chapter 9 Making Consistent Risk Management
管理学-罗宾斯-9版-英文Robbinsfom901
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What Is Management?
The process of getting things done effectively and efficiently, with and through people.
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Management Roles Approach
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Which Approach Takes the Prize?
Functions ☑
1. Four Functions Approach 2. Management Roles Approach 3. Skills and Competencies
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Four Functions Approach
•Planning •Organizing •Leading •Controlling
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Integrating economic, environmental, and social opportunities into business strategies
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Managers Matter!
Employee productivity, loyalty, and engagement hinge on employee\manager relationship
SOM Chapter 9
CHAPTER 9: STRATEGIC ALLIANCESTRUE/FALSE QUESTIONS1. Currently alliances account for 35% of the revenue of the largest 1,000 firms in theUnited States.TrueFalseAnswer: True Page: 278 Difficulty: Easy Chapter Objective: 12. A strategic alliance exists whenever three or more independent organizationscooperate in the development, manufacture, or sale of products or services.TrueFalseAnswer: False Page: 278 Difficulty: Easy Chapter Objective: 13. In a nonequity alliance firms create a legally independent firm in which they investand from which they share any profits that are created.TrueFalseAnswer: False Page: 278 Difficulty: Moderate Chapter Objective: 14. In an equity alliance cooperating firms supplement contracts with equity holdingsan alliance partners.TrueFalseAnswer: True Page: 278 Difficulty: Moderate Chapter Objective: 15. When a firm cannot realize the cost savings from economies of scale all by itself, itmay join in a strategic alliance with other firms so that together, both firms willhave sufficient volume to be able to gain the cost advantages of economies ofscale.TrueFalseAnswer: True Page: 280 Difficulty: Moderate Chapter Objective: 26. In general, due to the intangible nature of knowledge, firms are not able to usealliances to learn from their competitors.TrueFalseAnswer: False Page: 280 Difficulty: Moderate Chapter Objective: 27. When both parties to an alliance are seeking to learn something from that alliance,a learning race can evolve.TrueFalseAnswer: True Page: 281 Difficulty: Moderate Chapter Objective: 28. Network industries are characterized by decreasing returns to scale.TrueFalseAnswer: False Page: 281 Difficulty: Moderate Chapter Objective: 29. Firms with high levels of absorptive capacity will learn at higher rates than firmswith low levels of absorptive capacity, even if these two firms are trying to learn exactly the same things in an alliance.TrueFalseAnswer: True Page: 283 Difficulty: Moderate Chapter Objective: 210. Learning race dynamics are particularly common in relations among large, well-established firms.TrueFalseAnswer: False Page: 283 Difficulty: Moderate Chapter Objective: 211. In network industries with increasing returns to scale where standards areunimportant, strategic alliances can be used to create a more favorable competitive environment.TrueFalseAnswer: False Page: 283 Difficulty: Hard Chapter Objective: 212. Explicit collusion exists when firms directly communicate with each other tocoordinate their levels of production or their prices and is legal in most countries.TrueFalseAnswer: False Page: 285 Difficulty: Moderate Chapter Objective: 213. Tacit collusion exists when firms coordinate their pricing decisions not by directlycommunicating with each other, but by exchanging signals with other firms about their intent to cooperate.TrueFalseAnswer: True Page: 285 Difficulty: Moderate Chapter Objective: 214. Strategic alliances can help create the social setting within which tacit collusionmay develop.TrueFalseAnswer: True Page: 285 Difficulty: Moderate Chapter Objective: 215. Research shows that joint ventures between firms in the same industry may havecollusive implications and that these kinds of joint ventures are relatively common.TrueFalseAnswer: False Page: 286 Difficulty: Moderate Chapter Objective: 216. Alliances to facilitate entry into new industries are only valuable when the skillsneeded in these industries are complex and difficult to learn.TrueFalseAnswer: False Page: 286 Difficulty: Moderate Chapter Objective: 217. When information asymmetry exists between firms that currently own assets andfirms that may want to purchase these assets, the selling firm will often havedifficultly obtaining the full economic value of these assets.TrueFalseAnswer: True Page: 287 Difficulty: Moderate Chapter Objective: 218. In new and uncertain environments it is not unusual for firms to develop numerousstrategic alliances.TrueFalseAnswer: True Page: 288 Difficulty: Moderate Chapter Objective: 219. Research shows that as many as two-thirds of strategic alliances do not meet theexpectations of at least one alliance partner.TrueFalseAnswer: False Page: 288 Difficulty: Moderate Chapter Objective: 320. When potential cooperative partners misrepresent the skills, abilities, and otherresources that they will bring to an alliance, this is a form of cheating known asadverse selection.TrueFalseAnswer: True Page: 288 Difficulty: Moderate Chapter Objective: 321. In general, the less tangible the resources and capabilities that are to be brought to astrategic alliance, the less costly it will be to estimate their value before an alliance is created, and the more likely it is that adverse selection will occur.TrueFalseAnswer: False Page: 289 Difficulty: Moderate Chapter Objective: 322. Moral hazard occurs when partners in an alliance possess high-quality resourcesand capabilities of significant value in an alliance but fail to make those resources and capabilities available to alliance partners.TrueFalseAnswer: True Page: 289 Difficulty: Moderate Chapter Objective: 323. The existence of moral hazard in a strategic alliance proves that at least one of theparties is either malicious or dishonest.TrueFalseAnswer: False Page: 289 Difficulty: Moderate Chapter Objective: 324. In an alliance a holdup occurs when a firm that has not made significanttransaction-specific investments demands returns from an alliance that are higher than what the partners agreed to when they created the alliance.TrueFalseAnswer: True Page: 291 Difficulty: Moderate Chapter Objective: 325. Research on international joint ventures suggests that the existence of transaction-specific investments in their relationships makes these agreements relativelyimmune to holdup problems.TrueFalseAnswer: False Page: 291 Difficulty: Moderate Chapter Objective: 326. Although holdup is a form of cheating in strategic alliances, the threat of holdupcan also be a motivation for creating an alliance.TrueFalseAnswer: True Page: 292 Difficulty: Moderate Chapter Objective: 327. For a strategic alliance to be a source of sustained competitive advantage it must bevaluable in that it exploits an opportunity but avoids a threat and it must also berare and costly to imitate.TrueFalseAnswer: True Page: 292 Difficulty: Easy Chapter Objective: 428. The rarity of strategic alliances depends solely on the number of competing firmsthat have already implemented an alliance.TrueFalseAnswer: False Page: 292 Difficulty: Easy Chapter Objective: 429. In the short-run firms can gain some advantages by cheating their alliance partnersbut research suggests that cheating does not pay in the long run.TrueFalseAnswer: True Page: 293 Difficulty: Moderate Chapter Objective: 330. Successful strategic alliances are often based on socially complex relations amongalliance partners but virtually every firm in a given industry is likely to have the organizational and relationship-building skills required for alliance buildingmaking the possibility of direct duplication of strategic alliances very high.TrueFalseAnswer: False Page: 294 Difficulty: Moderate Chapter Objective: 431. In general, firms will prefer to go it alone rather than enter into a strategic alliancewhen the level of transaction-specific investment required to complete an exchange is low.TrueFalseAnswer: True Page: 295 Difficulty: Hard Chapter Objective: 532. Capabilities theory suggests that an alliance will be preferred over “going it alone”when an exchange partner possesses valuable, rare, and costly-to-imitate resources and capabilities.TrueFalseAnswer: True Page: 295 Difficulty: Moderate Chapter Objective: 533. When there is low uncertainty about the future value of an exchange, an alliancewill be preferred to going it alone.TrueFalseAnswer: False Page: 295 Difficulty: Moderate Chapter Objective: 534. Transaction cost economics suggests that going it alone is not a substitute forstrategic alliances since they are best chosen only when other alternatives are not viable.TrueFalseAnswer: True Page: 295 Difficulty: Moderate Chapter Objective: 535. An alliance will be preferred to an acquisition when there are legal constraints onacquisitions.TrueFalseAnswer: True Page: 296 Difficulty: Easy Chapter Objective: 536. The primary purpose of organizing a strategic alliance is to enable partners in thealliance to gain all the benefits associated with cooperation while minimizing the probability that cooperating firms will cheat on their cooperative agreements.TrueFalseAnswer: True Page: 297 Difficulty: Moderate Chapter Objective: 637. In general, contracts are sufficient to resolve all the problems associated withcheating in an alliance.TrueFalseAnswer: False Page: 298 Difficulty: Moderate Chapter Objective: 6 38. Sometimes the value of cheating in a joint venture is sufficiently large that a firmcheats even though doing so hurts the joint venture and forecloses futureopportunities.TrueFalseAnswer: True Page: 302 Difficulty: Moderate Chapter Objective: 639. While it is often the case that there will be important information asymmetriesbetween firms in an alliances these asymmetries are likely to be much less whenalliance partners come from different countries.TrueFalseAnswer: False Page: 303 Difficulty: Moderate Chapter Objective: 740. When firms begin to explore international operations they tend to do so first byengaging in alliances, then in market-based forms of exchange followed by equity investments and vertical integration if it makes economic sense to do so.TrueFalseAnswer: False Page: 304 Difficulty: Moderate Chapter Objective: 7 MULTIPLE CHOICE QUESTIONS41. Currently alliances account for _______ percent of the revenue of the largest 1,000firms in the United States.A. 15B. 25C. 35D. 45Answer: C Page: 278Difficulty: Moderate Chapter Objective: 142. A(n) _________ exists whenever two or more independent organizations cooperatein the development, manufacture, or sale of products or services.A. vertical marketB. strategic allianceC. initial public offeringD. market transactionAnswer: B Page: 278Difficulty: Moderate Chapter Objective: 143. A ________ is a form of nonequity alliance that exists when one firm allowsanother to use its brand name to sell its products.A. supply agreementB. distribution agreementC. licensing agreementD. joint ventureAnswer: C Page: 278Difficulty: Moderate Chapter Objective: 144. In a ___________ cooperating firms create a legally independent firm in whichthey invest and from which they share any profits that are created.A. licensing agreementB. supply agreementC. distribution agreementD. joint ventureAnswer: D Page: 279Difficulty: Moderate Chapter Objective: 145. Strategic alliances can create economic value through helping firms improve theircurrent operations byA. facilitating the development of technology standards.B. facilitating tacit collusion.C. exploiting economies of scale.D. managing uncertainty.Answer: C Page: 280Difficulty: Moderate Chapter Objective: 246. When both parties to an alliance are seeking to learn something from that alliance,a ________ can evolve.A. learning raceB. dynamic raceC. learning dynamicD. learning curveAnswer: A Page: 281Difficulty: Moderate Chapter Objective: 247. Network industries are characterized byA. increasing diseconomies of scale.B. increasing returns to scale.C. decreasing returns to scale.D. decreasing economies of scale.Answer: B Page: 281Difficulty: Moderate Chapter Objective: 248. A firm's ability to learn is known as itsA. competitive position.B. competitive advantage.C. distinctive competence.D. absorptive capacity.Answer: D Page: 283Difficulty: Moderate Chapter Objective: 249. In one study almost ______ percent of the managers in entrepreneurial firms feltunfairly exploited by their large-firm alliance partners.A. 80B. 20C. 50D. 10Answer: A Page: 283Difficulty: Hard Chapter Objective: 250. ________ exists when firms directly communicate with each other to coordinatetheir levels of production and/or their prices.A. Economies of scaleB. Explicit collusionC. A learning raceD. Tacit collusionAnswer: B Page: 285Difficulty: Moderate Chapter Objective: 251. _________ exists when firms coordinate their production and pricing decisions, notby directly communicating with each other, but by exchanging signals with other firms about their intent to cooperate.A. Economies of scaleB. Explicit collusionC. A learning raceD. Tacit collusionAnswer: D Page: 285Difficulty: Moderate Chapter Objective: 252. Strategic alliances are particularly valuable in facilitating market entry and exitwhen the value of market entry or exit isA. high.B. low.C. moderate.D. uncertain.Answer: D Page: 285Difficulty: Moderate Chapter Objective: 253. Although joint ventures between firms in the same industry _________ collusiveimplications, research has shown that these kinds of joint ventures are ________.A. may have; relatively rareB. are not likely to have; relatively rareC. may have; relatively commonD. are not likely to have; relatively commonAnswer: A Page: 286Difficulty: Hard Chapter Objective: 254. As long as the cost of _________ to enter a new industry less than the cost of_________, an alliance can be a valuable strategic opportunity.A. vertically integrating; learning new skills and capabilitiesB. learning new skills and capabilities; using an allianceC. using an alliance; learning new skills and capabilitiesD. learning new skills and capabilities; vertically integratingAnswer: C Page:286Difficulty: Moderate Chapter Objective: 2 55. Consistent with a real options perspective, firms in new and uncertainenvironments are likely toA. avoid using strategic alliances.B. develop numerous strategic alliances.C. develop few strategic alliances.D. engage in vertical integration.Answer: B Page: 288Difficulty: Moderate Chapter Objective: 256. Research shows that as many as ________ of all strategic alliances do not meet theexpectations of at least one alliance partner.A. one-thirdB. five-eighthsC. one-halfD. two-thirdsAnswer: A Page: 288Difficulty: Moderate Chapter Objective: 357. If TeleCo was to enter into a strategic alliance with a partner that promised it coulddeliver a high quality wireless infrastructure, when in fact the potential partner had neither the skills or abilities to provide this infrastructure, TeleCo could be said to be impacted byA. moral hazard.B. adverse selection.C. holdup.D. tacit