A manufacturing company begins using just-in-time (JIT) inventory management. Which JIT-related payment process is MOST LIKELY to be implemented?

• A.Forward dated check
• B.Fedwire
• C.Point of purchase
• D.Paid-on-production

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Which of the following will MOST LIKELY be affected when a company changes its terms from net 30 to 2
/10 net 30?

• A.Bad debt charge-offs
• B.Sales revenue
• C.Collection expenses
• D.Credit evaluation expenses

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LLZ Company manufacturers metal detectors in California at a cost of $9 per unit. The most expensive component to make is the sensor which goes in the finished product. The cost is $5 per sensor. Last month LLZ acquired a company in Mexico that makes the sensors for $1 per sensor. LLZ plans to move all sensor manufacturing operations to the factory in Mexico. What is the movement of this cost saving process called?

• A.Outsourcing
• B.Reengineering
• C.Rationalizing
• D.Offshoring

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A multinational company (MNC) that operates a shared service center charges its foreign subsidiaries a management fee. This management fee may need to be:

• A.significantly taxed by the host government.
• B.paid through a third-party intermediary.
• C.manipulated to locate profits in low-tax countries.
• D.negotiated with the host government.

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PFA Corporation has used regression analysis based on historical data to determine the estimated portion of dollars of checks issued that will clear on any given business day.

If PFA issued $150,000 in checks and $7,500 worth of checks cleared on day 5, what value of checks will be estimated to clear on day 4?

• A.$15,000
• B.$7,500
• C.$30,000
• D.$22,500

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