Deck 4 Mixed Flashcards
what is a pareto diagram?
individual and cumulative errors by type and ranks them by number of errors in each type. includes histogram and line
within the relevant range, what does not change?
total fixed costs
name 3 ways the fed can decrease money supply
sell bonds
increase discount rate
increase reserve ratio
current assets-current liabilities is what?
working capital
why are inspections not a carrying cost for inventory
because inspections are part of order costs
formula for cost of equity/cost of RE as a %
Dividend/price + growth%
how is job costing differnt from process costing?
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
how does FIFO differ to weighted average inventory?
FIFO considers beg. inventory, weighted average does not
if the market is growing fast, how would this effect competition?
less competition is needed because a strong market helps all businesses
how is an ERP different from an EIS
an enterprise resource planning system integrates data from all aspects of an organization whereas an EIS helps executives with high level desision making
what type of ecommerce involves an individual selling services to a business?
consumer to business
what does a flexible budget do?
adjusts budget amounts for different levels of activity
what is a risk if a company only uses equity to finance a firm?
business risk because a company is using its own resources which may reduce shareholder value
how is unemployment affected at the peak of a businesss cycle?
natural rate of unemployment
what is another name for kaizan or lean manufacturing?
continuous improvement
what type of demand does not exist?
perfectly elastic. can only have relatively lastic or perfectly inelastic or relatively inelastic
why does variable costing result in lower ending invebtory and net icome but a higher cogs
because fixed overhead is not included in inventory but is a period cost so less is allocated to inventory
what ratio is useful when earnings data is not available or when earnings are very low?
price/sales ratio
why are high fixed costs to total cost structure detrimental to a company?
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
PEG ratio
PEG=price/earnings/g*100
how is depreciation tax shield calculated?
depreciation expense*tax rate
free cash flows
cash generated after considering reinvesting in noncurrent assets
net income+ noncash expenses-increase in working capital-capital expenditures
what will increasing the discount rate do to the money supply?
reduce borrowing thus reduce money in circluation
this will also raise interest rates short term
who frequently communicates w/users during system design?
project development team
