cost |
A | 3 days | | 1 Systems Analyst/$260 day |
B | 6 days | | 3 Programmers/$200 day each |
C | 4 days | A | 3 Programmers/$200 day each |
D | 2 days | C | 2 Hardware specialists/$230 day each |
E | 3 days | A | 1 Systems Analyst/$260 day |
F | 2 days | D, E | 1 Test Engineer/$300 day |
Personnel Available | Quantity |
Systems Analysts | 1 |
Programmers | 3 |
Hardware Specialists | 2 |
Test Engineers | 2 |
The software manufacturer has only the above personnel available for the project.
Additional personnel can be hired from an agency at an 80% cost premium if needed.
(a) Identify any resource conflicts in the above project. State the activities involved, the
time frame of the conflict(s), the personnel in conflict, and the number of people
involved.
(b) Note that operations can be split if required: what is the least cost method of
resolving the conflict(s), assuming the project duration must not be extended? What
additional cost, if any, will be incurred? (Points : 30)
Page: 1 2 3
Page 3
1. (TCO G) Estimate At Completion forecast (EAC)
A project has been estimated to take eight weeks and cost $65,000. The critical path is A
D. Cost and earned value data are provided below: | | EV | PV | | | AC | | |
| Budget | BCWP | BCWS | SV | SPI | ACWP | CV | CPI |
A | $8,500 | $8,500 | $8,500 | $ | 1.00 | $7,000 | $1,500 | 1.21 |
B | $15,000 | $15,000 | $15,000 | $ | 1.00 | $13,000 | $2,000 | 1.15 |
C | $6,800 | $2,530 | $2,700 | ($170) | 0.94 | $4,000 | ($1,470) | 0.63 |
D | $18,000 | $900 | $3,000 | ($2,100) | 0.30 | $1,200 | ($300) | 0.75 |
E | $16,000 | $0 | $0 | $ | | $0 | $ | |
Project: | $65,000 | 26,930 | 29,200 | ($2,270) | 0.92 | $25,200 | $ 730 | 1.07 |
(i) Calculate the Estimate At Completion (EAC) considering future performance will be
back on schedule and budget.
(ii) Calculate EAC considering that the project will continue to perform as it has to
date.
(iii) Using either of these two numbers discuss the status of the project and if the project
manager needs to take corrective actions. Justify your comments.(Points : 30)
2. (TCO D) PMIS and cost accounting
An Earned Value system can be a very effective way to monitor projects. However,
Earned Value Analysis requires a Project Cost Accounting System (PCAS).
(a) What are some of the benefits of PCAS?
(b) What are some of the software solutions for establishing a PCAS? (Points : 30)
3. (TCO F) Earned Value
The following data were obtained from a project to design a new software package:

Activity | Duration | Predecessors | Budgeted Cost |

A | 3 Days | | $8,320 |
B | 6 Days | | $11,740 |
C | 4 Days | A | $11,550 |
D | 2 Days | C, B | $7,850 |
E | 3 Days | A | $10,750 |
F | 2 Days | D, E | $8,600 |
At the end of day 5, the status of the project is as follows: Activity | % Complete | Actual
Cost |
A | 100% | $7,200 |
B | 50% | $6,370 |
C | 25% | $8,250 |
D | 0% | $0 |
E | 80% | $8,560 |
F | 0% | $0 |
(a) Calculate the Cost and Schedule Variances and Indexes (CV, SV, CPI, SPI) for tasks
A, B, C, D, and E.
(b) Write a brief analysis of the status of the project at this time, including task level,
project level, and critical path.(Points : 30)
Set 3
Week 8 : Final Exam Final Exam
Page 1
Question 1. 1. (TCO A) Work Breakdown Structure (WBS)
A consumer electronics firm is planning an expansion into Milwaukee. Generally, the
firm prefers to remodel large existing tenant spaces to suit its needs. After a site is
selected from several alternatives, the corporate architect develops plans by reviewing
the suitability of the existing structure and utilities. A modification and demolition plan
is then developed. Interior finish plans are then developed from corporate standards
and adjusted to each site.
Building permits are handled by the general contractor (GC). The firm uses the GC
for all of its construction in a region. The GC hires local subcontractors and provides
on-site construction supervision.
As construction begins, the firm also begins to assemble a new management team from
existing management staff, making an attempt to use only staff that has an interest in
relocating. Sales staff is hired locally.
When construction is approximately 6 weeks from completion, inventory is ordered.
Prepare a WBS for this project with activities corresponding to a two-level task and
subtask hierarchy. Provide columns showing the WBS code and activities. Number and
indent the WBS codes so that the level of each activity is clearly identified. (Points : 25)
Question 2. 2. (TCO E) Using the network below and the additional information
provided, find answers to the following questions.

(a) What is the crash cost per day per activity?