collusion.Answer: B Page: 288Difficulty: Moderate Chapter Objective: 358. Adverse selection in a strategic alliance is likely only whenA. it is difficult or costly to observe the resources or capabilities that a partner bringsto an alliance.B. a potential partner can easily see the resources and capabilities that a firm isbringing to an alliance.C. it is difficult or costly to know how competitors will react to the strategic alliance.D. there are significant transaction-specific assets devoted to the alliance.Answer: A Page: 289Difficulty: Moderate Chapter Objective: 359. In general, the ________ tangible the resources and capabilities that are to bebrought to a strategy alliance, the ______ costly it will be to estimate their value before an alliance is created, and the ________ likely it is that adverse selectionwill occur.A. more; more; moreB. less; more; lessC. less; more; moreD. more; more; lessAnswer: C Page: 289Difficulty: Hard Chapter Objective: 360. _________ occurs when partners in an alliance possess high-quality resources andcapabilities of significant value in an alliance, but fail to make those resources and capabilities available to alliance partners.A. Moral hazardB. Adverse selectionC. HoldupD. Explicit collusionAnswer: A Page: 289Difficulty: Moderate Chapter Objective: 361. Often both parties in a failed alliance accuse each other ofA. adverse selection.B. tacit collusion.C. moral hazard.D. holdup.Answer: C Page: 289Difficulty: Moderate Chapter Objective: 362. When one firm makes more transaction-specific investments in a strategic alliancethan partner firms make, that firm may be subject to a form of cheating called_______ that occurs when a firm that has not made significant transaction-specific investments demands returns from an alliance that are higher than what the partners agreed to when they created the alliance.A. adverse selectionB. holdupC. moral hazardD. noncomplianceAnswer: B Page: 291Difficulty: Moderate Chapter Objective: 363. Research suggests that __________ are the type of alliance where existence oftransaction-specific investments often leads to holdup problemsA. licensing agreementsB. equity alliancesC. joint venturesD. distribution agreementsAnswer: C Page: 291Difficulty: Hard Chapter Objective: 364. The rarity of strategic alliancesA. depends solely on the number of competing firms that have already implementedan alliance.B. depends solely on whether or not the benefits that firms obtain from their alliancesare not common across firms in the industry.C. depend not only on the number of competing firms that have already implementedan alliance but also on whether or not the benefits that firms obtain from theiralliances are not common across competing firms in the industry.D. depends solely on the number of substitutes available for alliances.Answer: C Page: 292Difficulty: Moderate Chapter Objective: 465. One of the reasons why the benefits that accrue from a particular strategic alliancemay be rare is thatA. relatively few firms may have the complementary resources and abilities needed toform an alliance.B. there is a relatively large number of alliance partners available.C. relatively many firms may have the complementary resources and abilities neededto form an allianceD. there may be a relatively low amount of transaction-specific assets to enter intosimilar alliances.Answer: A Page: 294Difficulty: Moderate Chapter Objective: 466. Research indicates that the most common reason that alliances fail to meet theexpectations of partner firms isA. the lack of financial resources.B. the necessity of transaction-specific investments.C. the lack of transaction-specific investments.D. the partners’ inability to trust one another.Answer: D Page: 294Difficulty: Moderate Chapter Objective: 467. To the extent that a strategic alliance is based on ________ relations it will makethe alliances costly to imitate.A. socially complexB. tacit collusionC. explicit collusionD. moral hazardAnswer: A Page: 294Difficulty: Moderate Chapter Objective: 468. Two possible substitutes for strategic alliances includeA. going it alone and tacit collision.B. going it alone and acquisitions.C. acquisitions and explicit collusion.D. explicit collusion and tacit collusion.Answer: B Page: 294Difficulty: Moderate Chapter Objective: 569. Firms _________ when they attempt to develop all the resources and capabilitiesthey need to exploit market opportunities and neutralize market threats bythemselves.A. engage in tacit collusionB. form joint venturesC. go it aloneD. engage in explicit collusionAnswer: C Page: 295Difficulty: Moderate Chapter Objective: 570. Alliances will be preferred to going it alone whenA. the level of transaction-specific investments required to complete an exchange islow.B. there are no transaction-specific investments required to complete an exchange islow.C. when there is low uncertainty about the future value of an exchange.D. the level of transaction-specific investments required to complete an exchange ismoderate.Answer: D Page: 295Difficulty: Moderate Chapter Objective: 571. __________ theory suggests that under conditions of high uncertainty, firms maybe unwilling to commit to a particular course of action by engaging in an exchange with a firm and will choose, instead, the strategic flexibility associated withalliances.A. CapabilitiesB. Real optionsC. Transaction cost economicsD. Resource basedAnswer: B Page: 296Difficulty: Moderate Chapter Objective: 572. Alliances will be preferred to acquisitions whenA. alliances limit a firm's flexibility under conditions of high uncertainty.B. there is minimal unwanted organizational "baggage" in an acquired firm.C. there are legal constraints on acquisitions.D. the value of a firm's resources and capabilities does not depend on itsindependence.Answer: C Page: 296Difficulty: Moderate Chapter Objective: 573. An example of a contractual clause that deals with operating issues would be aA. noncompete clause.B. minority protection clause.C. put options clause.D. termination clause.Answer: A Page: 299Difficulty: Hard Chapter Objective: 674. All of the following are methods firms can use to reduce the threat of cheating instrategic alliances exceptA. contracts.B. equity investments.C. joint venturesD. tacit collusion.Answer: D Page: 300Difficulty: Moderate Chapter Objective: 675. Which of the following is a limitation of the reputational control of cheating in astrategic alliance?A. Subtle cheating in an alliance is likely to become public knowledge.B. Even if one firm is clearly cheating in an alliance, the other firm may not besufficiently tied into a network of firms to make this information public.C. The effect of a tarnished reputation forecloses future opportunities for a firm and ithelps reduce the current loses of the firm that was cheated.D. The reputation of the firm that was impacted by the cheating may be impacted assignificantly as the firm that committed the cheating.Answer: B Page: 301Difficulty: Moderate Chapter Objective: 676. When the probability of cheating in a cooperative relationship is greatest a(n)_________ is the preferred form of cooperation.A. equity agreementB. licensing agreementC. joint ventureD. distribution agreementAnswer: C Page: 301Difficulty: Moderate Chapter Objective: 677. ________ may enable partners to explore exchange opportunities that they couldnot explore if only legal and economic organizing mechanisms were in place.A. TrustB. Joint venturesC. Reputational effectsD. Equity investmentsAnswer: A Page: 302Difficulty: Moderate Chapter Objective: 678. While it is often the case that there will be important information asymmetriesbetween firms in an alliance, these asymmetries are likely to be ________ when alliances partners come from different countries.A. much lessB. about the same asC. much greaterD. marginally greaterAnswer: C Page: 303Difficulty: Moderate Chapter Objective: 779. As firms begin to explore international operations they generally begin to do so byA. using licensing agreements.B. importing or exporting.C. undertaking an equity investment.D. forming a joint venture.Answer: B Page: 304Difficulty: Moderate Chapter Objective: 780. The last step in exploiting international opportunities is oftenA. importing or exporting.B. forming a nonequity alliance.C. forming a joint venture.D. vertical integration in international operations.Answer: D Page: 304Difficulty: Moderate Chapter Objective: 7eBay the online auction company has an impressive portfolio of cooperative agreements. This portfolio includes an agreement with the U.S. Postal Service to facilitate the shipping of goods purchased through eBay auctions, an agreement to allow MBNA to use eBay's name on a credit card, an agreement in an online auction company in Korea that is supplemented with an investment by eBay in the Korean partner, and at one time eBay had formed an independent firm, called eBay Australia and New Zealand, with an Australian company known as ecorp.81. eBay's agreement with the U.S. Postal Service is most accurately classified as a(n)A. joint venture.B. equity agreement.C. licensing agreement.D. nonequity agreement.Answer: D Page: 278Difficulty: Moderate Chapter Objective: 182. eBay's agreement with MBNA is most accurately characterized as a(n)A. supply agreement.B. licensing agreement.C. equity alliance.D. joint venture.Answer: B Page: 278Difficulty: Moderate Chapter Objective: 183. eBay's agreement with the Korean online auction company is best characterized asa(n)A. licensing agreement.B. joint venture.C. equity alliance.D. distribution agreement.Answer: C Page: 278Difficulty: Moderate Chapter Objective: 184. eBay's former agreement with ecorp is best characterized as a(n)A. joint venture.B. equity alliance.C. licensing agreement.D. nonequity alliance.Answer: A Page: 279Difficulty: Moderate Chapter Objective: 185. If eBay's agreements with their Korean and Australian partners were intended toincrease the number of buyers and sellers and thereby increase the value of eBay's online auction services for every eBay user, this would imply that the onlineauction industry is an example of a _________ industry.A. decliningB. networkC. commodityD. matureAnswer: B Page: 281Difficulty: Moderate Chapter Objective: 286. If eBay entered the cooperative with its Australian partner for the purpose of testingthe attractiveness of the Australian and New Zealand auction industries prior tomaking a more significant investment in these industries, this would be an example ofA. transaction cost economics.B. tacit collusion.C. explicit collusion.D. real options.Answer: D Page: 287Difficulty: Hard Chapter Objective: 287. If, prior to entering the cooperative agreement with eBay, eBay's Korean partnerstated that it had the technological capabilities to facilitate eBay's Korean auction business when, in fact, the Korean company did not have these capabilities thiswould be an example ofA. adverse selection.B. explicit collusion.C. moral hazard.D. holdup.Answer: A Page: 288Difficulty: Moderate Chapter Objective: 388. If eBay's Australian partner agreed to provide marketing and technological skills tohelp eBay compete in the Australian and New Zealand auction industries butprovided skills that were significantly lower than promised this would be anexample ofA. holdup.B. moral hazard.C. averse selection.D. tacit collusion.Answer: B Page: 289Difficulty: Moderate Chapter Objective: 3。
unit9 Making a corporate marriage work
Unit 9 Making a corporate marriage workBy Stefan StemBringing two companies together is an enormous task. There are grand, big picture questions that need to be resolved, such as the new group's strategy and direction. There are also administrative, logistical and technical challenges. Will new contracts of employment be required? Where should the headquarters of the combined operation be located? How can the companies' information technology systems be integrated?'It takes a certain humility to make a merger work,’ says Charles Hampden-Turner, co-author of Building Cross-cultural Competence. 'It doesn’t follow that your company is a better one simply because it has taken another company over. It just means that you've got more money and have been prepared to pay: he says.Work on bringing the partners together should start well before the deal becomes public knowledge. But how can executives start planning integration without the news leaking out? Some use a so-called clean room’, where both sides to a deal can meet and discuss future plans confidentially. Computer manufacturers Hewlett Packard and Compaq, for example, adopted this approach in their $25bn (£13 3bn) merger.Speed is of the essence. Roger Pudney of the UK's Ashridge business school says; 'There is often a tendency for companies to relax once the deal is signed, but this is precisely the point at which speed of implementation becomes crucial. Successful Mergers & Acquisitions companies stress the importance of quick wins as a way of demonstrating that the new combination is already producing added value.’HP and Compaq ran a series of 'Fast Start' seminars for their staff as soon as the deal was announced, to provide reassurance and a sense of direction - seminars that had been planned in advance in the clean room. Offering employees detailed information is essential at the early stage. An internal human resources website set up for HP and Compaq staff received 2m hits on the day the merger was unveiled.Managers will inevitably be occupied with practical, administrative changes, such as establishing new terms and conditions and pushing through any redundancies. Yet dealing with the cultural issues in a merger is more subtle and challenging. And when things go wrong in this context they can go wrong very quickly.Michelle Bligh, a professor at Claremont Graduate University, California, has suggested measures leaders shouldtake to avoid the worst consequences of mergers. After studying a merger of health organizations in the US, Prof Bligh advised leaders to avoid taking a dictatorial, top-down approach or micro managing the transition They need respond as the new situation demands, she says, and must 'help followers negotiate, modify and even manipulate cultural similarities and differences in the post- merger environment'.Prof Bligh identifies a few simple ground rules. Managers should recognize cultural differences between the companies, for example, by learning about the history of the new partner. They should give employees reasons why change is necessary, and find practical ways of communicating. As one manager told her: 'When you sit down and start showing employees the nitty-gritty, you get buy-in a lot quicker' Symbolism matters too. 'Instead of making great speeches,’Dr Hampden Turner suggests, 'why not start acting different and providing a lead that way? Words are too easy, but actions will be noticed.’Even apparently simple gestures can count. Discussing employees' new working conditions and being visible on the 'shop floor', for example, may reassure staff that management has an interest in their well-being. One manager in Prof Bligh study said: 'We have to start with the little things:they really matter to people.'How do the most successful acquirers handle the process of merger integration? General Electric, the US engineering conglomerate, has made more than 400 acquisitions in the past 20 years But it is still1earning how to make these deals work better. When GE bought Amersham, the UK bioscience company, for $9bn, it made a big effort to reassure the acquired business that it would not be steam-rollered.Talk of a revival in merger and acquisitions activity is on the rise. Investment bankers and management consultants are once again seeking out potential deals and making flattering noises as they lead candidates to the altar. But marriages succeed or fail in the years following the wedding. Even before the hangover has worn off, the hard work has to begin.。
