Week 2 Reading

Question 1

Four commonly accepted functions in management

Answer 1

Planning, Organizing, Directing, Controlling

Question 2

Four levels of planning

Answer 2

• strategic (long-term = 5 year)
• tactical (short-term = 1 to 2 year)
• operational (up to 1 year)
• contingency = what if

Question 3

Organizing

Answer 3

allocating resources to meet goals identified in planning process

Question 4

Directing

Answer 4

management of people and processes

Question 5

Controlling

Answer 5

monitoring and evaluating how well the team and org objectives are pursued and accomplished.

Question 6

Customer service measurement

Answer 6

• Reliability = consistent service
• Responsiveness = anticipate and act to meet needs
• value=make customer feel valuable
• empathy=share the customers’ concerns
• competency=technical knowledge

Question 7

Cost Accounting

Answer 7

• Job order cost system
• Process Cost System
• Activity-Based Costing Systems

Question 8

Supply

Answer 8

indicates how sellers behave in the marketplace

Question 9

Demand

Answer 9

indicates how buyers behave in the marketplace

Question 10

Laws of supply and demand 1

Answer 10

If demand increases/supply doesn’t change = prices increase

Question 11

Laws of supply and demand 2

Answer 11

if demand decreases and supply doesn’t change - prices decrease

Question 12

Law of supply and demand 3

Answer 12

if supply increase and demand doesn’t change = price will decrease

Question 13

Law of supply and demand 4

Answer 13

If supply decreases and demand doesn’t change = price increases

Question 14

Types of Competition

Answer 14

• Perfect Competition = many buyers and sellers
• Monopoly = many buyers one seller
• Oligopoly = many buyers few sellers
• Monopsony = one buyer many sellers (advantage buyer)

Question 15

Financial Analysis

Answer 15

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

Question 16

Balance Sheet

Answer 16

assets, liabilities, and shareholders’ equity (have to equal or balance)

Question 17

Assets

Answer 17

assets = liabilities + shareholders’ equity

Question 18

Liabilities

Answer 18

owes to others

Question 19

Shareholders equity

Answer 19

also called capital or net worth

money left if company sold assets and paid liabilities.

Question 20

income statement

Answer 20

revenue earned over a specific time

Question 21

Types of assets

Answer 21

• Tangible = land, buildings
• Intangible = patents, or trademarks
• Current = cash, securities, acct rec., inventory
• Long term = cannot turn to cash in one year

Question 22

Types of liabilities

Answer 22

Current = notes payable, acct. payable, accrued exp
Long-term = funded debt, deferred liabilities, deferred credit

Question 23

Cash flow statement

Answer 23

net increase or decrease in cash for time period.

includes operating, investing, financing activities

Question 24

Financial indicator ratios

Answer 24

• solvency
• acid test
• current ratio
• debt to equity

Question 25

Solvency

Answer 25

* ability to meet current and long term obligations. * also called liquidity ratios * FORMULA - tax net profit + depreciation)/total liabilities

Question 26

Acid Test

Answer 26

* how current liabilities can be satisfied by current assets *less inventory * FORMULA - (cash + accounts receivable + short-term investments)/current liabilities

Question 27

Current ratio

Answer 27

* ratio of current assets to current liabilities. * FORMULA - current ratio = current assets/current liabilities

Question 28

Debt to equity ratio

Answer 28

* 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.

Question 29

Marketing program

Answer 29

- Products/services - Price - Promotion - Place

Question 30

Measuring productivity

Answer 30

Productivity = output/input

Question 31

Operations management

Answer 31

- Quality control - Statistical process control - Project management - Supply chain management

Question 32

Estimated contract funding requirements

Answer 32

Time-phased budget - marry estimate costs with schedule to identify when expenses occur

Question 33

Burn rate

Answer 33

Peanut butter spread contract value over time = level loading doesn't consider ramp-up or tail-off

Question 34

Resource loaded schedule

Answer 34

uses contract, SOW, WBS, and BOE for WBS element and project schedule

Question 35

Basis of estimate

Answer 35

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.

Question 36

Purchase order delays associated with acctg. data

Answer 36

1. commitment entered | 2. amount commitment is reduced as supplier delivers and invoices

Question 37

S curve

Answer 37

represents planned spending including ramp up and tail off

Question 38

Funds thru date

Answer 38

when the contractor must stop work until funding received