2nd business midterm

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Materials requirement planning (MRP)

A computer based operations management system that uses sales forecasts to make sure he did parts and materials are available at the right place/time

Revenue

A monetary value of water firm received for goods sold, services rendered, and other payments (rents received, interest earned)

The accounting cycle

A six step procedure, that results in the prep and analysis of the major financial statements

Financial statement

A summary of all the financial transactions that have occurred over a particular Period. They indicate the health instability of a business.

Fixed position layout

Allows workers to congregate around product. Example plane.

Ratio analysis

Assessment of a firms, financial condition, using calculations and financial ratios developed from the firms financial statements

Computer, integrated manufacturing (CIM)

Both CAD and CAM, expensive, cuts out 80% of time to program

Maintaining quality

Consistently producing what the customer wants while reducing errors before an after delivery

Key product process

Continuous or intermittent

Operating expenses

Costs involved in the operation process, such as rent, utilities, and salaries

Production

Creation of finished goods/services using the factors of production

Assets

Economic resources owned by a firm. Include equipment, buildings, land, furniture, motor vehicles, that generate income, as well as in tangible items (copyrights/trademarks)

Processing to the accounting system

Entries are made into journals, the effects of these journal entries are transferred or posted into ledgers (classifying), all accounts are summarized

Budget

Estimated revenue/expenses

Assembly line layout

Few tasks at a time example ice cream

Balance sheet

Financial statement, that reports of firms financial condition at a specific time

The outputs of the accounting system

Financial statements (include the balance sheet, income, statement, statement of cash, flows, other reports)

The three-step financial plan

Forecasting firms, short, and long-term financial needs, developing budgets to meet those needs, establishing financial controls to see whether the company is achieving its goal

Purchasing

Function that searches for high quality material resources find the best supplies and negotiate the best price for quality goods and services

Financial accounting

Generates financial information and analysis for people primarily outside the organization

Operations management planning

Helps solve problems in service and manufacturing sectors includes facility, location, facility, layout, materials, requirement, planning, purchasing, inventory control

Modular layout

Hi enterprise, objects move, not in a continuous line, more like a diagram

Operations management part two

High quality goods, and services in response to customer demand

Activity ratios

How effective management is turning over inventory

Return on equity

Indirectly measures risk by telling us how much a firm earned for each dollar invested by owners

Managerial accounting

Info and analysis to managers inside the organization to assist on decision making

The transformation process

Inputs (materials, labor, time, capital) conversion (procedures, equipment, knowledge) outputs (goods, services, ideas)

Sound financial management

Is essential to all businesses due to operating funds, never ending, consists of managing day by day, controlling, credit operations, acquiring need inventory, and making capital expenditures

Factors of production

Land, labor, capital, entrepreneurship, and knowledge

Bottom line

Located in the income statement, the net income, or loss the firm incurred from revenue minus sales, return, cost, expenses and tax over a period of time

Continuous process

Long production runs that turn out finished goods overtime

Capital expenditures

Major investments in either tangible long-term assets, such as land, buildings, and equipment, or intangible assets, such as patent's trademarks and copyrights

Mass production

Make a large number of limited variety of products at a low cost

Liquidity ratios

Measure a company's ability to turn assets into cash and pay It's a short term debts.

Leverage/dept ratio

Measure the degree to which a firm relies on borrowed funds in its operations

Cost of goods sold/manufactured

Measures the cost of merchandise, the firm sells or the cost of raw materials and supplies It used in producing items for resale.

Long term forecast

One, five, or 10 years of how many will go in and out of the business

Intermittent process

Only making certain amount of products, products run short as different products are made overtime

Facility layout

Physical arrangement of resources, including people, to most efficiently produce goods, and provide services for customers

Production control

Plan, route, schedule, dispatch, follow up

Trade credit

Practice of buying goods or services, and paying them later, most widely used source of short term, funding, the least expensive, and most convenient

Cash flow forecast

Predictions of how money will go in and out of business is usually within three months

Short term forecast

Predicts how many will go in and out of the next 4 to 12 months, one year or less?

Facility location

Process of selecting a geographic location for a company's operations

PERT

Program Evaluation and Review Technique, analyzing all the tasks involved in the critical path

Leverage

Raising needed funds through borrowing to increase of firms rate of return

Statement of cash flows

Reports cash receipts related to three major activities of a firm: operations, investments, financing

Goodwill

Represents the value attached to factors, such as a firms, reputation, location, and superior products

Financial managers

Responsible for paying company bills/collecting overdue payments to make sure company doesn't lose money to bad debts, particularly critical for small to medium size businesses

Auditing

Reviewing and evaluating the information used to prepare a company's financial statements.

Inputs to accounting system

Sales, purchasing, shipping, payroll, bank, travel, entertainment (accounting documents)

Financial planning

Short/long term money flows to, and from the firm, its overall objective is to optimize the firms profitability and make best use of money

Mass customization

Tailoring products to meet needs of a large amount of people and their individual needs

Cash flow

The difference between cash coming in and out of a business

Income statement

The financial statement that shows a firm's bottom line

Finance

The function of business that requires funds for the firm and managers them within the firm

Accounting

The recording, classifying, summarizing, and interpreting of financial events and transactions in an organization to provide management and other interested parties the financial info they need to make good decisions

Three. Most common ways a firm fails financially.

Undercapitalization, poor control, over cash flow, an adequate expense control

Computer, aided design

Use of computers in the design of products

Computer aided manufacturing

Use of computers in the manufacturing process

Just in time inventory control

Used to cut costs and keeps a minimum of inventory on the premises and delivers parts and supplies just in time to go on the assembly line

Lean manufacturing

Uses half human effort, 1/3 of the engineering, 1/2 floor space, and 90% less inventory

Equity

What you own

Liabilities

With the business owes to others

Telecommuting

Working from home via computer, it's a major trend in business

Debt financing

funds raised through various forms of borrowing that must be repaid

Critical path

in a PERT network, the sequence of tasks that takes the longest time to complete

Flexible manufacturing

production method that is designed to easily adapt to changes in the type and quantity of the product being manufactured

Process manufacturing

the part of the production process that physically or chemically changes materials

Factoring

the process of selling accounts receivable for cash


Kaugnay na mga set ng pag-aaral

Understanding Social Problems Practice Test Chapters 1, 3, 4, 6

View Set

The Building Blocks of Accounting

View Set

Chapter 28: Infection Prevention and Control

View Set

The Black Cat by Edgar Allan Poe

View Set

Managerial Accounting Chapters 5-7

View Set

Our solar system's location in the Milky Way Galaxy

View Set

Dietetic Technician Registered Exam: Book Exam

View Set