MyBECFinal Flashcards
General statement about cash discounts is that
cost of not taking the cash discount is generally higher than the cost of the bank loan
What days does the buyer receives as a credit for payment?
maximum days available b4 need to pay if not taking the cash discount
When does real GDP increases?
when positive things happens as demand shift to the right, decrease in rates and more money supplied
Company mgt operating style, organization structure, authority and oversight characteristics?
operating refers to ensuring effective financials, structure alignment of relationship and supervising, delegate proper authority, oversight BOD to mgt reports
Under the VC method, is vc selling and exp considered part of product cost?
No. only VC of DC, DL and O/H is part of inventory cost
Object oriented database is used for images and videos for normal database?
more size is needed and is normally slower than relational database
Are independent auditors independent from the BOD?
No, since audit committee in BOD pays the external auditors, do not comply w/ independence. External auditors must be independent of mgt and the Co.
Repatriation
restriction of bringing money back affecting cash inflow expected from investment
American depository receipt
securities of non US that trades in US mkt carrying lower levels of risks
What are joint cost to the slip off point?
considered unavoidable cost so doesn’t work for making decisions
What will inflation cause to a transaction?
reduces purchasing power and value of a transaction
What is considered to cause the most inflation?
aggregate demand to rise and aggregate supply to fall
Code of ethics does not includes
internal reporting but does includes full, fair, accurate and timely disclosure.
Cost drivers are
activity that causes cost to increase as activity increases
Will MACRS method of depreciation differ from SL depreciation?
No. equal total depreciation under both. only timing difs were PV is based on dif timing.
decrease in aggregate demand and decrease in aggregate supply will cause a
recession
Most popular use for encryption of data
128 bits or 256 bits
Engineered cost are
cost that bears observable and known relationship to a qty activity base
Strategic objectives
supported by strategy and related objectives
What objective is related to focus groups to determine responsiveness?
related operations objectives. related compliance objectives is more about rules, laws and regulations.
Flexible budget variance
dif b/w actual amt vs flexible budget amt for actual output.
Standard cost variance
dif. b/w total actual cost vs total budget cost
Sales volume variance
dif. b/w qty sold vs qty budget
NPV investment should be accepted if is
greater not equal than initial investment
Purpose of zero balance account
bank acct that allows same day tranx from excess money to a concentration account after paying required amt
concentration bank acct deals w/
collecting money in that one acct from customers and others
