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QUESTION

BUS 475/ BUS 475 CAPSTONE FINAL EXAMINATION PART 1 & 2 NEW 2016

PART 1

1. Fred takes Betty to dinner at a very expensive and exclusive restaurant. The menu does not mention prices. The server takes their order, and both Betty and Fred enjoyed the meal immensely. When the bill comes, Fred refuses to pay because the menu had no prices and because he and the server never engaged in language indicating an offer and acceptance. The server said, “Are you ready to order?” and when Fred said “Yes,” the server merely asked, “What may I get you tonight?”

Fred must pay based on a promissory estoppel theory.

Fred must pay based on expressed contract theory.

Fred is correct because no contract was formed.

Fred must pay based on an implied-in-fact contract theory.

2. The DeBeers company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year, the price of diamonds will:

Be equal to the average total cost of diamonds.

Exceed the marginal cost of diamonds but equal to the average total cost of diamonds.

Be equal to the marginal cost of diamonds.

Exceed both the marginal cost and the average total cost of diamonds

3. Jay stops at the shopping mall to purchase a new pair of jeans from the Diesel store.  He is the ultimate consumer in a pipeline from the producer through intermediaries, including the clothing store.  This pipeline is actually a__________.

marketing tunnel

consumer market

marketing channel

distribution matrix

4. A monopoly firm is different from a perfectly competitive firm in that:

A monopolist’s demand curve is perfectly inelastic whereas a perfectly competitive firm’s demand curve is perfectly elastic.

A monopolist can influence market price whereas a perfectly competitive firm cannot.

A competitive firm has a u-shaped average cost curve whereas a monopolist does not.

There are many substitutes for a monopolist’s product whereas there are no substitutes for a competitive firm’s product.

5. A 911 emergency response service needs operators who are bilingual in English and Spanish. A few applicants of Spanish origin are rejected due to poor English-speaking skills. They file a complaint on the grounds of discrimination based on nationality. Their complaint is squashed. Here, the defense of the federal government is on the grounds of:

Circumstantial evidence

Inculpatory evidence

Exclusionary rule

Bona fide occupational qualifications

6. In order to focus your presentation on people, you should______. 

avoid using presentation software or other technology

use a lot of “I” statements

make individuals and groups the subject of your sentences

include as many photographs as possible in your slides

7. Which of the following is typically included in the drafting stage of writing an effective business message?

Setting a positive and other-oriented tone

Sending the message to be proofread

Double-checking everything

Identifying the primary message and key points

8. Marketing refers to__________.

the activity for creating, communicating, delivering, and exchanging offerings that benefit its customers, the organization, its stakeholders, and society at large

the process of identifying target market segments for a product or service

the activity involved in getting a product or service from the manufacturer to ultimate consumers and organizational buyers

the production of products or services that will generate the highest return on investment

9. Lori is using secondary research to develop a business report. How can she write her report in a way that demonstrates originality in thought? 

Cite all her research sources

Use the most current documentation guidelines

Generate her own conclusions and recommendations

Adopt a methodical approach to decision making

10. Annie, an employee who often attributes her team failures to bad luck, attributes other teams’ failures to personal shortcomings. Which of the following cognitive biases do Annie’s attributions exemplify?

Self-deception bias

Belief bias

In-group bias

Hindsight bias

11. When does the straw man fallacy occur?

When a person tries to disprove a claim based on its source.

When a person falsifies or overstates an adversary’s position.

When a person considers only 2 alternatives even when other options are available.

When a decision maker dismisses an alternative that fails to solve the issue completely.

12. Which of the following types of unemployment is considered to be the most controllable through demand-side macroeconomic policy?

Cyclical unemployment

Natural unemployment

Structural unemployment

Frictional unemployment

13. Microeconomics and macroeconomics are:

Interrelated because both are often taught by the same instructors

Interrelated because what happens in the economy as a whole is based on individual decisions

Virtually identical, though one is much more difficult than the other

Not related because they are taught separately

14. Article 6 of the Treaty on European Union called the Maastricht Treaty states the EU is “founded” on:

specific performance

stare decisis

private markets

rule of law

15. Which of the following is the path through which contractionary monetary policy works?

Money down implies interest rate up implies investment up implies income down

Money down implies interest rate up implies investment down implies income down

Money down implies interest rate down implies investment down implies income down

Money down implies interest rate down implies investment up implies income down

16. The depreciation of currency will:

improve a country’s comparative advantage.

worsen a country’s comparative advantage.

balance a trade surplus.

have no impact on a country’s comparative advantage.

17. Marketing research refers to__________.

The use of information technology to find objective solutions to a marketing problem

the process of systematically collecting and analyzing information in order to define a marketing problem

the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions

the science of using observable human behavior in order to identify and solve marketing problems

18. _____ is the process of converting meaning into messages composed of words and nonverbal signals.

Translating

Decoding

Encoding

Filtering

19. If a population is known to be normally distributed, what can be said of the sample distribution of the sample mean drawn from this population? 

For a sample size n < 30, the sampling distribution of the sample mean is normally distributed.

For a sample size n > 30, the sampling distribution of the sample mean is normally distributed.

For any sample size n, the sampling distribution of the sample mean is normally distributed.

For a sample size n < 50, the sampling distribution of the sample mean is normally distributed.

20. Sam, a marketing manager, often makes ethical decisions based on what others feel about those decisions. He often considers opinions from other managers and employees.  Which of the following ethical systems do Sam’s decisions follow?

Consequentialism

Utilitarianism

Relativism

Egoism

21. Federal law and business leaders alike favor ____________ as a means of governing private business ethics.

Self-regulation by companies

Establishment of federal regulators in all private companies to establish and enforce ethical standards.

Giving the federal government exclusive jurisdiction regarding ethics and ethics violation enforcement.

Creating uniform statutes of business ethics.

22. Which of the following statements is true of the WARN Act?

It requires employers to give notice to an “at will” employee that he/she is being fired.

It requires employers to give notice of a scheduled mass layoff.

It requires employers to give notice to employees that they are being subjected to polygraph tests.

