Day 49 Flashcards
Equation: Real Cost
= Initial Value × (1 + Inflation Rate) - Future Value
MCQ-12435
What would cause the demand curve for jet fuel to shift to the left?
An average increase in domestic airline tickets
MCQ-07810
Inventoriable costs are registered as ______ before the products are sold.
Assets
They become COGS when they are sold
MCQ-03907
MCQ-04208
Rule: The IRR is computed as follows:
Investment / Cash Flows = Present Value Factor
The higher the Present Value Factor, the lower the computed rate of IRR
MCQ-05851
The manufacturer of a high priced car, emphasizes the prestige, performance, and the safety of the car. What strategy is the car manufacturer pursuing?
Differentiation focused on a broad range of buyers
If they said “Car Enthusiast” that would be Narrow Niche focus
MCQ-07030
What is a strength of the payback method?
- Easy to use and understand
- Emphasizes on liquidity - Focuses MGMT on return of principal
MCQ-03324
Equation: Equivalent Units
Units Completed + % Complete in WIP
MCQ-03628
Define: Job Closing System
Allocating production costs to products and services that are identifiable as separate units and require greater or lesser amounts of work to complete
Ex: Furniture Manufacturing, Special Order Printing, and Ship Building
MCQ-13024
Define: Process Costing System
Allocating production costs to products and services by averaging the cost over the total units produced
Ex: Manufacturers of homogeneous products such as, soda or paper on a continuous basis
MCQ-13024
