ASIS CPP "Business Principles " Flashcards help in Exam

ASIS CPP "Business Principles "

Flashcards help in Exam 

A budget: process for planning to (allocate money for the year)

3 Budget (purpose): Estimate (cost + revenue), variance, warning mechanism, fiscal uniformity

4 sequence of budgeting: planning, development / building, evaluation and establishment

Zero based budgeting: benefit of activity weight against the benefits to be lost if planned activity not done

Incremental budget: Begins by last period as reference point

Activity based budgeting: Based on activity

Revenue budget: Project future sales

Expense budget: Activities

Zero based / B: Process (allocate money against planned expenditures)

Zero based (benefits): force manager (a wages to getting job done)

Budge includes: expense and expected revenue

Bottom up Budget approach: department propose their own budget

Top down budget approach: impose performance goals on lower management

Top down-Vs Bottom up budgeting: Controlled by top management

TD+BU / Approach: Practical strategy (input department / level)

Budget drawn: Yearly or other periodic basis

Line item: Allocating funds to unit (be to pay business expenses) and then calculate ROI

Set value (line item) look (each budget expense as investment) then calculate ROI

Budget takes: big picture and detailed views

Budget (executive level): general categories (relate to income statement)

Budget (D/Unit level): listed in greater detail

Budget (projects): future costs, revenue for defined period

Income statement present: past data

Grow quickly: Spend more freely

Budget (alignment) : with financial strategy

Budget: flexible (department expected to grow)

ROI (tool): To compare (different way of spending)

ROI rate: ROI = (Annual operation income x Initial Investment) x 100

ROI = (Inv. Value at End Inv. period) / (Inv. Value at Beginning Period) – 1

(Initial Investment + Interest earned (lost) / Initial Investment) – 1

ROI useful: comparing (paying additional fund), (avoidance of interest)

Return on security countermeasure: efficiency vs cost / cost vs benefit

ROI equation for Security: ROI = (Avoided loss + Recoveries) / Cost of Security Program

Control (implementation): through (accounting process and internal auditing)

Possible to fraud present: even (when spending on budget)

Solid Financial Strategy (establishment): able to (adopt to change in m/place)

Financial strategy (derived): Current (financial situation and intended financial goal)

Boosts confidence and focus on success: by communication strategy with (employee, investors, vendors, supplies, stakeholders)

Accumulated depreciator: loss of value with each year (reflect back value)

Income statement tells: revenue, expense and net income

Profit margin (determination): with (sales and prosecution team)

3 broad criteria for selecting guard contractor: consistency of performance, prompt & efficient and competitive pricing

Operating agreement: Based on RFP (request for proposals)

Bidders conference: Qualified bidders should be invited

Bid evaluation: strict submission proposal & proposal content

Service Level Agreement (SLA): Tender document that expand on the service specification and documents the quality standard and expectation of performance

SLA should be: realistic, measureable, and in accord with the organization’s specific business needs

Key performance measures: Should be clearly outlined (remedial for inadequate performance)

Liable for injuries: Respondent supervisor (the master respond), an employer (master) is liable for injury caused by employee (servant)

4 types of contract bonds: Bid, performance, payment and ancillary bond

Surety bond: Three party instrument between a surety (insurance company), the contractor and the project customer