HullRMFI3rdEdCh09risk management and financial ins
Under Basel II, capital for credit risk and operational risk is based on a one-year 99.9% VaR
The T-day VaR equals T times the one-day VaR
Risk Management and Financial Institutions 3e, Chapter 9, Copyright © John C. Hull 2012
16
Independence Assumption in VaR Calculations (Equation 9.3, page 193)
Risk Management and Financial Institutions 3e, Chapter 9, Copyright © John C. Hull 2012
3
Example 9.2 (page 186)
All outcomes between a loss of $50 million and a gain of $50 million are equally likely for a one-year project
Changing the size of a portfolio by l should result in the risk measure being multiplied by l
The risk measures for two portfolios after they have been merged should be no greater than the sum of their risk measures before they were merged
为了健康我们应该做些什么的英语作文
为了健康我们应该做些什么的英语作文Health is one of the most important aspects of our lives. Without good health, it becomes difficult to enjoy the other aspects of our lives such as work, relationships, and leisure activities. Therefore, it is crucial that we take proactive steps to maintain and improve our health. In this essay, we will explore some of the key things we should do for our health.One of the most fundamental things we can do for our health is to maintain a balanced and nutritious diet. Eating a variety of fruits, vegetables, whole grains, lean proteins, and healthy fats is essential for providing our bodies with the nutrients it needs to function optimally. It is important to limit our intake of processed foods, sugary drinks, and foods high in saturated and trans fats, as these can have negative impacts on our health. Additionally, staying hydrated by drinking plenty of water throughout the day is crucial for maintaining good health.Another important aspect of health is regular physical activity. Engaging in some form of exercise on a regular basis, such aswalking, running, cycling, swimming, or strength training, can have numerous benefits for our physical and mental health. Exercise can help to maintain a healthy weight, reduce the risk of chronic diseases such as heart disease and diabetes, and improve our mood and overall well-being. It is recommended that adults aim for at least 150 minutes of moderate-intensity exercise or 75 minutes of vigorous-intensity exercise per week.In addition to a healthy diet and regular exercise, it is also important to get enough sleep. Sleep is essential for our bodies to rest and recharge, and it plays a crucial role in various physiological processes, including immune function, hormone regulation, and cognitive function. Most adults require between 7 and 9 hours of sleep per night to maintain good health. Establishing a consistent sleep routine and creating a comfortable sleep environment can help to ensure that we get the rest we need.Stress management is another important aspect of maintaining good health. Chronic stress can have negative impacts on our physical and mental health, leading to a range of issues such as high blood pressure, weakened immune function, and mental health problems like anxiety and depression. Therefore, it is important to find healthy ways to manage stress, such as through relaxation techniques like meditation, yoga, or deep breathing exercises, or by engaging in hobbies and activities that bring us joy and a sense of purpose.Finally, it is important to prioritize preventive healthcare measures, such as regular check-ups with healthcare providers, screenings for various health conditions, and staying up-to-date on recommended vaccinations. Preventive healthcare can help to identify potential health issues early on, when they are often more treatable, and can also help to prevent the development of certain health conditions in the first place.In conclusion, maintaining good health requires a multi-faceted approach that includes a balanced and nutritious diet, regular physical activity, sufficient sleep, effective stress management, and preventive healthcare measures. By incorporating these practices into our daily lives, we can improve our overall health and well-being, and enjoy a higher quality of life.。
罗宾斯管理学英文第9版
管理学第一章管理与组织学习导览一、管理者是谁？It used to be sim ply defined that they were the organizational m em bers who told others what to do and how to do it, but it is not quite that sim ple anym ore. A m anager is som eone who coordinates or oversees the work of other people so that organizational goals can be accom plished. A m anager’s job is not about personal achievem ent, but about helping others do their work. That m ay m ean coordinating the work of a departm ental group, or supervising a single person. It could involve coordinating the work of a team com posed of people from several different departm ents or even people outside the organization, such as tem porary em ployees or em ployees who work for the organization’s suppliers. And m anagers m ay have other work duties not related to coordinating the work of others.解释管理者与非管理的雇员有什么不同？Nonm anagerial em ployees are those organizational m em bers who work directly on a job or task and have no one reporting to them.组织中的管理者如何分类？In traditionally structured organizations—whi ch are usually said to be shaped like a pyram id because there are m ore em ployees at lower organizational levels than at upper organizational levels, m anagers are often described as first-line, m iddle, or top, and m ay have various titles.(1) First-line m anages, the lowest level of m anagem ent, m anage the work of nonm anagerial em ployees who are typically involved with producing the organization’s products or serving the organization’s custom ers. They often have the title of supervisor, and are called shift m anagers, district m anagers, departm ent m anagers, offi ce m anagers, or even foreperson.(2) Middle m anagers include all levels of m anagem ent between the first level and the top level of the organization. These m anagers m anage the work of first-line m anagers and m ay have titles such as regional m anagers, project leader, plant m anager, or division m anager.(3) Top m anagers: m anagers at or near the upper levels of the organizational structure who are responsible for m aking organization-wide deci sions and establishing plans and goals that effect the entire organization. These individuals typically have ti tles such as executive vice-president, president, chief operating officer, chief executive offi cer, or chairperson.二、管理是什么？Managem ent involves coordinating and overseeing the work activities of others so that their activities can be com pleted efficiently and effecti vely.解释为什么对管理来说效率和效力是重要的。
【培训教材】公司品保部培训 品质导论PPT-PPT课件
Quality
前程企業 生產管理6/e
9-9
第五節
品質獎 Baldrige獎標準
CHAPTER NINE
品質導論
• 1.0領導(110 點)
• 2.0 策略規劃 (80 點)
• 3.0 顧客與市場焦點 (80 點) • 4.0 資訊與分析 (80 點) • 5.0 人力資源發展與管理 (100 點) • 6.0 製程管理 (100 點)
• 特性 - 涉及產品或服務的特殊特性
• 一致性 - 涉及產品或服務之符合顧客的期望
• 安全性 - 因產品或服務而受傷的風險
• 可靠性 - 可靠性涉及產品或績效的一致性
前程企業 生產管理6/e
9-2
第三節
品質的定義 品質的範圍(續上頁)
CHAPTER NINE
品質導論
• 耐久性 - 涉及產品或服務之使用壽命(產 品 Nhomakorabea)汽 車
功 能 及 特 性 優 良 ,柔 座 艙 設 計 軟 觸 感 內 部 設 計 內 裝 觸 感 量 歸 之 安 裝 與 控 制 C D音 響 ,安 防 鎖 死 煞 車 全 氣 囊
(服 務 )汽 車 修 理
依 約 修 理 完 竣 友 善 禮 貌 、 清 潔 迅 速 /等 清 潔 工 作 候 區 域 修 竣 後 自 動 通 知 電 腦 診 斷 分 離 等 候 室
• ISO 9000
品質認證 品質認證
CHAPTER NINE
品質導論
• 是一套品質管理與品質保證的國際標準，對從事國際 商務的企業極為重要
• ISO 9000 系列標準，需要廠商每一步驟品質系統之認 證(包括原料、產品設計、製程檢驗等)以便能辨認品質 問題之產生領域，並如何矯正之
罗斯公司理财第九版原版书课后习题Cha28
inventories must exist to meet the need for finished goods. From there, it is possible to calculate the quantity of raw materials that must be on hand. This ability to schedule backward from finished goods inventories stems from the dependent nature of work-in-progress and raw materials inventories. MRP is particularly important for complicated products for which a variety of components are needed to create the finished product.Just-in-Time InventoryJust-in-time (JIT) inventory is a modern approach to managing dependent inventories. The goal of JIT is to minimize such inventories, thereby maximizing turnover. The approach began in Japan, and it is a fundamental part of Japanese manufacturing philosophy. As the name suggests, the basic goal of JIT is to have only enough inventory on hand to meet immediate production needs.The result of the JIT system is that inventories are reordered and restocked frequently. Making such a system work and avoiding shortages requires a high degree of cooperation among suppliers. Japanese manufacturers often have a relatively small, tightly integrated group of suppliers with whom they work closely to achieve the needed coordination. These suppliers are a part of a large manufacturer’s (such as Toyota’s) industrial group, or keiretsu. Each large manufacturer tends to have its own keiretsu. It also helps to have suppliers located nearby, a situation that is common in Japan.The kanban is an integral part of a JIT inventory system, and JIT systems are sometimes called kanban systems. The literal meaning of kanban is “card” or “sign”; but, broadly speaking, a kanban is a signal to a supplier to send more inventory. For example, a kanban can literally be a card attached to a bin of parts. When a worker pulls that bin, the card is detached and routed back to the supplier, who then supplies a replacement bin.A JIT inventory system is an important part of a larger production planning process. A full discussion of it would necessarily shift our focus away from finance to production and operations management, so we will leave it here.Summary and ConclusionsThis chapter has covered the basics of credit and inventory policy. The major topics we discussed include these:1. The components of credit policy: We discussed the terms of sale, credit analysis, and collectionpolicy. Under the general subject of terms of sale, the credit period, the cash discount and discount period, and the credit instrument were described.2. Credit policy analysis: We developed the cash flows from the decision to grant credit andshowed how the credit decision can be analyzed in an NPV setting. The NPV of granting credit depends on five factors: Revenue effects, cost effects, the cost of debt, the probability of nonpayment, and the cash discount.3. Optimal credit policy: The optimal amount of credit the firm should offer depends on thecompetitive conditions under which the firm operates. These conditions will determine the carrying costs associated with granting credit and the opportunity costs of the lost sales resulting from refusing to offer credit. The optimal credit policy minimizes the sum of these two costs.4. Credit analysis: We looked at the decision to grant credit to a particular customer. We saw thattwo considerations are very important: The cost relative to the selling price and the possibility of repeat business.5. Collection policy: Collection policy determines the method of monitoring the age of accountsreceivable and dealing with past-due accounts. We described how an aging schedule can be prepared and the procedures a firm might use to collect on past-due accounts.6. Inventory types: We described the different inventory types and how they differ in terms ofliquidity and demand.management. Using just-in-time inventory, Dell typically maintains an inventory of three to four days’ sales. Competitors such as Hewlett-Packard and IBM have attempted to match Dell’s inventory policies, but lag far behind. In an industry where the price of PC components continues to decline, Dell clearly has a competitive advantage. Why would you say that it is to Dell’s advantage to have such a short inventory period? If doing this is valuable, why don’t all other PC manufacturers switch to Dell’s approach?Questions and Problems connect™BASIC (Questions 1–12)1. Cash Discounts You place an order for 400 units of inventory at a unit price of $125. Thesupplier offers terms of 1/10, net 30.1. How long do you have to pay before the account is overdue? If you take the full period,how much should you remit?2. What is the discount being offered? How quickly must you pay to get the discount? If youdo take the discount, how much should you remit?3. If you don’t take the discount, how much interest are you paying implicitly? How manydays’ credit are you receiving?2. Size of Accounts Receivable The Tate Corporation has annual sales of $47 million. Theaverage collection period is 36 days. What is the average investment in accounts receivable as shown on the balance sheet?3. ACP and Accounts Receivable Kyoto Joe, Inc., sells earnings forecasts for Japanesesecurities. Its credit terms are 2/10, net 30. Based on experience, 65 percent of all customers will take the discount.1. What is the average collection period for Kyoto Joe?2. If Kyoto Joe sells 1,300 forecasts every month at a price of $1,700 each, what is itsaverage balance sheet amount in accounts receivable?4. Size of Accounts Receivable Tidwell, Inc., has weekly credit sales of $19,400, and theaverage collection period is 34 days. The cost of production is 75 percent of the selling price. What is the average accounts receivable figure?5. Terms of Sale A firm offers terms of 1/10, net 35. What effective annual interest rate does thefirm earn when a customer does not take the discount? Without doing any calculations, explain what will happen to this effective rate if:1. The discount is changed to 2 percent.2. The credit period is increased to 60 days.3. The discount period is increased to 15 days.6. ACP and Receivables Turnover Lipman, Inc., has an average collection period of 39 days.Its average daily investment in receivables is $47,500. What are annual credit sales? What is the receivables turnover?7. Size of Accounts Receivable Essence of Skunk Fragrances, Ltd., sells 5,600 units of itsperfume collection each year at a price per unit of $425. All sales are on credit with terms of 1/10, net 40. The discount is taken by 60 percent of the customers. What is the total amount of the company’s accounts receivable? In reaction to sales by its main competitor, Sewage Spray, Essence of Skunk is considering a change in its credit policy to terms of 2/10, net 30 to preserve its market share. How will this change in policy affect accounts receivable?8. Size of Accounts Receivable The Arizona Bay Corporation sells on credit terms of net 30. Itsaccounts are, on average, 8 days past due. If annual credit sales are $8.4 million, what is the company’s balance sheet amount in accounts receivable?9. Evaluating Credit Policy Air Spares is a wholesaler that stocks engine components and testequipment for the commercial aircraft industry. A new customer has placed an order for eight high-bypass turbine engines, which increase fuel economy. The variable