Question 1

What is the difference between continuous improvement and benchmarking?

Accepted Answer

Continuous improvement is a philosophy o

Question 2

The California Machining Co. has the following information for last year:
$$\begin{array} { | l | r | } 
\hline \text { Feet of metal input } & 150,000 \
\hline \text { Labor hours } & 12,000 \
\hline \text { Tons of output produced } & 6,000 \
\hline
\end{array}$$
-
The partial productivity for metal is:

Accepted Answer

A)  0.04. 
B)  0.08. 
C)  12.50. 
D)  25.00. 
A)  0.04. 
B)  0.08. 
C)  12.50. 
D)  25.00.

Question 3

Manufacturing Cycle Efficiency is computed as:

Accepted Answer

A)  Processing Time × Manufacturing Cycle Time. 
B)  Processing Time ÷ Inspection Time. 
C)  Processing Time ÷ Manufacturing Cycle Time. 
D)  Moving Time ÷ Storage Time. 
A)  Processing Time × Manufacturing Cycle Time. 
B)  Processing Time ÷ Inspection Time. 
C)  Processing Time ÷ Manufacturing Cycle Time. 
D)  Moving Time ÷ Storage Time.

Question 4

The concept of a balanced scorecard is to measure how well the organization is doing from the view of employees, suppliers, customers, business partners, and the community, as well as the shareholders.

Accepted Answer

A) True 
 B)False

Question 5

Shuster Metalworks Co. has provided the following information for last year:
 $$\begin{array} { l r l } 
\text { Pounds of metal input } & 21,000 & @ \$ 12 / \text { pound } \
\text { Lubor hours } & 8,000 & @ \$ 25 / \text { our } \
\text { Overhead costs } & \$ 165,000 & \
\text { Pounds of output produced } & 12,000 & @ \text { selling price of } \$ 70 / \text { pound }
\end{array}$$ 
Required:
Calculate the total factor productivity measure.

Accepted Answer

Value of output: 12,000 × $70

Question 6

Explain how producing more units than can be sold can increase operating income. Would this be an issue in a service company or is it only an issue in a manufacturing environment? Could a company employ this strategy indefinitely to show continuous increases in profits?

Accepted Answer

If a company is using absorption costing

Question 7

The primary objective of benchmarking is to evaluate performance of an activity, operation, or organization relative to the performance by other companies.

Accepted Answer

A) True 
 B)False

Question 8

The Falisari Company collected the following information (in days):
$$\begin{array} { | l | r | } 
\hline \text { Inspecting product } & 4 \
\hline \text { Transporting product } & 14 \
\hline \text { Storing product } & 20 \
\hline \text { Manufacturing product } & 65 \
\hline
\end{array}$$
-
What is the manufacturing cycle time?

Accepted Answer

A)  65 days. 
B)  34 days. 
C)  103 days. 
D)  85 days. 
A)  65 days. 
B)  34 days. 
C)  103 days. 
D)  85 days.

Question 9

________ is a firm's ability to implement low costs compared to its competitors with productivity improvements, increased efficiency, reduction of waste, and the use of cost control.

Accepted Answer

A)  Strategy 
B)  Product differentiation 
C)  Cost leadership 
D)  The balanced scorecard 
A)  Strategy 
B)  Product differentiation 
C)  Cost leadership 
D)  The balanced scorecard

Question 10

Steinwand Corporation keeps track of the time required to fill orders. Data concerning a particular order appear below:
$$\begin{array} { | l | r | } 
\hline & \text { Hours } \
\hline \text { Processing Time } & 1.5 \
\hline \text { Inspection Tirne } & 0.2 \
\hline \text { Moving Time } & 2.8 \
\hline \text { Storing Time } & 7.2 \
\hline
\end{array}$$
-
The manufacturing cycle efficiency was closest to:

Accepted Answer

A)  0.24. 
B)  0.16. 
C)  0.92. 
D)  0.08. 
A)  0.24. 
B)  0.16. 
C)  0.92. 
D)  0.08.

Question 11

Tungsten Forging Co. has provided the following information for last year:
$$\begin{array} { l r l } 
\text { Tons of metal input } & 10,000 & @ \$ 10 / \text { ton } \
\text { Labor hours } & 5,000 & @ \$ 30 \text { hour } \
\text { Overhead costs } & \$ 125,000 & \
\text { Tons of forging produced } & 8,000 & @ \text { selling price of } \$ 60 / \text { tor }
\end{array}$$
The total factor productivity measure is:

Accepted Answer

A)  $480,000. 
B)  $375,000. 
C)  1.28. 
D)  0.78. 
A)  $480,000. 
B)  $375,000. 
C)  1.28. 
D)  0.78.

Question 12

Which of the following is not a difficulty in implementing nonfinancial performance measurement systems?

