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Various measures can be used to evaluate the success of a company’s operating strategy.

(a). Profit margin, asset turnover, and return on assets are commonly used measures.

(b). The ratio of operating cash flow to assets measures a company’s ability to convert its profits into cash.

(c). Inventory turnover measures a company’s ability to convert its investment in inventory into sales.

(d). Day’s sales in inventories measures the average number of days for a company to sell its total inventory, or how many days’ supply of inventory it keeps on hand.

(e). Accounts receivable turnover measures a company’s ability to convert its credit sales into cash.

(f). Average collection period measures how long it takes a company to collect its receivables.

(g). Fixed asset turnover measures the effectiveness of a company in using its investment in fixed assets to create sales.

(h). Gross profit margin measures a company’s efficiency in the production or purchase of goods for sale.

(i). Operating profit margin measures a company’s efficiency in controlling selling and administrative expenses in addition to its efficiency in controlling product costs.

(j). Return on equity includes the effect of financing in evaluating overall company performance and links operating, investing, and financing activities.

(k). Times interest earned measures the ability of a company to meet its interest requirements.

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The following information is taken from the records of the Carolby Company, a manufacturer of lawn furniture. Indicate whether the cost of each item should be included as part of the finished goods cost or should be treated as an expense. For the items that become part of the cost of finished goods, indicate whether each should be designated as materials, labor, or factory overhead.

(a). Salaries of sales office staff

(b). Electric utilities for the factory area

(c). Office supplies

(d). Paint and miscellaneous plastic parts

(e). Depreciation on factory equipment

(f). Depreciation on delivery vans

(g). Salaries of factory foremen

(h). Miscellaneous factory supplies

(i). Steel rods used for chair frames

(j). Plastic sheets used for table tops

(k). Salaries of furniture assemblers

(l). Insurance on the factory

(m). Insurance on the administrative offices

(n). Advertising in trade magazines

(o). Lawn furniture sold to retailers

(p). Rental of storage facilities for materials

(q). Rental of storage facilities for finished goods

Required Briefly explain your reasoning for classifying the various items as part of the cost of goods manufactured or as an expense.

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More and more companies every day decide to begin doing business in Vietnam. Research is necessary to determine the best strategy for being competitive in Vietnam. Review the opening chapter boxed insert and Honda Motor Company’s website, as well as the information about Vietnam in the chapter. Instructions Step 1 Print a map of Vietnam. Step 2 Print the demographic data on 10 cities in Vietnam. Step 3 Gather competitive information regarding the presence of automobile companies doing business in Vietnam. Step 4 Develop a prioritized list of five cities in which you would recommend Honda build and expand their business operations.

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1a.) Using mostly your own words, write a paragraph explaining FOUR of the main advantages of the analytical/ formal approach to employee selection (‘science-based selection’), as compared with the intuitive /informal approach (‘practice-based selection’). (8 marks) b.) Name TWO types of employee selection method that have relatively high ‘validity coefficients’, i.e. methods that would likely be ‘very beneficial’ in helping to predict the future job performance of a current job applicant. (2 marks)

b)

a.)Regarding Legal Issues, an employer may be required, in certain circumstances, to accommodate the needs of an employee or job applicant ‘up to the point of undue hardship.’ One allowable form of ‘undue hardship’ is the related financial cost to the employer. Identify any TWO other potentially allowable forms of ‘undue hardship.’ (4 marks)

b.) In designing a ‘recruitment action plan’that will fit well with an organization’s business strategy, the Human Resources (HR) Department should consider various questions. One such question would be ‘How many positions will we need to fill?’ Identify any TWO other questions the HR Department should consider

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