Inventory items that belong in the A category include ________. (See Table 14.4 ) A) Items 4 and 6 B) Items 1 and 7 C) Items 3 and 9 D) Items 1 and 8 ANSWER A
Date: September 19th, 2020
The economic order quantity (EOQ) is the order quantity which minimizes ________. A) the order cost per order B) the total inventory costs C) the carrying costs per unit per period D) order quantity in units ANSWER B
Date: September 19th, 2020
Debt restructuring is generally accomplished via a combination of (i) and (ii). (i) (ii) a. default forgiveness b. consolidation exit (of some creditors) c. forgiveness ex post regret d. exchange offers coercion ANSWER D
Date: September 19th, 2020
The total cost of a firm’s inventory is found by summing the ________. A) order cost and the marginal cost of a firm’s inventory B) order cost and the carrying cost of a firm’s inventory C) order cost and the actual cost of a firm’s inventory D) carrying cost and the marginal cost of a […]
Date: September 19th, 2020
According to signaling theory, Chapter 11 is a useful mechanism for screening inefficient firms out of debt renegotiation. Inefficient firms voluntarily choose Chapter 11 because: a. the firm can be liquidated more quickly. b. negotiations therein generally result in some value retained by shareholders. c. creditors are protected from violations of the absolute priority rule […]
Date: September 19th, 2020
Which of the following is an example of carrying cost? A) insurance of goods in transit B) transportation cost C) insurance cost D) cost of inventory ANSWER C
Date: September 19th, 2020
Investors who specialize in the debt or equity of distressed firms are called: a. speculators. b. arbitrageurs. c. bottom dwellers. d. vulture investors. ANSWER D
Date: September 19th, 2020
TRUE or FALSE: For distressed firms with both bank and public debt outstanding, banks never make concessions unless public debtholders also restructure their claims. a. TRUE b. FALSE ANSWER A
Date: September 19th, 2020
The ________ uses no, or very little, safety stock. A) basic economic order quantity system B) materials requirement planning system C) just-in-time system D) FIFO method ANSWER C
Date: September 19th, 2020
In the EOQ model, ________ costs are the variable costs per unit of holding an item of inventory for a specified time period. A) marginal B) order C) carrying D) processing ANSWER C
Date: September 19th, 2020
