1. The ________ budget is the only budget statedonly in units, not dollars.

A) production

B) sales

C) direct materials

D) manufacturing overhead

7. Distribution Corporation collects 40% of a month'ssales in the month of sale, 55% in the month following sale, and 5%in the second month following sale. Budgeted sales for the upcomingfour months are:

April budgeted sales	$100,000
May budgeted sales	$150,000
June budgeted sales	$230,000
July budgeted sales	$180,000

All of the following are responsibility centersexcept

A) cost center.

B) profit center.

C) investment center.

D) equity center.

10. Which of the following is a disadvantage ofdecentralization that occurs when the organization struggles toachieve goal congruence?

A) Unit managers may not understand the big picture of thecompany.

B) Management does not have time to concentrateon long-term strategic planning.

C) Unit managers have decreased motivation and retention.

D) Managers receive training and experience to allow advancementin the organization

17. What is an attribute of the internal rate ofreturn?

A) It is the interest rate that makes the NPV of the investmentequal to zero.

B) It is the interest rate that makes the cost of the investmentequal to the present value of the investment's net cashinflows.

C) It is used in the capital rationing process.

D) All of the above are attributes of the internal rate ofreturn.

18. When you graduate from college, your grandmother plansto give you a gift of $50,000 to start you on your way. However, todetermine what you learned in business school, your grandmotherpresents you with four options on how to receive the gift. Which ofthe four options presented by your grandmother will yield thegreatest present value to you?

A) A lump sum of $50,000 today

B) $25,000 per year for the next 2 years using a 3% discountrate

C) A lump sum of $50,000 after grad school (2 years) assuming a5% discount rate

D) A lump sum of $50,000 after grad school (2 years) assuming a3% discount rate