Deck 3 Mixed Flashcards
what is applied overhead?
overhead rate * estimated hours
what is vertical scalability and what does it not relate to?
adds more memory and power to cloud. it does not relates to data security
under ERM when does event identification occur?
after objectives have been established. then the events can occur which fave or unfave support entity objectives
why is residual income sometimes better than ROI?
RI supports goal congruence
monopolistic competition
maintain market share
differntiation
how is oliogopy different from monopolistic competiton
production volume, price change adaptation and diffentiation
what is a horizintal demand curve?
perfectly elastic, adjusts to price changes found in perfectly competitive environments
how can the fed reserve reduce inflation?
increase margin requirements will decrease money supply
raise interest rates
what types of risks are related to accuracy of reports?
strategic risk
financial risk
information risk
if 2 bonds have equal maturity and marketability what is the risk?
default risk premium
risk vs uncertainty
risk is possibility events will occur and hurt objectives
uncertaintity is not knowing what will happen
internal failure cost
changing tools -tooling
what type of cost is testing?
an appraisal cost-think determine its value
how is the median/market approach used?
remove outliers of highest and lowest and average the middle two numbers
why does circular combination not help achieve better economies of scale?
unlike a horizontal merger that does help economies of scale, a circular combo merges different businesses in remote locations
in order to get better economies of scale, use same industries
what is an indicator of high operating leverage?
high fixed costs in relation to total costs
if product demand is elastic, how will quantity and price be affected?
quanttity available will be much more than the decrease in price because demand is elastic
explain a sourcing requirement vs trade zone
value added or limits on foreign products is a sourcing req. and can be an example such as reduced tarriffs. trade zone refers to physical loaction where tarriffs are delayed for later
what do routers do?
assign ip adresses
what IT device acts as an intermediary
gateways
what does a server do?
shares data and provides services to a network
what is the formula for price elasticity of demand?
%change in QD/% change in price=elasticity
what is an equity carve out?
an IPO with a majority interest
how is differentiation achieved?
buillding the market share or increasing its price
what is the audit committee responsible for?
appointing auditor
auditor compensation
resolving disagreements between management and auditor
formula for missing out on credit discount
365/pay-disc days*disc./1-disc
what COSO componet adresses policies and procedures and IT?
control activities- because these are activities occuring once objectives are set
what component of ERM is the process for establishing the impact of an event
performance
GOPRO
why is a patent a barrier to entry?
they prevent other firms from entering the market who may not have a patent
how is a merger differnt from an acquisition?
a merger combines 2 companies and forms a new business, whereas an aquisition buys another company without forming a new business
