Balance Sheet
The accounting equation used on every balance sheet.
Assets = Liabilities + Owners’ Equity
Which of the following is a variable cost:
Depreciation, Promotions, Direct Material, or Administrative?
Direct material
Putting components together into a final good.
Assembly process
Inventory system where parts arrive only when needed.
Just-in-Time (JIT)
Using computers to both design products and automatically send those designs directly to machines describes what integrated system?
Computer Integrated Manufacturing (CIM)
Money customers owe you
Accounts Receivable
Depreciation appears on the income statement but does not change with production volume. It is classified as what type of cost?
Fixed/Operating expense
Physically or chemically changing materials.
Process manufacturing
Extra inventory increases this type of cost.
Holding/carrying cost
A company invests heavily in robotics primarily to reduce which type of cost?
Labor Costs
Tangible, long term assets essential for the operations of a business and long term revenue
Plant, Property, & Equipment (PP&E)
Sales − Variable Costs equals this.
Contribution Margin
Transforming inputs like land, labor, and materials into outputs is called this.
Production
Quality method targeting only 3.4 defects per million.
Six Sigma
Technology like automation and robotics increases upfront costs but typically improves what two performance measures?
Efficiency and consistency
Issuing common stock increases cash but does not affect what measure of performance?
Profit/Net Income
A company wants to evaluate how well its core operations perform without considering financing or tax decisions. Which metric should it use?
Earnings before Interest and Taxes (EEBIT)
Long production runs making the same product nonstop.
Continuous process
a production system where the product remains in one location due to its size, weight, or fragility, while workers, materials, and equipment are moved to it
Fixed Position Layout
A manager wants to visually track when multiple tasks overlap and monitor progress over time using a timeline.
Which project tool should they use?
Gantt Chart
The cumulative loss of value of property, plant, and equipment over time due to use and wear.
Accumulated Depreciation
Unlike materials or direct labor, most SG&A costs behave in what way with respect to production volume?
They are mostly fixed
Short runs where machines are adjusted frequently for different products.
Intermittent process
Instead of one long line, small teams build complete sections or modules of a product before combining them into the final good. This layout is known as this.
Modular Layout
If you speed up a task that is NOT on the critical path, what happens to total project time?
Nothing / no change