CLMS 35394

Knowledge Check




Student: Pitoko, Meike



SCORE: 100%

PASSED



Question 1

With the Enterprise Strategy, which financial metric was put in place to measure success?

Your answer (correct): Operating Profit After Capital Charge.



Question 2

What is OPACC?

Your answer (correct): A Top Tier metric in our strategy.



Question 3

Which of the following options is NOT a key reason why we are using OPACC?

Your answer (correct): OPACC focuses totally on profit.



Question 4

Why does Caterpillar want to increase OPACC?

Your answer (correct): It means that we are being more effective generating profit and using our assets.



Question 5

How is OPACC calculated?

Your answer (correct): Operating Profit minus a capital charge to cover loan interest and the return our shareholders expect on their investment.





Question 6

Operating Profit is determine by how much money is left after we:

Your answer (correct): Subtract the cost of materials, supplies, wages and other operating costs from sales.



Question 7

What is the DuPont Model?

Your answer (correct): A pictorial view of our financial performance, including the OPACC calculation.



Question 8

The top portion of the DuPont represents information from the Statements of Results of Operation and focuses on:

Your answer (correct): Operating Profit.



Question 9

The bottom portion of the DuPont Model represents information from the Statement of Financial Position and focuses on:

Your answer (correct): Net Assets.



Question 10

All employees are able to impact OPACC by their decisions made on the job every day?

Your answer (correct): True.