Exam 15: Assets: Inventory and Operations Management

When dealing with fixed assets such as property,plants,and equipment,what are the four costs incurred over time with all capital assets? Briefly describe each of the costs.

All capital assets cause you to incur four costs over time: (1)the cost of acquiring the asset,(2)the cost of owning the asset,(3)the cost of operating the asset,and (4)the cost of disposing of the asset.

Economic order quantity (EOQ)helps a business to think in terms of:

Bar coding is used to reduce the cost of perpetual inventory systems.

The primary disadvantage of the payback period is that:

Factoring receivables to a commercial lender is usually less expensive than pledging receivables.

Discuss the need for and the value of documenting your business operations.

Which of the following policies is a minimum standard for managing customer credit?

_____ refers to the fixed,determinable period of utility of an asset.

Define capital budgeting.Briefly explain the two most commonly used financial ratios for comparing investment alternatives including their advantages and disadvantages.

A system of recording the receipt and sale of each item as it occurs is called a _____.

Current practice is for small businesses to only provide direct credit to customers.

When determining the cost of a capital asset,the _______ is the sum of everything that you spend to acquire and prepare the asset for its first productive use.

Operations management is primarily concerned with:

Which of the following is the largest current asset that most manufacturing,wholesale,and retail firms generally have?

Assuming that the money is received evenly across the year,what will be the payback period if Jack decides to invest in the CZ84 double cut frame saw?

_____ refers to money that is owed to a business by its customers who purchased a product on credit.

The price at which goods and services are bought and sold between willing sellers and buyers in an arm's-length transaction is called a _____.

A(n)_____ is the amount of inventory that results in the minimum cost,considering the cost of lost sales resulting from running out of stock,the number of units sold per day,and the number of days required to receive inventory.

Short-term assets are also known as operating assets.