Exam 15: Assets: Inventory and Operations Management

An arm's length transaction is a business deal where the parties have a prior relation or affiliation,but where the business is conducted as if they were unrelated.

Identify the advantages and disadvantages of renting capital assets as opposed to buying.

_____ is a process of communicating within or to an organization about how the outputs worked or were received.

Which of the following is a feature of the perpetual inventory system?

The total cost of obtaining an asset,including such costs as purchase price,transportation,installation,testing,and calibrating in order to ready it for its first productive use is termed as _____.

Which of the following is an advantage of providing credit to customers?

A procedure is specific guidance for completing steps in a process.

If a business offers its assets as collateral,lenders are most interested in the _____ value.

Consider a product that costs $5 to make,and is sold for $15.What is the productivity ratio?

_____ refers to a type of periodic inventory that conducts a count of the entire inventory being held for sale at a specific point in time.

A just-in-time (JIT)inventory system attempts to reduce inventory levels to the absolute minimum by:

Selling the rights to collect accounts receivable to an entity outside the business is called _____.

The sum of all costs of capital assets,including acquisition,ownership,operation,and disposal is called _____.

What are the two major types of leases? Discuss the advantages and disadvantages of leasing.

_____ is an arbitrary,but regular and systematic,method used to take asset value as an expense for the purpose of calculating net income or loss.

Which of the following is a primary advantage of replacement value?

Giving a third party legal rights to debts owed by the business in order to provide assurance that borrowed money will be repaid is called _____.

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

Planning,organizing,and staffing are primarily the responsibility of operations management.

Documenting the operations of your business,you must understand how three items relate to each other.Which of the items below is not one of those three related items?