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Flashcards in Exam 4 Deck (28):
1

Return of Investment

Sales margin× capital turnover
OP. Inc./ total assets

2

Sales margin

OP. Inv./ sales

3

Capital turnover

Sales/ total asset

4

RI

OP inv. - (total assets x return rate)

5

Safety stock

Stock extra just in case for more demand

6

Parts of the master budget

Operating and financial budget

7

Parts of operation budget

Sales, production, DM, DL, manufacturing, operating budget

8

Production budget

#units to be sold + desired ending -beg inventory

9

Dm budget

(#units to produce× dm per unit) +desired inventory- beg inv

10

DL budget

#units to produce x dl hours per unit× DL cost

11

Manufacturing budget

(Budgeted var. MOH/Unit x Budgeted # units) +fixed MOH

12

Operating expenses budget

(Budg. OP Exp./unit x budg.# unit sold) + budgeted fixed OP exp

13

Financial budget

Capital expenditures, cash collection, cash payment, and combined cash budget

14

Cash collection budget

Cash sales + credit sales + credit sales from last month + "from 2 months ago" sales

15

Combined cash budget

Beg bal
+cash collection
-cash payment
Cash bal BF
+New bowwings
-debt req
- interest exp
Ending cash balance

16

Cost center

Cost only

17

Revenue center

Revenue only

18

Profit center

Cost and revenue

19

Investment center

Cost, revenue, and assets

20

4 perspectives

Financial, customer, internal business, and learning/growth

21

Operating budgets culminate into the

Income statement

22

Balanced scorecard

Performance evaluation system that integrates financial and operational performance with the 4 perspectives

23

KPI

Summary performance metric used to measure goal congruence

24

Segment margin

OP inc before subtracting common fixed costs

25

Financial perspective

Increase rev, controlling cost, increasing productivity

26

Customer perspective

Price, quality, sales service, and delivery time

27

Internal business perspective

Innovation, operation, post-sales support

28

Learning and growth perspective

All about people, culture, and technology