Unit 3

Question 1

ROI (2)

Answer 1

net op income / avg op assets

margin x turnover

Question 2

margin

Answer 2

net op income / sales

Question 3

turnover

Answer 3

sales / avg operating assets

Question 4

Required income

Answer 4

operating assets x corporate rq rate of return

Question 5

Delivery performance measures (2)

Answer 5

wait time, production time

Question 6

production time categories (4)

Answer 6

process - only value added time
inspection - should be 0, move going to diff locations,
queue time - always a waste
wait

Question 7

delivery cycle

Answer 7

WT + PT+ IT+ MT +QT

Question 8

throughput time / manufacturing cycle time

Answer 8

PT + IT + MT +QT

Question 9

manufacturing cycle efficiency

Answer 9

value added time/ manufacturing cycle time

Question 10

relevant costs

Answer 10

those that differ btwn alternatives

Question 11

avoidable costs

Answer 11

relevant costs

Question 12

Utilizing a constrained resource

Answer 12

CM per constrained resource

Question 13

avg v effective tax rate

Answer 13

total taxes /

1. taxable income
2. taxable and non-taxable income

Question 14

excise taxes

Answer 14

dont want you to do this tax

Question 15

transfer taxes

Answer 15

when property is transferred between parties

Question 16

Static v dynamic forecast

Answer 16

base 1. X change 2. change

Question 17

Income + substitution effect

Answer 17

1. ork to keep same income

2. retire early

Question 18

horizontal v vertical equity

Answer 18

1. same ability to pay = same taxes paid