Busn 278 Week 3 100 All Answers Instructor S Explanations 1 Question

BUSN 278 Week 3

100% All correct answers + Instructor’s explanations

1. Question : (TCO 4) Marketing expenses commonly increase in proportion to

number of customer orders.

number of products.

sales dollars.

both a & b.

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.

3. Question : (TCO 4) The most significant expense incurred in the nonmanufacturing functions of a business is usually

advertising.

salaries.

rent.

insurance.

4. Question : (TCO 4) Capital expenditures that meet the needs of the manager’s division are called

special capital expenditures.

routine capital expenditures.

normal capital expenditures.

standard capital expenditures.

5. Question : (TCO 4) Which of the following is not a capital expenditure?

Improving quality

Purchasing inventory

Marketing a new product

Replacing equipment

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