BEC - B2 - M4

IN APPLYING THE SCOR MODEL, A COMPANY WOULD INCLUDE ALL OF THE FOLLOWING IN ITS PLANNING EXCEPT FOR: -ASSESSING CAPACITY CONCERNS AND CAPABILITIES -DETERMINING DEMAND REQUIREMENTS -MAKING MAKE/BUY DECISIONS -SELECTING VENDORS

SELECTING VENDORS -SELECTING VENDORS IS A SOURCE DECISION. IMPLEMENTS THE PLANNING DECISIONS

SCOR MODEL COLLECTING AND PROCESSING VENDOR PAYMENTS: -PLAN -SOURCE -MAKE -DELIVER

SOURCE -ONCE DEMAND HAS BEEN PLANNED, IT IS NECESSARY TO PROCURE THE RESOURCES REQUIRED TO MEET IT AND MANAGE THE INFRASTRUCTURE THAT EXISTS FOR THE SOURCES

WHICH OF THE FOLLOWING PROVIDES A SPONTANEOUS SOURCE OF CREDIT FOR A FIRM? -PREFERRED STOCK -AR -DEBENTURES -AP

AP

The Stewart Co. uses the Economic Order Quantity (EOQ) model for inventory management. A decrease in which one of the following variables would increase the EOQ? a. Cost per order. b. Safety stock leve l. c. Carrying costs. d. Quantity demanded.

CARRYING COSTS -A DECREASE IN CARRYING COSTS WOULD INCREASE THE EOQ

The level of safety stock in inventory management depends on all of the following except the: -LEVEL OF UNCERTAINTY OF THE SALES FORECAST -COST TO REORDER STOCK -LEVEL OF CUSTOMER DISSATISFACTION FOR BACK ORDERS -LEVEL OF UNCERTAINTY IN LEAD-TIME FOR STOCK SHIPMENTS

COST TO RE-ORDER STOCK -REORDER COSTS DO NOT IMPACT THE LEVEL OF SAFETY STOCK

THE OPTIMAL LEVEL OF INVENTORY WOULD BE AFFECTED BY ALL OF THE FOLLOWING, EXCEPT: -COST PER UNIT OF INVENTORY -CURRENT LEVEL OF INVENTORY -LEAD TIME TO RECEIVE MERCHANDISE ORDER -COST OF PLACING AN ORDER FOR MERCHANDISE

CURRENT LEVEL OF INVENTORY -THE CURRENT LEVEL OF INVENTORY HAS NO IMPACT ON THE OPTIMAL LEVEL

SCOR MODEL ACCOUNTS RECEIVABLE AND COLLECTIONS -SOUCE -PLAN -MAKE -DELIVER

DELIVER -ENCOMPASSES ALL ACTIVITIES THAT ENCOMPASS GETTING THE PRODUCT INTO THE HANDS OF THE ULTIMATE CONSUMER TO MEET THEIR PLANNED DEMANDS

A FIRM CAN BEST DELAY DISPLAY DISBURSEMENTS THROUGH THE USE OF: -FACTORING -A CENTRALIZED DISBURSEMENT FUNCTION -DRAFTS -TRADE DISCOUNTS

DRAFTS -BY PAYING A DRAFT (CHECK) ALLOWS THE FIRM TO TAKE ADVANTAGE OF THE FLOAT PERIOD. THIS DELAYS CASH DISBURSEMENTS

WHICH OF THE FOLLOWING INVENTORY MANAGEMENT APPROACHES ORDERS AT THE POINT WHERE CARRYING COSTS EQUATE NEAREST TO RESTOCKING COSTS IN ORDER TO MINIMIZE TOTAL INVENTORY COSTS? -EOQ -MATERIALS REQUIREMENTS PLANNING -JUST IN TIME -KANBAN INVENTORY CONTROL

EOQ -THIS METHOD ANTICIPATES ORDERS AT THE POINT WHERE CARRYING COSTS ARE NEAREST TO RESTOCKING POINTS

ALL OF THE FOLLOWING ARE INVENTORY CARRYING COSTS, EXCEPT -OPPORTUNITY COST ON INVENTORY INVESTMENTS -OBSOLESCENCE AND SPOILAGE -INSPECTIONS -INSURANCE

INSPECTIONS -THEY ARE PART OF ORDER COSTS, NOT CARRYING COSTS

WHICH OF THE FOLLOWING INVENTORY MANAGEMENT TECHNIQUES FOCUSES ON A SET OF PROCEDURES TO DETERMINE INVENTORY LEVELS FOR DEMAND-DEPENDENT INVENTORY TYPES SUCH AS WORK-IN-PROCESS AND RAW MATERIALS? -SAFETY STOCK REORDER POINT -CYCLE COUNTING -EOQ -MATERIALS REQUIREMENTS PLANNING

MATERIALS REQUIREMENTS PLANNING -IT PROJECTS AND PLANS INVENTORY LEVELS IN ORDER TO CONTROL THE USAGE OF RAW MATERIALS IN THE PRODUCTION PROCESS

WHEN THE EOQ IS USED FOR A FIRM, WHICH MODELS ITS OWN INVENTORY, ORDERING COSTS CONSIST MOSTLY OF: -STORAGE AND HANDLING -PRODUCTION SET-UP -COST OF FUNDS -INSURANCE AND TAXES

PRODUCTION SET-UP -

WHICH OF THE FOLLOWING STATEMENTS ABOUT TRADE CREDIT IS CORRECT? -NOT AN IMPORTANT SOURCE OF FINANCING FOR SMALL FIRMS -SUBJECT TO RISK OF BUYER DEFAULT -USUALLY AN INEXPENSIVE SOURCE OF EXTERNAL FINANCING -A SOURCE OF LONG-TERM FINANCING TO THE SELLER

SUBJECT TO RISK OF BUYER DEFAULT

WHICH OF THE FOLLOWING STATEMENTS ABOUT CASH DISCOUNTS IS CORRECT? -THE COST OF NOT TAKING A 2/10, NET 30 CASH IS USUALLY LESS THAN THE PRIME RATE -THE COST OF NOT TAKING A CASH DISCOUNT IS GENERALLY HIGHER THAN THE COST OF A BANK LOAN -WITH TRADE TERMS OF 2/15, NET 60 IF THE DISCOUNT IS NOT TAKEN THE BUYER RECEIVES 45 DAYS OF FREE CREDIT -THE COST OF NOT TAKING THE DISCOUNT IS HIGHER FOR TERMS 2/10, NET 60 THAN FOR 2/10, NET 30

THE COST OF NOT TAKING A CASH DISCOUNT IS GENERALLY HIGHER THAN THE COST OF A BANK LOAN

WHICH OF THE FOLLOWING FINANCIAL INSTRUMENTS GENERALLY PROVIDES THE LARGEST SOURCE OF SHORT-TERM CREDIT FOR SMALL FIRMS ? -INSTALLMENT LOANS -BANKERS' ACCEPTANCE -COMMERCIAL PAPER -TRADE CREDIT

TRADE CREDIT

SHOULD CYBERAGE USE TRADE CREDIT AND CONTINUE PAYING AT THE END OF THE CREDIT PERIOD? -YES, IF WACC IS = TO WEIGHTED AVERAGE TRADE CREDIT -NO, IF THE COST OF LONG-TERM ALTERNATIVE FINANCING IS MORE -NO, IF THE COST OF SHORT-TERM ALTERNATIVE FINANCING IS MORE -YES, IF THE COST OF SHORT-TERM ALTERNATIVE FINANCING IS MORE

YES, IF THE COST OF SHORT-TERM ALTERNATIVE FINANCING IS MORE