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ROI calculation?

net income / avg investment


alternate ROI calculation?

asset turnover x profit margin on sales


what is the dupont ROA?

(net income/net sales) x (net sales/avg total assets)


asset turnover?

sales / assets


which risk cant be mitigated through diversification of investments?

systematic risk because it deals with the macro environment


what does the systems analyst do in an IT environment?

designs systems, prepares specifications for programmers, and serves as intermediary between users and programmers


what detects errors in data transmission?

a parity check


margin of safety?

difference between your actual or expected profitability and the break even point


what is the floor and ceiling in a transfer pricing decision?

the floor is opportunity cost plus costs of outlay. the ceiling is the market price


target pricing?

set prices based on what you think customers are willing to pay based on perceived value


economic value added?

net operating profit after taxes less cost of capital


does deflation encourage or discourage borrowing?

deflation discourages borrowing because people want to borrow money in times of inflation because you can repay it with money with less purchasing power


when interest rates increase, bond prices:

decrease. and vice versa


how is the overhead rate calculated?

dividing estimated overhead costs(both variable and fixed) by a budgeted or estimated quantity of a cost driver. Example: total overhead costs of 75,000 divided by 20,000 budgeted direct labor hours for a overhead application rate of 3.75 per direct labor hour


conversion cost?

direct labor + overhead


how is a spoilage question done?

normal spoilage is a manufacturing cost because it's an inherent part of production, so it is included in finished goods.Abnormal spoilage is treated as a period cost.If total units completed are 5500 with 5000 being saleable, 200 being normal spoilage, and 300 being abnormal spoilage, then 5200 is included in finished goods. so 5200/5500 times the total cost:(5200/5500)*99,000=93,600 which is what will be debited to finished goods


how to use high-low method:

total costs y=a+b(x)y=total costsa=fixed costsb=variable cost per unitx=number of kilos,etcb is change in costs divided by change in kilos, or (y2-y1)/(x2-x1)


what does the CPU contain?

primary storage, a control unit, and an arithmetic/logic unit


what is primary storage?

temporary main memory portion of the CPU which is part RAM part ROM. Secondary storage consists of devices external to the CPU such as disks, flash drives, & hard drives


elements of assembly language:

must be translated into machine language by an assemblereasier to write programs in than machine languageit's an efficient form of second gen language


elements of a procedural language:

3rd gen language that concentrates on the procedures and functions of the programs. written in source code then translated into object code. source code is more similar to english but object code is the machine language for the type of computer. FORTRAN, COBOL, and BASIC are all forms of procedural languages


what does a JCL do?

Job control language initiates programs, specifies priorities and running sequences, and which databases are used and which files are used


What is the order of creating master budget?

sales budget is first, then production budget, budgeted income statement then budgeted balance sheet


absorption costing?

assigns all 3 factors(direct material, direct labor, and both fixed and variable manufacturing overhead) to inventory


direct costing?

assigns only variable manufacturing costs to inventory- which means variable manufacturing overhead


what does r squared actually mean?

percentage of variation in the dependent variable explained by the variation in the independent variables


what are x and y in a line equation?

x is the independent variable, and y is the dependent variable.


overhead efficiency variance?

The overhead efficiency variance is the difference between actual direct labor hours worked, and the standard quantity of hours allowed for actual production, times the variable overhead rate per hour.


overhead volume variance?

The overhead volume variance equals the difference between the master budget for fixed overhead and applied fixed overhead. The variance has one cause only: producing a number of units different from that specified in the master budget.


labor efficiency variance

The labor efficiency variance is the difference between actual direct labor hours worked, and the standard quantity of hours allowed for actual production, times the direct labor wage rate per hour.