cost is $1.6 million per unit, and the credit price is $1.87 million each. Credit is extended for one period, and based on historical experience, payment for about 1 out of every 200 such orders is never collected. The required return is 2.9 percent per period.1. Assuming that this is a one-time order, should it be filled? The customer will not buy ifcredit is not extended.2. What is the break-even probability of default in part (a)?3. Suppose that customers who don’t default become repeat customers and place the sameorder every period forever. Further assume that repeat customers never default. Should the order be filled? What is the break-even probability of default?4. Describe in general terms why credit terms will be more liberal when repeat orders are apossibility.10. Credit Policy Evaluation Lealos, Inc., is considering a change in its cash-only sales policy.The new terms of sale would be net one month. Based on the following information, determine if Lealos should proceed or not. Describe the buildup of receivables in this case. The required return is 1.5 percent per month.11. EOQ Redan Manufacturing uses 2,500 switch assemblies per week and then reorders another2,500. If the relevant carrying cost per switch assembly is $9 and the fixed order cost is $1,700, is Redan’s inventory policy optimal? Why or why not?12. EOQ The Trektronics store begins each week with 300 phasers in stock. This stock is depletedeach week and reordered. If the carrying cost per phaser is $41 per year and the fixed order cost is $95, what is the total carrying cost? What is the restocking cost? Should Trektronics increase or decrease its order size? Describe an optimal inventory policy for Trektronics in terms of order size and order frequency.INTERMEDIATE (Questions 13–16)13. EOQ Derivation Prove that when carrying costs and restocking costs are as described in thechapter, the EOQ must occur at the point where the carrying costs and restocking costs are equal.14. Credit Policy Evaluation The Harrington Corporation is considering a change in its cash-onlypolicy. The new terms would be net one period. Based on the following information, determine if Harrington should proceed or not. The required return is 2.5 percent per period.increase, the administrative costs of managing the firm’s receivables would increase, and the receivables period would increase. The credit policy change would impact all four of these variables in different degrees. Andrew has prepared the following table outlining the effect on each of these variables:Braam’s variable costs of production are 45 percent of sales, and the relevant interest rate is a 6 percent effective annual rate. Which credit policy should the company use? Also, notice that in option 3 the default rate and administrative costs are below those in option 2. Is this plausible? Why or why not?。
Chapter Nine 第九章
Chapter Nine 第九章：英汉篇章的翻译LOmission & NegationTeaching ProceduresI. Review and comments on the assignments II. Omission III. Negat ion IV. Practice V. Summary VI. Assignments VII. References for furth er readingI. Review and comments on the assignments6.The guard inside the prison had no guns. But those in the tower s did. 牢房的狱警并不带枪，但了望塔内的狱警是带枪的。
7. His arrogan ce made everyone dislike him. 他的傲慢态度使谁也不喜欢他。
8. Now bir th control became a possibility. 现在节制生育已成为一种可行的办法了。
9.They talked about inflation, unemployment and environmental polluti on. 他们谈到通货膨胀、失业、环境污染等问题。
10. In the evening, afte r the banquets, the concerts and the table tennis exhibitions, he wou ld work on the drafting of the communiqué. 晚上在参加宴会、出席音乐会。
观看乒乓球表演之后，他还得起草最后公报。
I. Review and comments on the assignments11. The crowd melted away. 人群渐渐散开了。
新编[经济学]管理会计英文版课后习题答案高等教育出版社chapter 9
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CHAPTER 9standard costing:a managerial control toolQUESTIONS FOR WRITING AND DISCUSSION1.Standard costs are essentially budgetedamounts on a per-unit basis. Unit standardsserve as inputs in building budgets.2.Unit standards are used to build flexiblebudgets. Unit standards for variable costsare the variable cost component of a flexiblebudgeting formula.3.The quantity decision is determining howmuch input should be used per unit of out-put. The pricing decision determines howmuch should be paid for the quantity of inputused.4.Historical experience is often a poor choicefor establishing standards because the his-torical amounts may include more inefficien-cy than is desired.5.Engineering studies can serve as importantinput to standard setting. Many feel that thisapproach by itself may produce standardsthat are too rigorous.6.Ideal standards are perfection standards,representing the best possible outcomes.Currently attainable standards are standardsthat are challenging but allow some waste.Currently attainable standards are oftenchosen because many feel they tend to mo-tivate rather than frustrate.7.Standard costing systems improve planningand control and facilitate product costing. 8.By identifying standards and assessing devi-ations from the standards, managers can lo-cate areas where change or corrective be-havior is needed.9.Actual costing assigns actual manufacturingcosts to products. Normal costing assignsactual prime costs and estimated overheadcosts to products. Standard costing assignsestimated manufacturing costs to products.10. A standard cost sheet presents the standardamount of and price for each input and usesthis information to calculate the unit standardcost. 11.Managers generally tend to have more con-trol over the quantity of an input used ratherthan the price paid per unit of input.12. A standard cost variance should be investi-gated if the variance is material and if thebenefit of investigating and correcting thedeviation is greater than the cost.13.Control limits indicate how large a variancemust be before it is judged to be materialand the process is out of control. Control lim-its are usually set by judgment although sta-tistical approaches are occasionally used. 14.The materials price variance is often com-puted at the point of purchase rather than is-suance because it provides control infor-mation sooner.15.Disagree. A materials usage variance canbe caused by factors beyond the control ofthe production manager, e.g., purchase of alower-quality material than normal.16.Disagree. Using higher-priced workers toperform lower-skilled tasks is an example ofan event that will create a rate variance thatis controllable.17.Some possible causes of an unfavorablelabor efficiency variance are inefficient labor,machine downtime, and poor quality materi-als.18.Part of a variable overhead spending vari-ance can be caused by inefficient use ofoverhead resources.19.Agree. This variance, assuming that variableoverhead costs increase as labor usage in-creases, is caused by the efficiency or ineffi-ciency of labor usage.20.Fixed overhead costs are either committedor discretionary. The committed costs willnot differ by their very nature. Discretionarycosts can vary, but the level the companywants to spend on these items is decided atthe beginning and usually will be met unlessthere is a conscious decision to change thepredetermined levels.21.The volume variance is caused by the actualvolume differing from the expected volumeused to compute the predetermined stand-ard fixed overhead rate. If the actual volumeis different from the expected, then the com-pany has either lost or earned a contributionmargin. The volume variance signals thisoutcome, and if the variance is large, thenthe loss or gain is large since the volumevariance understates the effect.22.The spending variance is more important.This variance is computed by comparing ac-tual expenditures with budgeted expendi-tures. The volume variance simply tellswhether the actual volume is different fromthe expected volume.EXERCISES 9–11. d2. e3. d4. c5. e6. a9–21. a. The operating personnel of each cost center should be involved in settingstandards. They are the primary source for quantity information. The mate-rials manager and purchasing manager are a source of information for ma-terial prices, and personnel are knowledgeable on wage information. The Accounting Department should be involved in overhead standards and should provide information about past prices and usage. Finally, if infor-mation about absolute efficiency is desired, industrial engineers can pro-vide important input.b. Standards should be attainable; they should include an allowance forwaste, breakdowns, etc. Market prices for materials as well as labor (un-ions) should be a consideration for setting standards. Labor prices should include fringe benefits, and material prices should include freight, taxes, etc.2. In principle, before formal responsibility is assigned, the causes of the vari-ances must be known. To be responsible, a manager must have the ability to control or influence the variance. The following assignments of responsibility are general in nature and have exceptions:MPV: Purchasing managerMUV: Production managerLRV: Production managerLEV: Production managerOH variances: Departmental managers1. SH = 0.8 ⨯ 95,000 = 76,000 hours2. SQ = 5 ⨯ 95,000 = 475,000 components9–41. MPV = (AP – SP)AQ= ($0.03 – $0.032)6,420,000 = $12,840 FMUV = (AQ – SQ)SP= (6,420,000 – 6,400,000)$0.032 = $640 U2. LRV = (AR – SR)AH= ($12.50 – $12.00)2,000 = $1,000 UL EV = (AH – SH)SR= (2,000 – 1,850)$12.00 = $1,800 U9–51. Variable overhead analysis:Actual VOH Budgeted VOH Applied VOH2. Fixed overhead analysis:Actual FOH Budgeted FOH Applied FOH1. Materials: $60 ⨯ 20,000 = $1,200,000L abor: $21 ⨯ 20,000 = $420,0002. Actual Cost* Budgeted Cost VarianceMaterials $1,215,120 $1,200,000 $ 15,120 U Labor 390,000 420,000 30,000 F *$122,000 ⨯ $9.96; 31,200 ⨯ $12.503. MPV = (AP – SP)AQ= ($9.96 – $10)122,000 = $4,880 FMUV = (AQ – SQ)SP= (122,000 – 120,000)$10 = $20,000 UAP ⨯ AQ SP ⨯ AQ SP ⨯ SQ4. LRV = (AR – SR)AH= ($12.50 – $14)31,200 = $46,800 FLEV = (AH – SH)SR= (31,200 – 30,000)$14 = $16,800 UAR ⨯ AH SR ⨯ AH SR ⨯ SH1. MPV = (AP – SP)AQ= ($8.35 – $8.25)114,000 = $11,400 UMUV = (AQ – SQ)SP= (112,500 – 115,200)$8.25 = $22,275 F(A three-pronged variance diagram is not shown because MPV is for mate-rials purchased and not materials used.)2. LRV = (AR – SR)AH= ($9.80 – $9.65)37,560 = $5,634 UNote: AR = $368,088/37,560LEV = (AH – SH)SR= (37,560 – 38,400)$9.65 = $8,106 FAR ⨯ AH SR ⨯ AH SR ⨯ SH3. Materials Inventory ................................... 940,500M PV ............................................................ 11,400Accounts Payable ............................... 951,900Work in Process ....................................... 950,400MUV ...................................................... 22,275Materials Inventory .............................. 928,125Work in Process ....................................... 370,560LRV ............................................................ 5,634LEV ....................................................... 8,106Accrued Payroll ................................... 368,0881. Fixed overhead rate = $0.55/(1/2 hr. per unit) = $1.10 per DLHSH = 1,180,000 ⨯ 1/2 = 590,000Applied FOH = $1.10 ⨯ 590,000 = $649,0002. Fixed overhead analysis:Actual FOH Budgeted FOH Applied FOH(600,000 expected hours = 1/2 hour ⨯ 1,200,000 units)3. Variable OH rate = ($1,350,000 – $660,000)/600,000= $1.15 per DLH4. Variable overhead analysis:Actual VOH Budgeted VOH Applied VOH1. Cases needing investigation:Week 2: Exceeds the 10% rule.Week 4: Exceeds the $8,000 rule and the 10% rule.Week 5: Exceeds the 10% rule.2. The purchasing agent. Corrective action would require a return to the pur-chase of the higher-quality material normally used.3. Production engineering is responsible. If the relationship is expected to per-sist, then the new labor method should be adopted, and standards for materi-als and labor need to be revised.9–101. Standard fixed overhead rate = $2,160,000/(120,000 ⨯ 6)= $3.00 per DLHStandard variable overhead rate = $1,440,000/720,000= $2.00 per DLH2. Fixed: 119,000 ⨯ 6 ⨯ $3.00 = $2,142,000Variable: 119,000 ⨯ 6 ⨯ $2.00 = $1,428,000Total FOH variance = $2,250,000 – $2,142,000= $108,000 UTotal VOH variance = $1,425,000 – $1,428,000= $3,000 F3. Fixed overhead analysis:Actual FOH Budgeted FOH Applied FOHThe spending variance is the difference between planned and actual costs.Each item’s variance should be analyzed to see if these costs can be r e-duced. The volume variance is the incorrect prediction of volume, or alterna-tively, it is a signal of the loss or gain that occurred because of producing at a level different from the expected level.4. Variable overhead analysis:Actual VOH Budgeted VOH Applied VOHThe variable overhead spending variance is the difference between the actual variable overhead costs and the budgeted costs for the actual hours used.The variable overhead efficiency variance is the savings or extra cost at-tributable to the efficiency of labor usage.9–111. MPV = (AP – SP)AQ= ($6.60 – $6.40)1,488,000= $297,600 UMUV = (AQ – SQ)SP= (1,480,000 – 1,400,000)$6.40= $512,000 UNote: There is no three-pronged analysis for materials because materials purchased is different from the materials used. (MPV uses materials pur-chased and MUV uses materials used.)2. LRV = (AR – SR)AH= ($18.10 – $18.00)580,000= $58,000 ULEV = (AH – SH)SR= (580,000 – 560,000)$18.00= $360,000 UAR ⨯ AH SR ⨯ AH SR ⨯ SH3. Fixed overhead analysis:Actual FOH Budgeted FOH Applied FOHNote: Practical volume in hours = 2 ⨯ 288,000 = 576,000 hours4. Variable overhead analysis:Actual VOH Budgeted VOH Applied VOH1. Materials Inventory ................................... 9,523,200MPV ............................................................ 297,600Accounts Payable ............................... 9,820,8002. Work in Process ....................................... 8,960,000MUV ............................................................ 512,000Materials Inventory .............................. 9,472,0003. Work in Process ....................................... 10,080,000LRV ............................................................ 58,000LEV ............................................................. 360,000Accrued Payroll ................................... 10,498,0004. Work in Process ....................................... 3,080,000Fixed Overhead Control...................... 2,240,000Variable Overhead Control ................. 840,0005. Materials and labor:Cost of Goods Sold .................................. 1,227,600MPV ...................................................... 297,600MUV ...................................................... 512,000LRV ....................................................... 58,000LEV ....................................................... 360,000 Overhead disposition:Cost of Goods Sold .................................. 160,000Fixed Overhead Control...................... 160,000Cost of Goods Sold .................................. 32,000Variable Overhead Control ................. 