instruction stringlengths 5 1.05k | output stringlengths 6 22.3k | input stringclasses 1
value |
|---|---|---|
what is the goal of management by objectives mbo | management by objectives mbo uses a set of quantifiable or objective standards against which to measure the performance of a company and its employees by comparing actual productivity to a given set of standards managers can identify problem areas and improve efficiency both management and workers know and agree to the... | |
what is an example of mbo | a company can set various goals with its employees in the case of a call center an mbo could increase customer satisfaction say by 10 while reducing call times by one minute the onus is now on finding ways to achieve this goal once that s decided on it s important to get employees on board and then monitor their progre... | |
what are some drawbacks of using mbo | as mbo is entirely focused on goals and targets it often ignores other parts of a company such as the corporate culture worker conduct a healthy work ethos environmental issues and areas for involvement and contribution to the community and social good | |
what is the difference between mbo and management by exception mbe | in management by exception mbe management only addresses instances where objectives or standards are transgressed thus workers are left alone unless productivity is not met the bottom lineas a theory mbo makes a lot of sense if employees are involved in setting company goals they are more likely to share management s o... | |
what is management discussion and analysis md a | management discussion and analysis md a is a section of a public company s annual report or quarterly filing the md a addresses the company s performance in this section the company s management and executives also known as the c suite present an analysis of the company s performance with qualitative and quantitative m... | |
what is covered in md a | the md a section often includes an overview and outlook section this part of the financial statement is used to explain what the future of the organization looks like it is also management s opportunity to explain why variances both positive or negative occurred and what they expect from the market next management also... | |
when management prepares this section they are aware that this information is going to be publicly available this means that competitors will be able to extract information on the company s strategy therefore in addition to wanting to paint a rosy picture the company wants to be as secretive as possible without reveali... | last the md a section is entirely up to management interpretation this means a company may interpret data one way when in reality the markets will play out an entirely differently way even if management puts forth a projection to the best of its knowledge its analysis is still prone to error and may not materialize exa... | |
is management discussion and analysis part of the financial statements | yes the md a section is a part of a company s publicly issued financial statements this information is included in the notes to the financial statements often indicated as note 7 | |
is md a mandatory | yes the md a section is a standard piece to a set of financial statements the notes section of the financial statements must include certain pieces of information with the md a section being one of them | |
what is the purpose of management discussion and analysis | the purpose of management discussion and analysis is to shed more light on how the financial statements were prepared how the company performed and what the company expects for the future it s management s opportunity to explain in their own words about the financial position and strategy of the company it s purpose is... | |
why is the management discussion analysis section important | the md a section is important because it doesn t have as restrictive guidelines compared to the numerically prepared financial statements management can use its own wording to explain unusual events or material considerations it can also explain its future plans which are not conveyed in backwards looking financial sta... | |
what is a management fee | a management fee is a charge levied by an investment manager for overseeing an investment fund the fee is intended to compensate managers for their time and expertise in selecting stocks and managing the portfolio it can also include other charges such as investor relations ir expenses and the administration costs of t... | |
how management fees work | a management fee is the cost of having your assets professionally handled the fee compensates professional money managers as they select securities for a fund s portfolio and manage it based on the fund s investment objective management fee structures vary from fund to fund but they re typically based on a percentage o... | |
are high management fees worth the cost | active fund managers rely on inefficiencies and mispricing in the market to identify stocks that have the potential to outperform the market the efficient market hypothesis emh has shown that stock prices fully reflect all available information and expectations however so current prices are the best approximation of a ... | |
what fees may be payable in addition to management fees | the u s securities and exchange commission cites penalty fees for not maintaining a minimum balance in your account you might also have to pay inactivity fees and various additional maintenance fees 4 | |
what are 12b 1 fees | these fees are commonly charged to mutual funds they cover the costs of marketing and shareholder services and they can even pay for employee bonuses the good news is that they usually can t be more than 1 of the assets you hold 5 | |
do 401 k plans have fees | they do and they re commonly paid by the plan s participants the plan sponsor council of america estimates that they amount to about 30 billion annually but you can take a little heart because this number is spread over 60 million participants holding 3 trillion in assets erisa the employee retirement income securities... | |
