BEC - sim 1 questions with 100% correct answers graded A+ 2023/2024

BEC - sim 1formula for effective annual interest rate - correct answer (1+ (stated rate /interest period))^2 the effective annual interest rate is equal to one plus the stated interest rate divided by the interest periods raised the power of the compounding periods. For semi-annual interest, divide the stated interest rate expression by 2 and square it. Subtract 1 and arrive at the effective annual rate Ruby Exports, a United States company, has a significant amount and number of accounts receivable denominated in foreign currencies. Ruby wants to mitigate its exchange risk and will likely use which of the following instruments to hedge its exposure? Forward contract to sell the foreign currency at a specific rate. Forward contract to buy the foreign currency at a specific rate. Futures contract to sell the foreign currency at a specific rate. Futures contract to buy the foreign currency at - correct answer !. forward contracts are used for relativce large transaction amts. A forward contract to sell a foreign currency at a specific price will hedge the risk that the currency collected in satisfaction of a receivable may have weakened in relation to the dollar at the settlement date. Forward contracts tend to be used for larger groups of transactions (such as a large volume of accounts receivable), while futures contracts hedge a specific transaction. Corbin, Inc. can issue three-month commercial paper with a face value of $1 for $980,000. Transaction costs would be $1 ,200. The effective annualized percentage cost of the financing, based on a 360-day year, would be: - correct answer The cost to issue the commercial paper is the $20,000 original issue discount ($1 million − $980,000), plus transaction costs of $1,200 for a total of $21,200. Therefore, it costs $21,200 to borrow $980,000 for 3 months. The 3-month quarterly interest cost is 2.16% (21,200 / 980,000). The annual interest cost is 8.65% (2.16% × 4). In using a process cost system, a production report is usually generated that fully accounts for all units and costs. The physical flow of units is fully accounted for by: - correct answer production report is normally formatted to prove units at the beginning of the period plus units transferred in are equal to the units transferred out plus ending inventory as follows: SampleProductionReport Units in process, beginning Units transferred in = Total units charged to department Units transferred out Units in process, ending = Total units to be accounted for Dolly Corporation has identified critical success factors and strategic goals that specifically relate to each dimension of its operations. The company has also determined measures that quantify the achievement of the strategic goals that it will capture and report monthly. This form of regular reporting and evaluation of performance is referred to as: - correct answer Balanced scorcard A balanced scorecard normally classifies activities of an organization into major headings and identifies the critical success factors and related strategic goals whose achievement will ensure meeting the requirements of those factors. Typically, there are both financial and non-financial measures that are evaluated regularly in a format that shows the dimensions of the business. The dimensions of the business are frequently human capital, customer service, internal business processes, and finance. Quality programs normally include a number of techniques to find and analyze problems. The technique commonly used to rank and analyze the individual and cumulative causes of defects is called a: e Control chart. Pareto diagram. Fishbone diagram. Value chain analysis. - correct answer a pareto --key word rank