Accepted Answer

A)  Fixation on financial measures. 
B)  Reliability of the nonfinancial measures. 
C)  Nonfinancial measures decrease goal congruence. 
D)  Lack of correlation between nonfinancial measures and financial results. 
A)  Fixation on financial measures. 
B)  Reliability of the nonfinancial measures. 
C)  Nonfinancial measures decrease goal congruence. 
D)  Lack of correlation between nonfinancial measures and financial results.

Question 13

For each of the following jobs, identify a possible nonfinancial performance measure.
(a) Computer help desk worker at your university.
(b) Dental hygienist.
(c) Airline gate agent.
(d) City bus driver.

Accepted Answer

While student answers may vary, below ar

Question 14

The Miller Manufacturing Company collected the following information (in days) for April and May:
 $$\begin{array} { | l | r | r | } 
\hline & { \text { April } } &  { \text { May } } \
\hline \text { Transportirg product } & 2.0 & 3.0 \
\hline \text { Processing product } & 14.0 & 16.0 \
\hline \text { Inspectirng product } & 0.5 & 0.8 \
\hline \text { Storing product } & 8.0 & 5.0 \
\hline
\end{array}$$ 
Required:
a. Calculate the manufacturing cycle efficiency for April and May.
b. Calculate the processing time required for May so that May's manufacturing cycle efficiency is equal to April's manufacturing cycle efficiency.

Accepted Answer

a.April: [14.0/(2.0 + 14.0 + .

Question 15

The Otero Manufacturing Company collected the following information (in days):
$$\begin{array} { | l | r | } 
\hline & \text { April } \
\hline \text { Transporting product } & 2.0 \
\hline \text { Processing product } & 14.0 \
\hline \text { Inspecting product } & 0.5 \
\hline \text { Storing product } & 6.0 \
\hline
\end{array}$$
-
What is the manufacturing cycle time?

Accepted Answer

A)  14.0 days. 
B)  16.0 days. 
C)  22.0 days. 
D)  22.5 days. 
A)  14.0 days. 
B)  16.0 days. 
C)  22.0 days. 
D)  22.5 days.

Question 16

The Alma Milling Co. has the following information for last year:
$$\begin{array} { | l | r | } 
\hline \text { Material input } & 6,864,000 \
\hline \text { Labor hours } & 97,000 \
\hline \text { Yards of output produced } & 1,311,000 \
\hline
\end{array}$$
The partial productivity for materials is:

Accepted Answer

A)  0.131. 
B)  0.191. 
C)  0.686. 
D)  5.236. 
A)  0.131. 
B)  0.191. 
C)  0.686. 
D)  5.236.

Question 17

At some manufacturing companies, line employees are allowed to stop the line or halt production if they think there is a problem occurring. In other words, if units begin to be processed that are outside of specifications.
Required:
Discuss the advantages and disadvantage of this employee empowerment policy.

Accepted Answer

Student answers will vary, but should in

Question 18

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

Accepted Answer

A)  $150,000. 
B)  $312,000. 
C)  1.154. 
D)  0.832. 
A)  $150,000. 
B)  $312,000. 
C)  1.154. 
D)  0.832.

Question 19

Which of the following balanced scorecard perspectives focuses on shareholder's interests?

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 20

The Everton Manufacturing Company collected the following information (in days):
 $$\begin{array} { | l | r | r | r | } 
\hline &{ \text { April } } & \text { May } & { \text { June } } \
\hline \text { Transporting product } & 2.0 & 3.0 & 2.0 \
\hline \text { Processing product } & 5.0 & 7.0 & 7.0 \
\hline \text { Inspecting product } & 0.5 & 0.8 & 1.0 \
\hline \text { Storing product } & 2.0 & 3.0 & 4.0 \
\hline
\end{array}$$ 
Required:
a. Calculate the manufacturing cycle efficiency for April, May, and June.
b. Calculate the processing time required for June so that the manufacturing cycle efficiency is equal to the most efficient of the previous two months.

Accepted Answer

a.April: [5.0/(2.0 + 5.0 + .5

What is the difference between continuous improvement and benchmarking?

The California Machining Co. has the following information for last year: Feet of metal input 150,000 Labor hours 12,000 Tons of output produced 6,000 - The partial productivity for metal is:

Manufacturing Cycle Efficiency is computed as:

The concept of a balanced scorecard is to measure how well the organization is doing from the view of employees, suppliers, customers, business partners, and the community, as well as the shareholders.

Shuster Metalworks Co. has provided the following information for last year: Pounds of metal input 21,000 @\ 12/ pound Lubor hours 8,000 @\ 25/ our Overhead costs \ 165,000 Pounds of output produced 12,000 @ selling price of \ 70/ pound Required: Calculate the total factor productivity measure.

