2/23 Flashcards
(31 cards)
Initial investment 20k FA and 10k WC. FA have no salvage value and WC will be completely recovered at project end. The org cost of capital is 16%. PV of ordinary annuity for four years is 2.8 and PV of $1 at four years is .6. What is the annual net cash inflow required for the project to break even.
30k initial investment
10K x .6 = 6k recoup of WC.
30 - 6 = 24k
24k / 2.8 = 8,571
A steering committee should be formed to
guide and oversee systems development and acquisition
Standards imposed by management without employee input are
authoritative standards
Standards based on optimal, normal or less than optimal conditions are
Ideal standards
Standards imposed on a per unit basis that assumes normal conditions are
Attainable standards
Standards developed in collaboration with employees are
participative standards
an international business completed a circular business combination of euro properties. All of the following would represent valid reasons for this type of combination, except
-helps achieve better economies of scale
-improves restaurant locations and sales
-centralizes European property management
-reduces operating costs
helps achieve better economies of scale
a circular combination has different types of businesses that come together under single management.
This reduces costs, not necessarily economies of scale.
A horizontal combination would likely improve economies of scale.
Allocations by unit volume
Kerosene - 3500 gal./month for 3 months, 4260 for 9
Fuel oil - 8490 gal/month for 4 months; 10000 for 8
Joint costs $45,000
Calculate allocated joint costs
3500 * 3 = 10,500
4260 * 9 = 38,340
10,500 + 38,340 = 48,840
8490 * 4 = 33,960
10,000 * 8 = 80,000
33,960 + 80,000 = 113,960
113,960 + 48,840 = 162,800
48,840 / 162,800 = 30%
113,960 /162,800 = 70%
.3 * 45,000 = 13,500
.7 * 45,000 = 31,500
Sales value known at split off
Liquid Asphalt - 2850 gal sold at $13
Gasoline - 1900 gal sold at $18
Joint costs - $6500
calculate allocated joint costs
2850 * 13 = 37,050
1900 * 18 = 34,200
37050 + 34200 = 71250
37050 / 71250 = 52%
34200 / 71250 = 48%
.52 * 6500 = 3380
.48 * 6500 = 3120
No sales value known at split off
Coal Tar - 4000 lbs sold at $40; further processing 52,000
Paraffin - 2800 lbs sold at $60; further processing 36000
joint costs $80,000
calculate allocated joint costs
4000 x 40 -52000 = 108,000
2500 x 60 - 36000 = 132000
108000 + 132000 = 240000
108000 / 240000 = .45
132000 / 240000 = .55
.45 x 80000 = 36000
.55 x 80000 = 44000
Evaluation of internal and external factors contributing to an organization’s success is referred to as
a SWOT analysis
During the process of transforming data into information that can be used in a relational database, which of the following must be used to create a relationship between two tables?
-conceptual-level schema
-a foreign key
- the primary key
-a data dictionary
A foreign key
- conceptual-level schema is the structure of the database and the design at a conceptual level
- foreign key is attributes in one table that are primary keys in another.
- Primary keys are unique identifiers for specific rows within a table and are made up of one ore more attributes.
- data dictionary provides information about the data in a database.
A validity check creates
a framework so values entered into a foreign key field must first be entered in a corresponding table with the primary key.
A reasonableness test validates
the logic of input values where fields are dependent or relevant to each other.
Calculate the budgeted variable cost per unit for yr 2 using the high-low method
find the high units, find the low units
high - low = change in units
find the high dollars, find the low dollars
high - low = change in dollars
dollars / units = variable cost per unit
calculate the budgeted total fixed cost for year 2 using the high-low method.
First get the variable cost per unit using the high-low method.
Find either the high or the low units and dollars.
high units x vc/unit hi-lo = total vc
total cost - vc = fc
be careful if the numbers are per year or per month. if they are per month x12.
The existence of a compliance program that includes both ethics training and a hotline for anonymous reporting is evidence of
development of ethical values and ensuring that those values are understood and taken seriously.
Considering the SCOR model of supply chain, what key management process does collecting and processing vendor payments fall into?
Source
payments to vendors are part of sourcing your materials.
ROI is criticized as a performance measure since it is not well balanced. What characteristic does ROI lack
ROI does not balance long and short term issues.
calculate the net amount from an interest rate swap.
Notional amount x underlying rate
amount paid based on settlement payment date.
amount received based on fixed interest…
compare the settlement options vs fixed
The SCOR model of supply chain operations, which of the following key management processes does managing AR and collections from customers fall into
Deliver
The capital asset pricing model formula is
Req rate of return = RF + Beta (Expected market return - RF)
Jones Corp had an opportunity to use its capacity to produce and extra 5,000 units with a contribution margin of $5 per unit or rent out the space for $10,000. What is the opportunity cost
10,000
The value of the next best use of the space.
It is not the difference between the options.
The best basis for setting standards is
Engineering standards based on attainable performance.
