MGT 498 Final Exam Latest 1. According to Porter, the corporation is most concerned with • the aggregate level of demand for a product line • the amount of pressure from the societal environment • the intensity of competition within its industry • a market's position on its life cycle 2. Which strategy specifies the firm's overall direction in terms of its general orientation toward growth, the industries or markets in which it competes, and the manner in which it coordinates activities and transfers resources among business units? • Corporate • Divisional • Functional • Organizational 3. Which is the MOST commonly used measure of corporate performance (in terms of profit)?
(Schlesinger) Stakeholder can be outer or inner to the commerce or the organization. For the victorious execution of the commerce and for the correct or utilized use of invested money, stakeholders rely on the CEO. Therefore, pay of the CEOs is vital for the stakeholders of the John Deere and Caterpillar. b. Literature
For example, the cash flow can be affected when the company purchases products, and if the costs of the products are an outstanding amount in turn it will affect the assets on the balance sheet. The cash flow statement studies the organizations transactions and puts them into categories such as, operating, investing, and financing
It is possible that a company will decide to retain all of the net income in lieu of paying the shareholders. It may be necessary to retain all the net income to expand the business. The retained earnings statement communicates these funds. Lenders watch their customer’s dividend payment on this statement carefully. If a company pays out dividends, it may reduce their capability to pay their liabilities.
Question B Discuss the advantages and disadvantages of Job Order Costing. Be sure to include specific examples of the advantages/disadvantages that you discuss. Week 3 Discussion Questions Question A What is the difference between operations costing and a process costing system? How does a company decide whether to use a job order or a process cost system? Question B How does the treatment of costs differ in ABC systems as opposed to traditional cost systems?
These ratios assess the ability of the company to generate earnings, profits and cash flows relative to some metric, often the amount of money invested. They highlight how effectively the profitability of a company is being managed. Common examples of profitability ratios include return on sales, return on investment, return on equity, return on capital employed, return on capital invested, gross profit margin and net profit margin. All of these rations indicate how well this company is performing at generating profits or revenues relative to a certain metric. Solvency ratios this is one of many ratios used to measure a company’s ability to meet long-term obligations.
These indicators go beyond financial statement figures, such as sales and net income, to include measures tailored to the client and its objectives. Such key performance indicators may include market share, sales per employee, unit sales growth, unique visitors to a Web site, same-store sales, sales by country, and sales per square foot for a retailer. ASSESS CLIENT BUSINESS RISK The risk that the client will fail to achieve its objectives related to (1) reliability of financial reporting, (2) effectiveness and efficiency of operations, and (3) compliance with laws and regulations PERFORM PRELIMINARY ANALYTICAL PROCEDURES a. Auditors perform preliminary analytical procedures to better understand the client’s business and to assess client business risk. One such procedure compares client ratios to industry or competitor benchmarks to provide an indication of the company’s performance.
Evaluations of this information provides insight regarding a company’s ability to productively useeconomic resources as well as providing a basis for further shareholder assessments of prospective risks and returns. Based on this, one may conclude it is an extraordinarily basic yet important element of financial infrastructure. These evaluations consist of three reports that provide a company options for communicating the state of the internal control structure. The options can be evaluated under established criteria commonly found in Committee of Sponsoring Organizations (COSO), Control Objectives for Information and related Technology (COBIT), and International Organization for Standardization (ISO) 17799/27002
Employees can use this statement to estimate if the company will be able to afford compensation. Externally, investors and creditors can utilize a company’s cash flow statements to assess the liquidity position of a company and estimate the financial strength of the organization (SEC,
Business organizations have various factors that affect their profits. Researchers classify them into two categories, internal factors and external factors. Internal factors consist of forces which organizations can control. They include; organization