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EM > Skill V1 > Flashcards

Skill V1 Flashcards

1
Q

what does Subro no mean

A

when a customer has purchased CDW, we pay for AX damages

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2
Q

what does Subro yes mean

A

customer has not purchased CDW and may be pursued for damages

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3
Q

what are the 3 old numbers for the misc accounts and their names (besides second)

A

1686 - misc DR
580
676 - misc expenses

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4
Q

what are the 3 new numbers for the misc accounts and their names (besides second)

A

500320 - misc DR
660000
6600010 - misc expense

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5
Q

what is the new number for misc dr and what goes into it

A

500320
includes things such as tows/impounds, parking, cab fares, deductibles)

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6
Q

what is the new number for misc sundry items and what goes into it

A

660000
penalties on registration, reimbursing customers between competitors

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7
Q

what is the new number for misc expenses and what goes into it

A

660010
non-employee gifts, pictures, coffee, expensing FA items such as vacuums, computer hardware, and telephones

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8
Q

what are the 4 car wash accounts, what is their name, and what do they contain

A

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

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9
Q

what is the new and old accounts for landscaping

A

640033 and 1137

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10
Q

what is the old and new accounts for AP corporate

A

3004 and 240000

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11
Q

what accounts is 240000(3004) and what does it contain

A

AP corporate - contains accruals for the group for corporate billing that use borrowed funds

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12
Q

what are the new and old accounts for asset management clearing

A

2821 and 150305

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13
Q

what is the accounts for 150305(2821) and what does it contain

A

asset management clearing - records the cost of an asset when creating a FA

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14
Q

what are the 3 maintenance accounts (old and new nr) and who are they billed to

A

preventative maintenance - 500300 (1681) - SR
corrective maintenance - 500350 (1679) - BR
truck maintenance - 500301 (1820) - BR

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15
Q

how is the truck maintenance cost allocated

A

through the direct costing system

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16
Q

what is teh formula for inventory adjustment

A

selling price of the vehicle less its net book value
OR
actual depreciation less accumulated depreciation

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17
Q

what is the disposition time

A

it is the time frame between a vehicle being deleted and the funds being received

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18
Q

what is the maximum % hit for a damage delete towards a claim

A

75% of wholesale value

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19
Q

what is IPC

A

it is a comparison between hte rate that insurance companies have authorized and the rate that we are currently charging

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20
Q

why is maintenance done at predetermined values

A

to set a standard for maintenance which aim to avoid major expenses such as blown engine

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21
Q

what are the predetermined intervals for maintenance dependent on

A

dependent on manufacturer

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22
Q

what is the recall and preventative maintenance (RPM) score

A

a score that involves LOFR recalls and units in shop

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23
Q

is a PRM score good when it is high or low

A

a low PRM score means that vehicles are maintained properly

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24
Q

what is the formula for the RPM score

A

recalls outstanding / # of the fleet

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25
Q

what the group goal for RPM score

A

recalls - $0 per car
LOFR - DR is 10; TR is 50
in shop - 2.75%

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26
Q

what is the definition of a mandatory recall

A

a vehicle needs to be grounded right away because of unlimited liability

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27
Q

what is the definition of a hard recall

A

the need for a switch out
does not put the customer at risk and the car can be serviced at a local vendor

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28
Q

what is the SCOOP for VR

A

S - Smooth finish
C - Color matching
O - Orange peel
O - Overspray
P - Panel placement

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29
Q

why is the number of body shops limited

A

quality
leveraging price
relationships

30
Q

what are (4) things we need for a delete

A
  • 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
31
Q

what are the 4 most common missed damaged parts

A
  • roof
  • bumper
  • windshield
  • rocker pannel
32
Q

what is the $ threshold to record damage to a claim

A

$400

33
Q

should damage deletes be repaired

A

no

34
Q

what is the Loss Per Unit (LPU) formula

A

other losses + Subro bad debt

35
Q

what is LPU comprised of

A

subro BD and DW losses

36
Q

what are 4 ways to reduce LPU

A
  • 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
37
Q

what sort of rental is most dangerous

A

a retail rental

38
Q

what are 3 situations where there is unlimited liability

A
  • lack of maintenance (customer gets injured)
  • renting recall units
  • false arrest of customer
39
Q

when there is unlimited liability, the risk department should be contacted when there is (3):

A
  • verbal/physical abuse
  • conversion
  • breaking contractual agreements such as no ADF or YDF
40
Q

when there is unlimited liability, BM should be contancted for

A
  • confirmation of outstanding payments
  • collection of payments
41
Q

an AX/DX claims happens when, and what state is the vehicle in

A

happens when damage is cause by customer on rent
this means that it is in a revenue generating state

42
Q

an AX/OX claims happens when, and what state is the vehicle in

A

damage did not occur when it was on rent, meaning it was non-revenue generating state

43
Q

what are the 6 parts of a writting a good AX claim report

A
  • time
  • place
  • explanation of WH
  • parties involved/witnesses
  • contact info
  • police report
44
Q

what and how does re-renting damaged vehicles affect the group?

A

it affects the SQI because a vehicle could be returned to a different location and the customer could be penalized

45
Q

how much is the liability insurance

A

2 million

46
Q

what is one example of a thing that would create a liability arrest

A

false arrest

47
Q

what is the days earned %

A

% of revenue that a vehicle generates in one day (can be more than 100%)

48
Q

what is occupancy rate

A

snapshot of vehicles that are currently out on rent

49
Q

what is the difference between days earned and occupancy rate

A

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

50
Q

what is the definition of operating costs

A

all expenses associated with renting out the vehicles

51
Q

what is the definition of direct costs

A

all expenses related to the vehicles themselves

52
Q

what does the PIS (Performance income statement) show

A

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

53
Q

what does it mean when something is backdated

A

if it is dropped at a different location (dealership, bodyshop)

54
Q

what are the two types of fraudulent rentals

A

depictable and undepictable

55
Q

what does it mean when a fraudulent rental is undepictable and give an example

A

branch is not able to notice
an example is fake licenses that work

56
Q

what does it mean when a fraudulent rental is depictable and what is the charge to the branch

A

branch is able to detect it
if it still gets past the branch, the branch will be fully hit by the amount

57
Q

what does underwriting minimize

A

minimizes risk for UIL

58
Q

what happens with a deleted car

A

it is taken off our books and sold

59
Q

what are the 4 BA core areas and briefly explain each

A
  • 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)
60
Q

what are the cut-offs for PIU, JV, GL

A

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)

61
Q

what is the entry to close a ticket when it is not collected on

A

DR - AR
CR - Revenue Account (T&M, DW)

62
Q

what is the entry to close a ticket when it is collected on

A

DR - Cash
CR - Revenue Account (e.g. T&M, DW)

63
Q

what is the entry when AR hits bad debt

A

DR - 592
CR - 3226

64
Q

what is the entry when writing something off

A

DR - 590
CR - 592

65
Q

what are the 4 aspects that the continuous monitoring report looks at

A

backdated tickets
voided tickets report
phone # changes
no rev report

66
Q

how are NBV and inventory adjustment related

A

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

67
Q

what is the inventory adjustment allocated on the basis of

A

the direct costing system which allocates the profits on the basis of % of where the vehicle has been in the past 12 months

68
Q

what is the breakeven calcualtion

A

OP less total revenue

69
Q

what are two simple ways to improve OP

A

decrease depreciation
increase fleet size so that the cost will be more spread out

70
Q

what is the $ amount to capitalize an asset

A

300

71
Q

why are assets capitalized

A

because they provide prolonged future benefit

72
Q
A

EM (4 decks)

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