Exam 15: Assets: Inventory and Operations Management

A _____ describes the difference between the original acquisition cost of capital assets and the amount of depreciation expense that has been recognized to date.

The primary disadvantage of leasing is that:

Which of the following is one of the advantages of the return on investment (ROI)analysis?

The time value of money is the concept that a dollar received today is worth much more than is a dollar to be received at some time in the future.

The process of transforming materials,labor,and energy into goods or services is termed as _____.

Which of the following is an advantage to renting capital assets?

Which of the following businesses should be most concerned with property,plant,and equipment?

The capital budgeting equation used to measure the relationship between initial investment and the profits that are expected to be received from making the investment is called _____.

A ____ is the business activities necessary to convert inputs into desired outputs.

The direct cost incurred in using an asset for the purpose for which it was intended is termed as _____.

Which of the following is the cost incurred in financing,insuring,taxing,or tracking an asset?

If your business is wholesale or retail merchandising,the issues of property,plant,and equipment (PPE)constitute your greatest investments and your greatest costs.

One of the policies for managing customer credit requires business owners to maintain constant "aging" of accounts to quickly identify customers who become delinquent.

Potential buyers and investors are most interested in the _____ value of a business's assets.

Discuss the four accounting methods to value capital assets.

_____ is the cost incurred to substitute one asset with an identical asset.

Discuss the just-in-time inventory system.

A long-term rental in which ownership of the asset never passes to the person paying for the lease is called a(n)_____ lease.

Which of the following is a disadvantage of providing credit to customers?

_____ refers to the fixed and determinable value of an asset that will exist when the depreciation process is complete.