Questions for exam

Question 1

What is the CFO?

Answer 1

Chief Financial Officer

Question 2

What does IFRS stand for?

Answer 2

International Financial Reporting Standards

Question 3

What is ABC?

Answer 3

Activity Based Costing

Question 4

What is the SEC?

Answer 4

Securities and Exchange Commission

Question 5

What is IMA?

Answer 5

Institute of management accountants

Question 6

What is CMA?

Answer 6

Certified Management Accountant

Question 7

What is AICPA?

Answer 7

American Institute of Certified Public Accountants

Question 8

What is the CPA?

Answer 8

Certified Public Accountant

Question 9

R-squared is

Answer 9

measure of explanatory power of regression

Question 10

T-value is

Answer 10

measure of statistical reliability of each independent variable; degree the variable has a valid, stable long-term relationship with the dependent variable

Question 11

Standard error of estimate is

Answer 11

measure of dispersion around regression line, provides measure of accuracy of regression’s estimate

Question 12

Confidence interval is

Answer 12

range around regression line within which the unknown actual value for an estimate can reasonably be expected to fall

Question 13

p-value

Answer 13

measure of the risk that a particular independent variable has only a chance relationship to the dependent variable there’s no significant statistical relationship

Question 14

MAPE

Answer 14

taking the absolute value of each error in estimation and averaging those errors

Question 15

dummy variable

Answer 15

represents the presence or absence of a condition

Question 16

correlation coefficient

Answer 16

square root of R squared between 1 and +1 near zero

Question 17

Basic financial statement formula

Answer 17

Beg + New - Ending = used/finished/fixed

Question 18

What is strategy?

Answer 18

set of goals and specific action plans that if achieved provide the desired competitive advantage

Question 19

What are the two strategies firms compete on?

Answer 19

Cost leadership or differentiation

Question 20

What are the four components of the Balanced Scorecard?

Answer 20

1. financial perspective 2. customer satisfaction 3. internal processes 4. learning and growth employees

Question 21

What is the theory of constraints?

Answer 21

Your bottleneck in the process is as fast as your capacity

Question 22

Breakeven formula

Answer 22

SPx - VCx - FC or FC / (SP - VC)

Question 23

Total manufacturing cost equals?

Answer 23

DM + DL + M O/H

Question 24

COGM equals?

Answer 24

Total manufacturing cost + Beg WIP - Ending WIP

Question 25

COGS equals?

Answer 25

Beg finished goods + COGM - Ending Finishing goods

Question 26

Operating leverage equals?

Answer 26

Contribution margin / Operating Profit

Question 27

Contribution margin percentage equals?

Answer 27

Contribution margin / Sales

Question 28

High Low method?

Answer 28

Change in Y / Change in X ; a = y - (b * x)

Question 29

What does the high low equation equal?

Answer 29

Y = a + ( b*x)

Question 30

What are critical success factors

Answer 30

Quantitative measure that allow your proved your factor within the BSC