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D073: BEST PRACTICES IN MANAGEMENT > Unit 3 - Module 3 > Flashcards

Unit 3 - Module 3 Flashcards

1
Q

What is a sales budget?

A

Forecasted revenue based on previous years data + anticipated growth. Sales Budget has to be completed prior to the production budget/plan.

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2
Q

What is a production budget?

A

Forecasted costs associated with production of inventory to meet the sales expectations.

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3
Q

What is the direct materials budget?

A

Cost of raw goods/materials needed in the manufaciring process. Only takes into consideration costs that have a direct connection to the product.

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4
Q

What is the direct labor budget?

A

Cost of labor directly associated with production

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5
Q

What is the manufacturing overhead budget?

A

All other costs not directly associated with manufacturing. Admin, taxes, utilities.

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6
Q

What is the selling and administrative budget?

A

Predicted costs for advertising, marketing, corporate salaries, etc.

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7
Q

What is the budgeted income statement?

A

Financial report of the net income generated by a company, including revenues and expenses.

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8
Q

What is the Capital Expenditures Budget?

A

Planned expenditures for large cost items. New equipment, new locations, etc.

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9
Q

What is the cash budget?

A

Breakdown of revenue and expenditures. Will include A/R, A/P, finance expenses, capital asset valuation.

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10
Q

What is a balance sheet?

A

A snapshot of assets, liabilities and stockholder equity. Only applies to the day the report was run.

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11
Q

What is the statement of cash flows?

A

Essentially a report card that summarizes how well a company is managing the amount of cash or cash equivalents leaving and entering the company.

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12
Q

List Porter’s three most effective strategies

A

Cost leadership
Diffferentiation
Market segmentation.

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13
Q

Describe the cost leadership strategy.

A

Is about producing large quantities of goods very efficiently in order to have a low price point. Higher volume / low production cost / low price point on goods. (Wal-Mart)

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14
Q

Describe differentiation strategy.

A

Is about marketing and branding. It sells less goods at higher prices by appealing to customers desire for ‘status’. (Rolex, Berkin)

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15
Q

Describe market segmentation.

A

Finding a niche, it’s narrowly focused on a specific product or service. (Ulta, Doc Marten, Party City)

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16
Q

Bruce is developing quantitative statements to evaluate an organization’s department and employees progress toward meeting their goals. This is an example of:

a. Strategic objectives & analysis
b. Strategic formulation
c. Strategic implementation
d. Strategic evaluation

A

b. Strategic formulation

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17
Q

Developing a well-integrated company using corporate strategies, producing products and services with a focus on customer satisfaction, maximizing the organization’s core competencies, and creating a system to measure competitive priorities are known as?

a. Operational strategies
b. Corporate strategies
c. Business strategies
d. Competitive strategies

A

a. Operational strategies

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18
Q

What type of plan or goal focuses on long-term goals, performance measures and major projects for the organizational to accomplish within a certain period of time?

a. Operational plan
b. Tactical plan
c. Strategic plan
d. SMART goal

A

c. Strategic plan

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19
Q

Milo is a CEO for Best Company, he needs to show the change in the financial status of the organization over a specific period of time. Milo will need to prepare what type of statement?

a. Income Statement
b. Cash Flow
c. Balance Sheet
d. Sales Plan

A

a. Income Statement

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20
Q

A budget should describe management’s______relating to the state of the economy over the planning horizon.

a. Cash flow
b. Assets/liabilities
c. Assumptions
d. Current profit

A

c. Assumptions

21
Q

A budget a company uses to make sure its expenses fall within financial parameters. It can also be used to evaluate an organization’s success and operationalize its strategy is called______?

a. Operating Budget
b. Financial Budget
c. Sales Budget
d. Master Budget

A

d. Master Budget

22
Q

Which information does a projected income statement report as a function of the budget-planning process?

Deferred revenue
Current profit
Market share
Sales plan

A

Current profit
The projected income statement contains sales and other data from the previous financial period. This provides information on current profit and expenses.

23
Q

What are the two major components of the master budget?

Direct materials and overhead budget
Financial and operating budgets
Capital expenditures and cash budgets
Selling and administrative budgets

A

Financial and operating budgets

The master budget is composed of the operating budget and the financial budget.

24
Q

What is the difference between financial accounting and managerial accounting?

A

Financial accounting are for people external to the company.

Managerial accounting is for internal use.

25
Q

What is the master budget?

A

Budget composed of all the lower level budgets, financial statements, cash flow, and financial plans

26
Q

What is the difference between an income statement and a balance sheet?

A

The income statement shows the change in the financial statu(last year, last quarter)
The balance sheet provides a snapshot of where the company stands in that specific moment.

27
Q

What is a pro-forma?

A

A financial report based on hypothetical scenarios

28
Q

What are the 2 main companents of the master budget?

A

The operating budget and the financial budget.

29
Q

What are the 4 phases of the Deming cycle?

A

Planning, doing, checking, and acting

30
Q

What does phase one of the Deming cycle define?

