BEC 4

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  1. ----------------------- is the impact on operating income resulting from a change in sales.
    Operating leverage is the impact on operating income resulting from a change in sales.
  2. A high degree of ----------------------------indicates a firm's profits will be more sensitive to changes in sales.
    A high degree of operating leverage indicates a firm's profits will be more sensitive to changes in sales.
  3. The change in -------------------------------- is affected by the relative amounts of fixed and variable costs within total costs.
    The change in operating income is affected by the relative amounts of fixed and variable costs within total costs.
  4. ----------------------------- is a nondiscounted method of computing the rate of return of an investment.
    Accounting rate of return is a nondiscounted method of computing the rate of return of an investment.
  5. The ---------------------------- is based on accrual accounting and has the measurement of profitability as the goal.
    The Accounting Rate of Return is based on accrual accounting and has the measurement of profitability as the goal.
  6. The limitation of the-------------------------- , however, is that it ignores the time value of money.
    The limitation of the accounting rate of return , however, is that it ignores the time value of money.
  7. -------------------------- is the present, or discounted (at the implicit or historical rate), value of future cash flows used for long-term receivables and payables.
    Present value is the present, or discounted (at the implicit or historical rate), value of future cash flows used for long-term receivables and payables.
  8. -------------------- 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
    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
  9. --------------------------- = the excess of applied overhead over actual overhead incurred
    Over-applied overhead = the excess of applied overhead over actual overhead incurred
  10. ----------------------------------- = the deficiency of applied overhead; the excess of overhead actually incurred over the amount applied
    Under-applied overhead = the deficiency of applied overhead; the excess of overhead actually incurred over the amount applied
  11. what is over applied over head?
    Over-applied overhead = the excess of applied overhead over actual overhead incurred
  12. What is under applied over head?
    Under-applied overhead = the deficiency of applied overhead; the excess of overhead actually incurred over the amount applied
  13. Systemic risk is also called ________ risk.
    Another name for systemic risk is market risk.
  14. -------------------- must be earned and realized/realizable before they can be recognized.
    Revenues must be earned and realized/realizable before they can be recognized.
  15. A --------------- is considered to be an expense.
    A bad debt is considered to be an expense.
  16. The --------------------- is arbitrarily defined as the ratio of the elderly (those 65 years and over) plus the young (those under 15 years of age) to the population in the “working ages” (those 15–64 years of age).
    The dependency ratio is arbitrarily defined as the ratio of the elderly (those 65 years and over) plus the young (those under 15 years of age) to the population in the “working ages” (those 15–64 years of age).
  17. ------------------------- 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.
  18. 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.
  19. The ---------------------- is a liquidity ratio that measures a firm's ability to discharge currently maturing obligations from existing current assets that are expected to be converted into cash within the maturing period of the claims.
    The current ratio is a liquidity ratio that measures a firm's ability to discharge currently maturing obligations from existing current assets that are expected to be converted into cash within the maturing period of the claims.
  20. what is current ratio?
    The current ratio is a liquidity ratio that measures a firm's ability to discharge currently maturing obligations from existing current assets that are expected to be converted into cash within the maturing period of the claims.
Author:
Joens1313
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313505
Card Set:
BEC 4
Updated:
2015-12-22 04:07:01
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BEC
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BEC 4
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