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NEW QUESTION: 1
Which of the following most accurately describes the default behavior of a VPLS regarding the handling of a tagged frame at the ingress of SAP 1/1/1:100?
A. The FCS is verified and removed from the frame. The VLAN tag is kept for transport over the network.
B. The FCS is verified and removed from the frame. The VLAN tag is removed for transport over the network.
C. The FCS is verified and the customer frame is transported intact over the service provider network.
D. The FCS is verified and kept in the customer frame. The VLAN tag is removed for transport over the network.
Answer: B
NEW QUESTION: 2
In a traditional manufacturing operation, direct costs would normally include:
A. Electricity in an electronics plant.
B. Commissions paid to sales personnel.
C. Wood in a furniture factory.
D. Machine repairs in an automobile factory.
Answer: C
Explanation:
Direct costs are readily identifiable with and attributable to specific units of production. Wood is a raw material a direct cost) of furniture.
NEW QUESTION: 3
Delicious Candy Company (Delicious) is a leading manufacturer and distributor of quality confectionery products throughout Europe and Mexico. Delicious is a publicly-traded firm located in Italy and has been in business over 60 years.
Caleb Scott, an equity analyst with a large pension fund, has been asked to complete a comprehensive analysis of Delicious in order to evaluate the possibility of a future investment.
Scott compiles the selected financial data found in Exhibit 1 and learns that Delicious owns a 30% equity interest in a supplier located in the United States. Delicious uses the equity method to account for its investment in the U.S. associate.
Scott reads the Delicious's revenue recognition footnote found in Exhibit 2.
Exhibit 2: Revenue Recognition Footnote
____________________________________________________________________________ in millions___________________________________________________________________ Revenue is recognized, net of returns and allowances, when the goods are shipped to customers and collectability is assured. Several customers remit payment before delivery in order to receive additional discounts. Delicious reports these amounts as unearned revenue until the goods are shipped. Unearned revenue was €7,201 at the end of 2009 and €5,514 at the end of 2008.
Delicious operates two geographic segments: Europe and Mexico. Selected financial information for each segment is found in Exhibit 3.
At the beginning of 2009, Delicious entered into an operating lease for manufacturing equipment. At inception, the present value of the lease payments, discounted at an interest rate of 10%, was 6300 million. The lease term is six years and the annual payment is 669 million. Similar equipment owned by Delicious is depreciated using the straight-line method and no residual values are assumed.
Scott gathers the information in Exhibit 4 to determine the implied "stand-alone" value of Delicious without regard to the value of its U.S. associate.
When applying the financial analysis framework to Delicious, which of the following is the best example of an input Scott should use when establishing the purpose and context of the analysis?
A. The audited financial statements of Delicious prepared in conformance with either U.S. Generally Accepted Accounting Principles or International Financial Reporting Standards.
B. Review of the pension fund's guidelines related to developing the specific work product.
C. Ratio analysis adjusted for differences between U.S. accounting standards and international accounting standards.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The institutional guidelines related to developing the specific work product is an input source in the first phase (defining the purpose and context of the analysis). Audited financial statements are an example of an input in the data collection phase. Ratio analysis is an example of the output from the data processing phase. (Study Session 7, LOS 26.a)