A

Planning:

Developing a mission and vision statement, clear objectives, and a strategy for reaching their goals.

31
Q

What does phase two of the Deming cycle define?

A

Doing
Managers use the data they have gathered, both financial and nonfinancial, to monitor their department’s progress toward fulfilling the goals of the organization.

32
Q

What does phase three of the Deming cycle define?

A

Checking

Setting a budget, monitoring progress, and checking milestones are all ways that managers can check their progress.

33
Q

What does phase four of the Deming cycle define?

A

Acting
Act on the information they receive. They can reallocate resources, change processes, or reassign employees to tasks to lower costs or make sure costs stay within the parameters of the budget.

34
Q

Name the 3 different types of changes that can be made in an organization.

A

Structural
Technical
Cultural

35
Q

“The Deming cycle consists of ________________Which of the following.

a. Planning, organizing, directing, controlling
b. Organizing, doing, setting, acting
c. Planning, doing, checking acting
d. Organizing, doing, checking, acting”

A

c. Planning, doing, checking acting

36
Q

“Decision-making in many departments of an organization is based on the ____________?

a. Cash flow
b. Sales forecast
c. Operating forecast
d. Production budget”

A

b. Sales forecast

37
Q

A_______cost is any cost resulting from a missed opportunity that cannot be recovered.

a. Opportunity cost
b. Variable cost
c. Fixed cost
d. Sunk cost

A

d. Sunk cost

38
Q

Name the Leadership Strategies (six components) for Change in Organizations.

A 
Outline a strategy
Communicate effectively
Empower employees
Counter resistance
Support employees
Track progress
39
Q

List Conners Leadership styles for change management

A 
Anti-change
Rational
Panacea
Bolt on
Integrated
Continuous
40
Q

What are the characteristics of a Rational Change Management Leader?

A

Control change with logical planning.

The ‘this is what we’ve been told to do and this is how we are going to do it’ guy.

41
Q

What are the characteristics of an Integrated Management Leader?

A

Combines human concerns and strategy.
This leadership approach focuses on the roles, capabilities, and attitudes of its people as change projects are created and implemented. The concept is to combine human and cultural concerns with the strategy itself.

42
Q

What are the characteristics of a Continuous Management Leader?

A

Agile and quick responding.
This type of leader believes that change is contant and necessary.They focus the change at hand while maintaining, and building, the adaptation capacity needed moving forward.

43
Q

What are the characteristics of a Panacea Management Leader?

A

Communicate and motivate.
This leader focuses on the people not the process. This leader is sympathetic to the challenges ahead for the employees during the change process. his is the change leader of coffee mugs, t-shirts, and “let them vent” sessions.

44
Q

“An urgent care center is planning to change from being open eight hours on the weekend to 24-hour coverage.
Which step should leadership take at this point to overcome barriers in this change process?
a) Hire staff willing to adapt to the schedule
b) Engage a human resource consultant
c) Revise tactics to meet strategic objectives
d) Understand the root cause of resistance”

A

d) Understand the root cause of resistance

45
Q

“An organization is considering a broad new initiative to change its existing culture into one that delivers high performance. The leader of the change process would like to assess the need for change and determine factors that would help reduce potential resistance.
Which process should this leader use to meet this objective?
a) Requiring employees to attend mandatory diversity and inclusion training
b) Providing a severance package to displaced workers and assisting with job searches
c) Creating a history of success that demonstrates how the change effort is expected to progress
d) Identifying potential naysayers and encouraging them to leave the organization prior to implementation”

A

c) Creating a history of success that demonstrates how the change effort is expected to progress

46
Q

“Sally is the CEO of Paint Industry. She is known throughout her organization for promoting and instilling a culture that is most conducive to both the strategy and objectives of the organization over the long term. Sally personifies managers who are aware of:

a. their role as cultural ambassadors
b. promoting a robust authoritarian hierarchy
c. innovation that is contradictory to employee interests “

A

a. their role as cultural ambassadors

47
Q

“What is a purpose of the first step in Lewin’s change model?

a) Understanding the change obstacles
b) Demonstrating the urgency for change
c) Creating a change history of small wins
d) Rewarding people who embrace change”

A

b) Demonstrating the urgency for change

48
Q

A significant change in a company’s billing process was recently implemented.
Which component of change management should be used now?

  1. Create a clear strategy
  2. Track progress
  3. Communicate effectively
  4. Empower employees
A
  1. Track progress
    Management will want to closely monitor the changes to be sure the intended result is being achieved. This involves talking with employees and determining if small changes are needed to improve efficiency and customer satisfaction.
49
Q

Which leadership style considers company culture and employee attitudes when making process changes?

  1. Integrated
  2. Panacea
  3. Rational
  4. Continuous
A
  1. Integrated
    An integrated leader incorporates knowledge of the culture, people’s feelings about change, and other aspects of human capital when initiating and making changes

D073: BEST PRACTICES IN MANAGEMENT (5 decks)

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