Sept 15 Quiz Flashcards
Letters of credit are often used to facilitate international trade. The basis purpose of the letter of credit is to reduce risk to the…
Exporter
When dealing with supply chain management, one of the key differences between traditional manufacturing and demand management within the supply chain is that products are pulled trough the production process in…
Response to specific customer needs
What is the definition of shared services?
Combining the efforts of 2 departments at share the same resources
Calculate the applied overhead rate in 2 steps
1 overhead rate = estimated annual OH/estimated annual direct labor
2 applied OH = actual direct labor cost x OH rate
Key objectives of supply chain management do not relate to the manner in which a company…
Calculates transfer prices
In relation to the role of capital in mitigating financial risk, it has been strongly suggested that in the regulatory environment, regulators treat capital as…
A shock absorber
Capital budgeting techniques would least likely be used in evaluating…
The adoption of new method of allocating nontraceable costs to product lines
The evaluation of a new method for allocation of non traceable costs to product lines relates to allocation of expenditures, not…
Not comparison of project inflows and outflows
For a $600,000 machine that has cash flows of $300,000/yr for 3 years, calculate the internal rate of return.
IRR = -$600,000 + $300,000 (PV 3 yr. annuity)
Plug in to get the closest number to 0
A disaster recovery alternate site configured to meet user data processing requirements, including appropriate hardware is called…
Hot site
A hot site is more costly that a…
What does this site not include?
Cold site
Doesn’t include hardware
Calculate the balance of trade
Balance of trade =
exports - imports - net transfers from abroad
+ net investment
An in exchange premise as used when making fair value calculation assumes that the maximum value of items being valued would come form…
Using the item alone
An in use premise assumes maximum value of subject item would come from purchaser’s perspective of…
Item used in conjunction with other assets as a group
When calculating the net present value with cost savings of $85,000/yr and a machine that cost $210,000 with depreciation of 33.33% and a disposal value of $10,000. How do you calculate the net present value with a 40% tax rate?
-220,000
+ (85k x .4) + (220k x .333 x .4)
+ (85k x .4) + (220k x .333 x .4)
+ (85k x .4) + (220k x .333 x .4) + (10k x .4)
