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Yaegar BEC > Exam 1 > Flashcards

Exam 1 Flashcards

1
Q

A firm that earns a normal profit (zero economic profit) has revenue equal to…

A

Total cost (explicit + implicit cost)

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2
Q

Economic profit is generally lower and…

A

Never higher than accounting profit

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3
Q

When implicit costs are greater than zero and economic profits in an industry equal zero, accounting profits will…

A

Be greater than zero

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4
Q

Financing with short term credit usually results in…

A

Lower interest costs

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5
Q

Seasonality in data may be removed by calculating a…

A

Weighted average of the data for 4 seasonal (quarterly) time periods

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6
Q

Calculating a weighted average of data for 4 seasonal (quarterly) time periods, provides a representative annual value which is…

A

Free of seasonal influence

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7
Q

For purposes of allocating joint costs to joint products, the sales price at point of sale, reduced by cost to complete after split-off, is assumed to be equal to…

A

Net sales value at split off

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8
Q

Which of the following would normally be the function of security software?2

A

1 Authenticates user identification and

2 controls access to information resources

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9
Q

Which of the following are you most likely to use to help you estimate the price at which goods might be sold in future years?

A

Current CPI

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10
Q

GDP equation 6

A

GDP =
personal consumption expenditure + domestic investment
+ government purchases + exports - imports

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11
Q

When developing a contingency plan for a mortgage company in a flood zone, the most critical aspect of the plan would be…

A

Continuation of mortgage servicing

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12
Q

Communications risk is concerned with the unauthorized access to and manipulation of which of the following?

A

Data

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13
Q

Business process management is supported by the organization’s…3

A

1 approaches

2 techniques

3 measures

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14
Q

If an entity engages in a hedge against the exposure to variable cash flow, the entity would recognize the effective portion of the derivative’s gain or loss as…

A

Component of other comprehensive income

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15
Q

Control of a user’s initial login is a function of the…

A

Operating system

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16
Q

When the Economic Order Quantity (EOQ) model is used for a firm which manufactures its inventory, ordering costs consist primarily of…

A

Production setup

17
Q

EOQ formula

Define 4 variables

A

EOQ = squ. Rt. of (2DS/Ci)

D = demand
S = production setup or ordering cost per order
C = cost per unit
i = carrying cost
18
Q

In the EOQ formula, Ci

A

Is the carrying cost per unit

19
Q

The theoretically superior (not necessarily the most widely used) investment base would be…

A

Replacement value

20
Q

The rate of unemployment caused by changes in composition of employment opportunities overtime is referred to as…

A

Structural unemployment

21
Q

Cyclical unemployment is caused by…

A

Recession

22
Q

What kind of unemployment is due to imperfections in the labor market and relates to workers searching for jobs or waiting to take jobs in the near future?

A

Frictional unemployment

23
Q

The sum of frictional and structural unemployment is the…

A

Full employment unemployment rate

24
Q

The cost of capital used should be the weighted average cost of capital in a…

A

Marginal sense

25
Q

A key rationale or cause for the changing pattern of investment in agriculture by sovereign wealth funds would be…

A

To ensure food security in the event that crop shortages

Would cause export bans

26
Q

In terms of globalization, a relatively large labor force in emerging markets and declining birth rates have historically been associated with…

A

Dynamic positive economic change

27
Q

If 10 year 12% semi annual bonds bearing interest on January 1st and July first are issued on February 1st, what is the amount the issuing company receives from buyers of the bonds?

A

$1,000,000 + ($1,000,000 x .12 x 1/12)

28
Q

If the price level of the dollar is expected to increase by 3% and the British pound is expected to depreciate against the dollar by 5%, what price should be quoted for delivery of 700 pounds to Kuwait next year by a U.S. production manager?

A

700 pound x 1.03 x 1.05

Yaegar BEC (30 decks)

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