It requires employers to give notice to employees that an unscheduled drug test will be conducted for all employees.

23. According to the Ajzen model, the strongest predictor of an employee’s behavior is/are__________. 

social norms

the employee’s values

the employee’s attitudes

the employee’s intentions

24. The interdisciplinary field dedicated to understanding and managing people at work is called:

management dynamics

management theory

organizational behavior

organizational dynamics

25. Regarding using personality testing as part of the hiring process, experts have concluded that:  There are many valid instruments available to managers to test for personality types.

Only the Big Five should be used as predictors of job performance.

The typical personality test is not a valid predictor of job performance.

The effects of personality on job performance are so large it cannot be ignored by managers.

26. In the context of developing persuasive messages, which of the following is most likely to help you demonstrate a voice of competence?

focusing only on logical appeals

using only emotional appeals in your persuasive messages

developing strong ideas in the interest of your audience

adopting the tone of mass advertising such as over-the-top appeals

​27. Identify an example of spontaneous creativity.

Settling a disagreement quickly in a simple way.

Modifying the strategies and procedures of a group.

Establishing win-win relationships with other people.

Organizing annual meetings and get-togethers innovatively.

28. Alex is playing his music at full volume in his dorm room. The other people living on his floor found this to be a nuisance, but Alex doesn’t care. Alex’s music playing is an example of:

positive externality

normative externality

negative externality

Pareto externality

29. Which of the following is useful advice on conducting business across cultures with those who have limited English ability?

Speak at your normal, regular pace instead of speaking slowly as this may be viewed as disrespectful.

Determine a person’s level of communication proficiency within the first few moments of your interactions with them.

Use slang and jargon instead of literal language as much as possible.

Allow those with limited English ability enough time to process their thoughts into English.

30. Joyce finds that the members of the project team to which she has been assignment in her management class are all athletes on the college’s football and basketball teams.  She immediately considers dropping the class because she thinks her experience with that team will be negative.  Joyce is likely reacting to a__________.

semantic memory

negativity bias

stereotype

self-serving bias

31. The distinction between flexible and fixed individual differences__________. 

is that managers should hire people based on their attitudes and emotions

is that managers have little or no impact on fixed differences

has no practical value for managers

is that managers have little or no impact on flexible differences

32. Advertising, personal selling, sales promotion, public relations, and direct marketing are marketing communications alternatives that make up a firm’s __________.

promotional mix

communication source

marketing mix

media strategy

33. When two regression models applied on the same data set have the same response variable but a different number of explanatory variables, the model that would evidently provide the better fit is the one with a__________. 

higher coefficient of determination and a lower adjusted coefficient of determination

lower standard error of the estimate and a higher adjusted coefficient of determination

higher standard of error of the estimate and a higher coefficient of determination

lower standard error of the estimate and a higher coefficient of determination

34. Suppose farmers can use their land to grown either wheat or corn. The law of supply predicts that an increase in the market price of wheat will cause:

farmers to lower the production of corn and wheat.

farmers to substitute wheat for the production of corn.

farmers to substitute corn for the production of wheat.

farmers to raise the production of corn and wheat.

35. Under the regulations of interstate commerce:

Activities affecting interstate commerce do not come under the power of the deferral government.

Intrastate activities affecting interstate commerce can be regulated only by the state governments.

Regulation on any activity is appropriate if it aids interstate commerce.

The states have the exclusive power to commerce that passes that passes across their lines.

36. What is the main drawback to the Negotiation & Agreement strategy for overcoming resistance to change?

ineffective

too expensive if others decide to also negotiation for compliance

leads to future problems if people feel manipulated

time-consuming

37. Your résumé should tell a story of______. 

everything you have learned and done in your previous job

the value you can provide to a company

Your educational accomplishments

how you plan to improve your areas of weakness

38. A receptive developmental network is__________

made up of weak ties to multiple developers from a variety of social systems

made up of numerous strong ties to developers from one social system

made up of strong ties to several developers from four different social systems

made up of a few weak ties from one social system

39. According to the Classical growth model, an economy that increases its saving will grow:

Quickly since the increase in saving will permit more rapid technological progress.

Slowly because interest rates will fall, causing investment to decline.

Slowly because consumption and aggregate demand will be reduced.

Quickly since the increase in saving will permit greater investment.

40. What is true of the features used to judge a person’s credibility?

Mannerisms and age are two valid features that can be used to judge a person’s credibility.

Well-educated individuals can be highly relied upon as guides to ethical values.

Ethnicity, gender, and accent are inapt characteristics for judging credibility.

Individuals can accurately determine a person’s credibility based on physical characteristics.

41. Identify the statement that accurately describes the Sarbanes-Oxley Act.

It requires business to have only company insiders as board directors.

Unlike other Acts, its violations do not result in fines or prosecutions.

Complying with the act saves time and money, but deteriorates efficiency.

It was passed to promote business ethics by creating legal requirements.

42. Frequent, abusive, threatening phone calls by creditors are most likely to provoke the basis for a claim of _____________.      

misrepresentation

malicious representation

intentional infliction of emotional distress

false imprisonment and malicious prosecution

43. In order to summarize qualitative data, a useful tool is a____________.

scattergram

stem-and-leaf diagram

frequency distribution

histogram

44. The product life cycle refers to __________.

a concept that describes the stages a product goes through in the marketplace — introduction, growth, maturity, and decline

the average life span of a product

a concept that describes the stages a product goes through in the marketplace—early growth, accelerated development, maturity, and decline

a concept that describes the stages a new product goes through from product concept to commercialization

45. The study of similarities and differences among consumers in two or more nations or societies is referred to as __________.

cross-cultural analysis

international sociographics

market synthesis

transnational anthropology

46. Other things held constant in a competitive labor market, if workers negotiate a contract in which the employer agrees to pay an hourly wage of $17.85 while the market equilibrium hour rate is $16.50, the:

Quantity of workers supplied will exceed the quantity of workers demanded.

Quantity of workers demanded will exceed the quantity of workers supplied. ​

Supply of labor will decrease until the equilibrium wage rate is $17.85.