what is managerial accounting | managerial accounting is the practice of identifying measuring analyzing interpreting and communicating financial information to managers for the pursuit of an organization s goals managerial accounting differs from financial accounting because the intended purpose of managerial accounting is to assist users internal t... | |
how managerial accounting works | managerial accounting aims to improve the quality of information delivered to management about business operation metrics managerial accountants use information relating to the cost and sales revenue of goods and services generated by the company cost accounting is a large subset of managerial accounting that specifica... | |
when a managerial accountant performs cash flow analysis he will consider the cash inflow or outflow generated as a result of a specific business decision for example if a department manager is considering purchasing a company vehicle he may have the option to either buy the vehicle outright or get a loan a managerial ... | inventory turnover is a calculation of how many times a company has sold and replaced inventory in a given time period calculating inventory turnover can help businesses make better decisions on pricing manufacturing marketing and purchasing new inventory a managerial accountant may identify the carrying cost of invent... | |
is financial accounting the same as managerial accounting | while they often perform similar tasks financial accounting is the process of preparing and presenting official quarterly or annual financial information for external use such reports may include audited financial statements that help investors and analysts decide whether to buy or sell shares of the company managerial... | |
do managerial accountants need to follow gaap | no managerial accountants are not legally obligated to follow gaap because the documents they produce are not regulated by gaap these documents focus on internal company metrics that focus on company performance 2 | |
what types of information does managerial accounting compute | managerial accounting is useful for companies to track and craft spending budgets reduce costs project sales figures and manage cash flows among other tasks the bottom linemanagerial accounting is important for drafting accurate and complete financial statements for internal use and crafting a company s long term strat... | |
what is the manufacturer s suggested retail price msrp | the manufacturer s suggested retail price msrp is the price that a product s manufacturer recommends it be sold for at the point of sale any retail product can have an msrp but the term is frequently used with automobiles an msrp is sometimes informally known as the sticker price the msrp is also referred to as the lis... | |
how msrps are determined | because the msrp is set by a product s manufacturer it should remain constant across retailers the msrp is supposed to reflect all the costs incurred over the manufacturing and sales process as well as an average markup by retailers prices are set to allow all parties involved the manufacturer wholesaler and retailer t... | |
how much below the msrp can i pay | although prices are negotiable the discount you can receive will depend on the dealer s inventory and market conditions for older vehicles you may be able to get a substantial discount from the msrp especially if the dealer is trying to free up inventory for the latest models for the most popular models you might end u... | |
how do you negotiate against the msrp | the best way to negotiate with a car dealer is to find out the invoice price of the car you are looking at this is the cost that the dealer pays to the manufacturer for each car you should also try to find out if there are any rebates subsidized lease deals or other breaks that can reduce the value of the car this allo... | |
does the msrp include the destination fee | the destination fee or destination charge is a special charge for the cost of delivering a vehicle to a customer or dealer this fee is not included in the msrp of the vehicle and it is usually non negotiable even if the buyer takes delivery at the factory the bottom linethe manufacturer s suggested retail price also kn... | |
what is manufacturing | manufacturing is the creation of finished goods through the use of tools human labor machinery and chemical processing manufacturing allows businesses to sell finished products at a higher cost than the value of the raw materials used large scale manufacturing allows for goods to be mass produced using assembly line pr... | |
how products are manufactured has changed over time people have historically manufactured goods using raw materials and in certain cases they still do hand manufacturing involves the use of basic tools through more traditional processes this form of manufacturing is often associated with decorative art textile producti... | handmade goods are labor intensive and require a lot of time in some cases they can command a high price depending on the supplier and the type of goods for instance one of a kind handmade fashion items can be sold at a higher price compared to something mass produced there are cases though where people who make goods ... | |
is a more specific type of process | often entails previous ownership of the inputs for the processoutput may be tangible or intangible goodsmachinery may or may not be required | |
is a less specific type of process | example of manufacturingknown for its efficient manufacturing process toyota motor corporation is a historically well known and successful manufacturer the company uses a lean manufacturing system to produce customer vehicle orders in the quickest and most efficient way possible 11the company s manufacturing process is... | |
