Question 1

Employees empowered with real decision-making authority are more likely to be more responsive to customer concerns.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is(are) false regarding performance measures?
(A) In general, the use of multiple measures to evaluate performance is better than the use of a single performance measure.
(B) Managers evaluated using multiple measures will most likely act differently than managers evaluated using single measures.

Accepted Answer

A)  Only A is false. 
B)  Only B is false. 
C)  Both of these are false. 
D)  Neither of these is false. 
A)  Only A is false. 
B)  Only B is false. 
C)  Both of these are false. 
D)  Neither of these is false.

Question 3

Which of the following statements is(are) true regarding financial measures?
(A) One disadvantage of using financial measures to evaluate performance is that they are typically reported on a monthly, quarterly, or annual basis.
(B) One reason financial measures are used to evaluate performance is that they are easily quantifiable.

Accepted Answer

A)  Only A is true. 
B)  Only B is true. 
C)  Both of these are true. 
D)  Neither of these is true. 
A)  Only A is true. 
B)  Only B is true. 
C)  Both of these are true. 
D)  Neither of these is true.

Question 4

One reason financial measures are used to evaluate performance is that they are easily quantifiable.

Accepted Answer

A) True 
 B)False

Question 5

Pantipazole Products Co. has provided the following information for last year:
 $$\begin{array} { l r } 
\text { Material costs } & \$ 150,000 \
\text { Labor hours } & \$ 45,000 \
\text { Overhead costs } & \$ 117,000 \
\text { Tons of forging produced } & 8,000 & \text { @ selling price of } \$ 45 / \text { each }
\end{array}$$ 
Required:
Calculate the total factor productivity measure.

Accepted Answer

Value of output: 8,000 × $45 =

Question 6

Maeve Co. has provided the following information for last year:
 $\begin{array}{lr}
\text { Pounds of input } & 35,000 \
\text { Labor hours } & 8,000 \
\text { Overhead costs } & \$ 142,000 \
\text { Units of output produced } & 15,000
\end{array}$ 
Required:
Calculate the partial productivity for:
a. Metal.
b. Labor.

Accepted Answer

a.15,000 units outpu

Question 7

One of the important guidelines of benchmarking is to not benchmark everything at the best-in-the-business level; no organization can be the best at everything.

Accepted Answer

A) True 
 B)False

Question 8

If a manager wants to assess performance relative to the industry, it is best to use:

Accepted Answer

A)  partial productivity measures. 
B)  production volume variances. 
C)  sales price variances. 
D)  total factor productivity. 
A)  partial productivity measures. 
B)  production volume variances. 
C)  sales price variances. 
D)  total factor productivity.

Question 9

The balanced scorecard measures an organization's performance in all of the following areas except:

Accepted Answer

A)  financial. 
B)  government. 
C)  customer. 
D)  learning and growth. 
A)  financial. 
B)  government. 
C)  customer. 
D)  learning and growth.

Question 10

The Fort Smith Co. has the following information for last year:
$$\begin{array} { | l | r } 
\hline \text { Material input } & 4,396,000 \
\hline \text { Labor hours } & 112,000 \
\hline \text { Yards of output produced } & 1,155,000 \
\hline
\end{array}$$
-
The partial productivity for materials is:

Accepted Answer

A)  1.136. 
B)  0.288. 
C)  0.263. 
D)  3.802. 
A)  1.136. 
B)  0.288. 
C)  0.263. 
D)  3.802.

Question 11

Which of the following balanced scorecard perspectives focuses on quality and process improvement?

Accepted Answer

A)  Financial. 
B)  Customer. 
C)  Internal Business Process. 
D)  Learning and growth. 
A)  Financial. 
B)  Customer. 
C)  Internal Business Process. 
D)  Learning and growth.

Question 12

Which of the following balanced scorecard perspectives focuses on customer service issues?

Accepted Answer

A)  Financial. 
B)  Customer. 
C)  Internal Business Process. 
D)  Learning and Growth. 
A)  Financial. 
B)  Customer. 
C)  Internal Business Process. 
D)  Learning and Growth.

