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UOP E Help - STR 581 Capstone Final Examination Part Two Answers Free

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9. An activity that has a direct cause-effect relationship with the<br />

resources consumed is a(n):<br />

product activity<br />

cost driver<br />

cost pool<br />

overhead rate<br />

10. The major element in budgetary control is:<br />

the approval of the budget by the stockholders<br />

the valuation of inventories<br />

the preparation of long-term plans<br />

the comparison of actual results with planned objectives.<br />

11. Tule Time Comics is considering a new show that will generate<br />

annual cash flows of $100,000 into the infinite future. If the initial<br />

outlay for such a production is $1,500,000 and the appropriate<br />

discount rate is 6 percent for the cash flows, then what is the<br />

profitability index for the project?<br />

0.11<br />

1.11<br />

0.90<br />

1.90<br />

12. How firms estimate their cost of capital: The WACC for a firm is<br />

13.00 percent. You know that the firm’s cost of debt capital is 10

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