Regina, a Manager, Orders Raw Materials When the Raw Materials

question 100

Multiple Choice

Regina, a manager, orders raw materials when the raw materials inventory reaches a certain point. This is an example of which type of decision?

• A)intuition
• B)satisficing
• C)nonprogrammed
• D)programmed

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Definitions:

Lessor's Implicit Rate

The interest rate used in lease agreements, assumed by the lessor, that when applied to the lease payments, equals the fair value of the leased asset.

Ordinary Annuity

A series of equal payments made at the end of consecutive periods over a fixed length of time, such as monthly rent or annual scholarship allowances.

Present Value Factors

Multipliers used to calculate the present value of a sum to be received in the future by accounting for time value of money.

Minimum Rental Payments

The lowest amount of payment due under a lease agreement, which includes both the principal and interest components for a lease.