BUSN 278 Week 3 ***100% All correct answers***
1. Question : (TCO 4) Marketing expenses commonly increase in proportion to
number of customer orders.
number of products.
sales dollars.
both a & b.
Points Received: 4 of 4
Comments:
2. Question : (TCO 4) Which of the following statements regarding the risk associated with R&D activities is correct?
The amount of time between the R&D activity and the cash flows from the project does not affect risk.
Greater risk is associated with improving existing products than creating new products.
Risk increases as the time between the R&D activity and the cash flows from the project increases.
Assessing risk is a trivial part of research and development.
Points Received: 4 of 4
Comments:
3. Question : (TCO 4) The most significant expense incurred in the nonmanufacturing functions of a business is usually
advertising.
salaries.
rent.
insurance.
Points Received: 4 of 4
Comments:
4. Question : (TCO 4) Capital expenditures that meet the needs of the managerÂ’s division are called
special capital expenditures.
routine capital expenditures.
normal capital expenditures.
standard capital expenditures.
Points Received: 4 of 4
Comments:
5. Question : (TCO 4) Which of the following is not a capital expenditure?
Improving quality
Purchasing inventory
Marketing a new product
Replacing equipment
Points Received: 4 of 4
Comments:
