MIE 201 Final Exam Questions With Solutions
100% Solved
Hedging Protecting against cost increases with contracts that allow a company to buy
supplies in the future at designated prices
Zero-based Budgeting A budgeting approach in which each department starts from zero
every year and must justify every item in the budget, rather than simply adjusting the previous
year's budget amounts
Start-up Budget A budget that identifies the money a new company will need to spend to
launch operations
Operating Budget Also known as the master budget, a budget that identifies all sources of
revenue and coordinates the spending of those funds throughout the coming year
Capital Budget A budget that outlines expenditures for real estate, new facilities, major
equipment, and other capital investments
Capital Investments Money paid to acquire something of permanent value in a business
, MIE 201 Final Exam Questions With Solutions
100% Solved
Project Budget A budget that identifies the costs needed to accomplish a particular project
Debt Financing Arranging funding by borrowing money
Equity Financing Arranging funding by selling ownership shares in the company, publicly
or privately
Short-term Financing Financing used to cover current expenses (usually repaid within a
year)
Long-term Financing Financing used to cover long-term expenses such as assets (usually
repaid over a period of more than one year)
Cost of Capital The average rate of interest a firm pays on its combination of debt and
equity
100% Solved
Hedging Protecting against cost increases with contracts that allow a company to buy
supplies in the future at designated prices
Zero-based Budgeting A budgeting approach in which each department starts from zero
every year and must justify every item in the budget, rather than simply adjusting the previous
year's budget amounts
Start-up Budget A budget that identifies the money a new company will need to spend to
launch operations
Operating Budget Also known as the master budget, a budget that identifies all sources of
revenue and coordinates the spending of those funds throughout the coming year
Capital Budget A budget that outlines expenditures for real estate, new facilities, major
equipment, and other capital investments
Capital Investments Money paid to acquire something of permanent value in a business
, MIE 201 Final Exam Questions With Solutions
100% Solved
Project Budget A budget that identifies the costs needed to accomplish a particular project
Debt Financing Arranging funding by borrowing money
Equity Financing Arranging funding by selling ownership shares in the company, publicly
or privately
Short-term Financing Financing used to cover current expenses (usually repaid within a
year)
Long-term Financing Financing used to cover long-term expenses such as assets (usually
repaid over a period of more than one year)
Cost of Capital The average rate of interest a firm pays on its combination of debt and
equity
