MHA 706 Final Exam Lord Latest 2024 Update 100 Questions and Verified Correct Answers Guaranteed A+ A market is informationally efficient if... - CORRECT ANSWER: Relevant information about asset values can be easily obtained at low cost.The market contains many buyers and sellers who act on the information
A par bond value - CORRECT ANSWER: will remain at par if interest rates remain
constant
A variance is the difference between the actual results and the .... - CORRECT
ANSWER: budgeted value
Activity based costing (ABC) begins with the ..... that comprise the service provided. -
CORRECT ANSWER: Individual Activities
Advantages of Payback is that it is easy to calculate and - CORRECT ANSWER:
understand
Advantages of Payback is that it provides an indication of a project's - CORRECT
ANSWER: risk and liquidity
As an Accounting Manager - you are responsible for allocating the cost of Facilities to other departments. What would be an appropriate cost driver for you to use for this
allocation. - CORRECT ANSWER: Square footage of the department
At maturity, a bond's value must equal its par value (plus final interest payments). -
CORRECT ANSWER: true
Bond contracts typically contain the following.... - CORRECT ANSWER: Maturity
agreements, Interest rate and type, Restrictive covenant, Trustee designation
Bottom-up budgets - CORRECT ANSWER: begin at the departmental level
Budgets can be used for all the following.... - CORRECT ANSWER: Communication,
Control, Planning
call provision - CORRECT ANSWER: permits the borrower to redeem the debt prior to maturity
Capital budgeting decisions are ..... - CORRECT ANSWER: the acquisition of land, buildings and equipment, very important managerial decisions, can involve large sums of money, 1 / 2
are costly to reverse, define the strategic direction of the business
Capitation rates are quoted - CORRECT ANSWER: per member per month basis
Conventional approach to budgeting - CORRECT ANSWER: uses the previous
established budget as the starting point
Cost Driver - CORRECT ANSWER: Is the basis on which the cost pool will be
allocated
Cost Pool - CORRECT ANSWER: Is the overhead amount to be allocated
Cost Variance - CORRECT ANSWER: Static Costs - Actual Costs
Coupon Rate - CORRECT ANSWER: Stated interest rated on the bond
Debt Ratings - CORRECT ANSWER: reflect the probability of default
Debt service requirements - CORRECT ANSWER: Reflects mandatory requirements
of the debt issue, concerning issues, such as, total debt service payments, interest expense, and repayment of principle
Direct Costs - CORRECT ANSWER: Are costs unique and exclusive to a department
Disadvantages of Payback - CORRECT ANSWER: Ignores all cash flows that occur
after the payback period
Disadvantages of Payback is that ignores the - CORRECT ANSWER: time value
Discount rate - CORRECT ANSWER: is called the project's cost of capital
Dividend growth is caused primarily by.... - CORRECT ANSWER: Inflation, Earnings retention
Dividend valuation model - CORRECT ANSWER: the value of a share of stock is the
present value of the expected cash flow stream to shareholders
Do - CORRECT ANSWER: is the last dividend paid
E(D1) - CORRECT ANSWER: is the next expected dividend (assumed to be received
in one year)
E(g) - CORRECT ANSWER: is the expected constant dividend growth rate
E(Po) - CORRECT ANSWER: is the value of the stock
- / 2