BEC - 28

Question 1

Direct Material Quantity Variance

Answer 1

(Standard Quantity x Standard Price) - (Actual Quantity x Standard Price)

Question 2

Engaging in traditional electronic data interchange (EDI) provides which of the following benefits?

Enhanced audit trails.
Guaranteed payments from customers.
Added flexibility to entice new partners.
Reduced likelihood of stocks-out costs.

Answer 2

Reduced likelihood of stock-out costs is a benefit. Fewer stock-outs are likely because EDI communicates needs to the company’s suppliers.

Question 3

The IRR is the cost of capital percentage at which the NPV value profile crosses the ________ axis

Answer 3

Horizontal