Question 13

One of the results in using balanced scorecards is a shift from a focus on financial results to a focus on:

Accepted Answer

A)  maximizing market share. 
B)  minimizing budgetary slack. 
C)  eliminating fraudulent behavior. 
D)  increasing customer satisfaction. 
A)  maximizing market share. 
B)  minimizing budgetary slack. 
C)  eliminating fraudulent behavior. 
D)  increasing customer satisfaction.

Question 14

Magnum Co. has provided the following information for last year:
$\begin{array}{ccc}

\text { Gallons input } &20,000 & \text { @ \$15/gallon }\
\text { Labor costs }&???\
 \text { verhead costs } &\$250,000 & \
 \text { Jallons finished } &16,000 &\text { @ selling price of } \$ 55 / \text { gallor } \
 \text { tal factor productivity } & 1.173 & \

\end{array}$

The total labor cost (rounded) is:

Accepted Answer

A)  $293,325. 
B)  $482,500. 
C)  $468,750. 
D)  $200,021. 
A)  $293,325. 
B)  $482,500. 
C)  $468,750. 
D)  $200,021.

Question 15

Which of the following is not a partial productivity measure?

Accepted Answer

A)  tons output/tons of material used. 
B)  sales value/total cost. 
C)  gallons output/direct labor hour. 
D)  units produced/machine hour. 
A)  tons output/tons of material used. 
B)  sales value/total cost. 
C)  gallons output/direct labor hour. 
D)  units produced/machine hour.

Question 16

The Majors Company collected the following information (in days):
$$\begin{array} { | l | r| } 
\hline \text { Inspecting product } & 4 \
\hline \text { Transporting product } & 6 \
\hline \text { Storing product } & 15 \
\hline \text { Manufacturing product } & 40\
\hline
\end{array}$$
-
What is the manufacturing cycle time?

Accepted Answer

A)  21 days. 
B)  65 days. 
C)  55 days. 
D)  46 days. 
A)  21 days. 
B)  65 days. 
C)  55 days. 
D)  46 days.

Question 17

Consider the following management activities:
∙ Choose the organization's long-term strategy.
∙ Plan and organize the use of resources into efficient operations.
∙ Implement plans and organizational change.
∙ Measure and report results.
∙ Define the organization's scale and scope of operations.
Required:
a. Identify the sequence in which the decisions must be carried out. Why is it important to carry out these activities sequentially?
b. How can an effective cost management system support the above activities?

Accepted Answer

a. The sequence order of activities is a

Question 18

Marion Forging Co. has provided the following information for last year:
 $$\begin{array} { l r l } 
\text { Tons of metal input } & 14,000 & @ \$ 10 / \text { ton } \
\text { Labor hours } & 5,000 & @ \$ 30 / \text { hour } \
\text { Overhead costs } & \$ 125,000 & \
\text { Tons of forging produced } & 10,000 & @ \text { selling price of } \$ 60 / \text { ton }
\end{array}$$ 
Required:
Calculate the total factor productivity measure.

Accepted Answer

Value of output: 10,000 × $60

Question 19

In the balanced scorecard, the learning and growth perspective addresses which of the following questions?

Accepted Answer

A)  "To achieve our mission, how will we sustain our ability to change and improve?" 
B)  "To succeed financially, how should we appear to our shareholders?" 
C)  "To satisfy our shareholders and customers, in what business process must we excel?" 
D)  "To achieve our mission, how should we appear to our customers?" 
A)  "To achieve our mission, how will we sustain our ability to change and improve?" 
B)  "To succeed financially, how should we appear to our shareholders?" 
C)  "To satisfy our shareholders and customers, in what business process must we excel?" 
D)  "To achieve our mission, how should we appear to our customers?"

Question 20

A balanced scorecard is basically a balance sheet prepared using nonfinancial measures.

Accepted Answer

A) True 
 B)False

Employees empowered with real decision-making authority are more likely to be more responsive to customer concerns.

One reason financial measures are used to evaluate performance is that they are easily quantifiable.

Pantipazole Products Co. has provided the following information for last year: Material costs \ 150,000 Labor hours \ 45,000 Overhead costs \ 117,000 Tons of forging produced 8,000 @ selling price of \ 45/ each Required: Calculate the total factor productivity measure.

