33:010:275 Lecture Notes - Lecture 4: Forecasting, Financial Statement, Income Statement

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limeherring262

14 Jul 2017

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Plans may backfire, need to rethink strategy and objectives, hence the . The initial plan of the company"s goals at the beginning of the year. List of company goals; framework for tracking goals. Quantifies financial/nonfinancial expectations for the upcoming period. Budget- a proposed quantitative plan of action for a certain time-period. Strategy- how companies match capabilities w/ possible opportunities in market to achieve goals. Strategy strategic plan long-run planning long-run budgets. Strategy operating plan short-run planning short-run budgets. Master budget: the operating and financing plans for a time period; includes financial budgets. Operating decisions- how to use the smallest amount of resources. Financing decisions- how to generate funds for the needed resources. Coordination- balancing of all departments in organization to reach all the organization"s goals. Providing a framework for judging performance and facilitating learning: Budgets are used to measure predicted vs. actual performance. Sometimes bad to compare to the past b/c the past could contain miscues, unique situations.

Related Questions

1.If making 10 customized holiday cards uses $20 in materials, $20 in hourly wages and $10 in desk rental space, what is the average cost per unit (card)?

$50

$40

$4

------------------------------------------------

2.When the cards in the above problem are sold, the cost per unit (card) is recorded as

Inventory

Cost of goods sold

Work in progress

Selling expenses
-----------------------------------

3.Strategic planning focuses on

		short-range decisions
		intermediate-range policies
		sales targets
		long-range decisions --------------------------------

4.A plan that formalizes, in financial terms, the overall goals and objectives of a company is called a

capital budget

master budget

participative budget

strategic analysis

--------------------------

5.The operational budgeting process in a firm normally begins with

A bank statement of its cash holdings

An analysis of its days in receivables ratio

Preparation of the sales budget for the period

Drawing on its line of credit

6.Financials statements that are prepared as a forecast based on planning and budgeting in a firm are known as

		Trial balances
		Ledgers
		Pro Formas
		IRS Returns

cyansheep612

Please help me answer the following questions:
1. Management accounting:
A) is both retrospective, providing feedback about past operations,and also prospective, incorporating forecasts and estimates aboutfuture events.
B) is primarily oriented to external stakeholders.
C) must be consistent with rules formulated by the FinancialAccounting Standards Board (FASB).
D) provides information that is generally available only on aquarterly or annual basis.

2. Management accounting information is BEST described as:
A) providing a signal that something is wrong.
B) identifying and helping to explain what is wrong.
C) simply summarizing information, but giving no indication thatanything is wrong.
D) measuring overall organizational performance.

3. Which of the following would be MOST helpful for a top managerof a company?
A) profitability report of the company
B) information to monitor hourly and daily operations
C) number of customer complaints
D) operating expense summary reported by department

4. The Balanced Scorecard is said to be "balanced" because itmeasures:
A) short-term and long-term objectives.
B) financial and nonfinancial objectives.
C) internal and external objectives.
D) All of the above are correct.

5. The ________ perspective of the Balanced Scorecard asks, "How issuccess measured by our shareholders?"
A) learning and growth
B) customer
C) financial
D) shareholder

6. Defect rates for products and yield percentages in manufacturingare measures of quality included in the ________ perspective of theBalanced Scorecard.
A) financial
B) production
C) process
D) internal

7. The purpose of the Balanced Scorecard is BEST described ashelping an organization:
A) develop customer relations.
B) mobilize employee skills for continuous improvements inprocessing capabilities, quality, and response times.
C) introduce innovative products and services desired by targetcustomers.
D) translate an organization's mission, vision, and strategy into aset of performance measures that help to implement thestrategy.

8. The FIRST step in developing strategic objectives for theBalanced Scorecard is:
A) defining the long-run financial objectives.
B) identifying the target customer.
C) articulating the organization's vision.
D) select objectives for the customer value proposition.

9. Identify the BEST description of the Balanced Scorecard'scustomer perspective. To achieve our firm's vision andstrategy:
A) How do we lower costs?
B) How do we motivate employees?
C) How can we obtain greater profits?
D) How does the company intend to attract, retain, and deepenrelationships with targeted customers by differentiating itselffrom competitors?

10. Fixed costs:
A) may be either direct or indirect costs.
B) vary with production or sales volume.
C) include parts and materials used to manufacture a product.
D) can be adjusted in the short run to meet actual demands.

11. Which of the following describes a variable cost?
A) Variable cost are always indirect costs.
B) Variable costs increase in total when the actual level ofactivity increases.
C) Variable costs include most personnel costs and depreciation onmachinery.
D) Variable costs can always be traced directly to the costobject.

12. Cost-volume-profit analysis is used PRIMARILY bymanagement:
A) as a planning tool.
B) for control purposes.
C) to establish a target net income for next year.
D) to attain extremely accurate financial results.

13. The break-even point is the level at which revenues:
A) equal fixed costs.
B) equal variable costs.
C) equal fixed costs minus flexible costs.
D) equal variable costs plus fixed costs.

14. Cost-volume-profit analysis assumes all of the followingEXCEPT:
A) all costs are purely variable or fixed.
B) units manufactured equal units sold.
C) total variable costs remain the same over the relevantrange.
D) total fixed costs remain the same over the relevant range.

33:010:275 Lecture Notes - Lecture 4: Forecasting, Financial Statement, Income Statement

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