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ENT 201 Chapter Notes - Chapter 9: Financial Statement, Income Statement, Cost Accounting

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maroongnu726
7 May 2020
School
SBCC
Department
Entrepreneurship
Course
ENT 201
Professor
Chavez Bonnie

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Document Summary

Strategy, sales, marketing, digital marketing, operations, manufacturing, logistics, human resources, taxes all these are business concepts that require a specialization to develop and manage a company and in which decision making prevails. Decision-making leads us to the essential purpose for the creation of a company that is not another, from the point of view of the investor, how much i need to invest and what profitability i will obtain. In this way, we reach the area of finance or also the area of numbers to which we must know how to interpret so that through them we can make a correct decision-making. A language to which we refer is not another but that of accounting. Accounting allows us to know how much i have, how much i owe, what expense, what income, how much i earn, how much i lose, what money i have and how much i need.

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Related Questions

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    Business management

    QUESTION 1

    1. Which of the following outlines the organization's purpose, assumptions, values, and direction?

      Mission

      Purpose

      Strategic plan

      Strategic goal

      Tactical goal

    2 points

    QUESTION 2

    1. Scientific management focuses on

      improving the efficiency of the individual worker.

      managing the overall organization.

      using capital more efficiently.

      enhancing the social aspects of the workplace.

      creating mathematical models of organization processes.

    2 points

    QUESTION 3

    1. The idea that manufacturing costs per unit decrease as the number of units produced increases is known as

      economies of scale.

      venture capitalism.

      a franchising agreement.

      first-mover advantage.

      None of these.

    2 points

    QUESTION 4

    1. The component of strategy that indicates how the organization intends to allocate resources is

      resource deployment.

      scope.

      competitive advantage.

      synergy.

      None of these.

    2 points

    QUESTION 5

    1. The process of choosing one alternative from among many alternatives is called

      satisficing.

      problem solving.

      bounded rationality.

      decision making.

      None of these.

    2 points

    QUESTION 6

    1. Mercedes-Benz sells high quality automobiles at high prices. It uses a(n)

      differentiation strategy.

      low-cost strategy.

      diversification strategy.

      related diversification strategy.

      BCG strategy.

    2 points

    QUESTION 7

    1. Which of the following is NOT generally considered to be a role performed by small businesses?

      Creation of new jobs

      Development of new products

      Manufacture of materials for large businesses

      Distribution of products made by large businesses

      Provision of capital for expansion of large businesses

    2 points

    QUESTION 8

    1. Which of the following is a disadvantage of group decision making?

      More alternatives are likely to be generated.

      More information will be brought to bear on the problem.

      More time will be needed to make the decision.

      More communication about the decision will result.

      All of these.

    2 points

    QUESTION 9

    1. Which of the following is an example of an owner of a business?

      Individual investors who buy stock in that business

      Partners

      People who have legal property rights to that business

      Individuals who finance and start up a new business

      All of these.

    2 points

    QUESTION 10

    1. The best alternative is the most ____ alternative.

      efficient

      controllable

      profitable

      effective

      valid

    2 points

    QUESTION 11

    1. Which of the following decision-making models is based on the belief that human behavior is often imperfect?

      Rational

      Emotional

      Classical

      Behavioral

      Sequential

    2 points

    QUESTION 12

    1. A disadvantage of using interacting groups to make decisions is

      group politics.

      a void of expert opinion.

      an increase in programmed costs.

      faster decision making.

      too much brainstorming.

    2 points

    QUESTION 13

    1. Nokia and Samsung make cell phones that operate on the Microsoft system. They operate in the ____ industry.

      transportation

      manufacturing

      retailing

      services

      wholesaling

    2 points

    QUESTION 14

    1. All of the following are advantages of group decision making EXCEPT

      groupthink may occur.

      better decisions generally emerge.

      enhanced communication may result.

      more information and knowledge are available.

      None of these.

    2 points

    QUESTION 15

    1. Facebook operates in which industry?

      Construction

      Wholesaling

      Manufacturing

      Services

      All of these.

    2 points

    QUESTION 16

    1. Four friends home from college want to start a moving business to earn money during the summer. To determine whether this is a good idea, they need to find the answer to which of the following questions?

