BEC - 21 Flashcards
Interest rate swap
Two companies exchange their debt servicing obligations on some amount of debt principal. The actual exchange of funds during the agreement is in the form of a net payment from the party owing the greater amount for the period.
Degree of operating leverage
A measure of the change in earnings available to common stockholders associated with a given change in operating earnings.
Percent change operating income / percent change in sales volume
What functions should be segregated in computer systems?
Programming operating and library functions
Residual income formula
Net income - invested asset yield
Cost of debt
Effective rate less tax advantage
Echo check
A hardware control that checks for accuracy in data transmission
Appraisal costs
Costs associated with quality control including testing and inspection
GDP formula
Personal consumption
Gross private domestic fixed investment
Government expenditures
Adjust for net exports and changes in business inventories
Parity check
Hardware Controls which have been developed to detect and control mishandling of data within the computer. They detect electronic or mechanical problems in the movement and storage of data
Reorder Point for an Item of Inventory
Lead Time x Usage Per Day = Reorder Point.
The most common approach to setting the optimum safety-stock level is to examine previous lead time periods to determine the probabilities of running out of stock (a stockout) for different assessed levels of safety stock.
