M1ACh4

Question 1

Used for design and measurement of supply chain performance.

Answer 1

Balanced Scorecard

Question 2

A measurable aspect of an operation used to approximate how much of the overhead should be associated with the units produced.

Answer 2

Cost Driver

Question 3

Financial statement showing the flow of cash and its timing into or out of an organization or project. Some thing this is a better indicator of health than net income.

Answer 3

Statement of Cash Flows

Question 4

The development and application of quantitative techniques to the solution of problems. Finds minimums (cost & risk) and maximums (profit, yield, performance)

Answer 4

Operations Research

Question 5

The target cost of an operation, process, or product including direct material, direct labor, and overhead charges

Answer 5

Standard Cost

Question 6

Statement of financial position. Shows resources owned, debts owed, and owners’ share of the company.

Answer 6

Balance Sheet

Question 7

A common global language for business affairs so that company accounts are understandable and comparable across international boundaries. Principal based.

Answer 7

IFRS (International Financial Reporting Standards)

Question 8

An accounting classification useful for determining the amount of direct materials, direct labor, and overhead associated with the products sold during a given period of time.

Answer 8

Cost of Goods Sold (COGS)

Question 9

The branch of accounting that is concerned with recording and reporting business operating costs.

Answer 9

Cost Accounting

Question 10

The degree of change in buyer demand in response to changes in product price.

Answer 10

Price Elasticity

Question 11

Other things a company is sacrificing to make a chosen good or service a priority.

Answer 11

Opportunity Cost

Question 12

States that as the price of a good or service increases, supply will also increase.

Answer 12

Law of Supply

Question 13

States that if the price of a good or service increases, demand will increase (all things being equal)

Answer 13

Law of Demand

Question 14

States the price of any good will adjust until the quanitty supplied and the quantity of demand are in balance.

Answer 14

Law of Supply and Demand

Question 15

What are 6 metrics that are used to check macroeconomics?

Answer 15

• CPI (Consumer Price Index)
• CCI (Consumer Confidence Index)
• PPI (Producer Price Index)
• IMF (International Monetary Fund)
• WTO (World Trade Organization)
• World Bank’s worldwide governance indicators

Question 16

The use of microeconomic theories and models can help determine what three factors in a supply chain?

Answer 16

• When or where to expand output
• What product mix to have where
• When to raise or lower prices

Question 17

How is price elasticity calculated?

Answer 17

Divide % of change in quantity bought by % change of price.

• If over 1.0, price is elastic
• If under 1.0, price is inelastic

Question 18

What are two ways to apply macro and microeconomic information?

Answer 18

• Form an opinion on how disruptive forces might impact demand curve and set strategy
• Can product new equilibrium point for product and calculate profit margin

Question 19

What is the formula for efficiency that standard costing uses?

Answer 19

Efficiency = Standard Hours of Work / Hours Actually Worked x 100%

Question 20

What are five strategic analysis tools?

Answer 20

• SWOT
• Market research
• Network modeling
• Balanced scorecard