      Who are my customers, and where are they?

      Who are my competitors, and where are they?

      How can I differentiate my product from that of my competitors?

      In what quantities and at what price will my customers buy my service?

      All of these.

    2 points

    QUESTION 17

    1. The classical management perspective consists of

      scientific management and administrative management.

      management science and scientific management.

      behavioral management and the operations management.

      contemporary management and behavioral management.

      contingency management and universal management.

    2 points

    QUESTION 18

    1. Which of the following persons is a manager?

      Cardinal Timothy Dolan, Archbishop of New York

      Nick Saban, football coach at the University of Alabama

      Linda Kaplan Thaler, chief creative officer of Kaplan Thaler Group

      Marissa Mayer, CEO of Yahoo

      All of these.

    2 points

    QUESTION 19

    1. Organizations that provide resources to other organizations are known as

      suppliers.

      competitors.

      regulators.

      interest groups.

      importers.

    2 points

    QUESTION 20

    1. A(n) ____ strategy requires little initial investment, is heavily regulated, and provides little opportunity to modify products for local conditions.

      importing/exporting

      licensing

      joint venture

      direct investment

      global sourcing

    2 points

    QUESTION 21

    1. All of the following are included in the task environment of organizations EXCEPT

      competitors.

      customers.

      regulators.

      suppliers.

      the economy.

    2 points

    QUESTION 22

    1. "Decision making under risk" means the decision maker

      has no data on which to base his or her decision.

      is risk-averse, avoiding risky investments.

      knows all the risks involved in the decision.

      can estimate decision data with some probability.

      is making an important decision with long- term consequences.

    2 points

    QUESTION 23

    1. A standing plan that outlines the steps to be followed in a particular circumstance is called a(n)

      SOP.

      single-use plan.

      policy.

      contingency plan.

      program.

    2 points

    QUESTION 24

    1. Which of the following is NOT one of the reasons for new business failure described in your text?

      Sufficient capital

      Incompetence

      Neglect

      Weak control systems

      Inexperience

    2 points

    QUESTION 25

    1. Interpersonal skills enable managers

      to take an overall view of how the parts of the organization interrelate and to think strategically.

      to solve detailed problems for their subordinates.

      to understand and interact effectively with others in the organization.

      to diagnose organizational problems correctly.

      None of these.

    2 points

    QUESTION 26

    1. Herbert Simon noted that managers generally fail to make rational decisions because they are limited by their own values, skills, habits, and unconscious reflexes as well as by incomplete information. What name did Simon give this phenomenon?

      Satisficing

      Bounded rationality

      Brainstorming

      Rational decision making

      Decision framing

    2 points

    QUESTION 27

    1. Nike and Reebok are best described as

      strategic allies.

      competitors.

      customers.

      regulators.

      suppliers.

    2 points

    QUESTION 28

    1. The first person to identify the managerial functions of planning, organizing, leading, and controlling was

      Elton Mayo.

      Lillian Gilbreth.

      Henri Fayol.

      Hugo Munsterberg.

      Mary Parker Follett.

    2 points

    QUESTION 29

    1. Strategic goals are set by

      first-line managers.

      middle managers.

      top managers.

      stockholders.

      All of these.

    2 points

    QUESTION 30

    1. Using the BCG matrix, SBUs are classified on the basis of

      market growth rate and cash generation potential.

      market share and market growth rate.

      competitive advantage and financial strength.

      a strategic business unit and product life cycle.

      None of these.

    2 points

    QUESTION 31

    1. ____ skills are needed for specialized tasks within the organization.

      Human

      Organizational

      Conceptual

      Technical

      None of these.

    2 points

    QUESTION 32

    1. McGraw Hill operates in publishing and construction. This is an example of ____ diversification.

      differentiation

      unrelated

      single-product

      BCG

      related

    2 points

    QUESTION 33

    1. The management pioneer who performed the Hawthorne studies at Western Electric was

      Lillian Gilbreth.

      Elton Mayo.

      Henry Gantt.

      Frank Gilbreth.

      Frederick Taylor.

    2 points

    QUESTION 34

    1. An organization's obligation to protect and enhance the society in which it operates is called

      legal responsibility.

      ethical responsibility.

      social responsibility.

      cultural responsibility.

      societal responsibility.

