LSUS MBA 701 EXAM 1 COMPREHENSIVE
STUDY GUIDE
◉ directs the efforts of others, purchases inputs used in the
production of the firms output, directs other decisions like the
product price and quality and construct incentives to induce
maximal effort from employees.
Answer: what does a manager do?
◉ economics.
Answer: the science of making decisions in the presence of scarce
resources
◉ resources.
Answer: anything used to produce a good or service or achieve a
goal
◉ scarcity implies trade offs.
Answer: why are decisions important in economics?
◉ managerial economics.
Answer: the study of how to direct scare resources in the way that
most efficiently achieves a managerial goal
, ◉ how many employees should be hired and how they should be
compensated, how many products to produce and sold at what price,
should a firm make or buy components of products.
Answer: example of managerial accounting
◉ identify goals and constraints, recognize the nature and
importance of profits, understand incentives, understand markets,
recognize the time value of money, use marginal analysis and make
data driven decisions.
Answer: the 7 principles of effective managerial decision making
◉ to maximize profits.
Answer: what should a firms overall goal be?
◉ available technology and prices of inputs used in production.
Answer: what are examples of some constraints?
◉ accounting profit.
Answer: total amount of money from sales (revenue) minus the
dollar cost of producing the goods or services
◉ economic profit.
STUDY GUIDE
◉ directs the efforts of others, purchases inputs used in the
production of the firms output, directs other decisions like the
product price and quality and construct incentives to induce
maximal effort from employees.
Answer: what does a manager do?
◉ economics.
Answer: the science of making decisions in the presence of scarce
resources
◉ resources.
Answer: anything used to produce a good or service or achieve a
goal
◉ scarcity implies trade offs.
Answer: why are decisions important in economics?
◉ managerial economics.
Answer: the study of how to direct scare resources in the way that
most efficiently achieves a managerial goal
, ◉ how many employees should be hired and how they should be
compensated, how many products to produce and sold at what price,
should a firm make or buy components of products.
Answer: example of managerial accounting
◉ identify goals and constraints, recognize the nature and
importance of profits, understand incentives, understand markets,
recognize the time value of money, use marginal analysis and make
data driven decisions.
Answer: the 7 principles of effective managerial decision making
◉ to maximize profits.
Answer: what should a firms overall goal be?
◉ available technology and prices of inputs used in production.
Answer: what are examples of some constraints?
◉ accounting profit.
Answer: total amount of money from sales (revenue) minus the
dollar cost of producing the goods or services
◉ economic profit.
