Jia’s Apple Farm uses 35 baskets each day to pack apples for shipping. It takes 5 days to receive a shipment of baskets after an order is placed and she would like a safety stock of 3 days in inventory. At what level of inventory should Jia’s place an order for baskets? ANSWER […]
Date: September 19th, 2020
In the EOQ model, ________ costs are the fixed clerical cost of writing a purchase order, processing the paper work, and verifying the invoice. A) basic B) order C) carrying D) insurance ANSWER B
Date: September 19th, 2020
The Steel Works, Inc. is required to carry a minimum of 40 days’ raw steel, which is 250 tons. It takes 15 days between order and delivery. At what level of steel would Steel Works reorder? A) 3,750 tons B) 600 tons C) 667 tons D) 344 tons ANSWER D
Date: September 19th, 2020
The two constructs that form a firm’s organizational architecture are: a. business architecture and economic architecture. b. economic architecture and financial architecture. c. business architecture and financial architecture. d. organizational hierarchy and financial structure. ANSWER C
Date: September 19th, 2020
The macroeconomic component of a firm’s business architecture includes all of the following elements EXCEPT: a. economic growth projections, inflation, and taxes. b. industry characteristics. c. legal environment. d. macroeconomic risk factors. ANSWER B
Date: September 19th, 2020
The General Chemical Company uses 150,000 gallons of hydrochloric acid per month. The cost of carrying the chemical in inventory is 50 cents per gallon per year, and the cost of ordering the chemical is $150 per order. The firm uses the chemical at a constant rate throughout the year. The chemical’s economic order quantity […]
Date: September 19th, 2020
In the configuration of an efficient financial system architecture, both banks and capital markets offer lending to firms. Borrowers who pose relatively onerous asset-substitution moral hazard prefer (i) financing, while borrowers who pose less serious moral hazards go directly to (ii). (i) (ii) a. capital market banks b. bank capital markets ANSWER B
Date: September 19th, 2020
A popular extension of materials requirement planning that integrates data from numerous areas such as accounting, finance, engineering, and manufacturing using a sophisticated computer system is called ________. A) computerized materials integration II B) manufacturing resource planning II C) inventory allocation planning II D) inventory integration planning II ANSWER B
Date: September 19th, 2020
Which of the following is NOT an element of investors’ preferences that influences a firm’s financial architecture? a. preferences for work vs. leisure b. liquidity needs c. investment horizon d. risk tolerance ANSWER A
Date: September 19th, 2020
Which of the following is NOT a valid reason for a firm to establish subsidiaries? a. to better control risk exposure of either parent-to- subsidiary or subsidiary-to-parent. b. to enhance the company’s ability to evaluate individual performance and to create different compensation systems for a diverse set of its businesses. c. to obfuscate financial reporting. […]
Date: September 19th, 2020
