BUSINESS MATH TEST EXAM Q&A
COLA (Cost Of Living Adjustment) - ANSWER-a wage increase based on changes in
the CPI (Consumer Price Index)
~ designed to help employee wages keep up with inflation
~ not Coca-Cola
Bonus - ANSWER-pay given to reward employees who make a significant contribution
to the success of a company or whose work record is exceptional
~ bonuses may be stated as a dollar amount or a percent of an employees regular pay
Profit sharing - ANSWER-employees get part of the profit earned by a company
~ idea behind making payments in cash to employees is to motivate employees to:
`be more productive
`cut costs
`make suggestions for improvements
Part-Time employee - ANSWER-employees who work less than 40 hours a week
~ often paid with the same rate of pay as full-time employees but don't receive the same
benefits
Stock - ANSWER-a record of the merchandise a business has on hand---referred to as
"inventory"
stock record- shows how much of an item has been received, issued, and how much
remains
---"issued" = ''sold"
Perpetual inventory- keeping a running balance of stock on hand ---allows you to
maintain an "up-to-date" record of stock on hand
Reorder point - ANSWER-minimum stock level at which an order must be placed
~companies designate a person, usually called a buyer, to order stock
formula: reorder point = (daily usage x lead time) + safety stock
First In, First Out (FIFO) - ANSWER-assumes that goods purchased first are sold or
used first
inventory value- used for calculating the amount of personal property tax due to a city or
state
COLA (Cost Of Living Adjustment) - ANSWER-a wage increase based on changes in
the CPI (Consumer Price Index)
~ designed to help employee wages keep up with inflation
~ not Coca-Cola
Bonus - ANSWER-pay given to reward employees who make a significant contribution
to the success of a company or whose work record is exceptional
~ bonuses may be stated as a dollar amount or a percent of an employees regular pay
Profit sharing - ANSWER-employees get part of the profit earned by a company
~ idea behind making payments in cash to employees is to motivate employees to:
`be more productive
`cut costs
`make suggestions for improvements
Part-Time employee - ANSWER-employees who work less than 40 hours a week
~ often paid with the same rate of pay as full-time employees but don't receive the same
benefits
Stock - ANSWER-a record of the merchandise a business has on hand---referred to as
"inventory"
stock record- shows how much of an item has been received, issued, and how much
remains
---"issued" = ''sold"
Perpetual inventory- keeping a running balance of stock on hand ---allows you to
maintain an "up-to-date" record of stock on hand
Reorder point - ANSWER-minimum stock level at which an order must be placed
~companies designate a person, usually called a buyer, to order stock
formula: reorder point = (daily usage x lead time) + safety stock
First In, First Out (FIFO) - ANSWER-assumes that goods purchased first are sold or
used first
inventory value- used for calculating the amount of personal property tax due to a city or
state
