Final Study Flashcards
(24 cards)
What are the 4 parts of balanced scorecard?
Learning
Process
Financial
Customer
What are your 7 stages for cases?
1) Trigger Words & Read
2) 3C
3) Issue ID and Prioritize
4) Analysis
5) Alternatives
6) Recommendation
7) Implementation
What is the transfer price general principle?
TP = Outlay Cost + Opportunity Cost
What are the two rules for transfer price (with(out) intermediate market)
If inter market: TP = market price
If no inter market: TP = Outlay costs (usually the variable costs)
What are the few points that’s need to be remembered for the case?
1) Risks & Mitigation
2) Bullet points
3) Key Takeaways
4) Headings
What is the price variance formula?
Variance = (AP - SP) x AQ
What is the efficiency variance formula?
Variance = (AQ - SQ) x SP
For deciding between suppliers how should supplier failure be calculated?
Include a cost for lost deliveries (for example) in the cost of the product. Figure this out from a probability of supplier failure.
What are the 4 typical types of customers?
PNAP Passive Niche Aggressive Price-Sensitive
What is the internal view of quality?
Conform to specifications
What is the external view of quality?
Meets or exceeds expectations of customers
What are prevention costs? Examples?
Costs to prevent defects (inspection, training, process control)
What are appraisal costs? Examples?
Detection costs (sampling, testing)
What are conformance costs?
Prevention and appraisal costs
What are non-conformance costs?
Internal and external failure
What are internal failure costs?
Rework, restesting
What are external failure costs?
Warranty repairs
What are 5 changes needed to implement Total Quality Mgmt?
1) Problem solving data, not just financial
2) Workers collect data
3) Quick information
4) More detailed than traditional accounting systems
5) Rewards based on quality
What is sales activity variance for a single product?
Sales Act. Var = Industry volume variance + Market share variance
How to calculate industry volume variance?
IVV = (AV - SV) x Market share x Budgeted CM/unit
How to calculate market share variance?
MSV = (AS - SS) x AV x Budget CM/unit
What is sale activity variance for multiple products?
SAV = Sales Mix Variance + Sales Quantity Variance
How to calculate Sales Mix variance?
SMV = StCM/unit x (SV - AV)
For each product
How to calculate sales quantity variance?
SQV = StCM/unit x (SV - Master budget volume)
For each product
