Finance

Q: State the benefits of implementing group technology.

Q: Profit margin for an investment center measures: A. Investment center income earned per dollar of sales. B. How efficiently an investment center generates sales from its invested assets. C. Investment center income compared to target investment center income D. Departmental contribution to overhead E. Investment center income generated from its invested assets

Q: What is time-based competition?

Q: Return on investment can be split into which of the following two measures? A. Investment center income and profit margin. B. Profit margin and net income. C. Investment center average assets and investment turnover. D. Residual income and operating income. E. Profit margin and investment turnover.

Q: Discuss the advisability of using modular assemblies in manufacturing. (What are the advantages and disadvantages?) To what extent can these arguments be applied to service products?

Q: Which of the following is not one of the perspectives used to analyze performance using the balanced scorecard? A. Customer B. Financial/owners C. Internal process D. Number of employees E. Innovation and learning

Q: What are some of the benefits from using environmental teams for product design?

Q: Identify the specific guidelines that can help an operations manager achieve environmentally friendly designs.

Q: What two issues should be considered in combination in order to enhance the likelihood of ethical decision in the realm of product design? Why is each important?

Q: Ultimo Co. operates three production departments as profit centers. The following information is available for its most recent year. Which department has the greatest departmental contribution to overhead and what is the amount contributed? Cost of Direct Indirect Dept. Sales Goods Sold Expenses Expenses 1 $1,000,000 $700,000 $100,000 $ 80,000 2 400,000 150,000 40,000 100,000 3 700,000 300,000 150,000 20,000 A.Dept. 3; $ 400,000. B.Dept. 1; $1,000,000. C.Dept. 2; $ 100,000. D.Dept. 3; $ 250,000. E.Dept. 2; $ 150,000.

Q: Aggressive new product development requires that organizations build structures internally that contain what features?

Q: Explain the difference between value analysis and value engineering.

Q: The Menswear Department of Major's Department Store had sales of $188,000, cost of goods sold of $132,500, indirect expenses of $13,250, and direct expenses of $27,500 for the current period. The Menswear Department's contribution to overhead as a percent of sales is: A.7.8%. B.14.9%. C.29.5%. D.66.7%. E.85.4%.

Q: Identify the steps involved in building the House of Quality.

Q: What is quality function deployment (QFD)?

Q: Departmental contribution to overhead is calculated as the amount of sales of the department less: A.Controllable costs. B.Product and period costs. C.Direct expenses. D.Direct and indirect costs. E.Joint costs.

Q: Provide some examples of recent product changes, i.e. new products that are replacing older ones.

Q: The amount by which a department's sales exceed its direct expenses is: A.Net sales. B.Gross profit. C.Departmental profit. D.Contribution margin. E.Departmental contribution to overhead.

Q: Describe the benefits associated with value engineering.

Q: Fallow Corporation has two separate profit centers. The following information is available for the most recent year: West Division East Division Sales (net).................. $200,000 $350,000 Salary expense........... 26,000 40,000 Cost of goods sold..... 80,000 175,000 The West Division occupies 5,000 square feet in the plant. The East Division occupies 3,000 square feet. Rent, which was $40,000 for the year, is an indirect expense and is allocated based on square footage. Compute operating income for the West Division. A.$120,000. B.$95,000. C.$94,000. D.$69,000. E.$54,000.

Q: Is it possible for a product's life cycle stage to affect its product strategy? In particular, describe how one product in growth and another in maturity might have different product strategies.

Q: Marian Corporation has two separate divisions that operate as profit centers. The following information is available for the most recent year: Black Division Navy Division Sales (net).................. $200,000 $400,000 Salary expense........... 28,000 48,000 Cost of goods sold..... 100,000 159,000 The Black Division occupies 20,000 square feet in the plant. The Navy Division occupies 30,000 square feet. Rent is an indirect expense and is allocated based on square footage. Rent expense for the year was $50,000. Compute departmental income for the Black and Navy Divisions, respectively. A.$52,000; $163,000. B.$172,000; $352,000. C.$72,000; $163,000. D.$72,000; $193,000. E.$100,000; $241,000.

Q: Identify the general benefits derived from CAD.

Q: "With respect to the product decision, managers must be able to accept risk and tolerate failure." Comment on why this is a necessary hazard in making new product decisions, given all the powerful tools and carefully built systems that support that decision.

Q: Identify the factors that influence new product opportunities.

Q: What is a product-by-value analysis, and what type of decision does it help managers make?

Q: Rent and maintenance expenses would most likely be allocated based on: A.Sales volume by department. B.Square feet of floor space occupied. C.Number of hours worked. D.Number of invoices processed. E.Number of employees in each department.

Q: An analytical technique used by management to focus attention on the most significant variances and give less attention to the areas where performance is reasonably close to standard is known as: A.Controllable management. B.Management by variance. C.Performance management. D.Management by objectives. E.Management by exception.