32,0001. Tom purchased the large quantity to obtain a lower price so that the pricestandard could be met. In all likelihood, given the reaction of Jackie Iverson, encouraging the use of quantity discounts was not an objective of setting price standards. Usually, material price standards are to encourage the pur-chasing agent to search for sources that will supply the quantity and quality of material desired at the lowest price.2. It sounds like the price standard may be out of date. Revising the pricestandard and implementing a policy concerning quantity purchases would likely prevent this behavior from reoccurring.3. Tom apparently acted in his own self-interest when making the purchase. Hesurely must have known that the quantity approach was not the objective.Yet, the reward structure suggests that there is considerable emphasis placed on meeting standards. His behavior, in part, was induced by the re-ward system of the company. Probably, he should be retained with some ad-ditional training concerning the goals of the company and a change in em-phasis and policy to help encourage the desired behavior.9–14Materials:AP ⨯ AQ SP ⨯ AQ SP ⨯ SQLabor:AR ⨯ AH SR ⨯ AH SR ⨯ SH1. Materials Inventory ................................... 47,700MPV ...................................................... 5,700Accounts Payable ............................... 42,0002. Work in Process ....................................... 45,000MUV ............................................................ 2,700Materials Inventory .............................. 47,7003. Work in Process ....................................... 105,000LRV ....................................................... 2,300LEV (700)Accrued Payroll ................................... 102,0004. Cost of Goods Sold .................................. 2,700MUV ...................................................... 2,700MPV ............................................................ 5,700LRV ............................................................ 2,300LEV (700)Cost of Goods Sold ............................. 8,7001. VOH efficiency variance = (AH – SH)SVOR$8,000 = (1.2SH – SH)$2$8,000 = $0.4SHSH = 20,000AH = 1.2SH = 24,000 2. LEV = (AH – SH)SR$20,000 = (24,000 – 20,000)SR$20,000 = 4,000SRSR = $5LRV = (AR – SR)AH$6,000 = (AR – $5)24,000$0.25 = AR – $5AR = $5.253. SH = 4 ⨯ Units produced20,000 = 4 ⨯ Units produced Units produced = 5,000PROBLEMS9–171. Materials:AP ⨯ AQ SP ⨯ AQ SP ⨯ SQThe new process saves 0.25 ⨯ 4,000 ⨯ $3 = $3,000. Thus, the net savings at-tributable to the higher-quality material are ($6,000 – $3,000) – $2,300 = $700.Keep the higher-quality material!2. Labor for new process:AR ⨯ AH SR ⨯ AH SR ⨯ SHThe new process gains $3,000 in materials (see Requirement 1) but loses $6,000 from the labor effect, giving a net loss of $3,000. If this pattern is ex-pected to persist, then the new process should be abandoned.3. Labor for new process, one week later:AR ⨯ AH SR ⨯ AH SR ⨯ SHIf this is the pattern, then the new process should be continued. It will save $260,000 per year ($5,000 ⨯52 weeks). The weekly savings of $5,000 is the materials savings of $3,000 plus labor savings of $2,000.9–181. e2. h3. k4. n5. d6. g7. o8. b9. m10. l11. j12. c13. a14. i15. f9–191. Material quantity standards:1.25 feet per cutting board⨯ 67.50 feet for five good cutting boardsUnit standard for lumber = 7.50/5 = 1.50 feetUnit standard for foot pads = 4.0Material price standards:Lumber: $3.00 per footPads: $0.05 per padLabor quantity standards:Cutting: 0.2 hrs. ⨯ 6/5 = 0.24 hours per good unitAttachment: 0.25 hours per good unitUnit labor standard 0.49 hours per good unit Labor rate standard: $8.00 per hourStandard prime cost per unit:Lumber (1.50 ft. @ $3.00) $4.50Pads (4 @ $0.05) 0.20Labor (0.49 hr. @ $8.00) 3.92Unit cost $8.629–19 Concluded2. Standards allow managers to compare planned and actual performance. Thedifference can be broken down into price and efficiency variances to identify the cause of a variance. With this feedback, managers are able to improve productivity as they attempt to produce without cost overruns.3. a. The purchasing manager identifies suppliers and their respective pricesand quality of materials.b. The industrial engineer often conducts time and motion studies to deter-mine the standard direct labor time for a unit of product. They also can de-termine how much material is needed for the product.c. The cost accountant has historical information as well as current infor-mation from the purchasing agent, industrial engineers, and operating personnel. He or she can compile this information to obtain an achievable standard.4. Lumber:MPV = (AP – SP)AQ= ($3.10 – $3.00)16,000 = $1,600 UMUV = (AQ – SQ)SP= (16,000 – 15,000)$3 = $3,000 URubber pads:MPV = (AP – SP)AQ= ($0.048 – $0.05)51,000 = $102 FMUV = (AQ – SQ)SP= (51,000 – 40,000)$0.05 = $550 ULabor:LRV = (AR – SR)AH= ($8.05 – $8.00)5,550 = $277.50 ULEV = (AH – SH)SR= (5,550 – 4,900)$8 = $5,200 U9–201. The cumulative average time per unit is an average. It includes the2.5 hoursper unit when 40 units are produced as well as the 1.024 hours per unit when 640 units are produced. As more units are produced, the cumulative average time per unit will decrease.2. The standard should be 0.768 hour per unit as this is the average time takenper unit once efficiency is achieved:[(1.024 ⨯ 640) – (1.28 ⨯ 320)]/(640 – 320)3. Std. Price Std. Usage Std. CostDirect materials $ 4 25.000 $100.00 Direct labor 15 0.768 11.52 Variable overhead 8 0.768 6.14 Fixed overhead 12 0.768 9.22* Standard cost per unit $126.88* *Rounded4. There would be unfavorable efficiency variances for the first 320 units be-cause the standard hours are much lower than the actual hours at this level.Actual hours would be approximately 409.60 (320 ⨯ 1.28), and standard hours would be 245.76 (320 ⨯ 0.768).9–211. MPV = (AP – SP)AQ= ($4.70 – $5.00)260,000 = $78,000 FMUV = (AQ – SQ)SP= (320,000 – 300,000)$5 = $100,000 UThe materials usage variance is viewed as the most controllable because prices for materials are often market-driven and thus not controllable. Re-sponsibility for the variance in this case likely would be assigned to purchas-ing. The lower-quality materials are probably the cause of the extra usage.2. LRV = (AR – SR)AH= ($13 – $12)82,000 = $82,000 ULEV = (AH – SH)SR= (82,000 – 80,000)$12 = $24,000 UAR ⨯ AH SR ⨯ AH SR ⨯ SHProduction is usually responsible for labor efficiency. In this case, efficiency may have been affected by the lower-quality materials, and purchasing, thus, may have significant responsibility for the outcome. Other possible causes are less demand than expected, poor supervision, lack of proper training, and lack of experience.3. Variable overhead variances:Actual VOH Budgeted VOH Applied VOHFormula approach:VOH spending variance = Actual VOH – (SVOR ⨯ AH)= $860,000 – ($10 ⨯ 82,000)= $40,000 UVOH efficiency variance = (AH – SH)SVOR= (82,000 – 80,000)$10= $20,000 U4. Fixed overhead variances:Actual FOH Budgeted FOH Applied FOHThe volume variance is a measure of unused capacity. This cost is reduced as production increases. Thus, selling more goods is the key to reducing this variance (at least in the short run).5. Four variances are potentially affected by material quality:MPV $ 78,000 FMUV 100,000 ULEV 24,000 UVOH efficiency 20,000 U$ 66,000 UIf the variance outcomes are largely attributable to the lower-quality materi-als, then the company should discontinue using this material.6. (Appendix required)Materials Inventory ................................... 1,300,000MPV ...................................................... 78,000Accounts Payable ............................... 1,222,000Work in Process ....................................... 1,500,000MUV ............................................................ 100,000Materials Inventory .............................. 1,600,0009–21 ConcludedWork in Process ....................................... 960,000LRV ............................................................ 82,000LEV ............................................................. 24,000Accrued Payroll ................................... 1,066,000Cost of Goods Sold .................................. 206,000MUV ...................................................... 100,000LRV ....................................................... 82,000LEV ....................................................... 24,000MPV ............................................................ 78,000Cost of Goods Sold ............................. 78,000VOH Control .............................................. 860,000Various Credits .................................... 860,000FOH Control .............................................. 556,000Various Credits .................................... 556,000Work in Process ....................................... 800,000VOH Control ......................................... 800,000Work in Process ....................................... 480,000FOH Control ......................................... 480,000Cost of Goods Sold .................................. 60,000VOH Control ......................................... 60,000Cost of Goods Sold .................................. 76,000FOH Control ......................................... 76,0009–221. Fixed overhead rate = $2,400,000/600,000 hours*= $4 per hour*Standard hours allowed = 2 ⨯ 300,000 units2. Little Rock plant:Actual FOH Budgeted FOH Applied FOHAthens plant:Actual FOH Budgeted FOH Applied FOHThe spending varian ce is almost certainly caused by supervisor’s salaries (for example, an unexpected midyear increase due to union pressures). It is unlikely that the lease payments or depreciation would be greater than budg-eted. Changing the terms on a 10-year lease in the first year would be unusual (unless there is some sort of special clause permitting increased payments for something like unexpected inflation). Also, the depreciation should be on target (unless more equipment was purchased or the depreciation budget was set before the price of the equipment was known with certainty).The volume variance is easy to explain. The Little Rock plant produced less than expected, and so there was an unused capacity cost: $4 ⨯ 120,000 hours = $480,000. The Athens plant had no unused capacity.9–22 Concluded3. It appears that the 120,000 hours of unused capacity (60,000 subassemblies)is permanent for the Little Rock plant. This plant has 10 supervisors, each making $50,000. Supervision is a step-cost driven by the number of produc-tion lines. Unused capacity of 120,000 hours means that two lines can be shut down, saving the salaries of two supervisors ($100,000 at the original salary level). The equipment for the two lines is owned. If it could be sold, then the money could be reinvested, and the depreciation charge would be reduced by20 percent (two lines shut down out of 10). There is no way to directly reducethe lease payments for the building. Perhaps the company could use the space to establish production lines for a different product. Or perhaps the space could be subleased. Another possibility is to keep the supervisors and equipment and try to fill the unused capacity with special orders orders for the subassembly below the regular selling price from a market not normally served. If the selling price is sufficient to cover the variable costs and cover at least the salaries and depreciation for the two lines, then the special order option may be a possibility. This option, however, is fraught with risks, e.g., the risk of finding enough orders to justify keeping the supervisors and equipment, the risk of alienating regular customers who pay full price, and the risk of violating price discrimination laws. Note:You may wish to point out the value of the resource usage model in answering this question (see Chapter 3).4. For each plant, the standard fixed overhead rate is $4 per direct labor hour.Since each subassembly should use two hours, the fixed overhead cost per unit is $8, regardless of where they are produced. Should they differ? Some may argue that the rate for the Little Rock plant needs to be recalculated. For example, one possibility is to use expected actual capacity, instead of practi-cal capacity. In this case, the Little Rock plant would have a fixed overhead rate of $2,400,000/480,000 hours = $5 per hour and a cost per subassembly of $10. The question is: Should the subassemblies be charged for the cost of the unused capacity? ABC suggests a negative response. Products should be charged for the resources they use, and the cost of unused capacity should be reported as a separate item—to draw management’s attention to the need to manage this unused capacity.9–231. Normal Patient Day:Standard Standard StandardPrice Usage Cost Direct materials $10.00 8.00 lb. $ 80.00 Direct labor 16.00 2 hr. 32.00 Variable overhead 30.00 2 hr. 60.00 Fixed overhead 40.00 2 hr. 80.00 Unit cost $252.00 Cesarean Patient Day:Standard Standard StandardPrice Usage Cost Direct materials $10.00 20.00 lb. $200.00 Direct labor 16.00 4 hr. 64.00 Variable overhead 30.00 4 hr. 120.00 Fixed overhead 40.00 4 hr. 160.00 Unit cost $544.00 2. MPV = (AP – SP)AQ= ($9.50 – $10.00)172,000 = $86,000 FMUV = (AQ – SQ)SPMUV (Normal) = [30,000 – (8 ⨯ 3,500)]$10 = $20,000 UMUV (Cesarean) = [142,000 – (20 ⨯ 7,000)]$10 = $20,000 UMaterials .................................................... 1,720,000MPV ...................................................... 86,000Accounts Payable ............................... 1,634,000Work in Process ....................................... 1,680,000M UV ........................................................... 40,000Materials .............................................. 1,720,000MPV ............................................................ 86,000MUV ............................................................ 40,000Cost of Services Sold ......................... 126,0003. LRV = (AR – SR)AH= ($15.90 – $16.00)36,500 = $3,650 FLEV = (AH – SH)SRLEV (Normal) = [7,200 – (2 ⨯ 3,500)]$16 = $3,200 ULEV (Cesarean) = [29,300 – (4 ⨯ 7,000)]$16 = $20,800 UWork in Process ....................................... 560,000*LEV ............................................................. 24,000LRV ....................................................... 3,650Accrued Payroll ................................... 580,350 *[(2 ⨯ 3,500) + (4 ⨯ 7,000)] ⨯ $16 = $560,000Cost of Services Sold ............................... 20,350LRV ............................................................ 3,650LEV ....................................................... 24,0004. Variable overhead variances:Actual VOH Budgeted VOH Applied VOHFixed overhead variances:Actual FOH Budgeted FOH Applied FOHNote: SH = (2 ⨯ 3,500) + (4 ⨯ 7,000) = 35,000。
Chapter 9 Instructor's Guide
