01/03/15 Flashcards
(20 cards)
OPERATING INCOME - INTEREST ON INVESTED CAPITAL IS????
RESIDUAL INCOME…
WHEN GENERAL ECONOMIC CONDITIONS ARE RECESSIONARY, GREATER BARRIERS TO COLLUSION EXIST FOR ________FIRMS?
OLIGOPOLISTIC
IN A JOB ORDER COST SYSTEM, THE USE OF INDIRECT MATERIALS WOULD BE REFLECTED IN THE GL AS AN INCREASE IN ????????????
FACTORY OVERHEAD CONTROL
A BASELINE UNDERSTANDING OF THE SYSTEM IS THE STARTING POINT FOR ???????MONITORING, ACCORDING TO COSO
CONTROL
A DIGITAL SIGNATURE IS USED TO DETERMINE THAT A MESSAGE IS ??????? IN TRANSMISSION
UNALTERED
CURRENT ASSETS / CURRENT LIABILITIES IS THE ????
CURRENT RATIO
THE PRESENT VALUE OF FUTURE CASH FLOWS MINUS THE INVESTMENT IS THE ?????
NET PRESENT VALUE
INCREASED SECURITY IS AN ADVANTAGE OF THE ??? NETWORK
VAN (VALUE ADDED NETWORK)
PHYSICAL QUANTITY COST ALLOCATION IS BASED ON THE TOTAL AMOUNT OF PRODUCTS PRODUCED. TO ALLOCATE, YOU SIMPLY ??? THE PRODUCTION COSTS TOGETHER AFTER THE SPLIT OFF POINT TO GET THE JOINT COST
ADD
COST OF GOODS SOLD/AVERAGE INVENTORY IS THE ?
INVENTORY TURNOVER
DIVIDENDS
+CHANGE IN PRICE/BEGINNING PRICE CALCULATES???
ECONOMIC RATE OF RETURN FOR COMMON STOCK
????? MAPS DIAGRAM CAUSE AND EFFECT RELATIONSHIPS BETWEEN STRATEGIC OBJECTIVES
STRATEGY
THE PRIMARY REASON FOR A DEBT COVENANT THAT LIMITS THE PERCENTAGE OF LT DEBT IS TO REDUCE THE ?????? RATE ON BONDS BEING SOLD
INTEREST RATE
THE PRODUCT COSTS ARE $89 AND THE COMPANY WANTS A GROSS MARGIN OF 40% ON EACH UNIT SOLD, WHAT SHOULD BE THE SELLING PRICE?
$89/(100-.40) OR .60
$148.33
THE SPREAD IS = TO ROI - COST OF CAPITAL
spread calculation
direct labor+overhead or production costs-raw materials
conversion cost
Return on investment (ROI) is calculated by dividing the average invested capital into the net income:
Average invested capital is (Operating assets from Year 2 + Operating assets from Year 3) ÷ 2.
Average invested capital = ($1,200,000 + $2,000,000) ÷ 2 = $3,200,000 ÷ 2 = $1,600,000
Net income is Operating revenue - Operating expenses:
Net income = $1,100,000 - $700,000 = $400,000
ROI = Net income ÷ Average invested capital:
ROI = $400,000 ÷ $1,600,000 = 0.25, or 25%
Return on investment (ROI) is calculated by dividing the average invested capital into the net income:
Average invested capital is (Operating assets from Year 2 + Operating assets from Year 3) ÷ 2.
Average invested capital = ($1,200,000 + $2,000,000) ÷ 2 = $3,200,000 ÷ 2 = $1,600,000
Net income is Operating revenue - Operating expenses:
Net income = $1,100,000 - $700,000 = $400,000
ROI = Net income ÷ Average invested capital:
ROI = $400,000 ÷ $1,600,000 = 0.25, or 25%
a disadvantage of usury laws is that????
less credit worthy consumers are excluded from the market…
economic cost is the sum of all explicit and implicit costs in a
business firm
when using a flexible budget a decrease in production levels ????? total costs
decreases
