Test 2
In capsim foundation production runs can be scheduled in _______ shifts
1 or 2
Is an advantage of automation
Automation reduces labor cost
In which of the following types of accounts are increases recorded by debits?
assets, expenses
Entries recorded the payment or an account payable
debit account
Which of the following entries records the receipt of a utility bill from the water companies
debit- utilities expense credit- accounts payable
Expenses follow the same debit and credit roles as
dividends
The first step in performance planning and appraisal is to
establish performance standards
The formula to get desired production is
estimated sales+desired ending inventory-actual beginning inventory
In capsim what happens to a products perceived age when it is repositioned in R&D
its reduced by half
moving employees from one specialized job to another
job rotation
If you or your team decides to introduce a new sensor product in capsim when should capacity and automation be purchased
one round prior to release
The process of transferring the journal entries to the accounts is known as
posting
The two main new product pricing strategies are
price skimming and penetration pricing
With our efficient equipment we can produce the cheapest products on the market. This is more than likely a statement from the top management of company that uses the _____ concept.
production
Which of the following types of accounts have a normal credit balance.
revenues and liabilities
In seeking a balance between the opportunity for profit and the potential for loss a financial manager is dealing with the concept of _________ trade off
risk-return
The debit side of the two columns for an account is on which side
the left
revenue should be recognized when
the service is performed
The three main types of unsecured short term loans are
trade credits, bank loans, commercial paper
A chart of accounts is
usually a listing of accounts in financial statement order
How do distribution channels improve product distribution
Distribution channels reduce the number of transactions needed to get the product from the manufacturer to the customer
What is the major drawback to the use of a short term debt financing
a debt increases financial risk to the firm
A secured ban that requires the borrower to pledge a specific asset to secure a loan. The assets are called
collateral
In capsim foundations the finance department can use which of the following methods to acquire capital for companies activities.
current debt, stock issues, bond issues, and profits
The process of initially recording a business transaction is called
journalizing
A philosophy that guides how a firm interacts with its customers and the decision to focus a firms resources on what customers want is the ____________________ concept
marketing
In capsim foundation the primary buying criteria for each segment is
price for low tech, positioning for high tech