Skill V1 Flashcards
what does Subro no mean
when a customer has purchased CDW, we pay for AX damages
what does Subro yes mean
customer has not purchased CDW and may be pursued for damages
what are the 3 old numbers for the misc accounts and their names (besides second)
1686 - misc DR
580
676 - misc expenses
what are the 3 new numbers for the misc accounts and their names (besides second)
500320 - misc DR
660000
6600010 - misc expense
what is the new number for misc dr and what goes into it
500320
includes things such as tows/impounds, parking, cab fares, deductibles)
what is the new number for misc sundry items and what goes into it
660000
penalties on registration, reimbursing customers between competitors
what is the new number for misc expenses and what goes into it
660010
non-employee gifts, pictures, coffee, expensing FA items such as vacuums, computer hardware, and telephones
what are the 4 car wash accounts, what is their name, and what do they contain
600065 - car wash outside contractors - cost of CW done by external vendors
625260 - car wash supplies and uniforms
625529 - car wash charge to customers
640042 - car wash and repair expenses
what is the new and old accounts for landscaping
640033 and 1137
what is the old and new accounts for AP corporate
3004 and 240000
what accounts is 240000(3004) and what does it contain
AP corporate - contains accruals for the group for corporate billing that use borrowed funds
what are the new and old accounts for asset management clearing
2821 and 150305
what is the accounts for 150305(2821) and what does it contain
asset management clearing - records the cost of an asset when creating a FA
what are the 3 maintenance accounts (old and new nr) and who are they billed to
preventative maintenance - 500300 (1681) - SR
corrective maintenance - 500350 (1679) - BR
truck maintenance - 500301 (1820) - BR
how is the truck maintenance cost allocated
through the direct costing system
what is teh formula for inventory adjustment
selling price of the vehicle less its net book value
OR
actual depreciation less accumulated depreciation
what is the disposition time
it is the time frame between a vehicle being deleted and the funds being received
what is the maximum % hit for a damage delete towards a claim
75% of wholesale value
what is IPC
it is a comparison between hte rate that insurance companies have authorized and the rate that we are currently charging
why is maintenance done at predetermined values
to set a standard for maintenance which aim to avoid major expenses such as blown engine
what are the predetermined intervals for maintenance dependent on
dependent on manufacturer
what is the recall and preventative maintenance (RPM) score
a score that involves LOFR recalls and units in shop
is a PRM score good when it is high or low
a low PRM score means that vehicles are maintained properly
what is the formula for the RPM score
recalls outstanding / # of the fleet
what the group goal for RPM score
recalls - $0 per car
LOFR - DR is 10; TR is 50
in shop - 2.75%
what is the definition of a mandatory recall
a vehicle needs to be grounded right away because of unlimited liability
what is the definition of a hard recall
the need for a switch out
does not put the customer at risk and the car can be serviced at a local vendor
what is the SCOOP for VR
S - Smooth finish
C - Color matching
O - Orange peel
O - Overspray
P - Panel placement
why is the number of body shops limited
quality
leveraging price
relationships
what are (4) things we need for a delete
- make sure there is no damage on the vehicle
- place it on non-revenue status
- make sure it is clean and has a delete tag on it
- a tablet to delete the vehicle on
what are the 4 most common missed damaged parts
- roof
- bumper
- windshield
- rocker pannel
what is the $ threshold to record damage to a claim
$400
should damage deletes be repaired
no
what is the Loss Per Unit (LPU) formula
other losses + Subro bad debt
what is LPU comprised of
subro BD and DW losses
what are 4 ways to reduce LPU
- writing proper AX/XX claims (helps in DRU collection so less is written off to Subro BD)
- proper underwriting (right customer in right vehicle)
- proper ARQ (accident report quality)
- Comparison of LPU as a % of xxxxxxx
what sort of rental is most dangerous
a retail rental
what are 3 situations where there is unlimited liability
- lack of maintenance (customer gets injured)
- renting recall units
- false arrest of customer
when there is unlimited liability, the risk department should be contacted when there is (3):
- verbal/physical abuse
- conversion
- breaking contractual agreements such as no ADF or YDF
when there is unlimited liability, BM should be contancted for
- confirmation of outstanding payments
- collection of payments
an AX/DX claims happens when, and what state is the vehicle in
happens when damage is cause by customer on rent
this means that it is in a revenue generating state
an AX/OX claims happens when, and what state is the vehicle in
damage did not occur when it was on rent, meaning it was non-revenue generating state
what are the 6 parts of a writting a good AX claim report
- time
- place
- explanation of WH
- parties involved/witnesses
- contact info
- police report
what and how does re-renting damaged vehicles affect the group?
it affects the SQI because a vehicle could be returned to a different location and the customer could be penalized
how much is the liability insurance
2 million
what is one example of a thing that would create a liability arrest
false arrest
what is the days earned %
% of revenue that a vehicle generates in one day (can be more than 100%)
what is occupancy rate
snapshot of vehicles that are currently out on rent
what is the difference between days earned and occupancy rate
days earned is essentially how much revenue a company generated during a day and can be more than 100% because a vehicle could be rented out twice in a day, while occupancy is only 100% max as it is capped off by the fleet size
what is the definition of operating costs
all expenses associated with renting out the vehicles
what is the definition of direct costs
all expenses related to the vehicles themselves
what does the PIS (Performance income statement) show
mainly used to show what goes into overhead branches - it shows the breakdown for each account for admin branches, and can be used to review if revenues and expenses are booked to the correct department
what does it mean when something is backdated
if it is dropped at a different location (dealership, bodyshop)
what are the two types of fraudulent rentals
depictable and undepictable
what does it mean when a fraudulent rental is undepictable and give an example
branch is not able to notice
an example is fake licenses that work
what does it mean when a fraudulent rental is depictable and what is the charge to the branch
branch is able to detect it
if it still gets past the branch, the branch will be fully hit by the amount
what does underwriting minimize
minimizes risk for UIL
what happens with a deleted car
it is taken off our books and sold
what are the 4 BA core areas and briefly explain each
- employee development - retention, promotion (training, motivation)
- customer service - SQI
- profitability - net profit (ma rate, sales)
- business growth - D/E growth (including fleet, marketing to local businesses, Yes mentality)
what are the cut-offs for PIU, JV, GL
PIU - first calendar day of the month
JV - first business day of the month
GL - 7 days into statement (8 if it is a holiday)
what is the entry to close a ticket when it is not collected on
DR - AR
CR - Revenue Account (T&M, DW)
what is the entry to close a ticket when it is collected on
DR - Cash
CR - Revenue Account (e.g. T&M, DW)
what is the entry when AR hits bad debt
DR - 592
CR - 3226
what is the entry when writing something off
DR - 590
CR - 592
what are the 4 aspects that the continuous monitoring report looks at
backdated tickets
voided tickets report
phone # changes
no rev report
how are NBV and inventory adjustment related
NBV is the cost of the car less the accumulated depreciation
and then inventory adjustment is essentially the G/L on the vehicle which is hte selling price less the NBV
what is the inventory adjustment allocated on the basis of
the direct costing system which allocates the profits on the basis of % of where the vehicle has been in the past 12 months
what is the breakeven calcualtion
OP less total revenue
what are two simple ways to improve OP
decrease depreciation
increase fleet size so that the cost will be more spread out
what is the $ amount to capitalize an asset
300
why are assets capitalized
because they provide prolonged future benefit
