Related to the Economics in Practice on page 102: Which of the following best explains why demand is often more elastic in the long run than it is in the short run?

A) When demand is elastic, price increases reduce revenue because a small price increase will lead to a large decrease in quantity demanded.
B) In the long run, consumers have greater access to substitutes.
C) Consumers tend to postpone making purchasing decisions as long as possible.
D) In the short run, prices can change rapidly, but in the long run they are more stable.

Solimini Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for January was based on 3,900 meals, but the diner actually served 3,400 meals. The diner's director has provided the following cost formulas to use in budgets:
Required:Prepare a report showing the activity variances for each of the expenses and for total expenses for January. Label each variance as favorable (F) or unfavorable (U).

The Private Securities Litigation Reform Act of 1995, provides a(n) ________ from liability for publicly held issuers who make financial forecasts as long as the forecasts are accompanied by meaningful cautionary statements.

A) safe harbor
B) investment prospectus
C) immunity clause
D) limited reprieve
E) protection incentive

(Last Word) In 2001,a U.S.court of appeals tossed out an earlier U.S.district court order that Microsoft:

A) license Windows for sale by competitors.
B) be split into two competing firms.
C) divest itself of its Word and PowerPoint software programs.
D) end its proposed acquisition of Sun Microsystems.

The projection of financial position at the end of the budget period is found on the

A) budgeted income statement.
B) cash budget.
C) budgeted balance sheet.
D) sales budget.

Papa Limited has two subsidiary entities, Mumma Limited and Junior Limited. Papa Limited owns 100% of the shares in both entities. Details of the cash accounts of each company are: Papa Limited $160 000, Mumma Limited $85 000, Junior Limited $12 500. The balance of the consolidated cash account of the Papa Limited group is:

A) $97 500
B) $160 000
C) $257 500
D) $62 500

Which of the following is not a principle of ethical leadership?

A) service
B) sociability
C) justice
D) community

To help launch a new socially conscious children's KidsCares television network,PR Firm CSRx created an interactive World Rescue bingo game.Parents print the World Rescue Bingo card.For the first month of programming,children look for a special rescue code to appear during their favorite new shows and match the code to the bingo card.Three codes matched down,across,or diagonally wins.Children enter the winning codes into a child-safe World Rescue Decipher app and learn which World Rescue KidsCares will be donating to: Project Water,Doctors Without Borders,or Endangered Species Adoptions.No purchase is required to play.Which type of corporate social responsibility engagement does this represent?

A) community volunteering
B) corporate social marketing
C) cause-related marketing
D) cause promotions

The Haney Corporation has a standard costing system.Variable manufacturing overhead is applied on the basis of direct labor-hours.The following data are available for January: • Actual variable manufacturing overhead: $25,500
• Actual direct labor-hours worked: 5,800
• Variable overhead rate variance: $600 Favorable
• Variable overhead efficiency variance: $2,475 Unfavorable
The standard hours allowed for January production is:

A) 5,975 hours
B) 5,800 hours
C) 5,425 hours
D) 5,250 hours

Orders are processed in the sequence in which they arrive if (the) ________ rule sequences the jobs.

A) earliest due date
B) slack time remaining
C) first come, first served
D) critical ratio
E) Johnson's