# BEC REVIEW 7

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1. Computer program libraries can best be kept secure by:
restricting physical and logical access.
2. Restricting ---------------------------- access secures program libraries from unauthorized use, in person and remotely via terminals.
Restricting physical and logical access secures program libraries from unauthorized use, in person and remotely via terminals.
3. Restricting physical and logical access secures ------------------------ from unauthorized use, in person and remotely via terminals.
Restricting physical and logical access secures program libraries from unauthorized use, in person and remotely via terminals.
4. Spotech Co.'s budgeted sales and budgeted cost of sales for the coming year are \$212,000,000 and \$132,500,000, respectively. Short-term interest rates are expected to average 5%. If Spotech could increase inventory turnover from its current eight times per year to 10 times per year, its expected cost savings in the current year would be:
\$165,625

The key to this problem is to determine how much inventory is reduced by the increased inventory turnover and the resulting savings in interest costs due to reduced working capital requirements. A company must either borrow funds to acquire working capital or give up the next best investment opportunity to fund working capital requirements (opportunity cost). Either way, it costs a company to hold inventory. Any reduction in inventory levels reduces that cost.The formula for inventory turns is annual cost of sales divided by inventory.

Solve for inventory by dividing annual cost of sales by inventory turns. Initially, Spotech has an inventory level of \$16,562,500 (\$132,500,000 divided by 8 turns). Spotech hopes to decrease the level to \$13,250,000 by increasing inventory turns to 10 (\$132,500,000 divided by 10 turns). Working capital is reduced by this change in inventory (\$16,562,500 - \$13,250,000 = \$3,312,500). The interest avoided on the \$3,312,500 represents a savings of \$165,625 (\$3,312,500 × 5%).
5. During the recessionary phase of a business cycle:
potential national income will exceed actual national income.
6. A --------------- is defined as a period when real output, as measured by real national income, is decreasing.
A recession is defined as a period when real output, as measured by real national income, is decreasing.
7. A recession is defined as ------------------------------------------------------------------.
A recession is defined as a period when real output, as measured by real national income, is decreasing.
8. during a -----------------------------, actual real national income falls short of potential real national income, because some resources are unemployed and the economy operations below capacity.
during a recession, actual real national income falls short of potential real national income, because some resources are unemployed and the economy operations below capacity.
9. during a recession, actual real national income falls short of potential real national income, because ----------------------------------------------------------------------.
during a recession, actual real national income falls short of potential real national income, because some resources are unemployed and the economy operations below capacity.
10. What is the labor usage veriance?
The difference between standard hours at standard wage rates and actual hours at standard wage rates.
11. The --------------------------------- is the difference between the standard quantity of direct labor hours budgeted and the actual quantity used (per employee time sheets).
The labor efficiency variance is the difference between the standard quantity of direct labor hours budgeted and the actual quantity used (per employee time sheets).
12. What is the labor efficiency variance?
The labor efficiency variance is the difference between the standard quantity of direct labor hours budgeted and the actual quantity used (per employee time sheets).
13. The ---------------------- is the difference between actual cost and planned cost for direct labor used
The Direct Rate Variance is the difference between actual cost and planned cost for direct labor used
14. What is the Direct Rate Variance?
The Direct Rate Variance is the difference between actual cost and planned cost for direct labor used
15. ------------------------- is a predetermined quantity or cost of inputs (direct material, direct labor, and manufacturing overhead) that should be required to produce one unit of output. It is the per-unit planned amount; the target, quantity, or cost that should be needed.
Standard cost is a predetermined quantity or cost of inputs (direct material, direct labor, and manufacturing overhead) that should be required to produce one unit of output. It is the per-unit planned amount; the target, quantity, or cost that should be needed.
16. What is standard cost?
Standard cost is a predetermined quantity or cost of inputs (direct material, direct labor, and manufacturing overhead) that should be required to produce one unit of output. It is the per-unit planned amount; the target, quantity, or cost that should be needed.
17. An in-exchange premise as used when making a fair value calculation assumes that the maximum value of the item(s) being valued would come from:
using the item alone.
18. An ---------------------- premise assumes that the maximum value of the subject item would come from the purchaser's perspective when the item is used alone
An in-exchange premise assumes that the maximum value of the subject item would come from the purchaser's perspective when the item is used alone
19. ----------------------- is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
20. The --------------- premise is the assumption that maximum value to the market participants would come from using the asset in question in combination with other assets.
The in-use premise is the assumption that maximum value to the market participants would come from using the asset in question in combination with other assets.
21. what is a in-use premise?
The in-use premise is the assumption that maximum value to the market participants would come from using the asset in question in combination with other assets.
22. A key rationale or cause for the changing pattern of investment in agriculture by sovereign wealth funds would be:
to ensure food security in the event that crop shortages would cause export bans that might curtail their ability to import crops.
23. A key driver of ------------------------------ investment in agriculture is to ensure food security for their country in the event worldwide food shortages would curtail the availability of foodstuffs in traditional agricultural markets.
A key driver of SWF (sovereign wealth fund) investment in agriculture is to ensure food security for their country in the event worldwide food shortages would curtail the availability of foodstuffs in traditional agricultural markets.
24. ------------------------------ are pools of money accumulated from a country's reserves that are provided for investment purposes that will benefit the country's economy and citizens.
Sovereign wealth funds are pools of money accumulated from a country's reserves that are provided for investment purposes that will benefit the country's economy and citizens.
25. What is a Sovereign wealth fund?
Sovereign wealth funds are pools of money accumulated from a country's reserves that are provided for investment purposes that will benefit the country's economy and citizens.
 Author: Joens1313 ID: 310684 Card Set: BEC REVIEW 7 Updated: 2015-10-31 15:35:38 Tags: BEC REVIEW Folders: Description: BEC REVIEW 7 Show Answers: