C:Performance Flashcards

Question

What are the potential causes of material usage variances?

Answer 1

1) a higher than/lower than expected rate of scrap or waste 2) using a difference quality or material affecting wastage 3) defective materials 4) better quality control 5) more efficient work procedures, resulting in better material usage rates 6) changing the labour mix which impacts on wastage of different types of labour make more/less errors 7) changing the materials mix to obtain a more expensive/less expensive mix than the standard

Answer 2

DL total variance split into - DL labour rate variance - DL efficiency variance Idle time variance

Answer 3

difference between standard FOH cost absorbed and the actual fixed production overheads incurred -due to expenditure, efficiency or capacity AOxFO - actuals

Answer 4

overabsord: F = standard > actual underabsorb: A = standard < actual

Answer 5

(AO-BO) x FOH per unit due to different in output -can split into efficiency and capacity

Answer 6

budgeted overhead - actual overhead

Answer 7

measures whether workforce worked more or less than budgeted for period AH x FO ph - budgeted expenditure

Answer 8

whether workforce took more or less time than standard to produce output -(SH-AH) x FO ph

Answer 9

indicates the effect on profit of changing the mix of actual sales from the standard mix. A Sales Mix variance can be calculated in one of two ways : (a) The difference between the actual total quantity sold in the standard mix and the actual quantities sold, valued at the standard profit per unit; (b) The difference between the actual sales and budgeted sales, valued at the standard profit per unit less the budgeted weighted average profit per unit.

Answer 10

indicates the effect on profit of selling a different total quantity from the budgeted total quantity

Answer 11

sales mix + sales quantity variances

Answer 12

Difficult to measure due to large amounts fo data needed - need average purchase value x average purchase frequency rate = customer value - how profitable mattress is in long run i.e aveage amount of money we can make out of a customer

Answer 13

return on capital employed Divisional operating profit as percentage of total assets less TP - compared against target percentage - costs and revenues traceable to division - with high ROCE, managers might reject projects out fof fear

Answer 14

``` % on time delivery to customer % customer orders fulfilled % defect rate (supplies and customer orders) % wastage rate queuing costs waiting times quality costs prevention costs detection costs internal failure costs external failure costs labour utilisation rate asset utilisation rate warehousing costs transport costs working capital ratios ```

Answer 15

``` growth in sales volume/revenue market share customer retention rate cost of customer acquisition marketing spend per customer CLV new customer conversion customer visit vs conversion % ```

Answer 16

``` promotion cost awareness levels website traffic to conversion % social media reach team response times email marketing performance ```

Answer 17

product development time product lie-cycle costs repurchase rate brand value

Answer 18

price relative to industry price EOD transport costs storage costs

Answer 19

cost per hire selection method conversion rate time to fill position female to male ratio

Answer 20

training and development costs impact of training on existing KPIs training feedback

Answer 21

turnover rate employee absenteeism employee productivity employee satisfaction scores

Answer 22

cost of rewards competitiveness of reward systems adherence to laws and regulations

Answer 23

``` ticket response rates resolution rates system downtime customer feedback/experience IT spend per employee ```

C:Performance Flashcards

(47 cards)