Study Guide and Pointers for Mba Exam_ncba

STUDY GUIDES AND QUESTIONS FOR MBA COMPREHENSIVE EXAM

MANAGERIAL ACCOUNTING

1. What is the Cost for Planning, Control and Decision Making Cost Behaviour?
2. Define Labor Cost – Indirect, Direct, Overtime Cost.
3. What are the drivers of Overhead Cost – ex. Building
4. How do you minimize the Impact of Transfer Cost?
5. What is Just-In-Time Inventory? In Purchasing? In Production?

Just-In-Time (JIT) Inventory – Demand driven inventory system in which material, parts, sub-assemblies, and support items are delivered just when needed and neither sooner nor later. Its objective is to eliminate product inventories from supply chain. JIT encompasses all activities required to make a final product from design engineering onwards to the last manufacturing operation. JIT systems are fundamental to time based competition and rely on waste reduction, process simplification, parallel processing and shop floor layout redesign. Under JIT management, shipments are made within rigidly enforced “time windows” and all items must be within the specifications with very little or no inspection. It was developed by Taiichi Ohno of Toyota Corporation during 1960s and 1970s to meet fast changing consumer demands with minimum delays (businessdictionary.com).

1. Define Organizational Design.

Organizational Design (Organizational Structure) – The manner in which a management achieves the right combination of differentiation and integration of the organization’s operations, in response to the level of uncertainty in its external environment. Differentiation refers to the subdivision of functional or departmental units, each concentrating on a particular aspect of organization’s operations. Integration refers to the linking of differentiated units to achieve unity of effort in working toward organization’s goals. In times of high uncertainty, greater organizational effectiveness is achieved through high differentiation couples with high integration. In times of low uncertainty, low differentiation and low integration are more effective (businessdictionary.com).

1. Differentiate Static and Flexible Variance. Explain.
2. What is Grandfather Rule Mechanics? Latest Supreme Court Ruling (Mining)?

ECONOMICS

1. Differentiate Competitive and Comparative Advantage.

Competitive Advantage – A superiority gained by an organization when it can provide the same value as its competitors by at a lower price, or can charge higher prices by providing greater value through differentiation. Competitive advantage results from matching core competencies to the opportunities (businessdictionary.com).

Comparative Advantage – Basic concept of international trade theory, it is founded on the work of UK economist David Ricardo on comparative cost. It is a concept in economics that a country should specialized in producing and exporting only those goods and services which it can produce more efficiently (at lower opportunity cost) that other goods and services (which it should import). Comparative advantage results from different endowments of the factors of production. (capital, land and labor) entrepreneurial skill, power resources, technology etc. It therefore follows that free trade is beneficial to all countries, because each can gain if it specializes according to its comparative advantage (businessdictionary.com).