Q: The last seven weeks of demand at a new car dealer are shown below. Use a three-period weighted-moving average to determine a forecast for the 8th week using weights of 1, 2, and 3. Calculate the MAD for this forecast. What does the MAD indicate?Week Sales1 252 303 274 315 276 297 30

Q: Standard costs are used in the calculation of: A.Price and quantity variances. B.Price variances only. C.Quantity variances only. D.Price, quantity, and sales variances. E.Quantity and sales variances.

Q: Which of the following is not part of the flow of events in variance analysis: A.Preparing a standard cost performance report. B.Identifying questions and their explanations. C.Taking corrective and strategic actions. D.Computing and analyzing variances. E.Working to ensure that all variances are favorable.

Q: The difference between actual quantity of input used and the standard quantity of input used results in a: A.Controllable variance. B.Standard variance. C.Budget variance. D.Quantity variance. E.Price variance.

Q: The difference between actual price per unit of input and the standard price per unit of input results in a: A.Standard variance. B.Quantity variance. C.Volume variance. D.Controllable variance. E.Price variance.

Q: The anticipated costs incurred under normal conditions to produce a specific product or to perform a specific service are: A.Variable costs. B.Fixed costs. C.Standard costs. D.Product costs. E.Period costs.

Q: Demand for a certain product is forecast to be 8,000 units per month, averaged over all 12 months of the year. The product follows a seasonal pattern, for which the January monthly index is 1.25. What is the seasonally-adjusted sales forecast for January?

Q: A firm has modeled its experience with industrial accidents and found that the number of accidents per year (Y) is related to the number of employees (X) by the regression equation Y = 3.3 + 0.049*X. R-Square is 0.68. The regression is based on 20 annual observations. The firm intends to employ 480 workers next year. How many accidents do you project? How much confidence do you have in that forecast?

Q: If ending variances account balances are material, they should always be closed directly to Cost of Goods Sold.

Q: An unfavorable variance is recorded with a debit because it reflects additional costs higher than the standard cost.

Q: A volume variance is the difference between overhead at maximum volume of production and the standard volume of production.

Q: An overhead cost variance is the difference between the total overhead actually incurred for the period and the standard overhead applied to products.

Q: The following trend projection is used to predict quarterly demand: Y = 250 - 2.5t, where t = 1 in the first quarter. Seasonal (quarterly) indices are Quarter 1 = 1.5; Quarter 2 = 0.8; Quarter 3 = 1.1; and Quarter 4 = 0.6. What is the seasonally adjusted forecast for the next four quarters?

Q: A management analyst is using exponential smoothing to predict merchandise returns at an upscale branch of a department store chain. Given an actual number of returns of 154 items in the most recent period completed, a forecast of 172 items for that period, and a smoothing constant of 0.3, what is the forecast for the next period? How would the forecast be changed if the smoothing constant were 0.6? Explain the difference in terms of alpha and responsiveness.

Q: A direct labor cost variance can be divided into price and quantity variances, which are almost always called controllable and volume variances.

Q: The purchasing department is usually responsible for the price paid for materials.

Q: Weekly sales of ten-grain bread at the local organic food market are in the table below. Based on this data, forecast week 9 using a five-week moving average.Week Sales1 4152 3893 4204 3825 4106 4327 4058 421

Q: What is the key difference between weighted moving average and simple moving average approaches to forecasting?

Q: A flexible budget expresses all costs on a per unit basis, regardless of cost behavior.

Q: What is focus forecasting?

Q: The total sales variance can be divided into the sales price variance and the sales volume variance.

Q: What is a tracking signal? Explain the connection between adaptive smoothing and tracking signals.

Q: In sales variance analysis, the budgeted amount of unit sales is the predicted activity level and the budgeted cost of the goods sold can be treated as a "standard" price.

Q: Explain, in your own words, the meaning of the coefficient of determination.

Q: Distinguish a dependent variable from an independent variable.

Q: A flexible budget is based on a single predicted amount of sales or other activity measure.

Q: Identify three advantages of the moving average forecasting model. Identify three disadvantages of the moving average forecasting model.

Q: Explain the role of regression models (time series and otherwise) in forecasting. That is, how is trend projection able to forecast? How is regression used for causal forecasting?

Q: Give an exampleother than a restaurant or other food-service firmof an organization that experiences an hourly seasonal pattern. (That is, each hour of the day has a pattern that tends to repeat day after day.) Explain.

Q: Describe three popular measures of forecast accuracy.

Q: Fixed budget performance reports compare actual results with the results expected under a fixed budget.

Q: Distinguish between a moving average model and an exponential smoothing model.

Q: Compare seasonal effects and cyclical effects.

Q: Management by exception means that managers focus on the most significant differences between actual costs and standard costs..

Q: Identify four components of a time series. Which one of these is rarely forecast? Why is this so?

Q: What is the difference between an associative model and a time-series model?

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