Marketing Application Unit 2 Review

While reviewing financial information, Troy noted that the company earned $245,956 in January, $248,122 in February, and $252,878 in March. Which most likely summarizes the financial situation?

• Capital assets are depreciating at a slower rate

• Cash flow continues to be tight.

• Accounts receivable exceed accounts payable.

• Sales are steadily increasing

The price of raw materials used in manufacturing a product doubled what had been projected for the year. What can the business determine by analyzing its financial information?

• Supply and demand

• Equipment costs

• Variances

• Errors in forecasting

A member of a sales team noticed that their sales always decline during a specific time of year. They want to wait a few months until sales pick regain. What barrier to creativity did the team member notice?

• Limiting code of behavior

• Need to be right the first time

• Criticism

• Stress

During its 20 years of operation, the Normandy Company has made very few changes to its accounting methods and system. As a result, its financial information is likely to be in which condition?

• Comparable

• Consistent

• Reliable

• Conservative

By comparing the categories in an income statement, a business will be able to determine which situation?

• If it is earning too much income

• If it is paying too little for supplies

• If it is spending too much on expenses

• If it is acquiring goods for too low a price

Emma is reviewing the sales budget in relation to the actual sales generated for a set time frame. How is Emma using financial information in this situation?

• To analyze the impact of aging accounts

• To establish new quality standards and benchmarks

• To identify external economic trends

• To compare estimated performance with actual performance

One reason why a business compares its income statement figures with those of competitors is to find out how it is doing in relation to which factors?

• Industry standards

• Research projections

• . Economic forecast

• Marketing procedures

During economic fluctuations, taxes serve which purpose for the economy?

• Destroying

• Reducing

• Expanding

• Stabilizing

The government decides to pass a new law requiring certain standards of air cleanliness be met. They will levy a tax on the production of automobiles that generate gas emissions above a certain limit. However, they also will provide tax incentives to automobile manufacturers for research and development of new cars with lower gas emissions. This is an example of which activity or activities?

• Transfer payments

• Hidden costs

• Direct controls

• Rent seeking

A business estimates that its cash flow from sales during the upcoming season will be higher than it was for the same period last year. The estimate is possible based on this financial information and which other sources?

• Realistic goals

• Industry trends

• Future earnings

• Potential costs