56:054 Engineering Economy

Prof. O'Grady

 

  1. What does the symbol MSFT stand for?

    2. Answer: Microsoft

  2. What are current assets?

    3. Answer: Cash or assets convertible into cash at short notice.

  3. What is the most common conventional way of allocating overhead costs?

    4. Answer: Allocation based on direct labor hours; (allocation based on direct labor dollars, allocation based on direct labor dollars plus direct material dollars)

  4. What is the P/E ratio?

    5. Answer: Price-earnings ratio.

  5. What is the PEG ratio?

    6. Answer: A stock's price/earnings ratio divided by its year-over-year earnings growth rate.

  6. What is meant by ABC?

    7. Answer: ABC (Activity Based Costing) is an accounting system that assigns costs to products based on the resources they consume. The costs of all activities are traced to the product for which they are performed.

  7. What is a key advantage of ABC?

            Answer: enables resource and overhead costs to be more accurately assigned to the products and the services that consume them.

 

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  [ Professor O'Grady ]