# BEC 142015

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1. ----------------------------- is the quantity of inventory that should be ordered at one time in order to minimize the associated costs of carrying and ordering inventory, such as purchase-order processing, transportation, and insurance
Economic order quantity (EOQ) is the quantity of inventory that should be ordered at one time in order to minimize the associated costs of carrying and ordering inventory, such as purchase-order processing, transportation, and insurance
2. What is Economic order quantity?
Economic order quantity (EOQ) is the quantity of inventory that should be ordered at one time in order to minimize the associated costs of carrying and ordering inventory, such as purchase-order processing, transportation, and insurance
3. In capital budgeting, the excess present value index (profitability index) is best used to:
select projects when capital budgeting funds are limited.
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-------------------------------------- is that it ignores the time value of money.
The limitation of the Accounting Rate of Return is that it ignores the time value of money.
7. ------------------------------------ is the method used to determine the rate of return that causes the present value of the net cash flows to equal the initial investment.
Internal rate of return (IRR) is the method used to determine the rate of return that causes the present value of the net cash flows to equal the initial investment.
8. The ------------------------------ is a way of evaluating an investment as the present value of the net future cash flows from the investment,
The internal rate of return is a way of evaluating an investment as the present value of the net future cash flows from the investment
9. Which ignores the time value of money, the Accounting Rate of Return or the Internal Rate of Return?
The Accounting Rate of Return ignores the time value of money
10. Which is a way of evaluating an investment as the present value of the net future cash flows from the investment, the Accounting Rate of Return or the Internal rate of return?
the Internal rate of return is a way of evaluating an investment as the present value of the net future cash flows from the investment
11. The -------------------------- allows the comparison of various projects with differing initial investment amounts
The Profitability index allows the comparison of various projects with differing initial investment amounts
12. The ------------------------ is often used to compare two or more mutually exclusive projects.
The Profitability Index is often used to compare two or more mutually exclusive projects.
13. What can the Profitability Index be used for?
The Profitability Index is often used to compare two or more mutually exclusive projects.
14. ---------------------------- is a measure of the market value of all final goods and services produced in an economy during a year using either domestic- or foreign-supplied resources.
Gross domestic product is a measure of the market value of all final goods and services produced in an economy during a year using either domestic- or foreign-supplied resources.
15. GDP is made up of the following:

--------------------------------------

-Gross private domestic investment

-Government purchases

-Net exports
GDP is made up of the following:

-Personal consumption expenditures

-Gross private domestic investment

-Government purchases

-Net exports
16. GDP is made up of the following:

-Personal consumption expenditures

----------------------------------------

-Government purchases

-Net exports
GDP is made up of the following:

-Personal consumption expenditures

-Gross private domestic investment

-Government purchases

-Net exports
17. GDP is made up of the following:

-Personal consumption expenditures

-Gross private domestic investment

------------------------------------

-Net exports
GDP is made up of the following:

-Personal consumption expenditures

-Gross private domestic investment

• -Government purchases
•
• -Net exports
18. GDP is made up of the following:

-Personal consumption expenditures

-Gross private domestic investment

-Government purchases

-----------------------------------
GDP is made up of the following:

-Personal consumption expenditures

-Gross private domestic investment

-Government purchases

-Net exports
19. GDP is made up of the following:

--------------------------------

---------------------------------

-------------------------------

--------------------------------------------
GDP is made up of the following:

-Personal consumption expenditures

-Gross private domestic investment

-Government purchases

-Net exports
20. A ----------------------- is the minimum acceptable rate of return on an investment.
A discount rate is the minimum acceptable rate of return on an investment.
 Author: Joens1313 ID: 313753 Card Set: BEC 142015 Updated: 2016-01-05 04:37:08 Tags: BEC 142015 Folders: Description: BEC 142015 Show Answers: