Finance Lunch N' Learn Pre-knowledge Check
(104).webp "Finance Lunch N Learn Pre-knowledge Check - Quiz")
Hi HR!
As we shared before, we want to keep you engaged on our two focus areas of business acumen and leading change. To do that we would like to leverage our learning technology to enhance your understanding of EBITA and Net Revenue/Gross Profit through a short quiz.
Please take this knowledge check before our upcoming March Lunch N' Learn.
Cheers,
Dorothy & Ryan
- 1.
Which has the biggest impact on operating profits (EBITA)?
- A.
5% change in price promotions/bbl
- B.
1% change in net revenue/bbl
- C.
1% change in domestic volume
- D.
1% change in variable cost of sales/bbl
Correct Answer
B. 1% change in net revenue/bblExplanation
A 1% change in net revenue per barrel (bbl) has the biggest impact on operating profits (EBITA) because net revenue represents the total revenue generated after deducting all expenses, including variable costs. Therefore, any change in net revenue will directly affect the operating profits. In comparison, a 5% change in price promotions, a 1% change in domestic volume, and a 1% change in variable cost of sales may also impact profits, but to a lesser extent as they are not directly related to the revenue generated per barrel.Rate this question:
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- 2.
Gross Margin per barrel is highest for which brand (nationally)?
- A.
Coors Light
- B.
Keystone Light
- C.
Miller Lite
- D.
Coors Banquet
Correct Answer
C. Miller LiteExplanation
Miller Lite has the highest gross margin per barrel nationally.Rate this question:
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- 3.
Which of the following packaging types generally has the highest gross margin per barrel?
- A.
Cans
- B.
Kegs
- C.
Bottles
Correct Answer
A. CansExplanation
Cans generally have the highest gross margin per barrel compared to kegs and bottles. This is because cans are more cost-effective to produce and transport. Cans are lightweight, stackable, and take up less space, allowing for more efficient storage and shipping. Additionally, cans have a longer shelf life and better protection against light and oxygen, preserving the quality of the product. These factors contribute to higher profit margins for canned packaging.Rate this question:
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- 4.
Do all cases (or barrels) hold the same financial value within MillerCoors?
- A.
Yes, we need to deliver the volume plan.
- B.
No. Cases deliver a variety of profits, with profit being a key priority as well as volume.
Correct Answer
B. No. Cases deliver a variety of profits, with profit being a key priority as well as volume.Explanation
The answer explains that not all cases or barrels hold the same financial value within MillerCoors. It states that cases deliver a variety of profits, indicating that different types of cases or barrels generate different levels of profit. It also mentions that profit is a key priority alongside volume, suggesting that MillerCoors considers both factors when evaluating the financial value of cases or barrels.Rate this question:
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- 5.
Mix variances occur because brands, packages, and geographies have a per-unit difference in ____.
- A.
Revenue
- B.
Cost
- C.
Both Revenue and Cost
Correct Answer
C. Both Revenue and CostExplanation
Mix variances occur because brands, packages, and geographies have a per-unit difference in both revenue and cost. This means that different products or markets may generate different levels of revenue and incur different costs per unit sold. These variations can impact the overall financial performance of a company and need to be taken into account when analyzing the profitability of different product lines or geographical markets.Rate this question:
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- 6.
The impact of selling more Keystone Light in lieu of Coors Light is:
- A.
Favorable package mix due to greater volume of lower-cost cans.
- B.
Unfavorable brand mix due to greater volume of lower-margin Keystone Light.
- C.
Both A and B.
- D.
None of the Above
Correct Answer
B. Unfavorable brand mix due to greater volume of lower-margin Keystone Light.Explanation
Selling more Keystone Light instead of Coors Light would result in an unfavorable brand mix due to the greater volume of lower-margin Keystone Light. This means that the company would be selling more of a lower-profit product, which could negatively impact their overall profitability.Rate this question:
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- 7.
Which state has the highest Gross Margin per bbl?
- A.