Chapter 9Materiality and RiskThis is an essential chapter because both materiality and risk are critical to the audit process and somewhat difficult to understand. The material in the chapter is closely tied to SAS 107 (AU 312). We consider risk a more essential topic than materiality, but both are important.The following are emphasized in this chapter:⏹Chapter opening vignette⏹Set preliminary judgment about materiality⏹Allocate preliminary judgment about materiality to segments (tolerablemisstatement)⏹Estimate misstatement and compare with preliminary judgment⏹Audit risk model⏹Planned detection risk⏹Acceptable audit risk⏹Inherent risk and control risk⏹Relating the risk of fraud to the audit risk model⏹Discussion of the audit risk modelChapter Opening Vignette –“Explain to Me One More Time that You Did a Good Job, but the Company Went Broke”This vignette dramatizes the positions of investors and auditors in three famous and presumably low-risk situations. The three situations are: Washington Public Power Supply System ("Whoops"), Bonneville Pacific Corporation, and Orange County, California. The primary investments in all cases were bonds and a large portion of the investors were retirees or retirement funds.Although the risks seemed low on these investments, they were actually high. Unqualified audit opinions were issued by the auditors in all years prior to massive failure in which the investors suffered huge losses. The overriding messages of the case are that, (1) real people invest real money in client companies and rely greatly on the auditors to protect them, and (2) auditors must grasp the real nature of the risks their clients present and deal with them effectively.Set Preliminary Judgment About Materiality (page 249)Before discussing setting materiality, we refer to Figure 8-1 (page 209) to help integrate materiality as one factor affecting audit planning.Next we cover the steps in applying materiality as shown in Figure 9-1 (page 249), with emphasis on the first step.(See Figures 8-1 and 9-1)Next we discuss how setting a preliminary judgment about materiality affects audit evidence.Problems 9-25 and 9-26 a, are useful to discuss overall materiality. Either problem should bring out the essential points in setting a preliminary estimate.Allocate Preliminary Judgment about Materiality to Segments (Tolerable Misstatement) (page 252)Studying this topic is conceptually fairly easy, but difficult to demonstrate. Figure 9-3(page 254) should be helpful to illustrate the methodology and logic. Review Question 9-8 and Problem 9-25 b both show students how this is done. An important point to bring out is that the allocation is always arbitrary, and regardless of how it is done, the final audit results of all audit areas combined will have to support the auditor's opinion. It is important to explain why the total of tolerable misstatement exceeds the preliminary judgment about planning materiality.(See Figure 9-3)Part a of Case 9-36 can be used to give students practice in setting the preliminary judgment about materiality and allocating tolerable misstatement to accounts.Estimate Misstatement and Compare with Preliminary Judgment (page 255)We spend little time doing this, but believe it is essential to show students how the results of audit tests tie back to materiality. We find a brief discussion using Problem 9-25 d is sufficient. We return to the discussion of materiality when covering audit sampling for detailed tests of balances in Chapter 17 and completing the audit in Chapter 24. Table 9-1 (page 256) is useful to discuss sampling error.(See Table 9-1)Audit Risk Model (page 257)We consider the audit risk model one of the most important concepts in auditing. We refer to it throughout the course.We go over the logic of its use and discuss the model when the auditor is determining planned detection risk. We briefly introduce each element of the audit risk model.(See T-9-1)Planned Detection Risk (page 259)Students often have difficulty with detection risk. We find the key is for students to relate it to components of the financial statements, distinguish between achieved and planned detection risk, and remember that it is the inverse of evidence.The use of Table 9-4 (page 269) and T-9-2 is helpful to discuss planned detection risk.(See Table 9-4)(See T-9-2)It is also useful to relate achieved level of assurance to segments. T-9-3 is useful to do that.(See T-9-3)Assessing Acceptable Audit Risk (page 261)This material is the beginning of the general area of "risk assessment." The auditor who is to be effective and efficient must recognize certain risks and modify evidence accordingly.We find students have difficulty understanding the concept of audit risk. We go through a several-step process.⏹Relate the concept of acceptable audit risk to information risk as it wasdiscussed in Chapter 1.⏹If auditors demand zero audit risk what does it mean? (They are willing to beinsurers or guarantors.)⏹What audit risk level do you believe auditors achieve in practice for publiclyheld companies? Students tend to say 5% because of their knowledge ofstatistics. That is an ideal time to explain the difference between audit riskand confidence level. You might give them a level of assurance such as 7%and then explain what it means.⏹Why can't the level of audit risk be quantified as a specific number?⏹Should auditors have different acceptable audit risk for different companies?If so, how can it be justified from an individual firm and a social point of view?⏹What factors affect acceptable audit risk? What is the relationship betweenauditors' legal liability and acceptable audit risk?⏹How does acceptable audit risk affect evidence accumulation? What is therelationship between tolerable misstatement and acceptable audit risk?⏹How does acceptable audit risk affect the components of the audit?This is a good place to discuss why the auditor may want to have different audit risks for different areas because of liens on certain assets or reliance on specific information by certain users.⏹Distinguish between acceptable and achieved audit risk.⏹What does the auditor do if the achieved audit risk is greater than theacceptable level?It is useful to summarize acceptable audit risk, audit evidence and achieved audit risk by discussion of Review Questions 9-17 to 9-19. Problem 9-28 is a good one to use for this material.(See also T-9-3)Inherent Risk and Control Risk (pages 259-260 and 263-266)It is important for students to understand the relationship between these two risks and audit risk. We go through several steps.⏹Compare two situations where everything else is equal.a. The auditors uncovered considerable misstatements in the valuation ofinventory in each of two previous years.b. The auditor uncovered no misstatements in the valuation of inventory ineach of the two previous years.There is no apparent change in circumstances. In which one would more evidence likely be accumulated for tests of inventory valuation? Why?⏹What factors affect the likelihood of misstatements, and how should eachimpact the audit? (Students are asked to identify factors and explain logic forincluding them.)⏹Distinguish between control risk and inherent risk.Relating Risk of Fraud to the Audit Risk Model (page 265-266)We review the auditor’s responsibility for the detection of material misstatements due to fraud introduced in Chapter 6, which includes a responsibility to assess fraud risk. While the responsibility to assess fraud risk is covered extensively in Chapter 11, it is important for students to relate the fraud risk assessment to the audit risk model. We emphasize that it is difficult in concept and practice to separate fraud risk factors into acceptable audit risk, inherent risk, and control risk. We point out that it is more important for the auditor to assess the risks and respond to them than it is to identify them as specific components of the audit risk model. This topic will be discussed more extensively in Chapter 11.Discussion of the Audit Risk ModelThere are several problems to illustrate application of the audit risk model: 9-30, 9-31, 9-32, 9-33, and 9-34. Case 9-35 is useful to apply audit risk concepts, either using the audit risk model or discussing the concept without use of the model. Parts b-d of Case 9-36 can also be used to illustrate parts of the audit risk model.If there is adequate time, T-9-4 provides a good class exercise to summarize the relation of planning materiality and inherent risk to planned audit evidence.(See T-9-4)Using the columnar headings and the major accounts, discuss the contents of each column. The idea is to logically indicate the expected degree of audit effort for each account, relative to other accounts. This helps the students gain an appreciation of the concept that the purpose of assessing materiality and risk is to allocate audit effort to the accounts that are most likely to contain material misstatements. You can change assumptions about materiality and inherent risk and discuss the effect on audit effort.Table 9-2 (page 258) and Figure 9-4 (page 267) are also helpful to summarize the effect of factors in the audit risk model on planned evidence.Figure 9-5 (page 270) and Figure 9-6 (page 271) are helpful to help explain the relationships among the various risks and planned evidence. Figure 9-7 (page 273) summarizes the chapter by explaining the audit risk model for both planning evidence and evaluating results.(See Table 9-2, Figures 9-4, 9-5, 9-6, and 9-7)CHAPTER 9CROSS-REFERENCE OF LEARNING OBJECTIVES AND PROBLEM MATERIAL9-6AUDIT RISK MODELPDR = AARIR x CRWhere:AAR = Acceptable Audit RiskIR = Inherent RiskCR = Control RiskPDR = Planned Detection RiskPLANNED DETECTION RISKEvidence was accumulated such that achieved detection risk for accounts receivable was 14%.What are the answers to 1 through 5 if "Achieved Audit Risk" is substituted for "Achieved Detection Risk?"ACHIEVED LEVEL OF ASSURANCEFOR PARTS OF THE AUDITACHIEVED LEVEL OF ASSURANCE =98.6% FOR ALL SEGMENTS EXCEPT INVENTORY, WHICH IS MATERIALQuestion: 1. What is the overall achieved level ofassurance?2.What should the auditor do?RELATIONSHIP OF MATERIALITY ANDINHERENT RISK WITHPLANNED AUDIT EVIDENCEWhat is the effect on planned audit evidence if acceptable audit risk is reduced for the entire audit?。
罗斯公司理财英文练习题附带答案第九章
罗斯公司理财英文练习题附带答案第九章(总26页)-CAL-FENGHAI.-(YICAI)-Company One1-CAL-本页仅作为文档封面，使用请直接删除CHAPTER 9Risk Analysis, Real Options, and Capital Budgeting Multiple Choice Questions:I. DEFINITIONSSCENARIO ANALYSISb 1. An analysis of what happens to the estimate of the net present valuewhen you examine a number of different likely situations is called_____ analysis.a. forecastingb. scenarioc. sensitivityd. simulatione. break-evenDifficulty level: EasySENSITIVITY ANALYSISc 2. An analysis of what happens to the estimate of net present value whenonly one variable is changed is called _____ analysis.a. forecastingb. scenarioc. sensitivityd. simulatione. break-evenDifficulty level: EasySIMULATION ANALYSISd 3. An analysis which combines scenario analysis with sensitivity analysisis called _____ analysis.a. forecastingb. scenarioc. sensitivityd. simulatione. break-evenDifficulty level: EasyBREAK-EVEN ANALYSISe 4. An analysis of the relationship between the sales volume and variousmeasures of profitability is called _____ analysis.a. forecastingb. scenarioc. sensitivityd. simulatione. break-evenDifficulty level: EasyVARIABLE COSTSa 5. Variable costs:a. change in direct relationship to the quantity of output produced.b. are constant in the short-run regardless of the quantity of outputproduced.c. reflect the change in a variable when one more unit of output isproduced.d. are subtracted from fixed costs to compute the contribution margin.e. form the basis that is used to determine the degree of operatingleverage employed by a firm.Difficulty level: EasyFIXED COSTSb 6. Fixed costs:a. change as the quantity of output produced changes.b. are constant over the short-run regardless of the quantity of outputproduced.c. reflect the change in a variable when one more unit of output isproduced.d. are subtracted from sales to compute the contribution margin.e. can be ignored in scenario analysis since they are constant over thelife of a project.Difficulty level: EasyACCOUNTING BREAK-EVENc 7. The sales level that results in a project’s net income exactlyequaling zero is called the _____ break-even.a. operationalb. leveragedc. accountingd. cashe. present valueDifficulty level: EasyPRESENT VALUE BREAK-EVENe 8. The sales level that results in a project’s net present value exactlyequaling zero is called the _____ break-even.a. operationalb. leveragedc. accountingd. cashe. present valueDifficulty level: EasyII. CONCEPTSSCENARIO ANALYSISb 9. Conducting scenario analysis helps managers see the:a. impact of an individual variable on the outcome of a project.b. potential range of outcomes from a proposed project.c. changes in long-term debt over the course of a proposed project.d. possible range of market prices for their stock over the life of a project.e. allocation distribution of funds for capital projects under conditions of hard rationing.Difficulty level: EasySENSITIVITY ANALYSISb 10. Sensitivity analysis helps you determine the:a. range of possible outcomes given possible ranges for every variable.b. degree to which the net present value reacts to changes in a single variable.c. net present value given the best and the worst possible situations.d. degree to which a project is reliant upon the fixed costs.e. level of variable costs in relation to the fixed costs of a project.Difficulty level: EasySENSITIVITY ANALYSISc 11. As the degree of sensitivity of a project to a single variable rises, the:a. lower the forecasting risk of the project.b. smaller the range of possible outcomes given a pre-defined range of values for theinput.c. more attention management should place on accurately forecasting thefuture value ofthat variable.d. lower the maximum potential value of the project.e. lower the maximum potential loss of the project.Difficulty level: MediumSENSITIVITY ANALYSISc 12. Sensitivity analysis is conducted by:a. holding all variables at their base level and changing the required rate of returnassigned to a project.b. changing the value of two variables to determine their interdependency.c. changing the value of a single variable and computing the resulting change in thecurrent value of a project.d. assigning either the best or the worst possible value to each variable and comparing theresults to those achieved by the base case.e. managers after a project has been implemented to determine how each variable relates to the level of output realized.Difficulty level: MediumSENSITIVITY ANALYSISd 13. To ascertain whether the accuracy of the variable cost estimate for a project will havemuch effect on the final outcome of the project, you should probably conduct _____analysis.a. leverageb. scenarioc. break-evend. sensitivitye. cash flowDifficulty level: EasySIMULATIONd 14. Simulation analysis is based on assigning a _____ and analyzing the results.a. narrow range of values to a single variableb. narrow range of values to multiple variables simultaneouslyc. wide range of values to a single variabled. wide range of values to multiple variables simultaneouslye. single value to each of the variablesDifficulty level: MediumSIMULATIONe 15. The type of analysis that is most dependent upon the use of a computer is _____ analysis.a. scenariob. break-evenc. sensitivityd. degree of operating leveragee. simulationDifficulty level: EasyVARIABLE COSTSd 16. Which one of the following is most likely a variable costa. office rentb. property taxesc. property insuranced. direct labor costse. management salariesDifficulty level: EasyVARIABLE COSTSa 17. Which of the following statements concerning variable costs is (are) correctI. Variable costs minus fixed costs equal marginal costs.II. Variable costs are equal to zero when production is equal to zero.III. A n increase in variable costs increases the operating cash flow.a. II onlyb. III onlyc. I