BEC REVIEW D

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Joens1313
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BEC REVIEW D
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2015-11-15 20:25:31
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BEC REVIEW D
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  1. A measure of project risk is provided by the capital budgeting technique of:
    payback.
  2. The ------------------------------------------ how soon a project will recover its cost.
    The payback capital budgeting technique indicates how soon a project will recover its cost.
  3. When several investment alternatives are being considered, they can be ranked according to the --------------------. The investment alternatives with the shortest period are considered most desirable.
    When several investment alternatives are being considered, they can be ranked according to the payback period. The investment alternatives with the shortest period are considered most desirable.
  4. When several investment alternatives are being considered, they can be ranked according to the payback period. The investment alternatives with the ---------------------------- are considered most desirable.
    When several investment alternatives are being considered, they can be ranked according to the payback period. The investment alternatives with the shortest period are considered most desirable.
  5. Under Pick Co.’s job order costing system, manufacturing overhead is applied to work in process using a predetermined annual overhead rate.

    During January, Pick’s transactions included the following: 

    Direct materials issued to production      $ 90,000  

    Indirect materials issued to production       8,000  

    Manufacturing overhead incurred125,000  

    Manufacturing overhead applied              113,000  


    Direct labor costs 107,000


    Pick had neither beginning nor ending work-in-process inventory. What was the cost of jobs completed in January?
    $310,000

    Applied overhead is the amount of overhead cost that has been assigned, using estimates of overhead costs and production levels, to finished goods and included in inventory (which will be expensed as part of cost of goods sold).


    Overhead applied at the standard or estimated rate does not necessarily equal the actual overhead incurred.


    The work-in-process inventory at the beginning and end of the month were both zero, so the costs added to work-in-process during the month equal the cost of jobs completed during the month.


    Those costs included only direct materials ($90,000), overhead applied ($113,000), and direct labor ($107,000), which total $310,000.

    The indirect materials ($8,000) are part of the overhead costs and should not be included a second time.
  6. --------------------------- is the idea that countries from developed markets that attempt to sell in emerging markets may in fact find themselves under attack in their home markets by companies who are more aggressive in realizing the potential for innovation in emerging markets.
    Innovation blowback is the idea that countries from developed markets that attempt to sell in emerging markets may in fact find themselves under attack in their home markets by companies who are more aggressive in realizing the potential for innovation in emerging markets.
  7. What is innovation blowback?
    Innovation blowback is the idea that countries from developed markets that attempt to sell in emerging markets may in fact find themselves under attack in their home markets by companies who are more aggressive in realizing the potential for innovation in emerging markets.
  8. ------------------------ connect the information, tasks, and resources with the work groups in the organization.
    Integrating mechanisms connect the information, tasks, and resources with the work groups in the organization.
  9. Integrating mechanisms connect the information, tasks, and resources with the work groups in the organization. The major integrating mechanisms include:

    general management systems,

    increasing coordination potential,

    and ----------------------------------
    Integrating mechanisms connect the information, tasks, and resources with the work groups in the organization. The major integrating mechanisms include:

    general management systems,

    increasing coordination potential,

    and reducing the need for coordination.
  10. Integrating mechanisms connect the information, tasks, and resources with the work groups in the organization. The major integrating mechanisms include:

    general management systems,

    ----------------------------------, and

    reducing the need for coordination.
    Integrating mechanisms connect the information, tasks, and resources with the work groups in the organization. The major integrating mechanisms include:

    general management systems,

    increasing coordination potential, and

    reducing the need for coordination.
  11. Integrating mechanisms connect the information, tasks, and resources with the work groups in the organization. The major integrating mechanisms include:

    -------------------------------------------,

    increasing coordination potential, and

    reducing the need for coordination.
    • Integrating mechanisms connect the information, tasks, and resources with the work groups in the organization.
    • The major integrating mechanisms include:

    general management systems,

    increasing coordination potential, and

    reducing the need for coordination.
  12. Integrating mechanisms connect the information, tasks, and resources with the work groups in the organization. The major integrating mechanisms include:

    --------------------------------------,

    ------------------------------------, and

    -----------------------------------.
    Integrating mechanisms connect the information, tasks, and resources with the work groups in the organization. The major integrating mechanisms include:

    general management systems,

    increasing coordination potential, and

    reducing the need for coordination.
  13. -------------------------- is current assets minus current liabilities.
    Net working capital is current assets minus current liabilities.
  14. Marsh, Inc., is experiencing a sharp increase in credit sales activity and has, therefore, had a steady increase in production. Management has also adopted an aggressive working capital policy by decreasing the inventory conversion period and holding the receivables collection period and the payables deferral period constant. Original inventory levels were higher than accounts receivable. Therefore, the company's current level of net working capital:
    would most likely be lower than under other business conditions in order that the company can maximize profits while minimizing working capital investment.

    Net working capital is current assets minus current liabilities. As sales increase, accounts receivable, a component of current assets, will increase providing the receivable collection period (average accounts receivable/average sales per day) remains constant.


    If credit sales increase by 10%, receivables would be expected to increase by 10%, thus increasing working capital.


    If the inventory conversion period (average inventory/average sales per day) is decreased, this means that inventory would be held for a shorter amount of time; therefore, in this situation, production has increased in order to accommodate increase sales; however, since the inventory conversion period has decreased, this means that inventory would have decreased or increased slower than sales.


    As sales and production increase, accounts payable and accrued production costs will increase providing the payables deferral period (average payables/average purchases per day) remains constant.


    If purchases and production increase by 10%, accounts payable and payables related to variable production costs would be expected to increase by 10% thus decreasing working capital. (This is assuming that unit variable costs of production remain unchanged).


    If the original balances of accounts receivable were less than the original inventory balances, it would be expected that working capital would decrease since the increase in accounts receivable would be less than the increases in payables related to the increased sales production.

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