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Mail S. Kellogg

Module 2 Objectives

Module 3 Objectives

- working capital
- current ratio
- quick ratio
- debt to assets
- debt to equity
- return on assets
- net profit margin
- accounts receivable turnover
- inventory turnover

Given a balance sheet and income statement with values missing, be able to use the accounting equation to compute the missing values.

Given a balance sheet and income statement, be able to compute changes to owner equity.

Given a balance sheet and income statement, be able to compute and interpret the following

Given a set of transactions, be able to prepare post transactions to appropriate accounts using the double entry system (debits and credits balance and assets = liabilities + owner equity).

Given account balances, be able to label accounts as an asset, liability, equity, income, or expense account.

Given asset, liability, equity, income, and expense account balances, be able to prepare a balance sheet and income statement.

- simple moving average
- exponential smoothing
- regression
- double exponential smoothing
- Holt-Winters seasonal adjustment

Given a set of data, be able to calculate a sales forecast for the next 2-3 time periods using

Given a set a data, be able to utilize appropriate models by which to build a 1-3 step ahead forecast.

Given a sales forecast, be able to compute a Sales Budget including expected cash collections for the forecast period.

Given a sales forecast, and a desired ending inventory policy, be able to compute the production budget.

Given a production budget, be able to compute a Materials Budget and / or a Direct Labor Budget.

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Given budgeted and actual revenues and expenses, calculate budget variances and be able to comment on the operational health of the plant.

Given a set of factory overhead and direct labor hours, be able to use regression or the high / low method to calculate the fixed and variable factory overhead rate.

Given material purchases, direct labor hours utilized, and overhead rates be able to prepare a job costing budget.

Given material purchases, factory overhead, and conversion factors, be able to prepare a process costing budget.

**Be able to use the Cost Estimating Relationship method to determine the
cost C _{pc} of a process for a given parameter. **

**Given a
set of data, be able to use Test 1 or Test 2 to determine if the time data is
relatively constant or should be treated as variable data.**

**Be able to use the power law and sizing (with or
without inflation) to estimate the cost of a new facility or piece of
equipment. **

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**Given appropriate data, cost indexes, and factor
curves, be able to use the factor method to estimate the cost of a new facility.**

**Given two
data points for a production time on the n and n+k units, be able to estimate
the value of k and s learning curve.**

**Given a learning curve function,
estimate the time it will take to produce the kth unit in a production
process. **

** Be able to use the learning curve
model to adjust for engineering change orders. **

**Given
an operations sheet, design length, cut length, facing length, and cost data, be
able to compute the cost per unit for a given lot size. **

**Be
able to use the Bill of Materials chart and/or table to estimate a unit cost for
an item.**

**Be able to use the productive hour
cost method to determine a unit cost for an item.**

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** Be able to use the learning curve
model to adjust for follow-on contracts.**

**Given
optimistic, pessimistic, and most likely estimates of cost data, be able to
compute the probability that the project cost will be less than some TC
amount. **

**Given two reference speeds and tool life times, be able
to determine the tool life equation.**

**Given a turning operation,
finished diameter, length of cut, feed, and cut speed, be able to determine the
machining time for the operation.**

**Given the machining time, load and
unload time, tool change time, tool life equation, machine operation cost, and
tool cost, be able to the optimal cut speed and cost per part. **

**Given a simple ABC cost system with
identified cost pools and drivers, be able to allocate a budget according to
specified drivers. **

**Given fixed and variable costs, be able to determine a breakeven point
for a project or between two projects.**

**Given relevant revenue and cost formulas, be able to determine average
cost and marginal cost at a specified level of production. **

**Given relevant cost information and tax tables, be able to compute an
after tax cash flow (slide 24 of valuation/inflation)**

**Given underlying LCC estimates and assumptions, be able to calculate
the life cycle cost for a product. **