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BA 101
| Question | Answer |
|---|---|
| The availability of the product for the customer to gain access to. The higher the accessibility, the more easily a customer may purchase a particular team’s product. Investments in the distribution network improve a product’s accessibility. | Accessibility |
| A summary and analysis of the firm’s financial position. | Accounting |
| Amount owed to suppliers for raw materials delivered. This value is affected by the number of days taken to pay suppliers (Accounts Payable expressed in days) which may be adjusted on the marketing screen. | Accounts Payable |
| The amount of money owed to the company by its debtors. This value is affected by both sales volume and credit policy (accounts receivable lag, expressed in days). | Accounts Receivable |
| Cumulative total of each year’s depreciation charge for plant and equipment. | Accumulated Depreciation |
| Units actually sold into the segment from all products represented. If this value is lower than Available Unit Sales then insufficient units were produced for sale into the segment. | Actual Industry Unit Sales |
| Adjustments for income statement transactions, where no cash actually changed hands. | Adjustment for Non-cash Items |
| Cost of general administration such as legal services, accounting, and human resources. | Administration |
| The preferred perceived age customers would like a product to possess. Perceived age is affected by redesigning the product (changing the performance attribute, size attribute, or both). | Age |
| Anything owned by a firm—the organization’s "stuff." | Assets |
| Sales, generated in a particular year, divided by the value of total assets for the same period. | Asset Turnover |
| The automation the company will enjoy on each of its production lines during the coming round. | Automation |
| Reports the book value of all assets, liabilities, and owner’s equity of the firm at a point in time. | Balance Sheet |
| A method of evaluating the performance of a business by comparison to some other specified level of accomplishment, typically a level achieved by another company. | Benchmarking |
| The annual cost of the benefits package for each employee. | Benefits |
| A set of executives who are responsible for monitoring the activities of the firm’s president and other high-level managers, also referred to as the executive management team. | Board of Directors |
| The amount an asset is valued at in business records; not necessarily the same amount as what the asset is worth on the open market. | Book Value |
| Long-term debt securities purchased by investors. | Bonds |
| A detailed description of a proposed or existing business including the product or services offered, the types of customers it would attract, the competition, and the facilities needed for production. | Business Plan |
| The straight-time capacity the company will enjoy, on each of its production lines, during the coming round. | Capacity |
| The amount of money available in the bank. | Cash |
| This statement is published in conformity with the Finance and Accounting Standards Board’s (FASB) most recent statements and opinions on the format for a cash flow analysis. | Cash flow Statement |
| Cash received for issuing new, ten-year bonds is an example of cash generated from long-term debt. | Cash from Long-Term Debt |
| Items in this category are assets and liabilities that have either increased or decreased since last year’s balance sheet. These line items either expel (spend) or draw in (generate) cash. | Change in Current Assets and Liabilities |
| This is the net value of any current debt owed (and therefore had to be paid) last year and any additional current debt acquired. | Change in Current Debt |
| The price being paid for the bond in the third-party market at the end of the last period. This price is a function of the interest rate and the risk inherent in the security as expressed by its credit rating. | Close |
| Value in the cash account at the end of this year, also shown on the Balance Sheet. | Closing Cash Position |
| Value of monies received for the issuing of stock since the company’s inception (the value of additional paid-in capital is included here). | Common Stock |
| Sales revenue less all of the variable costs (does not include depreciation). | Contribution Margin |
| Cumulative total of all profits (losses) generated since the game’s inception. | Cumulative Profits |
| The value of debt owed and payable on January 1st of the year for which decisions are currently being made. | Current Debt |
| That portion of the total segment that was aware of a particular segment. | Customer Awareness |
| This is an assessment of the desirability of a particular product | Customer Survey |
| An accounting for the portion of the equipment that was effectively "used up" in the period. The government recognizes this wear and tear and allows it to be deducted before declaring a profit. It is added back to get a true picture of the cash account. A | Depreciation |
| Cost of all labor associated with manufacturing the product. This value may be impacted by increasing or lowering the amount of automation (a capital cost) present on a particular line. | Direct Labor |
| Cost of all raw materials necessary to manufacture a product. | Direct Material |
| The income the firm provides to its owners, or shareholders, based on profits. | Dividends = |
| Value of cash expended on paying dividends. Dividend payment is made on the finance screen and each year defaults to zero unless another value is entered. | Dividends Paid= |
| Net margin less fees, write-offs, and bonus income; this information appears on the income statement. | Earnings Before Interest and Taxes (EBIT) |