what is lean manufacturing | lean manufacturing is a form of production used by manufacturers that want to reduce production system time to increase efficiency implementing a lean manufacturing approach means that a company wants to boost productivity while eliminating as much waste as possible | |
how do you calculate manufacturing overhead | manufacturing overhead is the total indirect cost associated with manufacturing this includes expenses like employee wages asset depreciation rent leases and utilities costs like materials are not included to calculate your manufacturing overhead take your monthly overhead expenses and divide that total by your monthly... | |
what is the purpose of manufacturing | manufacturing is the process of converting a raw material into a finished tangible product manufacturing entails making a process efficient as it converts specific resources into a different resource often to be sold to a customer | |
what are the steps of manufacturing | the manufacturing process often begins with an information gathering stage where engineers and management learn about a process prototypes are often created and evaluated then specific designs are implemented and commercial production begins as goods are made they are inspected shipped and delivered to the next user of... | |
what is manufacturing resource planning | manufacturing resource planning mrp ii is an integrated information system used by businesses manufacturing resource planning mrp ii evolved from early materials requirement planning mrp systems by including the integration of additional data such as employee and financial needs the system is designed to centralize int... | |
what is a maquiladora | the term maquiladora refers to a factory or manufacturing plant in mexico these corporations are approved for operation by the country s secretariat of commerce and industrial development under a decree established in 1989 and are owned by foreign entities maquiladoras were first developed in the 1960s as a way to enco... | |
what is margin | in finance the margin is the collateral that an investor has to deposit with their broker or exchange to cover the credit risk the holder poses for the broker or the exchange an investor can create credit risk if they borrow cash from the broker to buy financial instruments borrow financial instruments to sell them sho... | |
how the process works | buying on margin is borrowing money from a broker in order to purchase stock you can think of it as a loan from your brokerage margin trading allows you to buy more stock than you d be able to normally to trade on margin you need a margin account this is different from a regular cash account in which you trade using th... | |
should investors not be able to contribute additional equity or if the value of an account drops so fast it breaches certain margin requirements a forced liquidation may occur this forced liquidation will sell the securities purchased on margin and may result in losses to satisfy the broker s requirement | example of marginlet s say that you deposit 10 000 in your margin account because you put up 50 of the purchase price this means you have 20 000 worth of buying power then if you buy 5 000 worth of stock you still have 15 000 in buying power remaining you have enough cash to cover this transaction and haven t tapped in... | |
what does it mean to trade on margin | trading on margin means borrowing money from a brokerage firm in order to carry out trades when trading on margin investors first deposit cash that serves as collateral for the loan and then pay ongoing interest payments on the money they borrow this loan increases the buying power of investors allowing them to buy a l... | |
what is a margin call | a margin call is a scenario in which a broker who had previously extended a margin loan to an investor sends a notice to that investor asking them to increase the amount of collateral in their margin account when faced with a margin call investors often need to deposit additional cash into their account sometimes by se... | |
what are some other meanings of the term margin | outside of margin lending the term margin also has other uses in finance for example it is used as a catch all term to refer to various profit margins such as the gross profit margin pre tax profit margin and net profit margin the term is also sometimes used to refer to interest rates or risk premiums | |
when investing on margin the investor is at risk of losing more money than what they deposited into the margin account this may occur when the value of the securities held declines requiring the investor to either provide additional funds or incur a forced sale of the securities | the bottom lineinvestors looking to amplify gain and loss potential on trades may consider trading on margin margin trading is the practice of borrowing money depositing cash to serve as collateral and entering into trades using borrowed funds through the use of debt and leverage margin may result in higher profits tha... | |
what is a margin account | the term margin account refers to a brokerage account in which a trader s broker dealer lends them cash to purchase stocks or other financial products the margin account and the securities held within it are used as collateral for the loan it comes with a periodic interest rate that the investor must pay to keep it act... | |
how a margin account works | if an investor purchases securities with margin funds and those securities appreciate in value beyond the interest rate charged on the funds the investor will earn a better total return than if they had only purchased securities with their own cash this is the advantage of using margin funds on the downside the brokera... | |
what are the disadvantages of margin | there are quite a few disadvantages when it comes to margin trading the first and foremost is the magnified losses when you trade on margin you are borrowing money to amplify your returns if the trade loses you are responsible for the amount of money you borrowed covering your losses and commissions and fees additional... | |
