11) Which of the following describes the time value of money?

A. The time value of money has no effect on the timing of capital investments.

B. Money loses its purchasing power over time through inflation.

C. The fact that invested cash may not earn interest over time is called the time value of money.

D. A dollar received today is worth more than a dollar to be received in the future.

12) Which of the following is not a capital budgeting decision?

A. a convenience store decides whether to expand its operations in a new location

B. a hospital decides whether to construct a new pediatric wing

C.a retail company decides whether to mark down its old inventory

D. an airline updates its kiosks to allow passengers to self-check-in

13) On January 1, Alistair Manufacturing had a beginning balance in WorkinProcess Inventory of $161,000 and a beginning balance in Finished Goods Inventory of $23,000. During the year, Alistair incurred manufacturing costs of $205,000. During the year, the following transactions occurred:

Job C62 was completed for a total cost of $143,000 and was sold for $155,000.

Job C63 was completed for a total cost of $183,000 and was sold for $214,000.

Job C64 was completed for a total cost $83,000 but was not sold as of yearend.

The Manufacturing Overhead account had an unadjusted credit balance of $24,000 and was adjusted to zero at

yearend.

What was the amount of gross profit reported by Alistair at the end of the year?

A. $67,000

B. $43,000

C. $31,000

D. $12,000

14) Crabapples, Inc. purchases and sells boxes of dried fruit. The following information summarizes its operating activities for the year:

Selling Expenses	$9,800
Merchandise Inventory on December 31	32,000
Merchandise Inventory on January 1	46,500
Purchases of merchandise	83,500
Rent for store	12,000
Sales commissions	7,400
Sales revenue	167,000

What is the cost per box of dry fruits if Crabapples sold 4,000 boxes of dry fruit during the year? (Round your answer to the nearest cent.)

A. $24.50

B. $32.50

C. $8.00

D. $41,75

15) If a company wants to be a price-taker, which of the following strategies should be taken?

A. Produce a unique product.

B. Differentiate the product clearly from the competitors.

C. Enter a competitive market and focus on cost-cutting.

D. Exploit the value of a fashionable brand name.