Michigan Ross bba quiz 2 accouting ratios

Gross Profit margin

Gross Profit/Revenue * 100

Net profit margin

Net Income/Revenue * 100

Return on assets (ROA)

Net income/Average total assets *100

Current ratio

Current assets/Current Liabilities

Debt to equity ratio

Total Liabilities/Shareholders equity

Inventory turnover

Cost of goods sold (COGS)/ Average inventory

Accounts receivable turnover

Net credit sales/ Average accounts receivable

Assets = liabilities + equity. Increasing assets affects debit and credit how?

Increase in debit and decrease in credit

Assets = liabilities + equity. Increasing liabilities or equity effects debit and credit how?

Increase in credit and decrease in debit

What number does the bear have?

42

Break even point

Fixed cost /(selling price - variable costs per unit)

Markup cost

Markup/sales price * 100%

Whats included in operating expenses?

salaries, rent, utilities, and marketing

Define a LLM and RAG regarding AI

large language model, retrieval augmented generation

4 conflict minerals and the law around them?

Tungsten, Tantalum, Tin, and Gold. (DRC has a lot of tantalum) The Dodd-Frank Wall Street Reform and Consumer Protection Act

ISO 9000 vs ISO 14000

ISO 9000 is international quality standards whereas ISO 14000 is environmental performance based

Express vs implied warranty

express- sellers terms. Implied- dictated by law, product fulfills advertised promise

Business laws of a contract. What is the consideration, capacity, and intent?

Consideration- exchange of value. Capacity- legal ability. Intent- mutual desire to create agreement.

Tort and punitive damages?

Tort- Civil injury to something for which compensation can be paid. Punitive damages- fines penalizing defendant.

Patent v trademark

patent- legal right to use an item/substance.Trademark-Legal right to use brand name/symbol

types of business law agent authority

Express- written agreement. Implied- business customs. Apparent- based on principals compliance.

Supply chain PERT vs GANTT charts

PERT-production schedule specifying sequence of activities in a timely order. GANTT- Production schedule that breaks large projects down into steps to be performed at specific times

Contribution margin

Selling price - variable cost

Selling price

Costs + Profit

5 Ps of marketing

Product, Price, Promotion, Place, and People (4 ps dont have people)

services that cannot be produced ahead of time?

Unstorable services

Value added vs competitive product analysis

Value added-focuses on making a product or service more valuable to the customer by improving quality and reducing costs. Competitive product-examines competitors' products to find market gaps

Lean production systems? JIT Production?

Lean production systems- general term for smooth production/removing inefficiencies. Just in time production- producing goods only when they are needed

Total Shareholder Equity

Assets-liabilities= equity

Examining procedures step-by-step, to reduce inefficiency, most centrally involves which approach?

methods improvement

Master operations schedule?

Shows when products will be produced and in upcoming time periods
Detailed schedule

Detailed schedule

Shows daily work assignments with start and stop times for signed jobs

Process layout vs product layout

process- physical arrangement of production. product- physical arrangement of production steps to make one type of product

Assembly line vs fixed position layout

assembly- step by step (conveyor belt). fixed position- Labor, equipment, materials and other resources where production is done

Low vs high contact systems

Low-Customer doesnt need to be in system for service. High-customer in system during service delivery

Case study (color and credit) about CRA laws regarding quality based financial aid?

more lending to poorer groups may come with worse treatment and exploitative practices. Consider quality of loan outcomes basically.

Evoked set?

Group of products consumers will consider buying as a result of an information search. (the small group of brands a consumer considers when making a purchase)

brand equity

The differential effect that brand knowledge has on consumer response to the brand's marketing efforts

SWOT analysis

Strengths, Weaknesses, Opportunities, and Threats