what is a margin call | a margin call occurs when the percentage of an investor s equity in a margin account falls below the broker s required amount an investor s margin account contains securities bought with a combination of the investor s own money and money that was borrowed from the investor s broker a margin call refers specifically to... | |
what triggers a margin call | an investor is buying on margin when they pay to buy and sell securities using a combination of their own funds and money borrowed from a broker an investor s equity in the investment is equal to the market value of the securities minus the borrowed amount 1a margin call is triggered when the investor s equity as a per... | |
how to cover a margin call | the investor typically has two to five days to act if their account value drops to a level where a margin call is issued by their broker these are the options for doing so using the margin call example above a broker may close out any open positions to replenish the account to the minimum required value if an investor ... | |
how to avoid a margin call | investors should carefully consider whether they need a margin account before opening one most long term investors don t have to buy on margin to earn solid returns and these loans aren t free brokerages charge interest on them but there are a few things you can do to manage your account avoid a margin call or be ready... | |
is it risky to trade stocks on margin | it s certainly riskier to trade stocks with margin than without it because trading stocks on margin is trading with borrowed money leveraged trades are riskier than unleveraged ones the biggest risk with margin trading is that investors can lose more than they ve invested | |
how can a margin call be met | a margin call is issued by the broker when there s a margin deficiency in the trader s margin account the trader has to either deposit cash or marginable securities in the margin account or liquidate some securities in the account to rectify a margin deficiency can a trader delay meeting a margin call a margin call mus... | |
how can i manage the risks associated with trading on margin | measures to manage the risks associated with trading on margin include | |
does the total level of margin debt have an impact on market volatility | a high level of margin debt can exacerbate market volatility clients are forced to sell stocks to meet margin calls during steep market declines this can lead to a vicious circle where intense selling pressure drives stock prices lower triggering more margin calls and more selling the bottom linebuying on margin isn t ... | |
what is margin debt | margin debt is the debt a brokerage customer takes on by trading on margin | |
when purchasing securities through a broker investors have the option of using a cash account and covering the entire cost of the investment themselves or using a margin account meaning they borrow part of the initial capital from their broker the portion that investors borrow is known as margin debt while the portion ... | using margin debt has both risks and potential benefits | |
how margin debt works | as an example of using margin debt to buy securities suppose an investor who we ll call sheila wants to buy 1 000 shares of johnson johnson jnj for 100 per share she doesn t want to put down the entire 100 000 at this time but the federal reserve board s regulation t limits her broker to lending her 50 of the initial i... | |
how long do you have to answer a margin call | brokerage firms typically give customers two to five days to come up with the cash after a margin call according to finra 4 | |
how much money do you need to trade on margin | finra rules require that investors deposit with your brokerage firm a minimum of 2 000 or 100 of the purchase price of the margin securities whichever is less according to the u s securities and exchange commission sec 5 however if the brokerage designates you as a pattern day trader then the cash requirement rises to ... | |
what is a pattern day trader | according to finra rules a pattern day trader is any customer who executes four or more day trades within five business days provided that the number of day trades represents more than 6 of the customer s total trades in the margin account for that same five business day period brokerage firms can also use a broader de... | |
what is margin loan availability | margin loan availability describes the amount in a margin account that is currently available for purchasing securities on margin or the amount that is available for withdrawal a margin account makes loans available to the customer of a brokerage firm using the customer s securities in their account as collateral | |
how margin loan availability works | margin loan availability tells a brokerage customer how much money in their margin account is currently available for purchasing securities on margin and how much is available for withdrawal as the value of the securities in the account rises and falls the amount of money that becomes available for loan also changes si... | |
what is margin of safety | margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value in other words when the market price of a security is significantly below your estimation of its intrinsic value the difference is the margin of safety because... | |
what is marginal analysis | marginal analysis is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity companies use marginal analysis as a decision making tool to help them maximize their potential profits marginal refers to the focus on the cost or benefit of the next unit or in... | |
how to perform a marginal analysis | marginal analysis is as simple as taking the margin benefit of an outcome and subtracting the marginal cost however this analysis may be difficult to assess as there are many variables and moving parts to consider to perform a marginal analysis you should first understand the fixed and variable costs of an activity bec... | |