Demand for labor will increase until the equilibrium wage rate is $17.85.

47. In which of the following situations is a budget surplus most likely to occur?

When fiscal policy is expansionary and the economy is contracting

When fiscal policy is contractionary and the economy is expanding

When fiscal policy is expansionary

When the economy is contracting

48. How many parameters are needed to fully describe any normal distribution?​

1

3

2

4

49. Fred takes Betty to dinner at a very expensive and exclusive restaurant. The menu does not mention prices. The server takes their order, and both Betty and Fred 

Which of the following can be represented by a discrete random variable?

the circumference of a randomly generated circle

The number of defective lightbulbs in a sample of five

The average distance achieved in a series of long jumps

The time of a flight between Chicago and New York

50. Suppose that college tuition is higher this year than last and that more students are enrolled in college this year than last year.  Based on this information, we can best conclude that:

despite the increase in price, quantity demanded rose due to some other factors changing.

this situation has nothing to do with the law of demand.

the demand for a college education is positively sloped.

the law of demand is invalid.

51. In order to summarize qualitative data a useful tool is a____________.

scattergram

stem-and-leaf diagram

frequency distribution

histogram

PART 2

1. Sampling is used heavily in manufacturing and service settings to ensure high-quality products. In which of the following areas would sampling be inappropriate?

Custom cabinet making

Computer assembly

Technical support by phone

Cell phone manufacturing

2. The preparation of adjusting entries is:

needed to ensure that the expense recognition principle is followed.

straightforward because the accounts that need adjustment will be out of balance

optional when financial statements are prepared.

only required for accounts that do not have a normal balance.

3. What is an advantage of the correlation coefficient over the covariance?

It falls between -1 and 1.

It is a unit-free measure, therefore making it easier to interpret.

It falls between -1 and 1; and it is a unit free measure, therefore making it easier to interpret.

It falls between 0 and 1.  

4. Interest may be included in the acquisition cost of a plant asset:

during the construction period of a self-constructed asset.

if the asset acquisition is financed by a long-term note payable.

if the asset is purchased on credit.

if it is a part of a lump-sum purchase.

5. Which trial balance will consist of the greatest number of accounts?

Balance

Adjusted trial balance

Trial balance

Post-closing trial balance

6. Expenditures that maintain the operating efficiency and expected productive life of a plant asset are generally:

capitalized as a part of the cost of the asset.

not recorded until they become material in amount.

expensed when incurred.

debited to the Accumulated Depreciation account.

7. A SWOT analysis is a framework for analyzing a firm’s environments. A SWOT is made up of

Internal environmental analysis of threats and weaknesses.

External analysis of strengths and opportunities.

Internal threats and weakness and external strengths and opportunities.

Internal strengths and weaknesses; external threats and opportunities.

8. GAAP, compared to IFRS, tends to be more:

simple in disclosure requirements

simple in accounting requirements

principles-based

rules-based

9. Firms must be aware of goals other than short-term profit maximization. One area of concern should be social responsibility which is:

the idea that organizations are solely responsible to local citizens

the idea that businesses are responsible to maintain a healthy social climate for their employees

the expectation that business will strive to improve the overall welfare of society

the fact that court costs could impact the financial bottom line

10. Which of the following can be represented by a continuous random variable?

The number of typos found on a randomly selected page of this test bank

The number of students who will get financial assistance in a group of 50 randomly selected students

The number of customers who visit a department store between 10:00 a.m. and 11:00 a.m. on Mondays

The average temperature in Tampa, Florida, during the month of July

11. According to value-chain analysis, which of the following would be considered part of the general administration in a firm?

procurement

technology development

information systems

human resource management

12. Which of the following can be represented by a discrete random variable?

The number of defective light bulbs in a sample of five

The average distance achieved in a series of long jumps

The circumference of a randomly generated circle

The time of a flight between Chicago and New York

13. Sarbanes Oxley applies to:

U.S and international companies.

international companies but not U.S. companies.

U.S. and Canadian companies but not other international companies.

U.S companies but not international companies.

14. Vertical analysis is a technique that expresses each item in a financial statement:

as a percent of the item in the previous year.

starting with the highest value down to the lowest value.

in dollars and cents.

as a percent of a base amount.

15. The owner of a company has recently decided to raise the salary of one employee, who was already making the highest salary, by 20%. Which of the following is(are) expected to be affected by this raise?

Mean, median, and mode

Median only

Mean and median only

Mean only

16. Which of the following meets the requirements of a simple random sample?

A population contains 10 members under the age of 25 and 20 members over the age of 25. The sample will include six people chosen at random, without regard to age.

A population contains 10 members under the age of 25 and 20 members over the age of 25. The sample will include two people chosen at random under the age of 25 and four people chosen at random over 25.

A population contains 10 members under the age of 25 and 20 members over the age of 25. The sample will include six people who volunteer for the sample.

A population contains 10 members under the age of 25 and 20 members over the age of 25. The sample will include six males chosen at random, without regard to age.

17. The acquisition of treasury stock by a corporation:

decreases its total assets and total stockholders’ equity.

requires that a gain or loss be recognized on the income statement.

increases its total assets and total stockholders’ equity.

has no effect on total assets and total stockholders’ equity.

18. Under the accrual basis of accounting:

the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles.

cash must be received before revenue is recognized.

events that change a company’s financial statements are recognized in the period they occur rather than in the period in which cash is paid or received.

net income is calculated by matching cash outflows against cash inflows.

19. The acquisition of treasury stock by a corporation:

has no effect on total assets and total stockholders’ equity.

decreases its total assets and total stockholders’ equity.

increases its total assets and total stockholders’ equity.

requires that a gain or loss be recognized on the income statement.

20. In multiple regression, plot the residuals against ____ to detect changing variability.

Collinear variables

All explanatory variables

The response variable

The predicted values

21. The resource-based view (RBV) of the firm combines two perspectives:

the interrelationships among the primary activities of the firm and corporate management

the industry and the competitive environment

the internal analysis of the firm and the external analysis of the industry and competitive environment

the primary and support activities of the firm

22. Cost allocation of an intangible asset is referred to as:

accretion

capitalization

depreciation

amortization

23. The fraud triangle applies to:

U.S. and Canadian companies, but not other international companies.

