BEC 5 Flashcards
(30 cards)
Which of the following is not a kind of economic crisis that could be addressed by the International Monetary Fund?
Balance of trade crisis.
Currency crisis.
Banking crisis.
Debt crisis.
Balance of trade crisis.
Space Cowboy Amusements operates amusement parks throughout the U.S. Its chief technology officer, Steve Miller, wants to implement a system that allows for more customization to meet the needs of location operations. It most likely will implement:
A centralized system.
Robotics.
A decentralized system.
A hybrid system.
A decentralized system.
In the cost of quality, costs incurred in detecting individual units of product that do not conform to specifications are
Prevention costs.
Appraisal costs.
Internal failure costs.
External failure costs.
Appraisal costs.
Which of the following assumptions applies to the basic theory underlying the Black-Scholes option-pricing model?
The call option can be exercised at any time before its expiration date.
There are no transaction costs for buying or selling the stock or option.
The stock underlying the call option pays dividends during the life of the option.
Purchasers of the underlying securities cannot borrow any of the proceeds used to buy the securities.
There are no transaction costs for buying or selling the stock or option.
In a traditional job order cost system, the issue of indirect materials to a production department increases
Stores control.
Work in process control.
Factory overhead incurred
Factory overhead applied.
Factory overhead incurred
A lender and a borrower signed a contract for a $1,000 loan for one year. The lender asked the borrower to pay 3% interest. Inflation occurred and prices rose by 2% over the next year. The borrower repaid $1,030. What is the amount worth in real terms, after inflation?
$1,060.90
$1,050.60
$1,019.80
$1,009.80
$1,009.80
This answer is correct because the real value is equal to $1,009.80 ($1,030.00 ÷ 1.02%).
The two main variables that contribute to increases in a nation’s real gross domestic product (GDP) are labor productivity and
Definition of the labor force.
Inflation rate.
Quality of output.
Total worker hours.
Total worker hours
Which of the following statements regarding transfer pricing is false?
When idle capacity exists, there is no opportunity cost to producing intermediate products for another division.
Market-based transfer prices should be reduced by any costs avoided by selling internally rather than externally.
No contribution margin is generated by the transferring division when variable cost-based transfer prices are used.
The goal of transfer pricing is to provide segment managers with incentive to maximize the profits of their divisions.
The goal of transfer pricing is to provide segment managers with incentive to maximize the profits of their divisions.
After changes to a source program have been made and verified, it moves to
Atlanta.
Development.
The operator.
Production.
Production
Macro Corp. issues $3 million of $10,000 face amount debenture bonds with a coupon rate of 9% and an effective interest rate of 8%. With interest payable semiannually, what total amount will be disbursed on each interest payment date?
$120,000
$135,000
$240,000
$270,000
$135,000
Correct! The annual interest payment is the face amount of the bonds multiplied by the coupon rate. If interest payments are made semiannually, then the amount paid at each interest payment date would be calculated as: (face amount × the annual interest rate) / 2. In this situation, the correct answer is $135,000, calculated as follows: ($3,000,000 × 9%) / 2.
Southwest Airlines benchmarked the process of turning around an airplane with the pit stop process for formula racecars. This is an example of
Internal benchmarking.
Generic benchmarking.
Competitor benchmarking.
Functional benchmarking.
Generic benchmarking.
A U.S. parent company is reviewing the cash flows from its international subsidiaries. In addition to exchange rate risk, which of the following items would be a primary consideration in the company’s cash flow analysis?
Repatriation restrictions.
Import quotas.
Default risk premium.
Foreign trade deficit.
Repatriation restrictions.
In macroeconomic terms, aggregate demand is the
(This question is CMA adapted)
Demand for money by the community in a period of full employment.
Total expenditure on capital goods by entrepreneurs during a period of full employment.
Demand that is needed if a country’s economy is to operate at optimum level and the level of investment is to be raised.
Total expenditures on consumer goods and investment, including government and foreign expenditures, during a given period.
Total expenditures on consumer goods and investment, including government and foreign expenditures, during a given period.
Although only selected activities in the plan are stated below, which of the following states the correct order of activities for establishing a cybersecurity program?
Identify and prioritize risks, create current profile, conduct risk assessment.
Identify and prioritize risks, determine gaps, create target profile.
Conduct detailed risk assessment, prioritize risks, determine gaps.
Create target profile, create current profile, determine gaps.
Identify and prioritize risks, create current profile, conduct risk assessment.
Concerns about the IoT include all of the following except:
Reduced privacy.
Cycle times.
Data storage.
Risk exposure.
Cycle times.
An increase in the sale of government bonds by the Open Market Committee of the Federal Reserve
Increase Demand
Decrease Demand
Increase supply
Decrease supply
No effect
Decrease Demand
Because selling bonds reduces the money supply
An increase in stock prices on major exchanges
Increase Demand
Decrease Demand
Increase supply
Decrease supply
No effect
Increase Demand
Because this increases consumer wealth
Oil prices have recently increased considerably, and the trend is expected to continue for the foreseeable future. (Macroeconomics)
Increase Demand
Decrease Demand
Increase supply
Decrease supply
No effect
likely will decrease aggregate supply. Since oil plays a role in the production or transportation of most goods, increases
The federal government has proposed an increase in the minimum wage to one that would be above the current market rate. (Macroeconomics)
Increase Demand
Decrease Demand
Increase supply
Decrease supply
No effect
would result in a decrease in aggregate supply. Wages are costs of input; when the cost of inputs increases, suppliers reduce the quantity of goods supplied in the short run.
There is a consensus among economists that the economies of two major U.S. trading partner countries will enter a recession in the next year. (Macroeconomics)
Increase Demand
Decrease Demand
Increase supply
Decrease supply
No effect
would decrease aggregate demand. Recession in those countries would result in reduced demand by consumers and businesses in those countries, which would decrease imports from the U.S. and reduce aggregate demand for U.S. goods.
According to the COSO ERM framework, which of the following is least likely to impede the independence of a board member?
Jane was a partner at the accounting firm that conducted the organization’s financial statement audit five years ago but has no existing business or contractual relationships with the entity or its key stakeholders currently.
June has a material consulting contract with the organization related to facilitating marketing and sales promotion.
Laura is a board member of the organization’s major competitor.
Megan has served on the board for 15 years.
Jane was a partner at the accounting firm that conducted the organization’s financial statement audit five years ago but has no existing business or contractual relationships with the entity or its key stakeholders currently.
A service organization provides processing services for a client’s sales orders. Which of the following information is relevant when gathering data for the report on the service organization’s internal controls?
The client’s sales manager reviews accounts receivable balances.
The client’s data entry clerk used the sales manager’s password to make unauthorized changes to customer prices.
Credit limits are established and updated by the client’s credit department.
The service organization’s system calculates accounts receivable balances.
The service organization’s system calculates accounts receivable balances.
b/c this is the only service performed by the service organization.
The net present value (NPV) method of investment project analysis assumes that the project’s cash flows are reinvested at the
(This question is CMA adapted)
Computed internal rate of return.
Risk-free interest rate.
Discount rate used in the NPV calculation.
Firm’s accounting rate of return.
Discount rate used in the NPV calculation.
In computing the current period’s manufacturing cost per equivalent unit, the FIFO method of process costing considers current period costs
Only.
Plus cost of beginning work in process inventory.
Less cost of beginning work in process inventory.
Plus the cost of ending work in process inventory.
Only
