SCM - PRELIMS
What is strategy in greek word?
strategos
strategos means?
general's art
what are the 5 P's of strategy?
Plan, Ploy, Pattern, Perspective and Position
it is the process of leading and controlling of a group of people, resources, or an organization in totality to achieve the goals n objectives of the entity in pursuit of success n value creation.
Management
What are the four function of management?
Planning, Organizing, Leading and Controlling
coordinating and resources, and delegation of responsibilities
Organizing
determining proper courses of action and strategizing tactics to enforce in order to achieve the goals set
Planning
managing and guiding people, along with proper motivation and directions
Leading
monitoring and evaluating activities to ensure they answer the goals being set
Controlling
use of cost information as a tool for decision making and business development
Strategic Cost Management
managing costs so that an entity can sell products at lowest price
Cost Leadership
entity's stratrgy to become a market provider of unique product
Product Differentation
function of management that deals with the determination
Controlling
two function of management that goes together
Planning and Controlling
standardized financial reporting through GAAP
Financial Accounting
specialized reporting for managerial decision-making
Management Accounting
reflects the amount of resources in order for the company to achieve a certain objective such as creation of goods or rendering of services in order to earn revenue
Cost
cost that incurred in the entity's operations on producing products and services
Manufacturing Cost
cost that is incurred in the entity's operations on making the product known, selling them, and other administrative expenses
Non manufacturing cost
cost assigned to products until they are sold
Product Cost
cost that are not directly traceable to a particular product line, segment, department division, or branch.
Indirect Cost
cost that are traceable to particular product line, segment, department, division, or branch.
Direct Cost
cost incurred and recognized based on time periods
Period Cost
cost that can be influenced by the manager on how it will be incurred and can be altered in the shot run.
Controllable Cost
cost that cannot be influenced by the manager on how it will be incurred. It can be altered in the long run
Uncontrollable Cost
there are the benefits forgone in choosing one alternative over the other course of action.
opportunity cost
differences of costs under altenative actions or decisions.
Differential Cost
cost incurred un one alternative that will not be encountered in the other alternative.
Relevant Cost
extra cost incurred when one additional unit is produced. It determines the quantity most efficient to produce.
Marginal Cost
total cost to provide divided bt the total number of units manufactured
Average Cost
cost that has been already incurred the will not affect future costs sunce they already paid for ir incurred and cannot be changed by any futurr action.
Sunk Cost
costs or expenses that require a cash payment in the current periof or during a project
out-of-pocket cost
range of productuin activity present the entity's normal operating levels where relationships of cost
Relevant Range
at whatever level of production within the relevant range this cost does not change. It is independeny if the level production
Fixed Cost
refers to the costs that has both variable and fixed components
Mixed Cost
costs that are constant in a certain level of activity but increases in another certain level of activity
Step Cost
The most common officers involved in an entity's financial information are?
CEO CFO TREASURER CONTROLLER
Management of cash and marketable securities, planning of capital structure, and raising capital
Treasurer
set of formal methods developed for planning and controlling an organization's cost-generating activities relative to its goals and objectives
Cost management system
Marginal Cost Formula
Changes in Cost divided by Changes in Quantity
Cost equation
y=a+bx
Average Cost Formula
Total FC + Total VC divided by Total no. of unit produced
High low method
Highest Cost Activity less Lowest Cost Activity divided by Highest Activity less Lowest Activity