U.S companies but not international companies.

international companies but not U.S. companies.

U.S and international companies.

24. On March 1st, Candy, Inc. had supplies on hand of $1,500. During the month, Candy purchased supplies of $2,900 and used supplies of $2,800.  The March 31st balance sheet should report what balance in their supplies account?

$1,600

$1,500

$2,900

$2,800

25. Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input to its manufacturing process. This is an example of _______________. 

using related diversification to achieve value by integrating vertically in order to acquire market power

using related diversification to achieve value by pooling negotiating power to achieve market power

using related diversification to achieve value by leveraging core competencies to achieve economies of scope

using related diversification to achieve value by integrating vertically in order to attain economies of scope

26. Assume that the Fitzgerald Corporation uses the indirect method to depict cash flows. Indicate where, if at all, accounts receivable collected would be classified on the statement of cash flows.

Does not represent a cash flow.

Financing activities section.

Investing activities section.

Operating activities section.

27. __________involves ensuring proper strategic controls and organizational designs. 

Strategy implementation

Business-level strategy

Corporate-level strategy

Corporate governance

28. The manager of Weiser is given a bonus based on net income before taxes. The net income after taxes is $35,700 for FIFO and $29,400 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager’s bonus if FIFO is adopted instead of LIFO?

$9,000

$1,800

$6,300

$12,600

29. Which of the following controls would best help detect the removal of a blank check by an employee from the back of a company’s checkbook for subsequent misappropriation of funds?

Tracing any debit memorandums from the bank to the company’s records

A review of the cash budget

An accounting policies manual

The use of pre-numbered checks

30. Which of the following is not a current liability on December 31, 2014?

A Note Payable due December 31, 2015

A lawsuit judgment to be decided on January 10, 2015

An Accounts Payable due January 31, 2015

Accrued salaries payable from 2014

31. When collection is made on Accounts Receivable,

Stockholders equity will increase.

total assets will remain the same.

total assets will decrease.

total assets will increase.

32. Which financial statement would best indicate whether the company relies on debt or stockholders’ equity to finance its assets?

Retained earnings statement

Statement of cash flows

Income statement

Balance sheet

33. Is it possible for a data set to have no mode?

No, if the data set is nonempty, there is always a mode

No, unless there is an odd number of observations

Yes, if there are no observations that occur more than once

Yes, if two observations occur twice

34. An analyst believes the probability that U.S. stock returns exceed long-term corporate bond returns over a 5-year period is based on personal assessment. This type of probability is best characterized as a(n) ____________.

Empirical probability

A priori probability

Objectivity probability

Subjective probability

35. Continuous monitoring in the contemporary approach, is beneficial because _____________. 

organization response time is increased

it increases the time it takes to detect changes in the competitive environment

It reduces time lags

organizational flexibility is reduced

36. WellPoint Health Network states: WellPoint will redefine our industry: through a new generation of consumer-friendly products that put individuals back in control of their future. This is an example of a: 

Strategic objective

Line manger’s individual goal

Vague statement of direction

Vision statement

37. A post-closing trial balance will show:

zero balances for all accounts

only income statement accounts

only balance sheet accounts

zero balances for balance sheet accounts

38. Which of the following requirements about internal controls were enacted under the Sarbanes Oxley Act:

Independent outside auditors must eliminate redundant internal controls.

Companies must develop sound internal controls over financial reporting.

Companies must assess the functionality of internal controls only when a violation occurs.

Internal auditors replace independent outside auditors when evaluating the level of internal control.

39. Which of these statements regarding the industry life cycle is correct?

Part of the power of the market life cycle is its ability to serve as a short-run forecasting device.

It points out the need to maintain a differentiation advantage and a low cost advantage simultaneously.

It has important implications for company generic strategies, functional areas, value-creating activities, and overall objectives.

Trends suggested by the market life cycle model are generally not reversible or repeatable.

40. International Financial Reporting Standards (IFRS): 

implies that receivables with different characteristics should be reported separately.

implies that receivables with different characteristics should be reported as one un-segregated amount.

requires that receivables with different characteristics should be reported separately.

requires that receivables with different characteristics should be reported as one un-segregated amount.

41. In a simple linear regression model, if the plots on a scatter diagram lie on a straight line, what is the standard error of the estimate?

Infinity

0

-1

+1

42. Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input to its manufacturing process. This is an example of _______________. 

using related diversification to achieve value by integrating vertically in order to attain economies of scope

using related diversification to achieve value by pooling negotiating power to achieve market power

using related diversification to achieve value by integrating vertically in order to acquire market power

using related diversification to achieve value by leveraging core competencies to achieve economies of scope

43. The four key attributes of strategic management include the idea that:

Strategy must be focused on long-term objectives.

Strategy must be focused on one specific area of an organization.

Strategy must be directed toward overall organizational goals and objectives.

Strategy must be focused on competitor strengths.

44. If a corporation issued $8,000,000 in bonds which pay 5% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?

$120,000

$280,000

$400,000

$4,000,000

45. Green, Inc. had 200,000 shares of common stock outstanding before a stock split occurred and 800,000 shares outstanding after the stock split. The stock split was:

1-for-8

4-for-1

8-for-1

2-for-8

46. You work in marketing for a company that produces work boots. Quality control has sent you a memo detailing the length of time before the boots wear out under heavy use. They find that the boots wear out in an average of 208 days, but the exact amount of time varies, following a normal distribution with a standard deviation of 14 days. For an upcoming ad campaign, you need to know the percent of the pairs that last longer than six months-that is, 180 days. Use the empirical rule to approximate this percent.

95%

97.5%

5%

2.5%

47. What is a difference between merchandising companies and service enterprises?

Cost of goods sold is an expense for service enterprises but not for merchandising companies.

The operations in merchandising companies and service enterprises are identical.