| EPS is calculated by dividing net profit into the number of shares outstanding. | Earnings per Share (EPS) |
| The process where the cost of each good produced decreases as the volume produced increases. This reduction in cost per unit occurs when the initial investment of capital is shared with an increasing number of units of output, and therefore, the cost of p | Economies of Scale |
| Amount of cash injected during the year when the company is completely devoid of cash. This is usually a result of inventories building at unexpected levels thus drying up all liquidity. Loans made on an emergency basis have a punitive interest rate (5% a | Emergency Loan |
| The face value of the entire bond issue. This value is also what would be paid back to the bondholders at the maturity of the debt. However, if bonds are retired (called in) early the amount paid may be higher or lower than this. | Face Value |
| This is a compilation of charges that may be incurred during any given period. | Fees and Write-offs |
| If machinery is sold at a value that is higher than the net or depreciated value of the machinery, then this shows up as a profit on the income statement. Such gains and losses must be reported on the income statement. However they do not represent a true | Gain/Loss on Equipment Sales |
| Revenue left after deducting direct labor, raw materials, and depreciation expressed as a percentage of sales. | Gross Margin |
| Annual compound rate at which unit demand will grow. | Growth Rate |
| The income statement, also known as a profit-and-loss statement, shows the entire value that an account has accumulated over the previous period (in this case twelve months). | Income Statement |
| Dollar sales into each segment. | Industry Sales |
| Total units sold by all companies into each segment. | Industry Unit Sales |
| The number of units sold, by all companies, in each segment of the market, versus the number of units demanded. In cases where the units demanded is larger than the units sold, there was an inadequate supply of minimally acceptable product available and t | Industry Unit Sales vs. Unit Demand |
| The cost of having inventory in stock. | Inventory Carrying Costs |
| The relationship between the cost of goods sold and inventory calculated by cost of goods sold/inventory. | Inventory Turnover |
| The value of inventory on hand valued using "average cost accounting." This will rise and fall based on the production scheduled (on the production screen) versus units sold. | Inventory Value |
| The per-unit cost of labor in the year just ended. | Labor Cost |
| Total assets at the end of the period under review divided by owners’ equity for the same period. The smaller the number, the lower the dependence on debt and the higher the amount of owners’ equity. Therefore, a smaller number is more attracti | Leverage |
| Price charged for the product in the round just ended. | List Price |
| The value of all outstanding bonds (ten-year) that will become due at some future date. | Long-Term Debt |
| Interest paid on outstanding bonds. | Long-Term Interest |
| Overall percentage share, of the dollar volume, gained each year. | Market Share |
| Market share actually achieved by each product in each segment of the market. The market shares based on units are shown in the left-hand group of columns and the market shares based on dollars are shown in the right-hand group of col | Market Share Actual |
| Compares what was sold by a team into a segment with what the team would have sold if they had produced sufficient inventory. | Market Share Actual vs. Potential |
| Dollar market share of each segment enjoyed by each team. | Market Share by Segment |
| This shows the respective market shares each product should have earned if all products had been manufactured in sufficient quantity. In cases where actual share is larger than potential share, then other teams ran out of product and "chased" demand to a | Market Share Potential |
| The per-unit cost of direct materials in the year just ended. | Material Cost |
| Also referred to as MTBF, this measures the reliability of product expressed in a standard unit of measure, such as in thousands of hours. It is the average time between expected product failures. The longer the duration, or MTBF, the better the product p | Mean Time Between Failure |
| The subtotal of all activities on the cash flow statement to this point. Conceptually it is the actual cash either generated (if positive) or used up (if negative) by the core activities of the business. The remainder of the cash flow statement summarizes | Net Cash from Operations |
| The difference between the balance in the cash account at the end of last year and the value of cash account at the end of this year. The entire cash flow statement is designed to reconcile to this value. | Net Change in Cash Position |
| Value of profits as calculated on the income statement. | Net Income |
| Value of total sales less variable and period costs. | Net Margin |
| Earnings left after all expenses are paid. Net profit can only be allocated to one of two directions: It is either paid out to the owners of the business in the form of dividends, or it is retained in the business to grow the company and is t | Net Profit |
| Typically paid at 1.5 times the expected wage, this can also be expressed as the percentage of the production that was undertaken using overtime. | Overtime |
| Share of total units sold, represented by each segment of the market. | Percent of Market |
| A graph showing marketing information, such as a particular segment of the market and identifies all products that sold 1% or more into that segment. | Perceptual Map |
| Costs that generally tend not to move in proportion to sales volume. | Period Cost |
