management techniques

Question 1

what is equivalent units

Answer 1

measuring work in progress in terms of the number of completed units.

Question 2

how to calculate equivalent units

Answer 2

wip units x %

Question 3

Cash flow figure is

Answer 3

The difference between expected cash receipts and payments.

Question 4

marginal cost =

Answer 4

direct materials + direct labor + variable overheads

Question 5

contribution per unit =

Answer 5

sales rev per unit - variable cost per unit

Question 6

break even £=

Answer 6

fixed cost divide by profit/ volume figure

Question 7

margin of safety =

Answer 7

break even figures - sales rev or sales vol

Question 8

margin of safety % =

Answer 8

Margin of safety divided by sales x 100

Question 9

full cost of a product =

Answer 9

Direct materials + Direct labour + Overheads

Question 10

Budgeted overhead absorption rate =

Answer 10

Budgeted overheads / budgeted labour or machine hours

Question 11

Overheads absorbed =

Answer 11

Actual activity x BOAR

Question 12

What side of profit and loss is overheads obsorbed posted to

Answer 12

Debit

Question 13

Vlookup formula is

Answer 13

=VLOOKUP(lookup_value,range,column,index)

Question 14

What is lookup_value is the VLOOKUP formula

Answer 14

What you want to look up in the column

Question 15

Prime cost =

Answer 15

The total direct cost (direct material +direct labour +Direct expenses

Question 16

Total variable costs =

Answer 16

Variable cost per unit x number of unit

Question 17

Total costs =

Answer 17

Fixed element + ( variable cpu x num of units )

Question 18

Profit per unit =

Answer 18

Revenue per unit - total cost per unit

Question 19

Minimum inventory level =

Answer 19

Reorder level - (average usage x average lead time )

Question 20

Maximum inventory lvl =

Answer 20

Inventory buffer + maximum reorder quantity

Question 21

Reorder level =

Answer 21

(Average usage x average lead time) + inventory buffer

Question 22

Minimum reorder quantity =

Answer 22

Average usage x average lead time

Question 23

Maximum reorder quantity =

Answer 23

Maximum inventory level - inventory buffer

Question 24

Total inventory costs =

Answer 24

Ordering costs + purchase costs + holding costs

Question 25

Economic order quantity

Answer 25

Num of unit ordered = eoq = square root of 2cod (2x fixed cost per order x annual demand in units / cost of holding one unit for a year

Question 26

Average price per unit =

Answer 26

Total value of opening inventory + total value of unit added to inventory / units of opening inventory + units added to inventory

Question 27

Overheads =

Answer 27

Indirect material + indirect labour + indirect expenses

Question 28

Cost apportion =

Answer 28

Value of apportionment bas off cost centre/ total value of apportionment = … x total overhead cost

Question 29

Overhead absorption rate (oar) =

Answer 29

Production overheads (or budgeted)/ activity level ( or budgeted)

Question 30

Ammount absorbed =

Answer 30

Actual production activity x OAR ( overhead absorption rate )

Question 31

Cost per unit of a batch =

Answer 31

Cost of the batch / number of units in the batch

Question 32

Cost per unit (service)

Answer 32

Total cost for a period / number of service consults in the droid

Question 33

Cost per ‘ good’ unit

Answer 33

Total costs - scrap proceeds from normal loss / unit input - normal loss units

Question 34

What is normal loss

Answer 34

The expected loss from production

Question 35

What is abnormal loss

Answer 35

Any actual loss in excess of normal loss

Question 36

Contributions =

Answer 36

Sales value - variable cost of sales

Question 37

margin of safety =

Answer 37

budgeted sales volume - breakeven sales volume / budgeted sales volume x 100

Question 38

sales volume to reach required profit level

Answer 38

fixed costs + required profit / unit contributions

Question 39

break even point is

Answer 39

the number of units of sale required to break even

Question 40

break even point =

Answer 40

fixed costs / unit contributions

Question 41

pv (profit volume)/ contribution ratio =

Answer 41

contribution / sales

Question 42

breakeven revenue =

Answer 42

fixed costs / pv ratio

Question 43

in excel operation 1 is

Answer 43

average

Question 44

in excel operation 4 is

Answer 44

maximum

Question 45

in excel operation 5 is

Answer 45

minimum

Question 46

in excel operation 9 is

Answer 46

sum

Question 47

excel formula for average of total

Answer 47

=SUBTOTAL(1,range)

Question 48

what does the count function do

Answer 48

counts the number of cells within a range that contain numeric values.

Question 49

what does the COUNTA function do

Answer 49

counts the number of cells that are not blank.

Question 50

what is financial accounting

Answer 50

the provision of financial statements for external parties based on historical data

Question 51

what is management accounting

Answer 51

the provisions of both actual figures and forecast figures to enable management to plan, control and make decisions

Question 52

what is capital expenditure

Answer 52

purchase of non-current assets, improvement of the earning capability of non-current assets

Question 53

what is overtime premium

Answer 53

the amount on top of basic rate for overtime e.g if i was paid 10 quid and over time was 12 premium would be 2

Question 54

if overtime worked is specifically requested is it charged as a direct job cost?

Answer 54

yes

Question 55

Working capital cycle =

Answer 55

Inventory days + recivablw days - payable days