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    Finance Finals Exam

    Uploaded by

    arthur the great
    This document contains questions and problems related to business concepts such as financing, costs, inventory management, and economic order quantity. Specifically, it asks the student to: 1) Discuss challenges in business startups, definitions of business acumen and different types of education, and compare debt vs equity financing. 2) Solve problems calculating costs, product prioritization, operating profit, and inventory levels using concepts like prime cost, variable cost, fixed overhead, and material requirements. 3) Determine the economic order quantity for inventory using information about annual demand, order costs, and carrying costs. The document tests the student's understanding of foundational business and accounting principles through questions and quantitative problems.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Finance Finals Exam

    Uploaded by

    arthur the great
    289 views4 pages
    This document contains questions and problems related to business concepts such as financing, costs, inventory management, and economic order quantity. Specifically, it asks the student to: 1) Discuss challenges in business startups, definitions of business acumen and different types of education, and compare debt vs equity financing. 2) Solve problems calculating costs, product prioritization, operating profit, and inventory levels using concepts like prime cost, variable cost, fixed overhead, and material requirements. 3) Determine the economic order quantity for inventory using information about annual demand, order costs, and carrying costs. The document tests the student's understanding of foundational business and accounting principles through questions and quantitative problems.

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    examination

    Original Title

    Finance Finals exam

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    This document contains questions and problems related to business concepts such as financing, costs, inventory management, and economic order quantity. Specifically, it asks the student to: 1) Discuss challenges in business startups, definitions of business acumen and different types of education, and compare debt vs equity financing. 2) Solve problems calculating costs, product prioritization, operating profit, and inventory levels using concepts like prime cost, variable cost, fixed overhead, and material requirements. 3) Determine the economic order quantity for inventory using information about annual demand, order costs, and carrying costs. The document tests the student's understanding of foundational business and accounting principles through questions and quantitative problems.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    289 views4 pages

    Finance Finals Exam

    Uploaded by

    arthur the great
    This document contains questions and problems related to business concepts such as financing, costs, inventory management, and economic order quantity. Specifically, it asks the student to: 1) Discuss challenges in business startups, definitions of business acumen and different types of education, and compare debt vs equity financing. 2) Solve problems calculating costs, product prioritization, operating profit, and inventory levels using concepts like prime cost, variable cost, fixed overhead, and material requirements. 3) Determine the economic order quantity for inventory using information about annual demand, order costs, and carrying costs. The document tests the student's understanding of foundational business and accounting principles through questions and quantitative problems.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Name:

    Section:

    Identification: Answer the following Question.

    1.Do you Experience stress at school?at work ?what do you think are the causes of such stress?

    2.Do you believe that happiness in workplace is very important objevtive?why or why not?

    3.Why do you think are the stress reduction or management and healthy life should be part of human
    development?
    Name:
    Grade /section:
    DIRECTION: No students is allowed to used extra sheet of paper.
    Use only black ballpoint
    Essay
    1.Do you agree that securing money capital is a challenge in starting up a business?

    2.What is Business Acumen?

    3.With respect to education explain the differences between formal and informal Education?

    4.Contrast debt financing and equity financing?

    5.What is cost of borrowing or cost of debt?

    6.Why is dilution of ownership a concern in equity financing?

    7.expalin seasonal variation?

    8.What are common sources of funds?

    9.Explain Seasonal Variation?

    10.What are the common sources of funds?

    Identification
    1.A cost that does not affect a decision

    2.Cost that change between alternatives

    3.A cost that incurred in the past that cannot be changed in future action.,

    4.Cost that increase in the number of units produced increases.

    5.Cost that remains the same regardless of the units product manufactured

    Problem Solving
    1.H company manufactures a small part that uses for the one of its products.The costs involved in
    manufacturing the part are as follows?

    Direct materials P 12.00


    Direct Labor 8.00
    Variable factory over head 1.60
    Traceable fixed factory Overhead 3.60
    Allocated Fixed factory Overhead 4.00
    The depreciation of special equipment represents 75% of the traceable fixed factory overhead,with the
    supervisor salary representing the balance.The special equipment is estimated to have no residual value
    not impaired .If the Production had been stopped, the supervisor salary will be avoided

    An outside supplier offered to produced the part H currently produces for P24,at 5,000 units produced
    regularly .Currently ,there are no other alternatives use for the space that part uses if ever production
    stops.

    Should Company accept the offer? How much is the net advantage of the better alternative?

    2.Due to certain limitations, Company G can only place an order for 5,000 kg of the special material used
    in its product M,N and O ,every month Details regarding the cost involved in producing the product are
    as follows?

    M N O
    Selling price per unit P40.00 P60.00 P80.00
    Prime Cost 20.00 25.00 40.00
    Variable cost 10.00 20.00 15.00
    Fixed overhead applied 5.00 5.00 5.00
    Kg of special material 0.5 0.8 1.6

    Aside,from that of the capacity constraints as well,Company G can only produced 3,000 units of each
    product.

    a.Rank the items that the company G should prioritize the first data.

    b.Determine the number of each product that company G should produced and maximized its operating
    profit.

    c.Determine the maximum operating profit that company G could earn.

    3.lorenz cycle parts who is engaged in selling motorcycle spare parts and components is encountering
    difficulties in collecting the receivables.It takes him an average of 45 days to collect consumers
    receivable.On average ,It also take Lorenzo 60 days to sell the inventory from the date it was originally
    purchased?

    4.Mac Furniture trading engaged in reselling school bags and is having a problem when it comes from
    managing its inventory quantities. Most of the time herseal would run run out of bags because she
    would order too few quantities .Herseal has annual requirements of P24,000 bags as forecasted by its
    proprietress. Cost associated with carrying every units of school bags would be P7.00.Herseal estimates
    that each order from her supplier will cost her P300.Herseal wonders If there would be a way to
    calculate the inventory?

    a.Compute for Herseal economic order quantity


    b.Compute for Herseal average inventory balance

    c.Compute for the total order cost under the economic order quantity

    d.Compute for the total inventory cost under the economic order quantity

    5.Lion trading purchased 1,800,000 units per year of one component.the fixed cost is P25 .The annual
    carrying cost of the item is 20% of its 4% cost.

    a.Determine the EOQ under the following conditions

    no change

    order cost of P20 and carrying cost of P2.50

    b.What do you call the answer and illustrate bout EOQ model?Explain.

    ssss

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