| Volume actually produced during the previous round compared to the actual capacity for that round. For example, levels in excess of 100% indicate overtime was utilized. | Plant Utilization |
| Gross value of capacity and automation available (or purchased) for each production line. | Plant and Equipment |
| Net value, after deducting any equipment sold for scrap, of cash invested in automation and capacity. | Plant Improvements |
| Proximity of product to the "sweet spot" within the segment. | Positioning |
| Price charged for a product this year. | Price |
| The closing stock price divided by the earnings per share or EPS. The P/E is sometimes referred to as the earnings multiple, or simply, the multiple. | Price/Earnings Ratio |
| The segment into which the largest proportion of this product was sold. | Primary Segment |
| Number of units actually built versus the straight-time capacity of the entire plant for the year just ended. When production is larger than capacity, overtime must have been scheduled in order to achieve the production level. | Production vs. Capacity |
| This shows the dollar profit earned each year since the game’s inception. | Profits |
| That share or percentage of the profits paid to technicians and assemblers as per the union agreement. | Profit Sharing |
| Value of monies expended on media advertising, as set on the Marketing screen. | Promotions Budget |
| Desired performance standard of a product or service. This may be measured by MTBF of the product. | Quality |
| Annual costs associated with redesigning an existing, or designing an entirely new, product. If an R&D project is more than a year in duration, then the cost will be charged out over the full life of the project, with a maximum of 1 million do | R&D Costs |
| Total of all company profits and losses of the life of the company, less any dividends paid out. This does not represent a pile of cash. The monies are captured in the assets of the company. This may be cash, but it may just as easily | Retained Earnings |
| Cash consumed in the early retirement of bonds that are outstanding. These bonds are retired at the value at which they were trading in the third party market at the end of the previous year. | Retirement of Long-Term Debt |
| The last time product came out of a redesign cycle, in R&D, or the next time it will come out of the redesign cycle if it is currently being redesigned. | Revision Date |
| Return on Assets; net profit divided by the value of total assets for the same period. | ROA |
| Return on Equity; net profit divided by the value of owners’ equity for that year. | ROE |
| Return on sales; net profit divided by total sales for the same period. | ROS |
| The Standard and Poor’s credit rating for additional underwriting of debt for the company; it ranges from AAA to D. | S&P |
| The value of products sold over the previous twelve months, broken out by product line. | Sales |
| Monies expended for paying sales personnel and expanding the distribution network. This value is an input on the Marketing screen. | Sales Budget |
| Value of cash received from the issuing of additional stock. Maximum issue in any year is 20% of the total currently outstanding stock. Stock is issued at its spot prices as of December 31st of the year just ended. | Sales of Common Stock |
| The first half of a bond issue’s series number refers to the interest or coupon rate paid on the bonds, which are issued in $1000 denominations. The second half of the series number (after the letter "S" which is placed there by convention) refers to the | Series Number |
| Total of selling general and administrative expenses as a percentage of total sales for that period. | SG&A % Sales |
| Number of shares currently outstanding. At the beginning of the game each company has 2 million shares outstanding. | Shares |
| Interest paid on current debt, including interest on emergency loans. | Short-Term Interest |
| A situation where all products are sold out and it has had a negative effect on sales performance. Thus, it is likely a higher sales level would have been experienced had more units been manufactured and available. | Stock Out |
| Taxes paid on income, using a 35% taxation rate. | Taxes |
| Total of all current and fixed assets. | Total Assets |
| Also known as shareholder equity, owners’ equity, or net worth. This represents the net value of the company after liabilities are deducted from the value of total assets. The value is calculated by adding, in this case, common stock and retained earnings | Total Equity |
| The value of plant and equipment less total accumulated depreciation. | Total Fixed Assets |
| Sum total of accounts payable, current debt, and long-term debt. | Total Liabilities |
| Accumulation of all period costs described above. | Total Period Costs |
| Total units that could have been sold into each segment had sufficient, appropriate product been made available. | Total Units Demanded |
| Number of units of the product left in inventory as of December 31st (in thousands of units). | Units in Inventory |
| Number of units our company sold, in each segment of the market, versus the number of units that segment wished to purchase from our company. In cases where the units demanded is greater than units sold, we did not build sufficient product and thus stocke | Unit Sales vs. Unit Demand |
| The total number of this product sold into all market segments. | Units’ Sold |
| Costs that vary in direct proportion to the number of units sold. | Variable Costs |
| Annual cost of living adjustment applied to assemblers and technicians’ hourly wages. | Wage Escalator |
| Dividend payment as a percentage value of the closing stock price, or the interest paid on the bond divided by the actual trading price of the bond. | Yield |
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