An Important Data Field Found in a Typical Computer Record

question 60

Multiple Choice

An important data field found in a typical computer record of an inventory file that would be vital to purchasing agents would be the inventory item's:

• A)Inventory number
• B)Assembly code
• C)Vendor code
• D)Assembly pointer address
• The following data apply to items 106-108.The Oxford Corporation has the following eleven master files:
• * Accounts payable * Raw materials inventory
• * Accounts receivable * Sales summary
• * Bill of materials * Vendor history
• * Finished goods inventory * Work in process inventory
• * Open production orders * Operations list labor operations and
• * Open purchase orders machine requirements for production)

Analyze the financial implications of changing credit policies on sales and customer acquisition.

Calculate the incremental cash flow resulting from policy changes.

Evaluate the cost-effectiveness of subscribing to a credit reporting agency.

Understand the impact of default rates on credit sales and how it influences NPV calculations.

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Definitions:

Switch Break-Even Point

The analysis used to determine the point at which the cost of switching to a different product, service, or system is recouped through subsequent cost savings or benefits.

Variable Cost

Costs that vary directly with the level of production or volume of goods and services provided.

Monthly Interest Rate

The percentage of interest that is charged or earned on a loan, deposit, or investment over a month's period.

Cash Only Credit Policy

A credit policy where a company does not extend credit and only accepts cash payments.