(b) Which activities should be crashed to meet a project deadline of 13 days at minimum
cost? State the number of days you will crash each activity.
(c) What is the additional cost to crash the project?
Critical path = B-C-D = 15
Activity Normal time Normal total cost Crash time Crash total cost
A 4 $300 3 $360
B 3 $250 1 $330
C 7 $400 4 $550
D 5 $150 3 $250
(Points : 25)
Question 3. 3. (TCO E) There are many stakeholders and participants in projects, and
they often get confused as to who is doing what. You decide to use an RACI to help with
this situation. Your manager is wondering why you are spending your time on this tool
when you already have resources assigned to tasks in your schedule.
(a) What do you tell management to justify your time creating the RACI?
(b) What are the best ways to create the RACI? (Points : 25)
Page 2
Question 1. 1. (TCO F) Earned Value
The following data were obtained from a project to design a new software package.
Activity Duration Predecessors Budgeted Cost
A 3 days $8,320
B 6 days $11,740
C 4 days A $11,550
D 2 days C and B $7,850
E 3 days A $10,750
F 2 days D and E $8,600
At the end of Day 5, the status of the project is as follows.
Activity % Complete Actual Cost
A 100% $7,200
B 50% $5,370
C 25% $8,250
D 0% $0
E 70% $8,560
F 0% $0
(a) Calculate the cost and schedule variances and indexes (CV, SV, CPI, SPI) for Tasks
A, B, C, D, and E.
(b) Write a brief analysis of the status of the project at this time, including task level,
project level, and critical path. (Points : 25)

Question 2. 2. (TCO C)
(a) You are the project manager for a new high-rise office building. You are working on
estimating the exterior landscaping for the new development. The landscaping requires
the use of a special landscape stone. Based on recent experience, the most likely price for
the material is $120.00/ton. However, the price for this stone is volatile, and the price
fluctuates over time based on market conditions and material availability. The most
optimistic price estimate is $80.00/ton, and the most pessimistic estimate is $180.00/ton.
What is the expected price of the material? Round to two decimal places.
(b) In addition to price fluctuations, you are also uncertain of how much of the material
will be required for the project. Scope changes and site conditions will affect the amount
of material actually needed. The most likely amount required is 36 tons. However, as
little as 28 tons or as much as 56 tons might be required.
What is the expected amount of the material needed for the project?
(c) Using the estimates from (a) and (b), what is the expected cost for the material over
the life of the project? (Points : 25)
Question 3. 3. (TCO E) Resource Allocation and Leveling
The following data were obtained from an in-house MIS project.
Activity Duration Predecessors Personnel/Cost
A 3 days One systems snalyst/$260 day
B 6 days Two programmers/$200 day each
C 3 days A Two programmers/$200 day each
D 3 days B Two hardware specialists/$280 day each
E 3 days B One hardware specialist/$280 day
F 2 days C and D One test engineer/$300 day
Personnel Available Quantity
Systems analysts 1
Programmers 4
Hardware specialists 2
Test engineers 1
The software manufacturer has only the above personnel available for the project.
Additional personnel can be hired from an agency at a 90% cost premium if needed.
(a) Identify any resource conflicts in the above project. State the activities involved, the
time frame of the conflict(s), the personnel in conflict, and the number of people
involved.
(b) Note that operations cannot be split. What is the least-cost method of resolving the
conflict(s), assuming the project duration must not be extended? What additional cost,
if any, will be incurred? (Points : 25)
Page 3

Question 1. 1. (TCO D) Change control is critical to a successful project. Describe the

roles and responsibilities of two key components of a good change control process: the
change control board and the project manager. (Points : 25)
Question 2. 2. (TCO G) Your project is progressing well in your estimation. Your team
has collected the following data. From these data, calculate the projects ETC. Assume
spending will continue at the same rate.
Activity A is 60% complete at a cost so far of $100,000. It was estimated to cost $200,000
when finished. It is at the end of Week 3 of 5. Activity B is 85% complete at a cost so far
of $50,000. It was estimated to cost $80,000 when finished. It is at the end of Week 4 of 5.
Activity C is complete at a cost so far of $110,000. It was estimated to cost $100,000
when finished. (Points : 25)
Question 3. 3. (TCO B) You are the project manager for three different projects.
Project A: This project is behind schedule by 12 weeks. It was to have been completed in
3 months. The sponsor has additional funds to help complete the project on time if
needed but does not want to increase risk to the project.
Project B: This project is scheduled to take 27 weeks to complete. You are in the
planning stage of the project. You need to reduce the schedule for this project by 8
weeks. This project has a number of predecessors that were created by the project
teams preference. The sponsor insists on having all the work done on time without
unduly increasing risk or costs to the project.
Project C: This project is in the execution stage of the project. It is behind schedule by 6
weeks; it was scheduled to be completed in 10 weeks. The sponsor is desperate to
accomplish something on this project. The budget is limited to the original amount, and
all soft predecessors have already been removed.
For each of the projects above, choose an appropriate schedule compression technique.
Explain your choice. (Points : 25)