do not confuse the many marginal terms used in economics be mindful that the best quantity to operate at is when marginal revenue equals cost | the overarching rule of marginal analysis is that it is usually in a company s best interest to perform an activity as long as the marginal revenue is greater than the marginal cost when marginal revenue and marginal cost are equal there is theoretically no financial incentive for the company to continue the activity t... | |
when a manufacturer wishes to expand its operations either by adding new product lines or increasing the volume of goods produced from the current product line a marginal analysis of the costs and benefits is necessary some of the costs to be examined include but are not limited to the cost of additional manufacturing ... | once all of the costs are identified and estimated these amounts are compared to the estimated increase in sales attributed to the additional production this analysis takes the estimated increase in income and subtracts the estimated increase in costs if the increase in income outweighs the increase in cost the expansi... | |
why is marginal analysis important | marginal analysis is important because it identifies the most efficient use of resources an activity should only be performed until the marginal revenue equals the marginal cost beyond this point it will cost more for every unit than the benefit received for every unit | |
what is the first step to performing marginal analysis | though not required a first step to performing marginal analysis is often to consider the fixed and variable components of an activity if all costs are fixed there will be little to no marginal costs as expenses will not change as units produced changed on the other hand if all costs are variable there will be consider... | |
what is the golden rule for marginal analysis | the golden rule of marginal analysis is that an activity should be performed as long as marginal revenue equals marginal cost activities that have marginal costs higher than marginal revenue provide negative net benefit to a company | |
what is marginal principle theory | marginal principle theory is a very closely related topic that states that individuals make decisions on purchases based on the additional utility they will receive from each unit in the example throughout this page this related to the consumption of pizza when you decide whether or not to reach for that one final slic... | |
what is marginal benefit | a marginal benefit is a maximum amount a consumer is willing to pay for an additional good or service it is also the additional satisfaction or utility that a consumer receives when the additional good or service is purchased the marginal benefit for a consumer tends to decrease as consumption of the good or service in... | |
how do you calculate marginal benefit | the marginal benefit can be calculated from the slope of the demand curve at that point for example if you want to know the marginal benefit of the nth unit of a certain product you would take the slope of the demand curve at the point where current consumption is equal to n | |
what does marginal benefit mean for producers | for manufacturers and other suppliers the marginal benefit for a good represents the incremental profit that they can make by selling additional units of a certain good this is not necessarily the same as the expected per unit profit for example if a company decides to sell an additional 1 000 bottles of a soft drink b... | |
what is the principle of diminishing marginal benefits | the principle of diminishing marginal benefit also known as the law of diminishing utility states that the benefits of consuming a good decrease with additional consumption although each additional unit represents a net benefit from the consumer the benefit is lower than the satisfaction received from prior consumption... | |
what is marginal cost | in economics marginal cost is the change in total production cost that comes from making or producing one additional unit to calculate marginal cost divide the change in production costs by the change in quantity the purpose of analyzing marginal cost is to determine at what point an organization can achieve economies ... | |
what marginal cost can tell you | marginal cost is an economics and managerial accounting concept most often used among manufacturers as a means of isolating an optimum production level manufacturers often examine the cost of adding one more unit to their production schedules at a certain level of production the benefit of producing one additional unit... | |
when a company knows both its marginal cost and marginal revenue for various product lines it can concentrate resources on items where the difference is the greatest instead of investing in minimally successful goods it can focus on making individual units that maximize returns | marginal cost is also essential in knowing when it is no longer profitable to manufacture additional goods when marginal cost exceeds marginal revenue it is no longer financially profitable for a company to make that additional unit as the cost for that single quantity exceeds the revenue it will collect from it using ... | |
what is marginal cost | marginal cost is the cost to produce one additional unit of production it is an important concept in cost accounting as marginal cost helps determine the most efficient level of production for a manufacturing process it is calculated by determining what expenses are incurred if only one additional unit is manufactured | |
what is an example of marginal cost | imagine a company that manufactures high quality exercise equipment the company incurs both fixed costs and variable costs and has additional capacity to manufacture more goods let s say it has cost the company 500 000 to manufacture 1 000 exercise bikes the company has determined it will cost an additional 400 to manu... | |
