BUS 1 Opps Management (2)

Question 1

5 Factors in Incentive Compensation?

Answer 1

1. Time (current or ongoing performance)
2. Fixed or Variable (formula or subjective)
3. Stock or Accounting (equity values or accounting data)
4. Local or Company (small or large scale)
5. Cooperative or Competitive (group or individual accomplishments)

Question 2

3 Objectives of Cost Accounting System?

Answer 2

1. Product costing
2. Efficiency measurements
3. Income determination

Question 3

1. Control Chart
2. Pareto Diagram
   • Fishbone Diagram

Answer 3

1. Improved or Deteriorated Quality conformance (zero defects, and goalpost confirmation)
2. Frequency of defects demand management attention (combine histogram and line graph)
   • Technique used to analyze the source of potential problems and their locations within a process

Question 4

Relevant Range?

Answer 4

Range of volume for which the assumptions of the cost driver are valid

In which the actual value of the cost driver exists.

Question 5

Process Costing?

Answer 5

Average costs and applies them to a large number of homogeneous items

Question 6

Cost Drivers?

Answer 6

Resource: Amount of resources by an activity

Activity: Amount of activity a cost object will use

Activity Centers: Operation necessary to produce a product

Question 7

Engineered Cost?

Answer 7

Bears an observable and known relationship to a quantifiable activity base

Question 8

ERM 4 Categories

Answer 8

1. Strategic - High level goals to achieve mission
2. Operations - Achieve objectives though effective and efficient use of resources
3. Reporting - Achievement of reliable and consistent reporting
4. Compliance - Ensuring compliance with laws and regulations

Question 9

• Partial productivity ratio?

* Total factor productivity?

Answer 9

*PPR = Quantity of output produced / Quantity of individual inputs
1,000 Units / 20,000lbs = .05

TFP = Quantity of output produced / Costs of all inputs used
1,000 Units / 20,000$1.25 + 5,000*$1.75=
1,000 / $33,750=
.02963