Merchandising companies must prepare multiple-step income statements and service enterprises must prepare single-step income statements.

Merchandising companies generally have a longer operating cycle than service enterprises.

48. For both qualitative and quantitative data, what is the difference between the relative frequency and the percent frequency?

The percent frequency equals the relative frequency multiplied by 100

As opposed to the percent frequency, the relative frequency is divided by the number of observations  the data set.

The relative frequency equals the percent frequency multiplied by 100.

The percent frequency equals the relative frequency multiplied by 100

49. According to the text the triple bottom line approach to corporate accounting includes three components: 

financial, organizational, and customer

financial, environmental, and customer

financial, organizational, and psychological

financial, environmental, and social

50. As opposed to the relative frequency, the percent frequency is divided by the number of observations in the data set.

Trumpeting Trumpets has the following inventory data:

July 1:  Beginning inventory           30 units at $120

July 5:  Purchases                             180 units at $112

July 14: Sale        120 units

July 21: Purchases            90 units at $115

July 30: Sale        84 units

Assuming that a periodic inventory system is used, what is the cost of goods sold on a FIFO basis?

$10,992

$23,118

$11,022

$23,088

(90 × $115) + [(120 + 84 − 90) × $112] = $23,118

51. For both qualitative and quantitative data what is the difference between the relative frequency and the percent frequency?

The percent frequency equals the relative frequency multiplied by 100

As opposed to the percent frequency, the relative frequency is divided by the number of observations  the data set.

The relative frequency equals the percent frequency multiplied by 100.

The percent frequency equals the relative frequency multiplied by 100

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*

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drafting

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***

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*****

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***

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on

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****

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****

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30

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the

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***

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distribution

**

***

sample

****

**

********

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**************

** *** ********* ******* ******* do Sam’s decisions ******** ***************** *************** Relativism ******* ** ******* *** ***

business

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*******

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**

give

notice

**

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****

****

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conducted

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****************

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** *** ***************** field dedicated **

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that:

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****

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cannot

** ******* by ********* ** In *** ******* ** ********** ********** ******** ***** **

***

********* **

most

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you

demonstrate * voice

**

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on

logical ******** ***** **** ********* appeals in **** ********** ********* ********** strong ***** **

***

******** of

your

********* ********

***

**** **

****

*********** ****

**

************ ******** ​27 ******** ** example of *********** *********** Settling * ************ quickly ** a simple **** ********* *** ********** *** procedures ** a ****** ************ ******* *************

****

***** ******* ********** ****** ******** *** ************* ************* ** Alex ** *******

his

***** at full ****** ** his **** **** *** ***** ****** living

**

his ***** ***** **** ** ** a ******** *** Alex ************* **** ************ music playing **

**

******* **** ******** ************ ********* externality negative ************ ****** ************ ** Which ** the ********* is useful advice on ********** business across ********

****

those *** **** ******* *******

*********

Speak ** **** normal ******* pace ******* **

speaking

****** ** this *** be ****** ** ************** *********

a

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**

**** ************ **** ***** *** ***** ***

******

******* of ******* ******** as **** ** possible

*****

***** **** limited ******* ******* enough **** **

process

***** ******** **** English 30 *****

*****

**** *** ******* ** the *******

****

to which *** *** **** ********** in *** ********** ***** *** *** athletes ** the college’s ******** and ********** ******** immediately ********* ******** *** class ******* she ****** *** ********** **** **** team will ** ************* is

******

******** **

a__________

******** memory

negativity

***** stereotype

self-serving

bias **

The

distinction ******* ******** *** ***** ********** ********************** ** **** ******** ****** **** people ***** ** their ********* *** emotions **

that

managers **** ****** ** no impact on ***** ************ *** ** ********* value *** ********* ** ****

********

**** ****** or no ****** ** ******** differences ** *********** ******** ******* sales ********* ****** relations and

******

marketing *** ********* communications ************ **** **** ** * firm’s *********** promotional

****

communication ******* marketing mix ***** strategy ** **** *** ********** ****** ******* ** ***

****

data *** **** *** **** ******** ******** *** a ********* ****** of *********** ********* the ***** **** would evidently ******* the ****** fit ** *** one with ************ ****** *********** ** ************* *** * ***** ******** coefficient ** ************** ***** ******** error of *** ******** *** * ****** ******** *********** **

**************

****** ********

**

***** **

the

estimate

***

* ******

coefficient

** ************** ***** ******** ***** ** *** ******** ***

*

****** *********** of ************** ** Suppose ******* *** *** their **** **

*****

either ***** ** **** The law of supply predicts **** an

increase

** *** market ***** ** *****

****

******* ******* to lower *** production of **** *** wheat *******

**

********** ***** *** *** ********** ** corn ******* to substitute **** *** *** ********** of ****** ******* to ***** the production

of

**** ***

******

** *****

***

*********** of

interstate

********** **********

*********

********** commerce ** *** come ***** *** power of *** deferral government ********** ********** ********* interstate ******** can ** ********* only by *** ***** governments ********** ** *** activity ** appropriate if ** **** interstate ********* ***

states

**** the ********* ***** ** ******** that passes that passes ******

*****

lines ** **** ** *** **** ******** ** *** *********** ***** Agreement strategy

***

overcoming ********** ** change? ************ *** ********* ** ****** ****** ** **** ***********

***

*********** ***** ** ****** problems if ****** **** manipulated *************** ** Your

résumé

****** tell a ***** ********* everything *** have learned *** **** ** your ******** **** *** ***** *** *** provide to * ******** **** educational **************** *** *** plan

to

improve **** ***** ** ********* 38 * ********* *************

*******

is__________ made ** ** weak **** ** ******** **********

from

* ******* of ****** ******** **** up of ********

******

ties ** ********** from one ****** ******* **** **

**

****** **** to several developers **** ****

different

****** systems **** up ** * *** weak **** **** *** ****** system 39

*********

** the ********* growth ***** ** ******* that increases *** ****** **** grow:

*******

since the ******** ** ****** **** ****** **** rapid technological progress

Slowly

because ******** rates **** fall causing investment to ******** Slowly because consumption *** ********* ******

