Exam 4

Question 1

Return of Investment

Answer 1

Sales margin× capital turnover

OP. Inc./ total assets

Question 2

Sales margin

Answer 2

OP. Inv./ sales

Question 3

Capital turnover

Answer 3

Sales/ total asset

Question 4

RI

Answer 4

OP inv. - (total assets x return rate)

Question 5

Safety stock

Answer 5

Stock extra just in case for more demand

Question 6

Parts of the master budget

Answer 6

Operating and financial budget

Question 7

Parts of operation budget

Answer 7

Sales, production, DM, DL, manufacturing, operating budget

Question 8

Production budget

Answer 8

units to be sold + desired ending -beg inventory

Question 9

Dm budget

Answer 9

(#units to produce× dm per unit) +desired inventory- beg inv

Question 10

DL budget

Answer 10

units to produce x dl hours per unit× DL cost

Question 11

Manufacturing budget

Answer 11

(Budgeted var. MOH/Unit x Budgeted # units) +fixed MOH

Question 12

Operating expenses budget

Answer 12

(Budg. OP Exp./unit x budg.# unit sold) + budgeted fixed OP exp

Question 13

Financial budget

Answer 13

Capital expenditures, cash collection, cash payment, and combined cash budget

Question 14

Cash collection budget

Answer 14

Cash sales + credit sales + credit sales from last month + “from 2 months ago” sales

Question 15

Combined cash budget

Answer 15

Beg bal
\+cash collection
-cash payment
Cash bal BF
\+New bowwings
-debt req
- interest exp
Ending cash balance

Question 16

Cost center

Answer 16

Cost only

Question 17

Revenue center

Answer 17

Revenue only

Question 18

Profit center

Answer 18

Cost and revenue

Question 19

Investment center

Answer 19

Cost, revenue, and assets

Question 20

4 perspectives

Answer 20

Financial, customer, internal business, and learning/growth

Question 21

Operating budgets culminate into the

Answer 21

Income statement

Question 22

Balanced scorecard

Answer 22

Performance evaluation system that integrates financial and operational performance with the 4 perspectives

Question 23

KPI

Answer 23

Summary performance metric used to measure goal congruence

Question 24

Segment margin

Answer 24

OP inc before subtracting common fixed costs

Question 25

Financial perspective

Answer 25

Increase rev, controlling cost, increasing productivity

Question 26

Customer perspective

Answer 26

Price, quality, sales service, and delivery time

Question 27

Internal business perspective

Answer 27

Innovation, operation, post-sales support

Question 28

Learning and growth perspective

Answer 28

All about people, culture, and technology