Deck 3 Mixed

Question 1

what is applied overhead?

Answer 1

overhead rate * estimated hours

Question 2

what is vertical scalability and what does it not relate to?

Answer 2

adds more memory and power to cloud. it does not relates to data security

Question 3

under ERM when does event identification occur?

Answer 3

after objectives have been established. then the events can occur which fave or unfave support entity objectives

Question 4

why is residual income sometimes better than ROI?

Answer 4

RI supports goal congruence

Question 5

monopolistic competition

Answer 5

maintain market share
differntiation

Question 6

how is oliogopy different from monopolistic competiton

Answer 6

production volume, price change adaptation and diffentiation

Question 7

what is a horizintal demand curve?

Answer 7

perfectly elastic, adjusts to price changes found in perfectly competitive environments

Question 8

how can the fed reserve reduce inflation?

Answer 8

increase margin requirements will decrease money supply
raise interest rates

Question 9

what types of risks are related to accuracy of reports?

Answer 9

strategic risk
financial risk
information risk

Question 10

if 2 bonds have equal maturity and marketability what is the risk?

Answer 10

default risk premium

Question 11

risk vs uncertainty

Answer 11

risk is possibility events will occur and hurt objectives

uncertaintity is not knowing what will happen

Question 12

internal failure cost

Answer 12

changing tools -tooling

Question 13

what type of cost is testing?

Answer 13

an appraisal cost-think determine its value

Question 14

how is the median/market approach used?

Answer 14

remove outliers of highest and lowest and average the middle two numbers

Question 15

why does circular combination not help achieve better economies of scale?

Answer 15

unlike a horizontal merger that does help economies of scale, a circular combo merges different businesses in remote locations

in order to get better economies of scale, use same industries

Question 16

what is an indicator of high operating leverage?

Answer 16

high fixed costs in relation to total costs

Question 17

if product demand is elastic, how will quantity and price be affected?

Answer 17

quanttity available will be much more than the decrease in price because demand is elastic

Question 18

explain a sourcing requirement vs trade zone

Answer 18

value added or limits on foreign products is a sourcing req. and can be an example such as reduced tarriffs. trade zone refers to physical loaction where tarriffs are delayed for later

Question 19

what do routers do?

Answer 19

assign ip adresses

Question 20

what IT device acts as an intermediary

Answer 20

gateways

Question 21

what does a server do?

Answer 21

shares data and provides services to a network

Question 22

what is the formula for price elasticity of demand?

Answer 22

%change in QD/% change in price=elasticity

Question 23

what is an equity carve out?

Answer 23

an IPO with a majority interest

Question 24

how is differentiation achieved?

Answer 24

buillding the market share or increasing its price

Question 25

what is the audit committee responsible for?

Answer 25

appointing auditor
auditor compensation
resolving disagreements between management and auditor

Question 26

formula for missing out on credit discount

Answer 26

365/pay-disc days*disc./1-disc

Question 27

what COSO componet adresses policies and procedures and IT?

Answer 27

control activities- because these are activities occuring once objectives are set

Question 28

what component of ERM is the process for establishing the impact of an event

Answer 28

performance
GOPRO

Question 29

why is a patent a barrier to entry?

Answer 29

they prevent other firms from entering the market who may not have a patent

Question 30

how is a merger differnt from an acquisition?

Answer 30

a merger combines 2 companies and forms a new business, whereas an aquisition buys another company without forming a new business