****

** reduced Quickly ***** *** increase in ****** **** ****** ******* *********** ** What ** true of

***

********

used

** ***** a ************** ************* Mannerisms *** age are two

valid

******** that *** be **** to judge *

**************

credibility

*************

*********** can ** ****** relied **** as ******

**

******* values Ethnicity ****** and ****** are ***** characteristics for

*******

************ Individuals can ********** ********* * ************** ***********

*****

** ******** ****************

**

******** the ********* **** ********** ********* *** Sarbanes-Oxley ****

It

requires business ** **** only *******

********

as ***** ********** Unlike ***** Acts its ********** ** not result in fines **

*************

Complying with the act ***** time *** ***** *** ************ *********** It

was

****** ** ******* ******** ****** by ******** ***** requirements 42 ******** ******* threatening

phone

***** ** creditors *** **** ****** ** ******* *** ***** for

a

claim ** ************* misrepresentation ********* representation *********** infliction ** emotional ********* ***** ************ *** malicious

************

** ** ***** ** summarize *********** **** * useful **** is **************

************

************* diagram ********* ************* ********** ** The ******* life *****

******

to __________ * ******* **** describes *** ****** *

*******

**** ******* in *** *********** ******* ************ ****** ******** ***

********

*** ******* life span ** a ******** * ******* that describes the ******

*

******* **** ******* ** *** *********************** ****** *********** *********** maturity and ******** * ******* **** *********

the

****** a *** ******* **** ******* **** ******* ******* ** ****************** **

***

***** of similarities *** *********** ***** ********* ** *** or

****

nations ** ********* ** ******** ** ** *********** ************** ********* *************

**************

****** ********** ************* ************* ** ***** things held ******** **

*

*********** ***** ****** ** ******* ********* * contract ** ***** the

********

****** ** *** an ****** wage ** ***** ***** the ****** ***********

hour

**** is $1650 ***** ******** ** workers ******** will ****** the

********

** ******* ********* ******** ** ******* ******** **** ****** *** ********

**

******* ************ ****** ** labor will decrease until *** equilibrium **** **** ** ****** ****** *** labor **** increase ***** ***

***********

****

rate

** ******

47

In which ** *** *********

**********

** * ****** ******* ****

******

** occur? **** fiscal ****** ** ************ and *** economy is ************

****

******

******

** **************

***

*** economy

is

expanding

****

****** ****** ** ************* **** the ******* **

contracting

48 *** **** ********** *** ****** ** ***** describe any normal distribution?​ ** ** ** ** ** Fred *****

Betty

** dinner at * **** expensive ***

*********

restaurant *** menu **** *** ******* ****** *** server ***** ***** ***** *** **** ***** *** ***** ***** **

the

********* *** be *********** ** * discrete ****** variable? the ************* ** * ******** ********* *******

The

****** ** ********* ********** ** a ****** ** five The ******* distance ******** ** * ****** ** **** ****** *** ****

**

a ******

*******

******* ***

New

***** **

Suppose

**** *******

*******

** higher **** year **** **** *** **** **** ******** are enrolled in ******* **** **** than last ********* ** **** *********** ** can **** ******** that: ******* *** ******** in ***** quantity ******** **** ***

**

**** ***** factors changing **** situation *** ******* ** ** ****

the

*** of ******* *** ****** *** * college education is **********

*******

the *** of demand is invalid ** ** ***** ** ********* ***********

****

a useful **** ** a____________ scattergram ************* ******** ********* distribution ********** ****

2

* ******** ** **** ******* ** ************* *** service ******** ** ensure ************ ******** In

*****

of *** ********* ***** ***** sampling be *************** ****** *******

*******

******** ********* Technical ******* by ****** **** ***** ************** 2

***

*********** of ********* entries ****

******

** ****** **** *** *******

***********

********* ** ********* *************** ******* *** ******** **** **** adjustment will **

***

**

********

********

****

*********

statements

are

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**** ******** for accounts that ** not **** a ****** balance * **** ** ** ********* of the *********** coefficient over *** ************ ** ***** ******* -1 and **

It

is a ********* measure ********* ****** it easier ** ********** ** *****

*******

** and ** *** it is *

****

free ******* ********* making ** ****** ** ********** It falls

*******

*** ** * ******** *** ** ******** ** the ***********

cost

** a ***** asset: ****** the construction ****** ** *

****************

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****

******* of *** greatest number of ********** ******** ******** ***** ******** ***** ******** ************

*****

******** 6 ************ that maintain *** ********* ********** *** ******** **********

****

** * plant ***** are *********** *********** ** a

part

of *** **** ** *** asset

not

******** ***** they ****** ******** ** amount ******** **** incurred ******* to

***

Accumulated

************

******** *

*

**** ********

**

*

framework

***

*********

* ************

environments

* **** ** **** ** *** ******** ************* ******** of ******* *** *********** ******** ******** ** strengths and opportunities ******** threats and ******** ***

********

********* *** opportunities

Internal

strengths ***

weaknesses;

******** threats *** **************

*

**** ******** **

****

***** to be more: simple ** **********

*************

****** ** accounting ************* principles-based rules-based 9 ***** **** **

*****

** goals other **** ********** ****** ************ *** **** ** ******* ******

**

social ************** ***** **** *** idea

****

organizations *** solely *********** ** local ********* the **** that **********

***

*********** ** ******** * healthy social climate *** ***** ********** the ***********

that

business **** ****** to ******* the

*******

welfare ** society *** **** **** ***** ***** could impact ***

*********

bottom line ** ***** ** *** ********* can ** *********** ** * ********** ****** variable? *** ****** of typos

*****

** a ******** selected ****

**

**** **** ***** *** number ** ******** *** will get ********* assistance **

*

***** ** 50 ******** ******** ********* *** ******

**

customers *** visit * ********** ***** ******* ***** ** and *****

**

** ******** *** ******* *********** ** *****

Florida

****** the ***** ** ***** ** According ** ***********

********

***** ** *** following ***** ** considered **** ** the ******* administration

**

a

******

************ ********** ************

information

******** *****

resource

*********** ** Which

**

the following *** ** represented ** * ******** ****** ********** The ****** of ********* ***** ***** in

