Exam 13: Inventory Management and Economic Order Quantity (EOQ) Analysis

Which of the following is not a provision of (nor an outgrowth of) the Sarbanes-Oxley Act?

Some of the ways that JIT efficiencies are achieved are through reducing the number of vendors, negotiating long-term supply agreements, making less frequent payments, and eliminating inspections.

The Sarbanes-Oxley Act:

Which of the following statements is false concerning computerized accounting systems?

The procedure used to compute the present value of a series of cash flows is known as:

Which of the following is a typical internal control?

Compound interest is interest earned on the interest earned in previous periods.

You estimate that it will take five years to complete your college education.Your parents want to invest enough money today at an interest rate of 8% compounded annually to allow you to withdraw $10,000 at the end of each year for the next five years, with nothing left at the end.The amount of money to invest today is: Use appendix Table 1, Table 2, Table 3 and Table 4.

The Public Company Accounting Oversight Board (PCAOB) is a 7-member board operating under the auspices of the American Institute of Certified Public Accountants (AICPA).

Lawson Company invests $60,000 today and has $148,560 by the end of eight years.What is the firm's compound annual interest rate? Use appendix Table 1, Table 2, Table 3 and Table 4.

The provisions of sections 302 and 404 of the Sarbanes-Oxley Act (as originally enacted) have proved especially troublesome for:

Which of the following statements regarding the Sarbanes-Oxley Act is (are) true?

Nelson Company owes money to Nash Company for the purchase of equipment.Nash Company has given Nelson the following payment options: I.Immediate payment in full of $38,000. II.Annual payments of $15,000 made at the end of each of the next three years. III.A single payment of $48,000 made at the end of three years. Assume that both Nelson and Nash use a 10% interest rate compounded annually.What option would Nash prefer, and what is the present value of that option?

You want to buy a new car in five years.You want to have saved $25,000 by then.You can invest $4,000 at the end of each of the next five years at an interest rate of 6% compounded annually.Will you have enough money at the end of the fifth year? Use appendix Table 1, Table 2, Table 3 and Table 4.

The key to the JIT system is the "pull" approach to controlling manufacturing.

All other things being equal, which of the following would be the most attractive to an investor?

Jax Coolidge invested $58,830 today and will earn 8% on his investment.At the end of the investment's life, Jax will receive $160,000.How many years will Jax wait to receive $160,000? Use appendix Table 1, Table 2, Table 3 and Table 4.

All other things being equal, which of the following would be most attractive to an investor?

The EOQ approach takes the view that no inventory is necessary and can be acquired as needed.

Inventory holding costs would typically include all of the following except: