CPPB with perfect answers 2024

Advantages of Leasing correct answersL- lessor carries burden of the investment so lessee can use working capital for other opportunities. E - entire expense of lease can sometimes be treated as an operating expense minimizing taxable income A - available equipment on short term basis for projects that don't justify a large outlay of funds. S -so the risk of obsolescence can be minimized or eliminated Disadvantages of Leasing correct answersCost Lessees do not own the assets. Lessors make their profit on the difference of the cost of the asset and the rental rate. approx 120% to 135% of purchase price. Lessor retains control of equipment. (restricts the manner the equipment is operating and the operating supplies that can be used) Special Terms and Conditions correct answersS- supplier responsible for post sale service P- performance standards E- establish remedies for failure to perform C- collect performance bond I - incentives and liquidated damages A- accpetance test and inspection methods L- learn guarantee or warranty requirements T- to have plant visits or site inspections C-capital equipment should specify the responsibility of both parties for equipment performance, delivery and post sale activities including the following: Federal Govt. Specification System correct answersS- standardization is the process of establishing agreement on the characteristics, quality, design and performance of products to be purchased. O - organziations that set standards C - committee for standards I - information needs to be in certain format T - text should be clear and free of vague terms Format for Fed Govern Specs correct answersScope Applicable publications and terminology Requirements Testing Preparation for delivery Notes Text of Fed Govern Specs correct answersShould use specific words such as