B1-B4 Progress Test

Question 1

Establishing objectives that will support the mission and vision of an organization generally involve supporting the mission with:

Answer 1

Strategic objectives, supported by strategies and related objectives

Question 2

Cost of jobs completed (or cost of goods manufactured) FORMULA

Answer 2

Direct Materials Used + Direct Labor + Overhead APPLIED (not incurred) + Beg WIP - ending WIP

Question 3

After-tax profit objective FORMULA:

Answer 3

(Total fixed cost + Target after-tax profit) / Contribution Margin per unit

Question 4

Beta coefficient equation

Answer 4

% change in stock price / % change in market price

Question 5

When computing the net initial cash outflow don’t forget the following:

Answer 5

Purchase price
+Shipping, installation, testing costs
+Required INCREASE IN WORKING CAPITAL