1._____ models are mathematical models of the master budget that can react to any set of assumption about sales, costs, and product mix. A. Budgeting analysis B. Accounting C. Futuring D. Financial planning 2.A sales forecast is _____. A. a prediction of sales under a given set of conditions B. the same as a sales budget that will generate a desired level of sales C. all of these answers are correct D. the result of decisions to create conditions 3. A _____ gives the expected sales
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- Firm have to know what profit is and how to measure it - Economic profit more reliable measure as accounting profit - Measure of e.p. is EVA, economic value added - Firm must maximize the future net cash flow to maximize its value and mimimize cost of capital - C.f. forecasts are very difficult,estimate future c.f. need make assumption - Important for value maximization is the consistency Real options theory - Two types: growth and flexibility options - Strategic alliances and joint ventures
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000 in direct costs in 2007. These costs must be allocated to Ruger’s three revenue-producing patient services departments using the direct method. Two cost drivers are under consideration :patient services revenue and hours of housekeeping services used. The patient services departments generated $5 million in total revenues in 2007, and to support these clinical activities, they used 5,000 hours of housekeeping services. 1. What is the value of the cost pool? The value of cost pool is 100,000
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drop of profit if many clients place small orders - wrong cost determination for individual customers - wrong cost determination for new services provided by DOP (to small charges for the “desktop” delivery, then the actual cost of it) 2. Develop an activity-base cost system for Dakota Office Products based on Year 200 data. Calculate the activity cost-driver rate for each DOP activity in 2000. Activity cost-driver rates: Activity One: process cartons in and out of the
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Caterpillar in class we said they had two main ideas. The first is to ensure that customers using their equipment make more money than if they were to use the equipment of a Caterpillar competitor. The second is to market the lifetime costs of their equipment, not the purchase costs of their equipment. Both of these concepts are general and need much more detail and strategy to go along with them, but in the beginning stages of creating Raving Fans this is a tremendous example of deciding
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Products: Fast Foods & Drinks for general customer Service: Company Brand Name & Ads, Standardized process to deliver fast food with low cost and consistent quality with high school kids who are paid minimum wage for franchisees. 2. How does the offering create differentiated value for them? Operational Excellence to be able to make low cost, consistent quality and speed 3. What is the value chain? What parts is the business in? McDonald dictates full of value chain from farm to
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Making…………………………………………………………….3 3.1 How the Demand in the Market is Learned 3.2 How the Demand Can Be Predicted 4. Managing Operational Finance……………………………………………………………………………….4 4.1 Identify the Relevant Costs 4.2 Alternative Operating Policies and the Effects of Seasonality and Day Variation 5. Conclusion……………………………………………………………………………………………………………….5 6. References………………………………………………………………………………………………………………6 CASE STUDY:
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1. How could the combination of the CEA, CER, and MedPac help? Discuss pros and cons. Cost effective analysis allows us to make decision base on the cost of an intervention and the outcomes or benefits of that intervention. A cost effective ratio include average cost effective ratio (acre), incremental cost effective ratio ((icer), and marginal cost effective ratio. These various ratios allows for comparison of a new intervention versus no intervention, other comparable interventions, and future
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3. The advantage of determining cost using a plant-wide allocation based on direct-labor hours is that it is simple which means that it can be calculated with little time, and by extension, at low-cost. A more accurate method to determine cost is the activity-based cost system. Though more labor-intensive, and consequentially, more expensive, this system is more accurate, calculating the cost of individual activities using the most relevant cost driver. In the case of SDM there is value in looking
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Hospital Community Health Network is high cost provider, whose unit of service costs had been rising at a rate of 10% per year. The first step for managers of Network to reduce expenditure while maintain the quality of service is to understand the detailed cost information, however, the current cost system seems cannot fulfill this requirement. 3. The drawbacks of current cost system The current step down method could not accurately represent the true cost of the intern/resident program, the interpretive
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