Bender Day 12

Question 1

The Absorption method subtracts ___ from ____ to drive gross margin?

Answer 1

COGS (which includes fixed factory overhead)

From

Revenues

MCQ-08970

Question 2

What is the difference between Fiscal and Monetary Policy?

Answer 2

Fiscal - government uses government spending and taxes to influence the market

Monetary - used by the Central Bank (Fed Reserve) and uses money supply and interest rates

MCQ-03249

Question 3

An organization installed an uninterrupted power supply, what type of control?

Answer 3

Physical access control

MCQ-13036

Question 4

ABC, Inc is a new company in a highly competitive industry of biotech, when will profitability increase?

Answer 4

When there are significant barriers to entry and high start up costs

this prevents new sellers from entering the market

MCQ-07838

Question 5

Equation: Contribution Margin Per Unit

Answer 5

Revenues - Variable Costs = Contribution Margin
÷
Total units

MCQ-03734

Question 6

What is the main reason why a company wants to reduce the number of days sales in amounts receivable is to increase:

Answer 6

Cash

MCQ-05052

Question 7

When should a US company consider hedging it’s transaction bc it is in a short position?

Answer 7

One receiving shipments from Japan and owing 800,000,000 yen in 60 days

the concern is a weakening domestic currency relative to a foreign currency

MCQ-12456

Question 8

What costs would be included on a Cost Of Quality Report

Answer 8

1. Warranty claims -external failure costs
2. Design engineering - prevention cost
3. Supplier evaluations - prevention costs

Note: lost contribution margin is an Opportunity Cost

MCQ-03881

Question 9

Conflicts of interest provisions in SOX, prohibit directors and executive’s of an issuer from:

Answer 9

Receiving a personal loan from the issuer not in the ordinary course of business

MCQ-06491