Which of the following statements about matrix organizations is false?

• A.Matrix organizations offer the advantage of greater flexibility.
• B.In a matrix organization, conflict between functional and product managers may arise.
• C.Matrix organizations minimize costs and simplify communication.
• D.In a matrix organization, staff under dual command is more likely to suffer stress at work.

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Which of the following budgets serves as a basis for the budgeted income statement?

• A.Only the cash budget and budgeted balance sheet
• B.Only the sales and production budgets
• C.All operating budgets
• D.All financial budgets

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During the last year, an organization had an opening inventory of $300,000, purchases of $980,000, sales of $1,850,000, and a gross margin of 40 percent. What is the closing inventory if the periodic inventory system is used?

• A.$300,000
• B.$280,000
• C.$540,000
• D.$170,000

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A capital investment project will have a higher net present value, everything else being equal, if it has:

• A.A higher discount rate.
• B.Cash inflows that are larger in the later years of the life of the project.
• C.Cash inflows that are larger in the earlier years of the life of the project.
• D.A higher initial investment level.

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Organizations mat adopt just-in-time purchasing systems often experience which of the following?

• A.An increase in the number of suitable suppliers
• B.A slight increase in carrying costs.
• C.A greater need for linkage with a vendor s computerized order entry system.
• D.A greater need for inspection of goods as the goods arrive.

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