BUSI 2603U Study Guide - Comprehensive Midterm Guide: Strategic Planning, Six Sigma, Service Level

• School: UOIT
• Department: Business
• Course: BUSI 2603U
• Professor: Karthik Sankaranarayanan

Document Summary

Is the set of activities that create value in the form of goods and services by transforming inputs into outputs. Objective is to find the point in dollars and units at which cost equals revenue. Requires estimation of fixed costs, variable costs, and revenue. Fixed costs are costs that continue even if no units are produced: depreciation, taxes, debt, mortgage payments. Variable costs are costs that vary with the volume of units produced: labor, materials, portion of utilities. A multi - stage process while making capacity decisions. Make a decision that maximizes profit or minimizes cost. Demand for products and services is usually uncertain. Fore(cid:272)asti(cid:374)g (cid:272)a(cid:374) (cid:271)e used for : strategic planning (long range planning, finance and accounting (budgets and cost controls, marketing (future sales, new products, production and operations. Forecasts are more accurate for groups or families of items. Forecasts are more accurate for shorter time periods. Every forecast should include an error estimate.