MGMT_(201)_Ganguly_Midterm2_Review - MGMT (201) Ganguly...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: MGMT (201) Ganguly MGMT (201) Ganguly Review for Midterm2 March 31, 2006 LILY G126 4:30pm­6:30pm (approx) Absorption Income Variable Income Differences between the two, comparisons Effects on Income of Inventory increases and decreases (nice HM problems) Extensive self­study problems to really grasp/review the concepts 1. Absorption vs.Variable 1. Absorption vs.Variable Costing BEP (nice HM problems) 2. CVP analysis 2. CVP analysis Understanding graphs of CVP relationships Computing sales required for a target net profit Using contribution margin approach and equations approach Safety margin What happens when Fixed Costs change? What happens when unit contribution margin changes? Predicting profits given expected volumes CPV analysis with multiple products (nice HM problems) Before or after taxes! (nice HM problem) Cost Structure & Operating Leverage (nice HM problem) Extensive self­study problems WAUCM BEP Sales volume for each product in mix 3. Decision Making & CVP 3. Decision Making & CVP Relevant/Irrelevant Information Accept or Reject a Special Order Outsource a Product or Service Add/Drop a product, service or department Joint products (Cocoa beans!) (also, nice HM Problem). Decision involving limited resources (nice HM problem) Relevant Costs Relevant Benefits Sunk Costs Opportunity Costs 4. Long run decision making 4. Long run decision making Discounted Cash Flow analyses Special case of depreciable assets Comparing two investment projects NPV & IRR methods, comparisons Idea of hurdle rate Assumptions Income taxes and capital budgeting Total­cost approach or incremental­cost approach Special case of non­cash expenditures Payback method Accounting Rate of Return Other conventional methods of making investment decisions 5. Budgeting 5. Budgeting Types of budgets and their linkages Sales, Production, Dir. Material, Dir. Labor, Overheads, S&A Expenses, Cash Receipts, Cash Disbursements Budgeted Income Statements & Balance Sheets Order of Importance Order of Importance 1. What was done in class (This is the bare minimum!) 1. 2. Class notes (relate these to readings) Class Slides 2. 3. 4. 5. What was done for HM homework What was Done in Recitations Other Self­Study Questions Other readings­related matters not specifically covered above Please remember to… Please remember to… Bring your University Picture ID Please acquire a duplicate if you have lost or misplaced it Is NOT programmable Is NOT a Financial Calculator (cannot do IRR, NPV, etc.) (Simple $3.00 calculators with four basic functions and memory are best.) Bring a calculator that Look at e­mail over the weekend to know your room assignment. Other details Other details 15 multiple choice questions; 3­4 exercises Arrive 15 minutes early if you can We will start on time Positively finish on time (NO extra time for writing names, filling bubbles, etc.) Pace yourself Point distribution will generally be given Don’t obsess over bad (or good) answers …a final word For those on scholarships, special programs, etc. requiring a minimum grade from this course This is a major event for you. If you “need” a good grade, here’s your chance to get it! Now is your chance to show how hard you worked for the course. [“Don’t tell me you worked hard for the course; show me!”] Good Luck! Good Luck! ...
View Full Document

Ask a homework question - tutors are online