Explain how producing more units than can be sold can increase operating income. Would this be an issue in a service company or is it only an issue in a manufacturing environment? Could a company employ this strategy indefinitely to show continuous increases in profits?

The primary objective of benchmarking is to evaluate performance of an activity, operation, or organization relative to the performance by other companies.

The Falisari Company collected the following information (in days): Inspecting product 4 Transporting product 14 Storing product 20 Manufacturing product 65 - What is the manufacturing cycle time?

________ is a firm's ability to implement low costs compared to its competitors with productivity improvements, increased efficiency, reduction of waste, and the use of cost control.

Steinwand Corporation keeps track of the time required to fill orders. Data concerning a particular order appear below: Hours Processing Time 1.5 Inspection Tirne 0.2 Moving Time 2.8 Storing Time 7.2 - The manufacturing cycle efficiency was closest to:

Tungsten Forging Co. has provided the following information for last year: Tons of metal input 10,000 @\ 10/ ton Labor hours 5,000 @\ 30 hour Overhead costs \ 125,000 Tons of forging produced 8,000 @ selling price of \ 60/ tor The total factor productivity measure is:

Which of the following is not a difficulty in implementing nonfinancial performance measurement systems?

For each of the following jobs, identify a possible nonfinancial performance measure. (a) Computer help desk worker at your university. (b) Dental hygienist. (c) Airline gate agent. (d) City bus driver.

The Otero Manufacturing Company collected the following information (in days): April Transporting product 2.0 Processing product 14.0 Inspecting product 0.5 Storing product 6.0 - What is the manufacturing cycle time?

The Alma Milling Co. has the following information for last year: Material input 6,864,000 Labor hours 97,000 Yards of output produced 1,311,000 The partial productivity for materials is:

Premier Products Co. has provided the following information for last year: Material costs \ 150,000 Labor hours \ 45,000 Overhead costs \ 117,000 Product produced 8,000 @ selling price of \4 5/each The total factor productivity measure is:

Which of the following balanced scorecard perspectives focuses on shareholder's interests?

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

Exam 18: Performance Measurement to Support Business Strategy

What is the difference between continuous improvement and benchmarking?

The California Machining Co. has the following information for last year: Feet of metal input 150,000 Labor hours 12,000 Tons of output produced 6,000 - The partial productivity for metal is:

Manufacturing Cycle Efficiency is computed as:

The concept of a balanced scorecard is to measure how well the organization is doing from the view of employees, suppliers, customers, business partners, and the community, as well as the shareholders.

Shuster Metalworks Co. has provided the following information for last year: Pounds of metal input 21,000 @\ 12/ pound Lubor hours 8,000 @\ 25/ our Overhead costs \ 165,000 Pounds of output produced 12,000 @ selling price of \ 70/ pound Required: Calculate the total factor productivity measure.

Explain how producing more units than can be sold can increase operating income. Would this be an issue in a service company or is it only an issue in a manufacturing environment? Could a company employ this strategy indefinitely to show continuous increases in profits?

The primary objective of benchmarking is to evaluate performance of an activity, operation, or organization relative to the performance by other companies.

The Falisari Company collected the following information (in days): Inspecting product 4 Transporting product 14 Storing product 20 Manufacturing product 65 - What is the manufacturing cycle time?

________ is a firm's ability to implement low costs compared to its competitors with productivity improvements, increased efficiency, reduction of waste, and the use of cost control.

Steinwand Corporation keeps track of the time required to fill orders. Data concerning a particular order appear below: Hours Processing Time 1.5 Inspection Tirne 0.2 Moving Time 2.8 Storing Time 7.2 - The manufacturing cycle efficiency was closest to:

Tungsten Forging Co. has provided the following information for last year: Tons of metal input 10,000 @\ 10/ ton Labor hours 5,000 @\ 30 hour Overhead costs \ 125,000 Tons of forging produced 8,000 @ selling price of \ 60/ tor The total factor productivity measure is:

Which of the following is not a difficulty in implementing nonfinancial performance measurement systems?

For each of the following jobs, identify a possible nonfinancial performance measure. (a) Computer help desk worker at your university. (b) Dental hygienist. (c) Airline gate agent. (d) City bus driver.

The Otero Manufacturing Company collected the following information (in days): April Transporting product 2.0 Processing product 14.0 Inspecting product 0.5 Storing product 6.0 - What is the manufacturing cycle time?

The Alma Milling Co. has the following information for last year: Material input 6,864,000 Labor hours 97,000 Yards of output produced 1,311,000 The partial productivity for materials is:

Premier Products Co. has provided the following information for last year: Material costs \ 150,000 Labor hours \ 45,000 Overhead costs \ 117,000 Product produced 8,000 @ selling price of \4 5/each The total factor productivity measure is:

Which of the following balanced scorecard perspectives focuses on shareholder's interests?

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