Week 2 Reading Flashcards
Four commonly accepted functions in management
Planning, Organizing, Directing, Controlling
Four levels of planning
- strategic (long-term = 5 year)
- tactical (short-term = 1 to 2 year)
- operational (up to 1 year)
- contingency = what if
Organizing
allocating resources to meet goals identified in planning process
Directing
management of people and processes
Controlling
monitoring and evaluating how well the team and org objectives are pursued and accomplished.
Customer service measurement
- Reliability = consistent service
- Responsiveness = anticipate and act to meet needs
- value=make customer feel valuable
- empathy=share the customers’ concerns
- competency=technical knowledge
Cost Accounting
- Job order cost system
- Process Cost System
- Activity-Based Costing Systems
Supply
indicates how sellers behave in the marketplace
Demand
indicates how buyers behave in the marketplace
Laws of supply and demand 1
If demand increases/supply doesn’t change = prices increase
Laws of supply and demand 2
if demand decreases and supply doesn’t change - prices decrease
Law of supply and demand 3
if supply increase and demand doesn’t change = price will decrease
Law of supply and demand 4
If supply decreases and demand doesn’t change = price increases
Types of Competition
- Perfect Competition = many buyers and sellers
- Monopoly = many buyers one seller
- Oligopoly = many buyers few sellers
- Monopsony = one buyer many sellers (advantage buyer)
Financial Analysis
outside company
Balance sheet = owns and owes
income = money made or spent over period of time
cash flow =money exchanged in and out over time
Balance Sheet
assets, liabilities, and shareholders’ equity (have to equal or balance)
Assets
assets = liabilities + shareholders’ equity
Liabilities
owes to others
Shareholders equity
also called capital or net worth
money left if company sold assets and paid liabilities.
income statement
revenue earned over a specific time
Types of assets
- Tangible = land, buildings
- Intangible = patents, or trademarks
- Current = cash, securities, acct rec., inventory
- Long term = cannot turn to cash in one year
Types of liabilities
Current = notes payable, acct. payable, accrued exp Long-term = funded debt, deferred liabilities, deferred credit
Cash flow statement
net increase or decrease in cash for time period.
includes operating, investing, financing activities
Financial indicator ratios
- solvency
- acid test
- current ratio
- debt to equity
Solvency
- ability to meet current and long term obligations.
- also called liquidity ratios
- FORMULA
- tax net profit + depreciation)/total liabilities
Acid Test
- how current liabilities can be satisfied by current assets *less inventory
- FORMULA
- (cash + accounts receivable + short-term investments)/current liabilities
Current ratio
- ratio of current assets to current liabilities.
- FORMULA
- current ratio = current assets/current liabilities
Debt to equity ratio
- Measure relation of debt and owner equity to finance company’s operations. May be decimal or percentage
- FORMULA
- Debt to equity ratio = total liabilities/shareholders’ equity.
Marketing program
- Products/services
- Price
- Promotion
- Place
Measuring productivity
Productivity = output/input
Operations management
- Quality control
- Statistical process control
- Project management
- Supply chain management
Estimated contract funding requirements
Time-phased budget - marry estimate costs with schedule to identify when expenses occur
Burn rate
Peanut butter
spread contract value over time = level loading
doesn’t consider ramp-up or tail-off
Resource loaded schedule
uses contract, SOW, WBS, and BOE for WBS element and project schedule
Basis of estimate
how work will be done, by whom, and how much effort or material is need to accomplish task
*best practice = allocate est. costs by month over project life.
Purchase order delays associated with acctg. data
- commitment entered
2. amount commitment is reduced as supplier delivers and invoices
S curve
represents planned spending including ramp up and tail off
Funds thru date
when the contractor must stop work until funding received
