Forecasting
Budgeting
Organizing for Success
Legal Structures
Organizing Production
Production and Inventory Mgmt
100
U.S.A. annual retail beef consumption from 1970 - 2025 would be an example of what type of data?
a. cross sectional
b. time series
c. rotational
d. real values
b. time series
100
What are the three types of budgets discussed in class? (Check all that apply)
a. Balance sheet
b. Operating
c. Income
d. Cash flow
e. Investment
f. Capital expenditure
g. Returns
Operating, Cash Flow, and Capital Expenditure
100
Which element of the STAR model relays information to employees about their success in their position?
a. Metrics/Rewards
b. Strategy
c. People
d. Structure
e. Processes
a. Metrics/Rewards
100
A sole proprietorship has ______ owner(s).
one
100
Technical efficiency refers to maximizing ___________ whereas economic efficiency refers to maximizing ____________.
a. profit; output
b. output; profit
c. marginal cost; marginal revenue
d. total cost; total revenue
b. output; profit
100
A cost that cannot be recovered once made is known as a...
a. Opportunity cost
b. Fixed cost
c. Variable cost
d. Sunk cost
d. Sunk cost
200
Which of the following is NOT one of the factors to consider when picking a forecasting method?
a. Ease of Use
b. Accuracy
c. Impressiveness
d. Time Horizon
e. Data Availability
c. Impressiveness
200
T/F. A benefit of budgeting is that the execution of the budget is not automatic.
False. This is a drawback
200
The _______ element of the STAR model describes how the organization is knit together.
a. Strategy
b. Structure
c. Processes
d. Rewards
c. Processes
200
The general partner in a limited partnership has ___________ liability, and the limited partner in a limited partner has _____________ liability.
a. unlimited; unlimited
b. limited; limited
c. unlimited; limited
d. limited; unlimited
c. unlimited; limited
200
What are the three questions a production manager must answer?
a. What to produce? How to produce? How much to produce?
b. What to produce? When to produce? How much to produce?
c. What to produce? How to produce? How to price?
d. What to produce? How to price? How much to produce?
a. What to produce? How to produce? How much to produce?
200
Samper Equine Solutions sells their performance horse gut health supplement at $70/bag. It cost $20 in supplements and $10 in labor to create the product. What is the contribution per unit?
$40 = (70 - 30)
300
__________________ is the idea that whatever happened in the past will happen again in the future.
a. Extrapolation
b. Forecasting
c. Deflation
d. Moving Averages
a. Extrapolation
300
Which budget provides a list of large investment items by priority?
a. Operating
b. Cash Flow
c. Capital Expenditure
d. Investment
c. Capital Expenditure
300
A production manager allows sub units to make decisions about scheduling, production goals, and holiday company parties for their units. The production manager is engaging in what type of decision making?
a. Decentralized
b. Centralized
c. Diversified
d. Allocated
a. Decentralized
300
The benefit of creating a registered limited liability partnership is....
a. to formalize the partnership
b. protect against the misdeeds of other partners
c. succession planning for future generations
d. tax benefits
b. protect against the misdeeds of other partners
300
At what level of input use do we maximize efficiency?
4
300
Samper Equine Solutions is expecting to sell 300 bags in 2025 at $70/bag. Variable costs are $30/bag. If the company's overhead is $10,000, how many bags do they need to sell in order to break even?
Hint: BEP = TFC / (p - avc)
250 bags need to be sold to break even
400
The most recent yearly price of feeder cattle was $380/cwt. The annual trend is $3. What is the expected annual price of feeder cattle 3 years into the future?
Hint: Future Price = Most Recent Price + (trend x number of periods into future)
$389/cwt
400
In a cash flow budget, the surplus(deficit) is calculated as:
a. Beginning cash balance - total outflows
b. total inflows - total outflows
c. total cash available + total outflows
d. total cash available - total outflows
d. total cash available - total outflows
400
WTAMU Department of Ag Sciences keeping the faculty to student ratio at approximately 1-17 is an example of what organizational design principle?
a. keep structure simple
b. give critical tasks prominence
c. keep support staff to minimum
d. keep working units small
d. keep working units small
400
Which type of corporation is subject to double taxation?
a. C corp
b. S corp
c. Professional
d. Cooperative
a. C corp
400
At what level of input to we maximize contribution?
3
400
Suppose Samper Equine Solutions expects to sell 300 bags in the coming year at $70 per bag. Also assume the contribution margin is 0.6. If the company's overhead is $10,000, what is the breakeven point in dollars when the company's objective is to have a profit equal to 12% of sales?
Hint: BEP($) = TFC / (cm - rpp)
$20,833 = (10,000 / (0.6 - 0.12))
500
The 2027 projected annual feeder cattle price is $390. The October price index for feeder cattle is 95.43. What is the anticipated 2027 October price for feeder cattle?
Hint: Month Price = Year Price * (Month Index/100)
$372 cwt
500
In a cash flow budget, the ending balance of Q1 should be ______________ the beginning balance in Q2.
equal to
500
What are the 5 elements of the star model?
Strategy, People, Reward, Processes, Structure
500
Who owns the corporation?
a. Board of Directors
b. Employees
c. No one owns a corporation
d. Shareholders
d. Shareholders
500
Calculate the marginal product for the 5th unit of labor.
500
Given the data below, what is the economic order quantity (EOQ) for Samper Equine Solutions?
R = 1,000
S = $5
P = $31.25
C = 0.20
40
sqrt (2 x 1000 x 5) / (31.25 x .2)