1. The Long Company pays its workers differently, depending on how long they have been employed. However, skill levels are similar for all the workers. A manager is trying to decide whether to consider all workers the same, and to use an average wage rate for purposes of a cost model. The concept involved here is best described as:

A. Homogeneity

B. Interdependence

C. Responsiveness

D. Traceability

2. A factory manager is not sure how to associate the fixed value of the real estate taxes for the factory with the changes in the amounts of a particular product produced during the year. The concept most relevant to this problem is:

A. Interchangeability

B. Homogeneity

C. Variability

D. Interdependence

3. The term liquidation value means

A. The price at which an asset can be sold in orderly markets

B. The amount the company would receive by selling the asset in orderly markets, less transaction costs

C. The sales value assuming the company must sell immediately

D. The price at which someone can buy the asset now.

4. When a financial statement analyst compares various figures on a companys income statement for a single year, and notes that a particular expense is 23% of sales, the analyst is performing:

A. Vertical analysis

B. Horizontal analysis

C. Credit analysis

D. Solvency analysis

5. A car dealership decides to give a monthly prize to the sales person who makes the most sales during a month, in the hopes of making more money by making more sales. One salesman reacts by getting another salesman to give him credit for cars sold by the other man, in order to come in first in the contest. This behavior can best be characterized as:

	A.	Acting to modify the measurement system before it goes into effect.
	B.	Doing what is desired in response to being measured
	C.	Doing what looks good on the measurement system, even though it was not what was actually desired
	D.	Lying