*

sample of five The ******* ******** achieved in * ******

of

**** ****** *** ************* ** * ******** *********

*******

The time **

*

flight between ******* *** *** *****

**

******** ***** ******* to: US *** ************* ********** ************* ********* but *** ** companies US *** ******** *********

but

*** ***** ************* ********** ** ********* ***

not

international ********** ** Vertical ******** **

*

********* **** ********* **** item ** * ********* statement:

as

* percent ** the item ** *** previous

year

******** **** *** highest ***** down ** *** lowest

value

** ******* *** ******

as

* ******* ** *

base

*******

**

***

*****

of * company has ******** decided ** raise *** salary of *** ******** *** was already making the ******* ****** ** ***

Which

** *** ********* ******* ******** ** ** ******** ** ****

*******

**** median *** mode ****** ***** **** *** median ***** **** ***** ** ***** **

the

********* ***** *** ************ ** * ****** random sample? * ********** ******** **

*******

***** *** *** ** ** *** 20 ******* over the age

of

25 The sample will ******* *** people ****** at ****** ******* ****** **

age

A ********** contains ** ******* ***** *** *** ** ** *** ** members ****

***

*** ** 25 The ****** will ******* *** ****** chosen ** random ***** *** *** of **

***

**** ****** chosen at ****** **** 25 * population ******** ** members ***** *** *** ** **

***

** members over *** *** ** 25 *** ****** **** include

six

****** *** ********* for *** ******* A population contains ** ******* ***** the *** ** ** *** ** ******* over

the

age

**

** The

******

**** *******

six

males ****** **

random

******* regard ** **** ** *** *********** of treasury ***** ** a *************

*********

*** ***** ****** and total stockholders’ equity requires that a ****

**

loss ** ********** on *** income ********** ********* its total

******

*** total ******************* ******* *** ** ******

**

total ****** *** total ******************* ******* ** ***** *** accrual

basis

** accounting: *** ****** ********

****

** ******** to *******

*

cash ***** ** ********** ****** financial

**********

*** prepared under generally ******** accounting principles **** ****

**

******** before ******* ** *********** ******

that

****** * company’s ********* ********** *** ********** in *** ****** **** ***** ****** ****

**

*** ****** ** which **** ** **** ** ********* ***

income

is calculated ** ******** **** outflows ******* cash ******** **

***

*********** ** ******** stock

**

* ************* has ** ****** ** total

******

and ***** ******************* ******* ********* *** ***** ****** and total ******************* ******* ********* *** ***** assets *** total ******************* equity ******** that * **** ** **** be ********** ** *** ****** statement ** ** ******** ********** ****

***

********* against **** **

******

changing ************

*********

********** All *********** variables

***

******** *********

The

********* ******* ** The ************** view (RBV) ** *** **** ******** *** **************

the

interrelationships ***** *** primary ********** ** the **** and ********* *********** *** ******** and the *********** ************ the ******** ******** ** *** firm and the ******** analysis ** the ******** and

***********

************ *** ******* *** support ********** ** *** ***** ** **** ********** of ** intangible ***** ** referred ** **** ********** capitalization depreciation ************* 23 The ***** triangle applies **** ** *** ******** ********* *** *** other ************* ********** US

*********

*** *** international companies ************* ********* *** *** ** companies US *** ************* ********** ** ** ***** *** ***** *** *** supplies on **** of ***** ****** the month

*****

********* ******** ** $2900 *** **** ******** ** ***** *** ***** **** ******* ***** ****** ****** what ******* ** ***** ******** ********* $1600 ****** ****** $2800 25 **** Industries a giant

******

************ ********* *** control **** *** materials by *********

****

of *** own ************* ***** * *** input

**

*** ************* ******* **** ** ** ******* of **************** ***** ******* ***************

to

******* value by integrating ********** ** ***** **

acquire

market ****** ***** ******* *************** ** ******* ***** by pooling

negotiating

***** ** ******* ****** ****** ***** *******

***************

to ******* ***** ** ********** core ************ ** ******* ********* ** ****** using ******* diversification ** ******* ***** ** *********** vertically ** *****

**

attain ********* ** ****** ** ****** **** the

**********

*********** **** the ******** ****** ** ****** **** ***** ******** ***** ** at *** ******** ********** ********* ***** be classified ** *** ********* ** cash ******

****

not ********* * cash flow ********* ********** ******** Investing ********** ********

*********

activities ******** 27 ****************** ensuring ****** strategic controls and

**************

******** ******** implementation ************** ********* *************** ********* ********* governance **

***

manager ** ****** is given a ***** *****

on

*** ****** before ***** *** *** income *****

*****

is ****** *** **** *** $29400 *** **** The *** **** **

***

*** ***** **** ** *** *** **** ****** ** *** *************** ***** if

****

is *******

*******

of ****** ******

******

****** $12600 29

*****

** the *********

controls

***** best **** detect *** ******* ** * ***** check **

an

******** **** *** **** ** * *************** ********* *** ********** **************** **

*******

******* any ***** *********** **** ***

****

** *** *************** ******** * ****** ** *** **** budget ** ********** policies ******* *** use

**

************ ******* ** Which ** *** following **

***

* ******* liability ** ******** 31 ****** * **** Payable ***

********

**

*****

*

*******

********

**

**

*******

on January ** ***** ** Accounts

*******

due January ** 2015 Accrued ******** payable from *****

**

When collection ** **** ** Accounts

***********

Stockholders ****** will increase ***** ******

****

remain the same *****

******

**** ********* ***** assets will ********* ** ***** ********* ********* ***** **** indicate whether *** ******* relies ** **** or stockholders’ ****** ** ******* its ******** ******** ******** statement ********* of **** ****** ****** ********** ******* sheet **

**

it

********

***

a

****

***

**

****

** ****** ** ** *** **** *** is ******** there ** ****** * ***** No unless there ** an odd ****** ** ************* *** if ***** *** ** observations that ***** **** **** *****

