1- Blue Ridge Crafters is a co-operative that distributes traditional household furnishings, such as home-spun textiles, hand-thrown pottery, and hand-carved wood items. These items invariably are more expensive than mass-produced goods with similar functions, but customers prefer the artistry in Blue Ridge's goods. Because of subtle variations in color and grain, customers typically insist on handling these goods before committing to a sale. Each artisan decides which products to make. Blue Ridge relies on sales parties for about 20% and craft fairs for about 60% of its sales, with the remainder sold through a combination outlet-exhibit along a popular vacation route and independent boutiques and art galleries. Blue Ridge is considering admitting metalworkers to the cooperative, who will add hand-forged fireplace tools, latches, light fixtures, and iron gates to its product line. Of the following, what best describes this strategy?

A) Concentric diversification strategy

B) Conglomerate diversification strategy

C) Horizontal growth strategy

D) Profit strategy

2- Which technique would be most precise in determining the variable cost component of manufacturing overhead costs?

A) Delphi method

B) High-low method

C) Regression analysis

D) Scatter-graph analysis

3- The Sarbanes-Oxley Act generally does not apply to

A) Large U.S. S corporations that have registered debt with the SEC

B) Large U.S. partnerships that have registered equity securities with the SEC

C) U.S. limited liability companies that are exempt from SEC registration

D) Non U.S. corporations that have registered debt with the SEC

4- Under Section 404 of the Sarbanes-Oxley Act, who is required to attest to, and report on, managements assessment of internal control over financial reporting?

A) The board of directors

B) The audit committee

C) The chief executive officer and chief financial officer

D) The external auditor