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