and III onlyd. II and III onlye. I and II onlyDifficulty level: MediumVARIABLE COSTSa 18. All else constant, as the variable cost per unit increases, the:a. contribution margin decreases.b. sensitivity to fixed costs decreases.c. degree of operating leverage decreases.d. operating cash flow increases.e. net profit increases.Difficulty level: MediumFIXED COSTSc 19. Fixed costs:I. are variable over long periods of time.II. must be paid even if production is halted.III. a re generally affected by the amount of fixed assets owned by a firm.IV. per unit remain constant over a given range of production output.a. I and III onlyb. II and IV onlyc. I, II, and III onlyd. I, II, and IV onlye. I, II, III, and IVDifficulty level: MediumCONTRIBUTION MARGINc 20. The contribution margin must increase as:a. both the sales price and variable cost per unit increase.b. the fixed cost per unit declines.c. the gap between the sales price and the variable cost per unit widens.d. sales price per unit declines.e. the sales price minus the fixed cost per unit increases.Difficulty level: MediumACCOUNTING BREAK-EVENa 21. Which of the following statements are correct concerning the accounting break-evenpointI. The net income is equal to zero at the accounting break-even point.II. The net present value is equal to zero at the accounting break-even point.III. T he quantity sold at the accounting break-even point is equal to the total fixed costs plus depreciation divided by the contribution margin.IV. The quantity sold at the accounting break-even point is equal to the total fixed costs divided by the contribution margin.a. I and III onlyb. I and IV onlyc. II and III onlyd. II and IV onlye. I, II, and IV onlyDifficulty level: MediumACCOUNTING BREAK-EVENb 22. All else constant, the accounting break-even level of sales will decrease when the:a. fixed costs increase.b. depreciation expense decreases.c. contribution margin decreases.d. variable costs per unit increase.e. selling price per unit decreases.Difficulty level: MediumPRESENT VALUE BREAK-EVENd 23. The point where a project produces a rate of return equal to the required return isknown as the:a. point of zero operating leverage.b. internal break-even point.c. accounting break-even point.d. present value break-even point.e. internal break-even point.Difficulty level: EasyPRESENT VALUE BREAK-EVENb 24. Which of the following statements are correct concerning the present value break-evenpoint of a projectI. The present value of the cash inflows equals the amount of the initial investment.II. The payback period of the project is equal to the life of the project.III. T he operating cash flow is at a level that produces a net present value of zero.IV. The project never pays back on a discounted basis.a. I and II onlyb. I and III onlyc. II and IV onlyd. III and IV onlye. I, III, and IV onlyDifficulty level: MediumINVESTMENT TIMING DECISIONb 25. The investment timing decision relates to:a. how long the cash flows last once a project is implemented.b. the decision as to when a project should be started.c. how frequently the cash flows of a project occur.d. how frequently the interest on the debt incurred to finance a project is compounded.e. the decision to either finance a project over time or pay out the initial cost in cash.Difficulty level: MediumOPTION TO WAITe 26. The timing option that gives the option to wait:I. may be of minimal value if the project relates to a rapidly changing technology.II. is partially dependent upon the discount rate applied to the project being evaluated.III. i s defined as the situation where operations are shut down for a period of time.IV. has a value equal to the net present value of the project if it is started today versus thenet present value if it is started at some later date.a. I and III onlyb. II and IV onlyc. I and II onlyd. II, III, and IV onlye. I, II, and IV onlyDifficulty level: ChallengeOPTION TO EXPANDb 27. Last month you introduced a new product to the market. Consumer demand has beenoverwhelming and appears that strong demand will exist over the long-term. Given thissituation, management should consider the option to:a. suspend.b. expand.c. abandon.d. contract.e. withdraw.Difficulty level: EasyOPTION TO EXPANDc 28. Including the option to expand in your project analysis will tend to:a. extend the duration of a project but not affect the project’s net present value.b. increase the cash flows of a project but decrease the project’s net present value.c. increase the net present value of a project.d. decrease the net present value of a project.e. have no effect on either a project’s cash flows or its net present value.Difficulty level: MediumSENSITIVITY AND SENARIO ANALYSISd 29. Theoretically, the NPV is the most appropriate method to determinethe acceptability of a project. A false sense of security can beoverwhelm the decision-maker when the procedure is applied properlyand the positive NPV results are accepted blindly. Sensitivity andscenario analysis aid in the process bya. changing the underlying assumptions on which the decision is based.b. highlights the areas where more and better data are needed.c. providing a picture of how an event can affect the calculations.d. All of the above.e. None of the above.Difficulty level: MediumDECSION TREEa 30. In order to make a decision with a decision treea. one starts farthest out in time to make the first decision.b. one must begin at time 0.c. any path can be taken to get to the end.d. any path can be taken to get back to the beginning.e. None of the above.Difficulty level: MediumDECISION TREEc 31. In a decision tree, the NPV to make the yes/no decision is dependentona. only the cash flows from successful path.b. on the path where the probabilities add up to one.c. all cash flows and probabilities.d. only the cash flows and probabilities of the successful path.e. None of the above.Difficulty level: MediumDECISION TREEe 32. In a decision tree, caution should be used in analysis becausea. early stage decisions are probably riskier and should not likely usethe same discount rate.b. if a negative NPV is actually occurring, management should opt out ofthe project and minimize their loss.c. decision trees are only used for planning, not actually dailymanagement.d. Both A and C.e. Both A and B.Difficulty level: MediumSENSITIVITY ANALYSISd 33. Sensitivity analysis evaluates the NPV with respect toa. changes in the underlying assumptions.b. one variable changing while holding the others constant.c. different economic conditions.d. All of the above.e. None of the above.Difficulty level: MediumSENSITIVITY ANALYSISd 34. Sensitivity analysis provides information ona. whether the NPV should be trusted, it may provide a false sense ofsecurity if all NPVs are positive.b. the need for additional information as it tests each variable inisolation.c. the degree of difficulty in changing multiple variables together.d. Both A and B.e. Both A and C.Difficulty level: MediumFIXED COSTSb 35. Fixed production costs area. directly related to labor costs.b. measured as cost per unit of time.c. measured as cost per unit of output.d. dependent on the amount of goods or services produced.e. None of the above.Difficulty level: MediumVARIABLE COSTSd 36. Variable costsa. change as the quantity of output changes.b. are zero when production is zero.c. are exemplified by direct labor and raw materials.d. All of the above.e. None of the above.Difficulty level: EasySENSITIVITY ANALYSISb 37. An investigation of the degree to which NPV depends on assumptionsmade about any singular critical variable is called a(n)a. operating analysis.b. sensitivity analysis.c. marginal benefit analysis.d. decision tree analysis.e. None of the above.Difficulty level: EasySENSITIVITY AND SCENARIOS ANALYSISb 38. Scenario analysis is different than sensitivity analysisa. as no economic forecasts are changed.b. as several variables are changed together.c. because scenario analysis deals with actual data versus sensitivityanalysis which deals with a forecast.d. because it is short and simple.e. because it is 'by the seat of the pants' technique.Difficulty level: MediumEQUIVALENT ANNUAL COSTc 39. In the present-value break-even the EAC is used toa. determine the opportunity cost of investment.b. allocate depreciation over the life of the project.c. allocate the initial investment at its opportunity cost over the lifeof the project.d. determine the contribution margin to fixed costs.e. None of the above.Difficulty level: MediumBREAK-EVENb 40. The present value break-even point is superior to the accountingbreak-even point becausea. present value break-even is more complicated to calculate.b. present value break-even covers the economic opportunity costs of theinvestment.c. present value break-even is the same as sensitivity analysis.d. present value break-even covers the fixed costs of production, whichthe accounting break-even does not.e. present value break-even covers the variable costs of production,which the accounting break-even does not.Difficulty level: EasyABANDONMENTd 41. The potential decision to abandon a project has option value becausea. abandonment can occur at any future point in time.b. a project may be worth more dead than alive.c. management is not locked into a negative outcome.d. All of the above.e. None of the above.Difficulty level: EasyTYPES OF BREAK-EVEN ANALYSISd 42. Which of the following are types of break-even analysisa. present value break-evenb. accounting profit break-evenc. market value break-evend. Both A and B.e. Both A and C.Difficulty level: EasyMONTE CARLO SIMULATIONc 43. The approach that further attempts to model real word uncertainty byanalyzing projects the way one might analyze gambling strategies iscalleda. gamblers approach.b. blackjack approach.c. Monte Carlo simulation.d. scenario analysis.e. sensitivity analysis.Difficulty level: MediumMONTE CARLO SIMULATIONc 44. Monte Carlo simulation isa. the most widely used by executives.b. a very simple formula.c. provides a more complete analysis that sensitivity or scenario.d. the oldest capital budgeting technique.e. None of the above.Difficulty level: EasyOPTIONS IN CAPITAL BUDGETINGd 45. Which of the following are hidden options in capital budgetinga. option to expand.b. timing option.c. option to abandon.d. All of the above.e. None of the above.Difficulty level: EasyIII. P ROBLEMSUse this information to answer questions 46 through 50.The Adept Co. is analyzing a proposed project. The company expects to sell 2,500units, give or take 10 percent. The expected variable cost per unit is $8 and the expected fixed costs are $12,500. Cost estimates areconsidered accurate within a plus or minus 5 percent range. Thedepreciation expense is $4,000. The sale price is estimated at $16 aunit, give or take 2 percent. The company bases their sensitivityanalysis on the expected case scenario.SCENARIO ANALYSISd 46. What is the sales revenue under the optimistic case scenarioa. $40,000b. $43,120c. $44,000d. $44,880e. $48,400Difficulty level: MediumSCENARIO ANALYSISd 47. What is the contribution margin under the expected case scenarioa. $b. $c. $d. $e. $Difficulty level: MediumSCENARIO ANALYSISc 48. What is the amount of the fixed cost per unit under the pessimistic case scenarioa. $b. $c. $d. $e. $Difficulty level: MediumSENSITIVITY ANALYSISb 49. The company is conducting a sensitivity analysis on the sales price using a salesprice estimate of $17. Using this value, the earnings before interest and taxes will be:a. $4,000b. $6,000c. $8,500d. $10,000e. $18,500Difficulty level: MediumSENSITIVITY ANALYSISb 50. The company conducts a sensitivity analysis using a variable cost of $9. The totalvariable cost estimate will be:a. $21,375b. $22,500c. $23,625d. $24,125e. $24,750Difficulty level: MediumUse this information to answer questions 51 through 55.The Can-Do Co. is analyzing a proposed project. The company expects tosell 12,000units, give or take 4 percent. The expected variable cost per unit is $7 and the expected fixed cost is $36,000. The fixed and variable costestimates are considered accurate within a plus or minus 6 percent range.The depreciation expense is $30,000. The tax rate is 34 percent. Thesale price is estimated at $14 a unit, give or take 5 percent. Thecompany bases their sensitivity analysis on the expected case scenario.SCENARIO ANALYSISa 51. What is the earnings before interest and taxes under the expected case scenarioa. $18,000b. $24,000c. $36,000d. $48,000e. $54,000Difficulty level: MediumSCENARIO ANALYSISc 52. What is the earnings before interest and taxes under anoptimistic case scenarioa. $22,b. $24,c. $37,d. $52,e. $67,Difficulty level: ChallengeSCENARIO ANALYSISb 53. What is the earnings before interest and taxes under the pessimistic case scenarioa. -$b. -$c. -$d. $3,e. $5,Difficulty level: ChallengeSENSITIVITY ANALYSISd 54. What is the operating cash flow for a sensitivity analysis using total fixed costs of$32,000a. $14,520b. $16,520c. $22,000d. $44,520e. $52,000Difficulty level: MediumSENSITIVITY ANALYSISd 55. What is the contribution margin for a sensitivity analysis using a variable cost per unit of $8a. $3b. $4c. $5d. $6e. $7Difficulty level: MediumVARIABLE COSTc 56. A firm is reviewing a project with labor cost of $ per unit, raw materials cost of$ a unit, and fixed costs of $8,000 a month. Sales are projected at 10,000 unitsover the three-month life of the project. What are the total variablecosts of the projecta. $216,300b. $297,300c. $305,300d. $313,300e. $329,300Difficulty level: MediumVARIABLE COSTd 57. A project has earnings before interest and taxes of $5,750, fixed costs of $50,000, aselling price of $13 a unit, and a sales quantity of 11,500 units.Depreciation is $7,500.What is the variable cost per unita. $b. $c. $d. $e. $Difficulty level: MediumFIXED COSTb 58. At a production level of 5,600 units a project has total costs of$89,000. The variable cost per unit is $. What is the amount of the total fixed costsa. $24,126b. $26,280c. $27,090d. $27,820e. $28,626Difficulty level: MediumFIXED COSTe 59. At a production level of 6,000 units a project has total costs of$120,000. The variable cost per unit is $. What is the amount of the total fixed costsa. $25,165b. $28,200c. $30,570d. $32,000e. $33,000Difficulty level: MediumCONTRIBUTION MARGINc 60. Wilson’s Meats has computed their fixed costs to be $.60 for every pound of meatthey sell given an average daily sales level of 500 pounds. Theycharge $ per pound of top-grade ground beef. The variable cost perpound is $. What is the contribution margin per pound of ground beefsolda. $.30b. $.60c. $.90d. $e. $Difficulty level: MediumCONTRIBUTION MARGINe 61. R alph and Emma’s is considering a project with total sales of $17,500, total variable costs of $9,800, total fixed costs of $3,500, and estimated production of 400 units. Thedepreciation expense is $2,400 a year. What is the contribution margin per unita. $b. $c. $d. $e. $Difficulty level: MediumACCOUNTING BREAK-EVENa 62. You are considering a new project. The project has projected depreciation of $720,fixed costs of $6,000, and total sales of $11,760. The variable cost per unit is$. What is the accounting break-even level of productiona. 1,200 unitsb. 1,334 unitsc. 1,372 unitsd. 1,889 unitse. 