Maeve Co. has provided the following information for last year: Pounds of input 35,000 Labor hours 8,000 Overhead costs \ 142,000 Units of output produced 15,000 Required: Calculate the partial productivity for: a. Metal. b. Labor.

One of the important guidelines of benchmarking is to not benchmark everything at the best-in-the-business level; no organization can be the best at everything.

If a manager wants to assess performance relative to the industry, it is best to use:

The balanced scorecard measures an organization's performance in all of the following areas except:

The Fort Smith Co. has the following information for last year: Material input 4,396,000 Labor hours 112,000 Yards of output produced 1,155,000 - The partial productivity for materials is:

Which of the following balanced scorecard perspectives focuses on quality and process improvement?

Which of the following balanced scorecard perspectives focuses on customer service issues?

One of the results in using balanced scorecards is a shift from a focus on financial results to a focus on:

Magnum Co. has provided the following information for last year: Gallons input 20,000 @ \1 5/gallon Labor costs ??? verhead costs \2 50,000 Jallons finished 16,000 @ selling price of \ 55/ gallor tal factor productivity 1.173 The total labor cost (rounded) is:

Which of the following is not a partial productivity measure?

The Majors Company collected the following information (in days): Inspecting product 4 Transporting product 6 Storing product 15 Manufacturing product 40 - What is the manufacturing cycle time?

Marion Forging Co. has provided the following information for last year: Tons of metal input 14,000 @\ 10/ ton Labor hours 5,000 @\ 30/ hour Overhead costs \ 125,000 Tons of forging produced 10,000 @ selling price of \ 60/ ton Required: Calculate the total factor productivity measure.

In the balanced scorecard, the learning and growth perspective addresses which of the following questions?

A balanced scorecard is basically a balance sheet prepared using nonfinancial measures.

Cost Accounting: Information for Decision Making

Cost Concepts and Behavior

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

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Exam 18: Performance Measurement to Support Business Strategy

Employees empowered with real decision-making authority are more likely to be more responsive to customer concerns.

One reason financial measures are used to evaluate performance is that they are easily quantifiable.

Pantipazole Products Co. has provided the following information for last year: Material costs \ 150,000 Labor hours \ 45,000 Overhead costs \ 117,000 Tons of forging produced 8,000 @ selling price of \ 45/ each Required: Calculate the total factor productivity measure.

Maeve Co. has provided the following information for last year: Pounds of input 35,000 Labor hours 8,000 Overhead costs \ 142,000 Units of output produced 15,000 Required: Calculate the partial productivity for: a. Metal. b. Labor.

One of the important guidelines of benchmarking is to not benchmark everything at the best-in-the-business level; no organization can be the best at everything.

If a manager wants to assess performance relative to the industry, it is best to use:

The balanced scorecard measures an organization's performance in all of the following areas except:

The Fort Smith Co. has the following information for last year: Material input 4,396,000 Labor hours 112,000 Yards of output produced 1,155,000 - The partial productivity for materials is:

Which of the following balanced scorecard perspectives focuses on quality and process improvement?

Which of the following balanced scorecard perspectives focuses on customer service issues?

One of the results in using balanced scorecards is a shift from a focus on financial results to a focus on:

Magnum Co. has provided the following information for last year: Gallons input 20,000 @ \1 5/gallon Labor costs ??? verhead costs \2 50,000 Jallons finished 16,000 @ selling price of \ 55/ gallor tal factor productivity 1.173 The total labor cost (rounded) is:

Which of the following is not a partial productivity measure?

The Majors Company collected the following information (in days): Inspecting product 4 Transporting product 6 Storing product 15 Manufacturing product 40 - What is the manufacturing cycle time?

Marion Forging Co. has provided the following information for last year: Tons of metal input 14,000 @\ 10/ ton Labor hours 5,000 @\ 30/ hour Overhead costs \ 125,000 Tons of forging produced 10,000 @ selling price of \ 60/ ton Required: Calculate the total factor productivity measure.

In the balanced scorecard, the learning and growth perspective addresses which of the following questions?

A balanced scorecard is basically a balance sheet prepared using nonfinancial measures.

Cost Accounting: Information for Decision Making

Cost Concepts and Behavior

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Filters