Accounting exam

Question 1

BEP Quantity ?

Answer 1

FIxed costs / unit contribution margin

Question 1

Benefits of financial dashboards ?

Answer 1

-> availability to all managers
-> provision of operational management
-> communication and deployment of the strategy within the organisation

Question 2

BEP Revenue ?

Answer 2

Quantity of BEP x selling price

Question 3

Cash Flow KPIS ?

Answer 3

EBITDA = Earnings before interest, taxes, depreciation, and amortisation

Free cash flow

Question 4

Characteristics of financial information ?

Answer 4

• comparability over time
• objectivity
• reliability
• comparability between companies

Question 5

Customer KPIS ?

Answer 5

-> loyalty programme
-> customer satisfaction
-> sales / customers

Question 6

Financial KPIS ?-

Answer 6

-> EBITDA
-> EBIT
-> EVA (economic value added)

Question 7

How to calculate the EBIT

Answer 7

UCM x Qty - Fc

Question 8

how to calculate the unit contribution margin

Answer 8

Selling price - unit variable cost

Question 9

Indirect cost ?

Answer 9

cost that represents a resource consumed by several cost objects and cant directly be traced to one cost object

Question 10

KPI for activity ?

Answer 10

1. Sales
2. Growth rate

Question 11

KPI for profitability ?

Answer 11

1. net income
2. COI = current operating income
3. EBIT = Earnings before interests and taxes
4. NOPAT = Net operating profit after taxes
5. ROS = Return on sales

Question 12

KPI whole name and what is it

Answer 12

Key performance indicators, tool to measure financial performance

Question 13

KPIS for investments

Answer 13

ROA = Return of assets
ROE =Return of equity
ROCE = Return of capital employed

Question 14

KPIS for value creation ?

Answer 14

MVA = Market value added
TSR = Total shareholder return

Question 15

Value / Unit KPIS ?

Answer 15

-> Cost per passenger
-> cost / unit produced

Question 16

What is a direct cost ?

Answer 16

cost that can be directly traced to one cost object

Question 17

What is a fixed cost ?

Answer 17

cost that remains unchanged for a given time period despite change in level of activity

Question 18

What is a Full cost ?

Answer 18

Direct cost + indirect cost

Question 19

What is a Relevant cost ?

Answer 19

Expected future cost that differs among alternative costs of action being considered

Question 20

what is a sunk cost ?

Answer 20

Past cost that is unavoidable because it was already spent despite any action taken now

Question 21

What is an asset ?

Answer 21

Current or future economic value to a business

Question 22

What is Equity ?

Answer 22

Remaining asset after deducting liabilities

Question 23

What is the break even point ?

Answer 23

Point at which total cost and total revenue are equal

Question 24

What is the variable cost ?

Answer 24

Cost that changes in proportion to changes in the related level of activity

Question 25

What is zero based budgeting ?

Answer 25

Zero based budgeting is an approach where all expanses must be justified from scratch for each budget period starting at zero