Deck 4 Mixed

Question 1

what is a pareto diagram?

Answer 1

individual and cumulative errors by type and ranks them by number of errors in each type. includes histogram and line

Question 2

within the relevant range, what does not change?

Answer 2

total fixed costs

Question 3

name 3 ways the fed can decrease money supply

Answer 3

sell bonds
increase discount rate
increase reserve ratio

Question 4

current assets-current liabilities is what?

Answer 4

working capital

Question 5

why are inspections not a carrying cost for inventory

Answer 5

because inspections are part of order costs

Question 6

formula for cost of equity/cost of RE as a %

Answer 6

Dividend/price + growth%

Question 7

how is job costing differnt from process costing?

Answer 7

process costs are accumulated by product as a whole not by a specific job. process ex: beverage company
job-accounting firm as a specified service

Question 8

how does FIFO differ to weighted average inventory?

Answer 8

FIFO considers beg. inventory, weighted average does not

Question 9

if the market is growing fast, how would this effect competition?

Answer 9

less competition is needed because a strong market helps all businesses

Question 10

how is an ERP different from an EIS

Answer 10

an enterprise resource planning system integrates data from all aspects of an organization whereas an EIS helps executives with high level desision making

Question 11

what type of ecommerce involves an individual selling services to a business?

Answer 11

consumer to business

Question 12

what does a flexible budget do?

Answer 12

adjusts budget amounts for different levels of activity

Question 13

what is a risk if a company only uses equity to finance a firm?

Answer 13

business risk because a company is using its own resources which may reduce shareholder value

Question 14

how is unemployment affected at the peak of a businesss cycle?

Answer 14

natural rate of unemployment

Question 15

what is another name for kaizan or lean manufacturing?

Answer 15

continuous improvement

Question 16

what type of demand does not exist?

Answer 16

perfectly elastic. can only have relatively lastic or perfectly inelastic or relatively inelastic

Question 17

why does variable costing result in lower ending invebtory and net icome but a higher cogs

Answer 17

because fixed overhead is not included in inventory but is a period cost so less is allocated to inventory

Question 18

what ratio is useful when earnings data is not available or when earnings are very low?

Answer 18

price/sales ratio

Question 19

why are high fixed costs to total cost structure detrimental to a company?

Answer 19

this means high operating leverage. this means the company must generate enough in sales to meet its fixed cost obligations. this is a risk that the company could go belly up

Question 20

PEG ratio

Answer 20

PEG=price/earnings/g*100

Question 21

how is depreciation tax shield calculated?

Answer 21

depreciation expense*tax rate

Question 22

free cash flows

Answer 22

cash generated after considering reinvesting in noncurrent assets

net income+ noncash expenses-increase in working capital-capital expenditures

Question 23

what will increasing the discount rate do to the money supply?

Answer 23

reduce borrowing thus reduce money in circluation

this will also raise interest rates short term

Question 24

who frequently communicates w/users during system design?

Answer 24

project development team

Question 25

cost of equity calculation

Answer 25

d/p+g

Question 26

what cost is not associated with TQM?

Answer 26

investment costs

TQM is conformance and non conformance. nonconformance is internal and external
confromance is apprasal and prevention

Question 27

3 types of risks for reporting accuracy

Answer 27

informational, strategic, and financial risk

Question 28

how to solve for assets

Answer 28

net working capital, cash and fixed assets then solve for cash once taken liabilites and equity into account

Question 29

average inventory for eoq model

Answer 29

units/2 + safety stoc,k

Question 30

if a company produces more than 1 product how can the variances be divided?

Answer 30

sales quantity variance and sales mix variance