STANDARD DEVIATION
The standard deviation is a measure of dispersion. It can be used to highlight
the degree to which a mean number can be reliable as a statistics of a series
of number. If the standard deviation is very high, the mean number does not
rep
Probability is the chance that something will happen
A probability distribution identifies either the probability of each value of a
random variable (when the variable is discrete), or the probability of the value falling
within a particular interval (whe
Net present value of an investment
The formula of NPV =the sum of cash flows with t from 0 to n, at the interest rate of r
NPV =
n
(cashflow ) * (1 + r )
t
t= 0
EXAMPLE A
EXAMPLE B
discount rate (cost of capital, or rate of return of an
alternative inves
DISCOUNTING
It is very important to calculate the value now of a capital that will exist after some time
It is like moving money along the axis of time (or like a "time-machine", if you prefer)
We need a rate to move money along the axis of time (it is a
INVESTING MONEY
The main reason to invest money is to get an interest or profit
RISK AND PROFIT
Obtaining an interest from a financial investment means getting a profit for allowing the other
part to use the capital and for the risk we run to lose the cap
Break even point for a product range that includes two products
When we compute the break even point for a product range that includes more than one
product, it is critical to understand the product mix (in percentage, for example) and a method
to share t
computing the break even point
example:
price of a product (from the manufacturer
to the distributor/trade)
variable production costs
variable marketing costs
margin to cover fixed costs (and
eventually provide the company with a
profit)
fixed costs
break
A company called SALESMASTER makes high performance sails for competitive windsurfers. Below is
information about inputs and outputs for one model, the Windy 2000.
units sold
sales price each (dollars)
total labour hours
wage rate (dollars per hour)
total
ACME CORPORATION rceived the data below for its rodent cage production unit. Find the TOTAL
PRODUCTIVITY
volume produced
sales price: dollars per unit
production time (hours of labour)
wages (dollars per hour)
raw materials (total costs)
component parts (
A furniture manufacturing company has provided the following
data. Compare the labor, raw materials and supplies, and the
total productivity of 2009 and 2010.
2009
2010
output:
22000
10000
35000
15000
raw material and supplies
8000
12500
capital equipment
Efficiency
Example: how to use production capacity efficiently
The size of companies that compete in a market can be considered an entry
barrier for a firm that is not yet in the market. One of the reason why a large
company is often more efficient than a
The relation between
production and marketing
decisions
The case of car
platforms
and the issue of
branding in multibrand
Sometimes decisions that looks like
functional are strategic and also involve
other functions set of
An automobile platform is a shar
Centroid Method Template
Enter the information (destination, XY coordinate, and quantity) in
the blue cells below.
Destination
Centroid
X
#DIV/0!
12
Y
Quantity
#
#
0
#DIV/0!
#
10
d1
d2
d3
Y
8
2
3
1
6
4
2
0
0.8
1
1.2
X
1.4
1.6
1.8
2
Exhibit 9.5 - Grid Map for Centroid Example
Enter the information (destination, XY coordinate, and quantity) in
the blue cells below.
Destination
Long Beach
Anaheim
LaHabra
Glendale
Thousand Oaks
X
350
25
Centroid
264
460
Y
,
,
Quantity*cost to move one u
PROBLEM 3 - page 266 chapter 9
DOLLAR PROFIT PER UNIT
Shipped to
produced at
From/To
New York
Fort Worth
San Diego
Maximum
Minneapolis Factory Supply
Boulder
7
11
8
13
100,000
Macon
20
17
12
10
100,000
Gary
8
18
13
16
150,000
50,000
70,000
60,000
80,000
0
Applichem
Applichem - The Transportation Problem
Product Made and Shipped During Past Year (in 100,000 lb units)
Plant/Country
Mexico City
Windsor, Ontario
Caracas, Venezuela
Frankfort, Germany
Gary, Indiana
Osaka, Japan
Total
Mexico
Canada
3.0
Venezuela
IN THIS SIMULATION WE TRY TO SEE WHAT IT WOULD HAPPEN TO THE AVERAGE INVENTORY TURN IF EACH QUARTER THE RATE
OF CHANGE OF WIP&FG WAS CONSISTENT WITH THE RATE OF CHANGE OF DEMAND.
THE ISSUE IS : IF WE CAN WORK AS WE DID IN THE FIRST SEMESTER, WITH 100 OF W
PEPE JEANS
Sales of Pepe Jeans
200,000,000
A NEW ORDERING
SYSTEM (same
sourcing, more
efficient and more
expensive)
Profits and losses of
unit Pepe Jeans
Sales of Pepe Jeans
4,444,444 (+10%)
COGS
Operating expenses
-80,000,000
-56,000,000
COGS (30% more)=
Example 8.2 Inventory Turnover Calculation
Dell Computer , 2005
Net Revenue (fiscal year 2005)
Cost of Revenue (fiscal year 2005) (COGS)
Production materials on hand (28 january 2005) we assume it represents the
average
Work-in-process and finished goods
LITTLE'S law
example 4.1
batteries bought from a supplier
throughtput rate of assembling cars
flow time of the process
buffer of inventory
work in process inventory (applying little's law)
total inventory
value of total inventory
days of supply in the buf
LITTLE'S LAW
EXAMPLE 1
value
flow time (the time it takes a unit to flow through
the process from the beginning to end)
throughput rate (how many pieces are produced
on average in a period of time at steady state
conditions, so that this is in fact the de
Solved problem n. 4 page 87-88
production volume to meet the demand forecast
working day of 8 hours
task information
400 units
480 mins
28800 secs
tesk time
(secs)
task
A
B
C
D
E
F
G
H
task that must
precede
50
40
20
45
20
25
10
35
A
C
C
D
E
B, F, G
245
c
Exhibit 4.4 - Break-Even Chart of Alternative Processes
Selling Price
Alternative
$259.00
Unit Variable
Cost
Fixed Cost
Increment Q by:
Buy
Machine
Semi-auto Lathe
$200,000.00
$80,000.00
$200.00
$15.00
$75.00
700,000
Colum n N
Colum n O
Colum n P
Column Q
Make to stock environment VS. Assemble-to-order production
The number of finished products is usually substantially greater than the number of
components that are combined to produce the finished product
EXAMPLE
Processor alternatives
Hard disk alternativ
Solved problem n. 5 page 88-89
production volume to meet the
demand forecast
working day of 8 hours
task information
cycle time (seconds)
theroretical miniminum number of
workstations
600 units
480 mins
tesk time
(secs)
task
A
B
C
D
E
F
G
H
I
J
K
28800 se
KAUNAS UNIVERSITY OF TECHNOLOGY
Faculty of Economics and Management
MANAGEMENT ACCOUNTING
Introduction
Dr. Lina Kloviene
Accounting department
Aim of the lecture: to provide on overview of
how management accounting information
supports traditional and mod
FINANCIAL MANAGEMENT FOR
GEORGIA LOCAL UNITS
OF ADMINISTRATION
Date
Issued
Effective
Date
Section
Title:
10/21/92
07/01/92
I
GAAP Accounting and
Financial Reporting Principles
Revision
No.
Date
Revised
Chapter
Title:
2
February 2009
3
Double Entry Account