BEC V BLAKE CPA Flashcards
Cross Elasticity of Demand Supply
> 0 Substitute Good
<0 Complementary Good
=0 No Relationship
Law of Supply & Demand
If Price increases Supply Increases & Demand Decreases
If Price decreases Supply Decreases and Demand increases
The demand curve for a product reflects which of the following?
The impact that price has on the amount of a product purchased
Factors that impact supply
Changes in production costs
Change in manufacturing methods
Change in price or demand of related goods
Forecasted changes in supply
Changes in regulation - Changes in Gov’t subsidies
Factors Impacting Demand
of buyers in the market
Price Change of related Goods (Complementary products)
# of buyers in the market
changes in the wealth or income level
Consumer trends or preferences
Consumer expectations
If the demand for a normal good is inelastic, then the sales price of the product would increase following:
Decrease in the supply of the product
If Demand stayed the same while supply curve shifted left it will create a new market equilibrium resulting in a higher price
What type is method of international trade or business when a international companies use the comparative advantages of each other to succeed in the market
Joint Ventures
We will bring the bread - Germany
We’ve got the Distributions - United states
Licensing
Is when the firms receive fees in exchange for their process or technologies
USA: “We will license you our technology for a % of your revenue.”
Bermuda: “Deal”
International Trade
The exporation and imporation of products and services
Four Primary Emerging Economies
Russia, China, India, Brazil
Cross Currency Method
One Euro will buy U.S. $1.48, & a british pound will buy U.S. $2.06. What is the cross rate of euros per pound?
Step 1) Setup the “ABC” method
A) U.S. Dollar = $1.00
B) 1 Euro = $1.48
C) 1 Pound = $2.06
Step 2) Divide C by B
$2.06/$1.48 = 1.39 Euros per Pound
Factors that drive globalization
Improvements
1) Technological enhancements
2) Transportation improvements
3) Lower wages & Raw materials
4) Less Regulation
What is a Primary Key
Unique identifier. ex: customer number in a customer data base
no duplicates or null values for a primary key
Foreign Key
links the data between two different tables.
set of attributes in a table that refers to the primary key of another table.
Secondary Key
close rival to a primary key, did not make the cut as primary key
Null values NO Unique ID
ex: Customer address, people living in same address
Schema
describes the strucutre & organization of data
Defines what is the primary key, secondary key ect.
Information Systems Steering Committee (project steering committees)
responsible for planning, overseeing, & guiding information systems functionality and complexities
“Coach on the sideline”
Customer RElationship MGT systems (CRM)
Idea is to apply data analytics to manage & analyze interactions with its former, current and prospective customers.
Drives growth, customer satisfaction & sale force
Applied to meet the needs of the organizations customers
What type of chart should be used that shows the timing & duration of each activity using a data visualization chart?
Gantt Chart aka The “Project Management” Chart
Data Warehouse
System that pulls together data from many different sources within an organization for reporting & analysis
Data is continually stored in a data warehouse
Data mining
refers to the process of sifting through large amounts (BIG) of data, impossible to analyze by individuals, to search for relationships amongst various data as a means for achieving strategic or competitive advantage
Processes data and voncerts it into constructive new information
EDI
How information is transferred between businesses or systems
Computer-to computer exchange of business transaction documents
Not a tool used specifically for collaboration between humans
Five Domains of IT Governance
- Strategic Alignment
- Value Delivery
- Resource Management
- Risk Management
- Performance Measures
Predictive Analytics
Statisitcal technique & Forecasting models to predict future outcomes
ex: Spending patterns
Descriptive analytics
Learn from what happened in the past
ex: Financial reports, reviewing J/E for proper approval
Value Delivery
ensures that the IT department performs what is necessary to deliver the benefits that were promised at the beginning of a specific project or an investment
Make Sure to deliver value.
Supply Chain Management System
Takes a Holisitc approach on choosing a vendor.
Four Key throughts for SCM :
1)What is being sold?
2)Where is it being sold?
3)When is it being sold?
4)How much is being sold?
Entity level controls
Impact entire organization
Transactions level controls
Focus on just one specific activity of the organization
ex: Technology development policies & procedures
What is the overall objective to IT governance & COBIT framework?
to ensure that risk is adequately balanced within an organization to information processes
