management activities 3 controlling Flashcards

1
Q

define controlling

A

a management activity that measures how well an organisation achieves the goals and objectives that it has set

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2
Q

steps in management activity of control

A

1 set the standard 2 measure performance 3 compare performance with standard 4 take corrective action(if necessary)

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3
Q

types of management control

A

1stock control 2 quality control 3 credit control 4 financial control

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4
Q

4 Types of stock

A

(1 raw materials) (2work in progress) (3 finished goods) (4mechandise)

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5
Q

Key terms in stock control

A

1 optimum stock level 2 maximum stock level 3 minimum stock level 4 re-order level 5 lead time

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6
Q

Methods of managing stock levels

A

1 manual stock take 2 edi(electronic data interchange) 3just in time(jit)

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7
Q

What is manual stock take

A

Physically count and record all stock

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8
Q

What is EDI (electronic data change)

A

Computer-to-computer communication, no human intervention

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9
Q

What is jit(just in time)

A

goods are received from suppliers only when needed. reduce inventory holding costs and increase inventory turnover.

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10
Q

Risk of too much stock

A

1Lower profits 2 obsolete stock 3 theft 4 inefficient use of cash

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11
Q

Risk of to little stock

A

1Loss of sales 2 loss of economies of scale 3 storage cost 4 production delays

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12
Q

Benefit of stock control

A

1 Increased efficiency 2 feedback 3 reduced costs 4 theft

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13
Q

Benefit of quality control

A

1 Customer satisfaction 2 quality awards 3 reduced costs

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14
Q

Ways to achieve quality control

A

1Inspections 2 quality circles 3 quality awards 4 total quality management(tqm)

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15
Q

What is credit control

A

Ensures that customers who use credit facilities pay their bills in full and on time

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16
Q

Steps in establishing effective credit control system

A

1 Set credit limit 2 check customers creditworthiness 3 efficient administration 4 debt collection procedure

17
Q

Benefit of credit control

A

1 Lower risk of bankruptcy 2 reduces bad debts 3 increased sales and profits

18
Q

What is financial control

A

Aims to ensure that the business is profitable and liquid(liquidity is the ability to pay bills as they fall due)

19
Q

Methods of financial control

A

1 cash flow forecast(planned future income and expenditure) 2 ratio analysis(indication organization financial performance)3 budget allocation