Exam 1 Flashcards
(28 cards)
A firm that earns a normal profit (zero economic profit) has revenue equal to…
Total cost (explicit + implicit cost)
Economic profit is generally lower and…
Never higher than accounting profit
When implicit costs are greater than zero and economic profits in an industry equal zero, accounting profits will…
Be greater than zero
Financing with short term credit usually results in…
Lower interest costs
Seasonality in data may be removed by calculating a…
Weighted average of the data for 4 seasonal (quarterly) time periods
Calculating a weighted average of data for 4 seasonal (quarterly) time periods, provides a representative annual value which is…
Free of seasonal influence
For purposes of allocating joint costs to joint products, the sales price at point of sale, reduced by cost to complete after split-off, is assumed to be equal to…
Net sales value at split off
Which of the following would normally be the function of security software?2
1 Authenticates user identification and
2 controls access to information resources
Which of the following are you most likely to use to help you estimate the price at which goods might be sold in future years?
Current CPI
GDP equation 6
GDP =
personal consumption expenditure + domestic investment
+ government purchases + exports - imports
When developing a contingency plan for a mortgage company in a flood zone, the most critical aspect of the plan would be…
Continuation of mortgage servicing
Communications risk is concerned with the unauthorized access to and manipulation of which of the following?
Data
Business process management is supported by the organization’s…3
1 approaches
2 techniques
3 measures
If an entity engages in a hedge against the exposure to variable cash flow, the entity would recognize the effective portion of the derivative’s gain or loss as…
Component of other comprehensive income
Control of a user’s initial login is a function of the…
Operating system
When the Economic Order Quantity (EOQ) model is used for a firm which manufactures its inventory, ordering costs consist primarily of…
Production setup
EOQ formula
Define 4 variables
EOQ = squ. Rt. of (2DS/Ci)
D = demand S = production setup or ordering cost per order C = cost per unit i = carrying cost
In the EOQ formula, Ci
Is the carrying cost per unit
The theoretically superior (not necessarily the most widely used) investment base would be…
Replacement value
The rate of unemployment caused by changes in composition of employment opportunities overtime is referred to as…
Structural unemployment
Cyclical unemployment is caused by…
Recession
What kind of unemployment is due to imperfections in the labor market and relates to workers searching for jobs or waiting to take jobs in the near future?
Frictional unemployment
The sum of frictional and structural unemployment is the…
Full employment unemployment rate
The cost of capital used should be the weighted average cost of capital in a…
Marginal sense