California
- B.
New York
- C.
Colorado
- D.
Florida
- E.
Texas
Correct Answer
E. TexasExplanation
Texas has the highest Gross Margin per bbl compared to the other states listed. This means that Texas generates the highest profit per barrel of oil produced.Rate this question:
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- 8.
On a brand or geographic P&L, cost of goods is:
- A.
Variable costs involved in producing our products.
- B.
Fixed costs involved in producing our products.
- C.
Both A and B.
Correct Answer
A. Variable costs involved in producing our products.Explanation
The cost of goods on a brand or geographic P&L refers to the expenses directly related to the production of products. These costs can vary depending on factors such as the quantity produced or the materials used. Therefore, the correct answer is "Variable costs involved in producing our products." This option accurately describes the nature of the cost of goods and distinguishes it from fixed costs, which remain constant regardless of production volume.Rate this question:
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- 9.
Which of the following product cost components is by far the highest?
- A.
Brewing Materials
- B.
Packaging Materials
- C.
Conversion costs for labor and overhead
Correct Answer
B. Packaging MaterialsExplanation
Packaging materials are likely to be the highest product cost component because they often involve the use of various materials such as paper, plastic, and metal, which can be expensive. Additionally, packaging materials require additional processes such as printing, cutting, and assembling, which can increase labor and overhead costs. Moreover, packaging materials are essential for protecting and preserving the product, which adds to their importance and cost.Rate this question:
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- 10.
Why might SVC per barrel vary among breweries for the same brand/package?
- A.
Line speed / technology
- B.
Cost of utilities
- C.
Labor costs
- D.
All of the Above
Correct Answer
D. All of the AboveExplanation
SVC per barrel may vary among breweries for the same brand/package due to various factors. Line speed and technology can affect the efficiency and productivity of the brewing process, leading to differences in costs. The cost of utilities, such as electricity and water, can also vary depending on the location and infrastructure of the breweries. Additionally, labor costs can differ based on the wages and benefits offered by each brewery. Therefore, all of these factors combined can contribute to variations in SVC per barrel among breweries.Rate this question:
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- 11.
How often do freight standards change?
- A.
Twice a Year
- B.
Annually
- C.
Quarterly
- D.
Monthly
Correct Answer
B. AnnuallyExplanation
Freight standards typically change on an annual basis. This means that any regulations, guidelines, or requirements related to freight transportation and logistics are reviewed and updated once a year. This allows for adjustments and improvements to be made in response to industry changes, advancements in technology, and evolving safety and efficiency standards. Quarterly or monthly changes would be too frequent and may cause disruptions and confusion in the industry, while a biannual update may not be sufficient to keep up with the pace of change in the freight industry.Rate this question:
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- 12.
On the brand and geographic P&Ls, the freight cost standard is affected by:
- A.
Fuel costs
- B.
Source brewery/breweries for a given product
- C.
How much beer you can fit on a truck
- D.
All of the Above
Correct Answer
D. All of the AboveExplanation
The correct answer is "All of the Above" because the freight cost standard on brand and geographic P&Ls can be affected by fuel costs, the source brewery/breweries for a given product, and how much beer can be fit on a truck. Fuel costs play a significant role in determining the overall freight cost, as higher fuel prices can increase transportation expenses. The source brewery or breweries for a product can impact the distance and route of transportation, thereby affecting freight costs. Additionally, the amount of beer that can be fit on a truck can determine the number of shipments required and subsequently impact freight costs.Rate this question:
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- 13.
Which is closest to the annual amount that MillerCoors spends on Marketing?
- A.
$1 billion
- B.
$500 million
- C.
$1.2 billion
- D.
$800 million
- E.
$2 billion
Correct Answer
A. $1 billionExplanation
MillerCoors spends approximately $1 billion annually on marketing.Rate this question:
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Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Nov 10, 2023Quiz Edited by
ProProfs Editorial Team -
Mar 02, 2016Quiz Created by
Dorothy_enriquez
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