what is the formula for marginal cost | marginal cost is calculated by dividing the change in costs by the change in quantity for example suppose that a factory is currently producing 5 000 units and wishes to increase its production to 10 000 units if the factory s current cost of production is 100 000 and if increasing its production level would raise its ... | |
why is marginal cost important | marginal cost is an economic concept that plays an important role in business management since it can help businesses optimize their production levels it refers to the incremental cost of adding one more unit of production such as producing one more product or delivering one more service to customers it is generally as... | |
what is the difference between marginal cost and average cost | marginal cost is the expenses needed to manufacture one incremental good as a manufacturing process becomes more efficient or economies of scale are recognized the marginal cost often declines over time however there is often a point in time where it may become incrementally more expensive to produce one additional uni... | |
what is marginal profit | marginal profit is the profit earned by a firm or individual when one additional or marginal unit is produced and sold marginal refers to the added cost or profit earned with producing the next unit marginal product is the additional revenue earned while the marginal cost is the added cost for producing one additional ... | |
how to calculate marginal profit | marginal cost mcmc is the cost to produce one additional unit and marginal revenue mr is the revenue earned to produce one additional unit in modern microeconomics firms in competition with each other will tend to produce units until marginal cost equals marginal revenue mcmc mr leaving effectively zero marginal profit... | |
why do firms care about their marginal profit | in order to maximize profits a firm should produce as many units as possible but the costs of production are also likely to increase as production ramps up when marginal profit is zero i e when the marginal cost of producing one more unit equals the marginal revenue it will bring in that level of production is optimal ... | |
when should a business shut down when considering marginal profit | if marginal profit is negative at all levels of production the firm s best course of action is probably to cease all production for the time being rather than keep producing units at a loss | |
what are economies of scale | economies of scale refer to situations where ramping up production decreases the marginal cost in such cases the marginal profit will increase as more and more units are made | |
what is marginal propensity to consume mpc | in economics the marginal propensity to consume mpc is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services as opposed to saving it marginal propensity to consume is a component of keynesian macroeconomic theory and is calculated as the change in consump... | |
what is marginal propensity to consume in simple terms | the marginal propensity to consume measures the degree to which a consumer will spend or save in relation to an aggregate raise in pay or to put it another way if a person gets a boost in income what percentage of this new income will they spend often higher incomes express lower levels of marginal propensity to consum... | |
how do you calculate marginal propensity to consume | to calculate the marginal propensity to consume the change in consumption is divided by the change in income for instance if a person s spending increases 90 cents more for each new dollar of earnings it would be expressed as 0 9 1 0 9 on the other hand consider a person receives a bonus of 1 000 and spends 100 of this... | |
what role does the marginal propensity to consume have in economics | in keynesian macroeconomic theory the marginal propensity to consume is a key variable in showing the multiplier effect of economic stimulus spending specifically it suggests that a boost in government spending will increase consumer income and in turn consumer spending will rise on a macro level this increase in inves... | |
what is marginal propensity to import mpm | the marginal propensity to import mpm is the amount imports increase or decrease with each unit rise or decline in disposable income the idea is that rising income for businesses and households spurs greater demand for goods from abroad and vice versa | |
how marginal propensity to import mpm works | mpm is a component of keynesian macroeconomic theory it is calculated as dim dy meaning the derivative of the import function im with respect to the derivative of the income function y the mpm indicates the extent to which imports are subject to changes in income or production if for example a country s mpm is 0 3 then... | |
what is marginal propensity to save mps | in keynesian economics theory marginal propensity to save mps refers to the proportion of an aggregate raise in income that a consumer saves rather than spends on the consumption of goods and services put differently mps is the proportion of each added dollar of income that is saved rather than spent mps is a component... | |
what does marginal propensity to save mps describe | marginal propensity to save mps refers to the amount of a raise in income that a person saves rather than spends | |
what is marginal propensity to consume mpc | marginal propensity to consume mpc refers to the amount of a raise in income that a person spends as opposed to saves this makes it the complement to mps added together they should always equal one | |
what is the purpose of determining mps | mps can be used to understand how government spending and investment may influence saving and what the economic impact of the spending and investment might be the bottom linemarginal propensity to save mps is an economic theory that calculates how much of a raise a person would save the number is different at different... |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.