Module exam 2
A document sent by the purchasing department to order a specific quantity of goods or services is called a: a. vendor invoice b. purchasing report c. purchase order d. purchase requisition
A
Skimming pricing
A pricing strategy in which the company such as initial selling price high in an attempt to appeal to those individuals who want to be the first to have the product and who are not concerned about the price
Mark up
Additional amount over cost that is added to determine selling price
Incremental cost
Additional cost associated with an alternative
Machine set up's
Adjustments made to machines in preparation for new production run
Manufacturing overhead
All cost other than direct materials and direct labor that are incurred to manufacture products
Insurance companies
Business considered part of an oligopoly
Manufacturing products is associated w/ which of the following processes? a. revenue process b. expenditure process c. conversion process d. evaluation process
C
Document listing the quantities of materials and parts needed by the production department is referred to as a: a. operations list b. bill of lading c. production order d. materials requisition
D
Revenue process
Delivery of goods is associated with...
The buyer
Good shipped from the seller's warehouse on April 10 using the terms FOB shipping point on the way to the buyers warehouse the truck hauling the good wrecked and the goods were destroyed who will get the insurance check covering the loss
FOB destination
Legal title transfers to customer when goods are received
FOB shipping point
Legal title transfers when goods leave the sellers place of business
Manufacturing overhead
Manufacturing costs not directly associated with the production of a product
Conversion process
Manufacturing products is associated with...
batch- related cost
A cost that varies with the number of batches regardless of how many units are in each batch
Revenue process
Determining the companies needs for goods and services is associated with ...
Revenue process
Determining the credit and payment policies for the customer is part of the...
Purchase discounts
Discount given buyer for paying amount due early
Sales of allowances
Discounts given to unhappy customers by seller (seller books)
June 16, 2008
Good shipped from the seller's warehouse on June 10, 2010 arrived at the buyers warehouse on June 16, 2010 the invoice for the goods arrived at the buyers accounting department on June 13, 2010 and was paid on June 20, 2010 if the goods are sold FOB destination the buyer took legal title on
November 10th 2010
Good shipped from the seller's warehouse on November 10, 2010 arrived at the buyers warehouse on November 16, 2010 the invoice for the goods arrive at the buyers accounting department on November 13, 2010 and was paid on November 20, 2010 if the girls were sold FOB shipping point the buyer took legal title on
Purchase returns
Goods return by buyer on buyers book
No change in contribution margin but increase in the break even point
If fixed costs increase how will this affect the contribution margin and break even
Contribution margin increases break even point decreases
If selling price per unit increases how will this affect the contribution margin and break even point
Contribution margin decrease break even point increase
If variable cost per unit increases how will this affect the contribution margin and break even point
Unit related cost
It cost that varies with the number of products produced
Product sustaining cost
The cost varies with the number of product lines
materials requisition
The document listing the quantities of materials and parts needed by the production department is referred to as a
A sales invoice originates with the: a. vendor b. purchasing department c. sales department d. accounting department
c
Which of the following is not part of the expenditure process? a. receiving goods and services b. paying suppliers c. ordering goods and services d. using equipment to manufacture products.
d
Penetrating pricing
A pricing strategy where companies set its initial selling price low in an attempt to gain a share of the market from competitors
Life cycle pricing
A pricing strategy where the company attempts to set a selling price that will cover the cost of the product over its life.
Target pricing
A pricing strategy where the company first determines the selling price of the product and then decides whether to enter the market
Sales department
A sales invoice originates with the
FOB shipping point indicates that goods in transit belong to the: a. seller b. buyer c. common carrier d. either the buyer or seller depening upon terms of the bill of lading.
B
Which of the following is not part of the conversion process? A. machine set-ups b. paying for the raw material used in production c. storing the raw material used in production. d. storing finished manufactured goods until sold
B
Which of the following is not part of the revenue process? a. Receive and accept order for goods and services b. Receive goods and services c. receive payments for goods and services rendered d. Provide customer support
B
Indirect material
Cost of production materials that either cannot be traced to the product or whose cost is not enough to warrant tracing
Direct labor
Cost of salaries for workers to actually manufacture the product
Direct material
Crude oil purchase to produce gasoline
Buyer
FOB shipping. Indicates that goods in transit belong to the
Attempts to establish a price that can be maintained throughout the life of the product
Life cycle pricing
Predatory pricing
Practice of selling products below cost in and attempt to drive out competition ,control the market ,and then raise prices
Purchase allowances
Reduction in price of goods purchased as a result of dissatisfaction by customer (buyers books)
Selling margin
Selling price less cost
Dumping
Selling products below cost in a foreign market
bill of lading
Shipping document that describes agreement between business and common carrier
Purchasing department
The purchase order originates with the
The purchase order originates w/ the: a. vendor b. recieving department c. purchasing department d. manufacturing department needing the goods or services.
c
Determining the company's needs for goods and services is associated w/ which of the following processes? a. Revenue process b. Expenditure Process c. conversion process d. evaluation process
A
Which of the following is part of the conversion process? A. storing finished manufactured goods until they are sold b. accepting orders for manufactured goods c. paying salaries for the sales personnel who sell the product d. pay the freight to deliver the product to the customer
A
Which of the following is part of the revenue process? a. Provide customer support b. Pay suppliers for inventory c. convert raw material into inventory for sale d. order inventory for resale
A
Facility sustaining cost
A cost incurred to maintain the companies capacity to operate
Purchase order
A document sent by the purchasing department to order a specific quantity of goods or services
Cells
A group of machines arrange to reduce travel time a product between machines
Direct labor
The cost of employee to manufacture products
Customers competition legal and social issues ,and cost
The four primary influences on selling price
Price gouging
The practice of setting excessively high prices
Penetration pricing
The pricing strategy where a company initially sets the price of its product low and the raisess it later on in the product life cycle is called
Pure competition
The seller of a product is a price taker
Cost volume profit analysis
The study of how cost and profits change in response to changes in the volume of goods and services provided to customers
Pure competition
The type of environment where large number of sellers produce and distribute virtually identical products and services
October 5
Tri-state corporation ordered materials from downstate manufacturing on October 1, 2006 downstate ship the materials by rail on October 5 and the railroad notified tri-state October 12 that the goods had arrived tri-state picked up the materials on October 13 the terms of the cell or at the be shipping point on what day should tri-state consider this a purchase
Price fixing
When a group of companies agreed to limit supply in charge identical prices
Athletic shoe company
Which of the following businesses are considered part of monopolistic competition.
Delivery of goods associated w/ which of the following process? a. revenue process b. expenditure process c. conversion process d. evaluation process
a
Determining the credit and payment policies for customers is part of the: a. revenue b. collection c.expenditure d. conversion
a