01/22/2015

Question 1

USE ——-COSTING WHEN A STANDARDIZED PRODUCT IS PRODUCED AND SOLD TO MANY DIFFERENT CUSTOMERS. EXAMPLE-MAUNFACTURING DIFFERENT TYPES OF BARBED WIRE FOR SALE TO WHOLESALERS

Answer 1

PROCESS

Question 2

?????? digit verification is an example of an input control. The check digit is a number calculated based on a calculation using all but the last digit, which is the check digit. If the calculation returns the check digit, the number is accepted as valid. If the calculation returns a number other than the check digit, the input is rejected as invalid.

Answer 2

CHECK

Question 3

THE SALES PRICE AT THE POINT OF SALE REDUCED BY THE COST TO COMPLETE AFTER SPLIT OFF IS THE ???

Answer 3

NET SALES VALUE AT SPLIT OFF

Question 4

The weighted-average cost of capital is the weighted average of the cost of debt and the various equity components of the firm’s capital structure. The marginal tax rate is considered in determining the cost of capital for each component that has a tax effect (such as the debt interest). Since the interest is deductible, the cost of debt is 10% less 30% tax savings, or 7%.

Multiply the cost of each source of capital by the proportion of capital from that source, and add the results:

Debt = 0.30 × 0.07 = 0.021
Common stock = 0.60 × 0.12 = 0.072
Preferred stock = 0.10 × 0.10 = 0.01
These total 10.3%.

Answer 4

SUBTRACT OUT ANY TAX SAVINGS ON WEIGHTED AVERAGE CALCULATIONS

Question 5

A TOTAL INTERRUPTION OF DATA PROCESSING COULD BE PREVENTED BY ???? ?????? PROTECTION. THIS PROTECTION MEANS THE ABILITY TO KEEP PROCESSING AT ALL UNAFFECTED SITES.

Answer 5

FAIL SOFT

Question 6

IN A JOB ORDER COST SYSTEM THE USE OF INDIRECT MATERIALS WOULD BE REFLECTED IN THE GL AS AN INCREASE IN????

Answer 6

FACTORY OVERHEAD CONTROL-

Question 7

WHY IS A CALL PROVISION DETRIMENTAL TO AN INVESTOR?

Answer 7

A CALL PROVISION ALLOWS THE CORPORATION TO CALL THE BOND EVEN IF THE BONDHOLDER DOES NOT WANT TO DISPOSE OF THE INVESTMENT….

Question 8

IN ADDITION TO BEING WHAT MUST BE ACHIEVED, AS STRATEGY INITATIVE OF A BALANCED SCORECARD FRAMEWORK IS

Answer 8

A KEY ACTION PROGRAM REQUIRED TO ACHIEVE STRATEGIC OBJECTIVES

Question 9

THE RATIO OF THE PROJECTS NET PRESENT VALUE TO ITS INITIAL COST IS THE

Answer 9

PROFITABILITY INDEX

Question 10

A —TOTAL IS A MEANINGLESS SUM THAT HAS NO USE OTHER THAN TO THE COMPLETENESS WITH WHICH A BATCH HAS BEEN PROCESSED

Answer 10

HASH

Question 11

IF NOMINAL INTEREST RATES INCREASE, THEN THE STOCK PRICE WILL LIKELY

Answer 11

DECREASE

Question 12

THE ???? IS NORMALLY COMPARED TO THE INTERNAL RATE OF RETURN TO DETERMINE WHETHER OR NOT TO MAKE AN INVESTMENT

Answer 12

WEIGHTED AVERAGE COST OF CAPITAL

Question 13

IN ECONOMICS -UTILITY- IS FANCY TALK FOR

Answer 13

SATISFACTION!!!!!!

Question 14

DIVIDENDS + CHANGE IN PRICE/BEGINNING PRICE =

Answer 14

ECONOMIC RATE OF RETURN ON CS

Question 15

THIS FORMULA IS USED TO CALCULATE THE % CHANGE FROM YEAR 1 TO YEAR 2 ACCOUNT BALANCES

Answer 15

CURRENT-PRIOR/PRIOR

Question 16

TO CONVERT A DOLLAR AMOUNT FROM ONE PRICE LEVEL TO ANOTHER, multiply it by the ratio of the price level you are converting to divided by the price level you are going from. So, the 10-year-old expenses of $72,800 are multiplied by the fraction 168.5/121.3, which gives expenses converted to current dollars of $101,128.
Subtracting last year’s expenditures of $100,500 from the previous period price-level adjusted prior expenditures of $101,128 gives a reduction in expenditures of $628. Dividing this $628 reduction by the previous period price-level expenditures of $101,128 gives a decrease of 0.6%.

Answer 16

CPI CALCULATION

Question 17

The net present value is the excess of the discounted present value of future cash returns above the investment cost.

The present value of the future cash returns is the annual cash flow of $25,000 multiplied by the present value of an annuity of $1 a year for six years at 10%, which is 4.355. Thus, the present value of the future cash flows is $108,875 ($25,000 × 4.355).

The salvage value of $20,000 will be received in cash in six years, so its present value is $20,000 multiplied by the present value of a single payment of $1 in six years at 10%, or 0.564, giving a present value of the salvage value of $11,280.

Summing the present value of the annual payments ($108,875) and the present value of the salvage value ($11,280) gives a total present value of future cash flows of $120,155.

The cost of the machine is $100,000, so the net present value is $120,155 less $100,000, or $20,155.

Answer 17

NET PRESENT VALUE CALCULATION

Question 18

The ——-TRANSACTION PROCESSING MODEL PROVIDES THE MOST COMPLETE INFO FOR DECISION MAKING

Answer 18

ON-LINE

Question 19

GROSS PROFIT/SALES

Answer 19

CM RATIO

Question 20

A U.S firm sold $3 million in finished goods to a firm in Thailand for delivery in six months with the contract to be invoiced in dollars. In the ensuing period, the value of the bhat declined by 80%, which meant that Thai firm could not afford to purchase the dollars necessary to fulfill the contract. This is an example of:

Answer 20

ECONOMIC EXPOSURE