1,910 unitsDifficulty level: MediumACCOUNTING BREAK-EVENb 63. The accounting break-even production quantity for a project is 5,425 units. The fixedcosts are $31,600 and the contribution margin is $6. What is the projecteddepreciation expensea. $700b. $950c. $1,025d. $1,053e. $1,100Difficulty level: MediumACCOUNTING BREAK-EVENd 64. A project has an accounting break-even point of 2,000 units. The fixed costs are$4,200 and the depreciation expense is $400. The projected variable cost per unit is$. What is the projected sales pricea. $b. $c. $d. $e. $Difficulty level: MediumACCOUNTING BREAK-EVENa 65. A proposed project has fixed costs of $3,600, depreciation expense of $1,500, and asales quantity of 1,300 units. What is the contribution margin if the projected level ofsales is the accounting break-even pointa. $b. $c. $d. $e. $Difficulty level: MediumPRESENT VALUE BREAK-EVENc 66. A project has a contribution margin of $5, projected fixed costs of $12,000, projectedvariable cost per unit of $12, and a projected present value break-even point of 5,000units. What is the operating cash flow at this level of outputa. $1,000b. $12,000c. $13,000d. $68,000e. $73,000Difficulty level: MediumPRESENT VALUE BREAK-EVENa 67. Thompson & Son have been busy analyzing a new product. They have determined thatan operating cash flow of $16,700 will result in a zero net present value, which is a company requirement for project acceptance. The fixed costs are $12,378 and thecontribution margin is $. The company feels that they canrealistically capture 10 percent of the 50,000 unit market for this product. Should the company develop the new product Why or why nota. yes; because 5,000 units of sales exceeds the quantity required for a zero net presentvalueb. yes; because the internal break-even point is less than 5,000 unitsc. no; because the firm can not generate sufficient sales to obtain at least a zero netpresent valued. no; because the project has an expected internal rate of return of negative 100percente. no; because the project will not pay back on a discounted basisDifficulty level: ChallengePRESENT VALUE BREAK-EVENe 68. Kurt Neal and Son is considering a project with a discounted payback just equal to theproject’s life. The projections include a sales price of $11, variable cost per unit of$, and fixed costs of $4,500. The operating cash flow is $6,200. What is the break-even quantitya. 1,800 unitsb. 2,480 unitsc. 3,057 unitsd. 3,750 unitse. 4,280 unitsDifficulty level: MediumDECISION TREE NET PRESENT VALUEb 69. At stage 2 of the decision tree it shows that if a project issuccessful, the payoff will be $53,000 with a 2/3 chance ofoccurrence. There is also the 1/3 chance of a $-24,000 payoff. Thecost of getting to stage 2 (1 year out) is $44,000. The cost ofcapital is 15%. What is the NPV of the project at stage 1a. $-13,275b. $-20,232c. $ 2,087d. $ 7,536e. Can not be calculated without the exact timing of future cash flows. Difficulty level: MediumUse the following to answer questions 70-71:The Quick-Start Company has the following pattern of potential cash flows with their planned investment in a new cold weather starting system forfuel injected cars.DECISION TREEa 70. If the company has a discount rate of 17%, what is the value closestto time 1 net present valuea. $ millionb. $ millionc. $ milliond. $ millione. None of the above.Difficulty level: ChallengeDECISION TREEb 71. If the company has a discount rate of 17%, should they decide toinvesta. yes, NPV = $ millionb. yes, NPV = $ millionc. no, NPV = $ milliond. yes, NPV = $ millione. No, since more than one branch is NPV = 0 or negative you must reject.Difficulty level: ChallengeACCOUNTING BREAK-EVENe 72. The Mini-Max Company has the following cost information on their newprospective project. Calculate the accounting break-even point.Initial investment: $700Fixed costs: $200 per yearVariable costs: $3 per unitDepreciation: $140 per year.Price: $8 per unitDiscount rate: 12%Project life: 5 yearsTax rate: 34%a. 25 units per yearb. 68 units per yearc. 103 units per yeard. 113 units per yeare. None of the above.Difficulty level: MediumPRESENT VALUE BREAK-EVENd 73. The Mini-Max Company has the following cost information on their newprospective project. Calculate the present value break-even point.Initial investment: $700Fixed costs are $ 200 per yearVariable costs: $ 3 per unitDepreciation: $ 140 per yearPrice: $8 per unitDiscount rate: 12%Project life: 3 yearsTax rate: 34%a. 68 units per yearb. 75 units per yearc. 84 units per yeard. 114 units per yeare. None of the above.Difficulty level: ChallengeACCOUNTING BREAK-EVENd 74. From the information below, calculate the accounting break-even point.Initial investment: $2,000Fixed costs are $2,000 per year。
审计学：一种整合方法_第12版_英文版Chapter09
9 - 13
Estimated Total Misstatement and Preliminary Judgment
Estimated Misstatement Amount
Known Misstatement Tolerable and Direct Misstatement Projection Sampling Error
Allocate preliminary Step judgment about 2 materiality to segments
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
9-5
Steps in Applying Materiality
©2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder
9-7
Set Preliminary Judgment About Materiality
Auditors decide early in the audit the combined amount of misstatements of the financial statements that would be considered material. This preliminary judgment is the maximum amount by which the auditor believes the statements could be misstated and still not affect the decisions of reasonable users.
罗宾斯管理学第九版课件9erobbins_ppt01
❖ The ability to work well with other people
➢ Conceptual skills
❖ The ability to think and conceptualize about abstract and complex situations concerning the organization
Source: Based on American Management Association Survey of Managerial Skills and Competencies, March/April 2000, found on AMA Web site (), October 30, 2002.
• Explain the universality of management concept. • Discuss why an understanding of management is
important. • Describe the rewards and challenges of being a manager.
1–11
What Do Managers Do? (cont’d)
• Management Roles Approach (Mintzberg)
➢ Interpersonal roles
❖ Figurehead, leader, liaison
➢ Informational roles
❖ Monitor, disseminator, spokesperson
• Middle Managers
➢ Individuals who manage the work of first-line managers.
managerial acct chapter 9
April May June Quarter
Unit sales (from Sales Budget)
Plus: Desired end inventory Total needed Less: Beginning inventory Units to produce
1,050
119 1,169 280 889
$43,100
$18,700
$99,200
17
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Production Budget
+ Units needed for sales + Desired ending inventory = Total units needed - Units in beginning inventory = Units to produce
Tucson Tortilla Sales Budget For the Quarter Ended March 31 Month January February March 1st Quarter Unit sales (cases) 30,000 20,000 25,000 75,000 Unit selling price × $20 × $20 × $20 × $20 Total sales revenue $600,000 $400,000 $500,000 $1,500,000 Type of : Cash sales (20%) Credit sales (80%) Total sales revenue
The Master Budget
集团全面风险管理制度英文范文
集团全面风险管理制度英文范文Comprehensive Risk Management System for the CorporationIntroduction:In today's dynamic business environment, corporations are exposed to various risks that can adversely affect their operations, financial performance, and reputation. To survive and thrive in this volatile landscape, it is imperative for corporations to implement a comprehensive risk management system that helps identify, assess, mitigate, and monitor risks across all levels and functions of the organization. This article aims to outline a framework for such a risk management system, emphasizing its importance, key components, and implementation strategies.I. Importance of a Comprehensive Risk Management System:1. Protection against potential losses: A well-designed risk management system enables corporations to anticipate and prepare for potential risks, thereby minimizing the impact of adverse events on their operations, financials, and overall performance.2. Enhanced decision-making: Through a comprehensive risk management system, corporations can gain a deeper understanding of the risks they face, enabling them to make informed decisions about resource allocation, strategy development, and business opportunities.3. Compliance with regulations and legal requirements: A robust risk management system ensures that corporations comply with all relevant regulations, laws, and industry standards, reducing the likelihood of fines, legal disputes, and reputational damage.4. Stakeholder confidence: A transparent and effective risk management system enhances stakeholder confidence by demonstrating the corporation's commitment to identifying and managing risks, ensuring the sustainability and longevity of the business.II. Key Components of a Comprehensive Risk Management System:1. Risk identification: The first step in the risk management process is to identify all potential risks that the corporation may face. This can be done through risk assessment surveys, interviews with key personnel, and analysis of historical data. It is important to consider both internal and external risks, such as operational, financial, strategic, compliance, and reputational risks.2. Risk assessment: Once identified, risks should be assessed based on their potential impact and likelihood of occurrence. This can be done through quantitative or qualitative methods, such as risk heat maps, scenario analysis, or sensitivity analysis. The objective is to prioritize risks based on their significance and establish risk tolerance levels.3. Risk mitigation: After prioritizing risks, corporations should develop and implement risk mitigation measures to reduce their impact or likelihood. This may involve implementing control mechanisms, establishing contingency plans, transferring risks through insurance or contracts, or diversifying business activities. The effectiveness of risk mitigation measures should be regularly reviewed and adjusted, if necessary.4. Risk monitoring: Risk management is an ongoing process that requires continuous monitoring and evaluation. Key risk indicators (KRIs) should be established to track the status of identified risks and their corresponding mitigation measures. Regular reporting, internal audits, and external reviews can help ensure the effectiveness and adequacy of the risk management system.5. Risk culture and awareness: A successful risk management system requires a strong risk culture, where all employees understand and contribute to the identification and management of risks. Regular training programs, awareness campaigns, and incentives for risk management can foster a risk-aware culture within the corporation.III. Implementation Strategies:1. Leadership commitment: Top management should demonstrate their commitment to risk management by providing the necessary resources, establishing clear policies and procedures, and integrating risk management into the overall corporate strategy. This ensures that risk management becomes a part of the corporate culture and is embraced at all levels.2. Cross-functional collaboration: Risk management should be a collaborative effort involving all functions and departments within the corporation. This can be achieved through the establishment of a risk management committee or team, which includes representatives from various business units. Regular communication, coordination, and information sharing are essential for a successful risk management system.3. Technology integration: Implementing a comprehensive risk management system requires the support of appropriate technology tools. This may include risk management software, data analytics tools, and reporting systems that enable efficient data collection, analysis, and reporting. The integration of technology can enhance the effectiveness and efficiency of risk management processes.4. Regular review and improvement: The risk management system should be regularly reviewed and improved based on changing business dynamics, emerging risks, and lessons learned from past experiences. Corporations should seek feedback from internal and external stakeholders to identify areas for improvement and incorporate industry best practices.Conclusion:A comprehensive risk management system is essential for corporations to effectively navigate today's complex business environment. By identifying, assessing, mitigating, and monitoring risks, corporations can protect against potential losses, enhance decision-making, comply with regulations, and build stakeholder confidence. With the right leadership commitment, cross-functional collaboration, technology integration, and continuous improvement, corporations can develop a robust risk management system that safeguards their business and maximizes opportunities for sustainable growth.。
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Chapter 9
Making Consistent Risk Management
I . Open Questions
1. What are the components to the management process?
UNIVEYROSFITINATTEIORLNNBAUSINESS ANSD ECONOM
通常是企业指定的衍生工具，其公允价值或现金 流量的预期可以抵销被套期项目的公允价值和现 金流量的变动。被套期项目包括资产，负债，极 有可能发生的交易，或在国外的运作等，这些被 套期项目使一个实体受到公允价值或现金流量的 变化的影响。
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In essence, wholesale banking services usually involve high value transactions.
使用另一家公司成功商业模式的做法。
UNIVEYROSFITINATTEIORLNNBAUSINESS ANSD ECONOM
Wholesale banking 批发银行
wholesale banking is the provision of services by banks to the likes of large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, institutional customers (such as pension funds and government entities), and services offered to other banks or other financial institutions.
UNIVEYROSFITINATTEIORLNNBAUSINESS ANSD ECONOM
Franchise business 特许经营
the practice of using another firm’s successful
business model.
UNIVEYROSFITINATTEIORLNNBAUSINESS ANSD ECONOM
UNIVEYROSFITINATTEIORLNNBAUSINEms
Hedging instrument 套期工具
It is designated financial instrument whose fair value or related cash flows should offset changes in the fair value or cash flow of a designated hedged item. A hedged item is an asset, liability, highly probable transaction, or investment in a foreign operation that exposes an entity to changes in fair value or cash flows.
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III. Teaching Methods
Translation of key sentences Paraphrasing of key words and expressions Explanation of new terms Summarizing of key passages Discussion of important issues Questions and answers: interaction between
This chapter will cover 3 hours. 2 hours for the introduction of background information and explanations of terms and the texts. And the other 1 hour for discussion and practice.
teachers and students
UNIVEYROSFITINATTEIORLNNBAUSINESS ANSD ECONOM
IV. Background
A major lesson of the global crisis is the imperative need for sound and comprehensive risk governance. Contemporary banking organizations are exposed to a diverse set of market and non-market risks, and the management of risk has accordingly become a core function within banks. Indeed, identifying, assessing, and promoting sound riskmanagement practices have become central elements of good supervisory practice.
2. How to create a MIS to monitor risk? 3. Which factors contribute to the working
of EVA methodology?
UNIVEYROSFITINATTEIORLNNBAUSINESS ANSD ECONOM
II. Teaching Plan