***

if *** ************ occur ****** ** ** analyst believes *** *********** **** ** ***** returns

******

********* corporate **** ******* **** * ****** period ** ***** ** ******** ********** ****

****

of probability ** best ************* ** a(n) ************* Empirical ************ * ****** probability *********** ************

Subjective

probability 35 Continuous monitoring ** *** contemporary ******** ** ********** ******* ************** ************ response **** **

**********

it increases *** **** ** ***** ** ****** changes in *** competitive ************ It ******* **** ***** ************** flexibility ** reduced ** ********* Health ******* ******* ********* **** ******** *** *********

*******

* *** ********** ** ***************** products

****

put *********** ****

**

control ** *****

future

This ** **

*******

** *** ********* ********** **** ************** ********** ***** Vague

*********

of **********

Vision

statement 37

*

************ *****

balance

will show:

****

balances *** all ********* **** ****** ********* ********* only ******* ***** ********* zero balances *** ******* sheet ********* ** ***** ** the ********* requirements ***** ******** ******** were ******* under *** ******** ***** ***** *********** ******* auditors must ********* ********* internal ********* Companies **** develop ***** internal ******** **** financial reporting *********

****

assess

the

functionality

**

********

********

****

****

* ********* ******* ******** ******** replace *********** ******* ******** when evaluating *** ***** of ******** ******** 39 ***** ** these ********** regarding *** industry **** ***** ** ********* Part ** ***

*****

** *** ****** **** ***** ** *** ability ** ***** **

a

********* *********** device ** ****** ***

the

need to ******** a

differentiation

advantage *** * *** ****

*********

*************** ** *** ********* implications for ******* generic ********** ********** areas ************** ********** ***

overall

*********** ****** ********* by the ****** ****

cycle

model *** ********* *** ********** or *********** 40 ************* Financial

Reporting

********* ******** implies **** *********** **** *********

characteristics

should ** ******** separately *******

that

*********** **** different characteristics ****** be ******** **

***

un-segregated amount ******** that

receivables

**** ********* characteristics ****** ** ********

separately

******** **** receivables ****

*********

characteristics should ** reported

**

*** ************* ******* 41 ** * ****** ****** regression model ** the ***** ** a scatter diagram lie ** *

straight

**** **** **

***

******** ***** of ***

**********

********* ***

***

** Shaw

**********

a ***** ****** manufacturer ********* *** ******* **** *** ********* ** *********

****

** its own ************* ***** * *** ***** to *** ************* *******

****

** ** example ** **************** ***** related diversification **

achieve

***** by *********** ********** in ***** to ****** ********* of ******

using

******* *************** ** achieve value **

*******

negotiating ***** ** achieve ****** ****** ***** ******* *************** ** ******* ***** ** *********** vertically in ***** ** ******* ****** ****** using related *************** ** ******* ***** ** ********** **** ************ ** ******* economies

**

scope 43

The

**** *** **********

**

********* **********

*******

*** ****

******

Strategy **** ** focused ** ********* *********** ******** **** ** focused

on

*** ******** **** of an

*************

Strategy must ** directed ****** ******* organizational ***** and objectives ******** must **

focused

** ********** ********** **

If

* *********** ****** $8000000

**

***** ***** pay ** ****** interest what is the annual *** cash cost ** **** ********* if the ****** *** rate ** ***** ******** $280000 ******** ********* ** ***** *** *** ******

******

** ******

*****

outstanding ****** * *****

*****

******** and 800000 ******

***********

***** the

*****

***** *** ***** split ***** 1-for-8 4-for-1

********

******** ** You work in

*********

for * ******* that

produces

work ***** ******* *******

***

**** you a **** ********* the

******

** **** ****** the ***** wear out ***** heavy *** **** **** that *** boots ****

out

in ** ******* ** *** **** *** ***

*****

****** ** time varies following a normal distribution ****

a

******** ********* of 14 days *** ** ******** ** campaign *** **** **

****

*** ******* of *** pairs **** last longer **** *** *********** is ***

****

*** the ********* **** ** *********** **** percent **** 975% 5% ****

**

**** is a difference ******* ************* ********* *** ******* enterprises? **** ** goods **** ** an ******* *** *******

enterprises

*** not for ************* ********** *** ********** ** merchandising ********* *** ******* *********** *** identical *************

*********

must ******* ************* ****** ********** *** ******* enterprises **** ******* *********** ****** *********** Merchandising *********

*********

**** * ****** ********* ***** than ******* enterprises ** For **** qualitative *** ************

****

what ** *** difference between ***

relative

********* *** the ******* frequency? The ******* ********* ****** the

********

********* multiplied by **** ** ******* ** *** ******* frequency the relative frequency

**

divided by the number ** ************ *** **** **** ***

********

********* equals *** ******* ********* ********** ** 100 *** ******* ********* equals the

********

********* ********** ** **** ** ********* to *** text the ****** ****** **** approach ** ********* accounting ******** ***** ************ ********* ************** *** customer financial environmental ***

*********

*********

**************

***

**************

financial

*************

***

*******

** ** ******* to *** ******** ********* *** percent frequency ** ******* ** the ****** ** ************ ** *** **** **** ********** ******** *** *** ********* inventory data: **** 1: ********* ********* ** units

at

***** **** ** Purchases *** ***** ** $112 **** 14: Sale *** ****** July *** *********

**

units ** $115 July *** Sale 84 ****** ******** that * ******** ********* ******

**

used **** is the cost ** ***** **** ** * **** basis? ******* ******* $11022

*******

*** ******* ***** + ***** + ** ******* *** ******* $112] * $23118 ** ***

both

qualitative *** ************ **** **** ** *** ********** ******* *** relative frequency

and

*** percent *********** The percent ********* equals

the

******** frequency multiplied ** 100 ** ******* to the ******* *********

***

relative ********* is ******* ** *** ****** ** ************ ***

****

**** *** relative frequency ****** *** *******

*********

********** by **** The percent ********* equals the ******** frequency ********** ** ***

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