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This document provides a comprehensive overview of key financial concepts such as differential revenue, differential costs, and sunk costs. It explains the importance of evaluating alternatives in revenue and cost contexts, and discusses investment analysis methods including the net present value and internal rate of return. Additionally, it covers concepts related to capital investments, including present value calculations and the impact of time on money. The insights offered are essential for informed decision-making in finance and investments.
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Choc. Creme Cruller Boston Creme Jelly NONE 1 POINT 1 POINT 1 POINT 1 POINT 1 POINT 2 POINTS 2POINTS 2POINTS 2 POINTS 2 POINTS 3 POINTS 3 POINTS 3 POINTS 3 POINTS 3 POINTS 4 POINTS 4 POINTS 4 POINTS 4 POINTS 4 POINTS 5 POINTS 5 POINTS 5 POINTS 5 POINTS 5 POINTS
1 POINT This is the increase or decrease in revenue when comparing two alternatives.
2 POINTS This is the increase or decrease in cost when comparing two alternatives.
3 POINTS This is a type of cost that occurred in the past and shouldn’t be considered when evaluating alternatives.
4 POINTS If _______costs are more than the revenue of a product, it should be discontinued.
5 POINTS The rate of earnings is 6% and the cash to be received in three years is $10,000. Determine the present value amount, using the following partial table of present value of $1 at compound interest: Year 6% 10% 12% 1 .943 .909 .893 2 .890 .826 .797 3 .840 .751 .712 4 .792 .683 .636
1 POINT A dollar today is worth more than a dollar tomorrow – this is the main idea behind the _____ value of money.
2 POINTS Decisions to buy new equipment, expand a building, etc are examples of _______ ________ analysis.
3 POINTS These are two capital analysis methods that take into account present value.
4 POINTS Estimated average annual income divided by average investment
5 POINTS The expected average rate of return for a proposed investment of $400,000 in a fixed asset, with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $120,000 for the 4 years, is:
1 POINT A series of equal payments at fixed interval is called this.
2 POINTS Transportation between departments is considered _______-________ time.
3 POINTS In a JIT environment, _______ are empowered to make decisions about operations.
4 POINTS In a JIT environment, inventory purchases are recorded to this account.
5 POINTS When ranking several alternative proposals of different investment amounts it is useful to compare them using their ________ _______ ________.
1 POINT A traditional manufacturing system manufactures products, sends them to stores and waits for a customer to buy them – this is a _____ system.
2 POINTS In a JIT system, the end customer requests the product directly from the manufacturer – this is called a _____ system.
3 POINTS This capital investment analysis method determines (in years) how long it will take to recoup the initial investment.
4 POINTS A main tenet of a JIT environment is reliance on vendors and suppliers – this is what’s called ______ ______ ______
5 POINTS Labor costs and factory overhead are debited directly to this account.
