The Estimate an Organization Makes Regarding the Number and Quality

question 48

Multiple Choice

The estimate an organization makes regarding the number and quality of its current employees and the available external source of workers is known as an)

• A) demand forecast.
• B) job analysis.
• C) environmental scan.
• D) availability analysis.
• E) labor supply forecast.

Calculate total disbursements based on purchases, sales forecasts, and financial policies.

Determine collections for specific months using the accounts receivable period and sales data.

Understand how to calculate inventory purchases required for future sales based on cost of goods sold percentages and inventory policies.

Analyze cash flow by calculating cash collections and disbursements based on sales, policies, and operational cycles.

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Definitions:

Lessor

An entity or individual that owns an asset and grants another party the right to use that asset in exchange for periodic rental payments.

Capital Lease

A lease classified by the lessee as an asset and liability on the balance sheet because it effectively transfers substantially all risks and rewards of ownership to the lessee.

Executory Costs

These are costs associated with fulfilling the terms of a contract, excluding the direct material and direct labor costs, such as utilities, insurance, and property taxes involved in leasing.

Bargain Purchase Option

A lease provision allowing the lessee to purchase the leased asset at the end of the lease term at a price significantly lower than the expected fair market value.