    2 points

    QUESTION 35

    1. An entrepreneur does all of the following EXCEPT

      operate.

      organize.

      plan.

      assume risk.

      hire a professional manager.

    2 points

    QUESTION 36

    1. The primary purpose of the management process is to

      develop organizational goals and make logical decisions.

      organize the various functions in a logical manner.

      ensure that all employees are working together effectively.

      achieve organizational goals efficiently and effectively.

      make sure things go as planned.

    2 points

    QUESTION 37

    1. How do top managers spend most of their time?

      Overseeing day-to-day operations

      Routine administrative tasks

      Implementing plans of first-line managers

      Making decisions and creating goals

      Coordinating the work of first-line managers

    2 points

    QUESTION 38

    1. In the classical decision making model, "optimization" means

      implementing two or more alternatives simultaneously.

      choosing the alternative with the best overall expected outcomes.

      gathering the most complete information before making the decision.

      reaching a satisfactory level of performance.

      None of these.

    2 points

    QUESTION 39

    1. A written summary of the business strategy and its implementation plan is known as

      a niche summary.

      a first-mover advantage.

      a business plan.

      economies of scale.

      a franchise agreement.

    2 points

    QUESTION 40

    1. The aspects of a business that the firm performs at a higher level than its competitors are known as the firm's

      niches.

      capital-intensiveness.

      distinctive competencies.

      strategic weakness.

      first-mover advantage.

    2 points

    QUESTION 41

    1. For a Perkins restaurant, which of the following would be considered to be a supplier?

      A family of 5

      Wendy

    Tactical decision making

    Tactical decision making means choosing among alternatives withan immediate or limited end in view. For example, a company mayaccept a special order for less than the normal selling price touse idle capacity. Tactical decisions tend to be short-runin nature; however, it should be emphasized that short-rundecisions often have long-run consequences. A general tacticaldecision-making model is outlined here.

    1. Recognize and define theproblem.
    2. Identify possible alternativesolutions to the problem, and eliminate any unfeasiblealternatives.
    3. Identify the costs and benefitsassociated with each feasible alternative. Eliminate the costs andbenefits that are not relevant to the decision.
    4. Compare the relevant costsand benefits for each alternative.
    5. Assess qualitative factors.
    6. Select the alternative with thegreatest overall benefit.

    Identifying and comparing relevant costs and revenues is theheart of the tactical decision model. Relevant costs (revenues) arefuture costs (revenues) that differ across alternatives. (Revenuesare treated in the same way as costs, so we will simplify thediscussion by referring to costs.) All decisions relate to thefuture; so, only future costs can be relevant. In addition, thecost must differ from one alternative to another. If a future costis the same for more than one alternative, it has no effect on thedecision. Such a cost is an irrelevant cost.

    Assume that Reeves Company is considering accepting a specialorder for $25 per unit when the normal selling price is $30 perunit. Reeves has enough excess capacity to make the order withoutdisplacing normal sales. The alternatives facing Reeves Company are(Select "Yes" for the statements that are applicable and "No" forthe items that do not apply):

    Accept the special order. - Select your answer -YesNoItem1
    Reject the special order. - Select your answer -YesNoItem2
    Sell normal sales for $25 perunit. - Select your answer -YesNoItem3

    Choose which of the following are relevant in deciding whetheror not to accept the special order. (Select "Yes" for thestatements that are applicable and "No" for the items that do notapply)

    $25 price. - Select your answer -YesNoItem4
    $30 normal price. - Select your answer -YesNoItem5
    Variable cost of making the unitsin the special order. - Select your answer -YesNoItem6
    Depreciation on factory equipmentused in making the special order units. - Select your answer -YesNoItem7
    Increased property taxes on thefactory building which are due while the special order would bemade. - Select your answer -YesNoItem8

    While cost and revenue information is important, otherinformation may be needed to make an informed decision. Thesenon-financial factors are termed qualitative and are often relevantin decision making. For example, in deciding whether to make acomponent in-house or purchase it from an outside supplier, thecompany may consider any difference in quality or in responsivenessto the company's production schedules.