Information about Harlequin Corporation is as follows: $\begin{array}{lcr}&2018&2019\\ \text { Output (units) } & 40,000 & 42,000 \\ \text { Selling price per unit } & \$ 25 & \$ 25\\\\ \text { Input quantities: }\\ \text { Materials (pounds) }&2,000&2,000\\ \text { Labor (hours) }&1,600&1,625\\\\ \text { Input prices: }\\ \text { Materials (per pound) }&\$5.00&\$5.50\\ \text { Labor (per hour) }&\$7.00&\$7.50 \end{array}$ By how much did profits change as a result of changes in productivity related to labor?

A) $550.00 decrease B) $550.00 increase C) $412.50 increase D) $412.50 decrease A) $550.00 decrease B) $550.00 increase C) $412.50 increase D) $412.50 decrease

At the end of 2018, San Leandro Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2019, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows: $\begin{array}{lrr}&2018&2019\\ \text { Output } & 20,000&24,000 \\ \text { Output prices } & \$ 10 & \$ 10 \\ \text { Materials (lbs.) } & 10,000 & 10,200 \\ \text { Materials unit price } & \$ 3& \$4 \\ \text { Labor (hrs.) } & 8,000&7,500 \\ \text { Labor rate per hour } & \$ 5& \$ 5 \\ \text { Power (kwh) } & 5,000&6,500 \\ \text { Price per kwh } & \$ 2& \$ 3 \end{array}$ Required: a.Compute the partial operational measures for each input for both 2018 and 2019. What can be said about productivity improvement? b.Prepare an income statement for each year and calculate the total change in profits. c.Calculate the profit-linked productivity measure for 2019. What can be said about the productivity program? d.Calculate the price-recovery component. What does this tell you?

The answer of At the end of 2018, San Leandro...

The Marakesh Company provides the following data: $\begin{array} { l }&2018&2019\\ \text { Output (units) } & 12,000 & 13,000 \\\\ \text { Input quantities: } & & \\ \text { Materials (pounds) } & 3,750 & 4,000\\\\ \text { Input prices: }\\ \text { Materials (per pound) }&\$2&\$3 \end{array}$ What is the partial operational productivity measure for materials for 2018?

A) 3.2000 B) 0.3125 C) 0.3077 D) 3.2500 A) 3.2000 B) 0.3125 C) 0.3077 D) 3.2500

Information about Taekwondo Corporation is as follows: $\begin{array}{lcr}&2018&2019\\ \text { Output (units) } & 14,000 & 15,000 \\ \text { Selling price per unit } & \$ 16 & \$ 16\\\\ \text { Input quantities: }\\ \text { Materials (pounds) }&1,750&1,900\\ \text { Labor (hours) }&1,400&1,525\\\\ \text { Input prices: }\\ \text { Materials (per pound) }&\$3&\$4\\ \text { Labor (per hour) }&\$6&\$7 \end{array}$ By how much did profits change as a result of changes in productivity related to labor?

A) $175 increase B) $175 decrease C) $100 decrease D) $100 increase A) $175 increase B) $175 decrease C) $100 decrease D) $100 increase

At the end of 2018, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2019, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows: $\begin{array}{lrr}&2019&2018\\ \text { Output } & 45,000 & 54,000 \\ \text { Output prices } & \$ 10 & \$ 10 \\ \text { Materials (lbs.) } & 22,500 & 22,950 \\ \text { Materials unit price } & \$ 3 & \$4 \\ \text { Labor (hrs.) } & 18,000 & 16,875 \\ \text { Labor rate per hour } & \$ 5 & \$ 5 \\ \text { Power (kwh) } & 11,250 & 14,625 \\ \text { Price per kwh } & \$ 2 & \$ 3 \end{array}$ How much profit was generated in 2018?

A) $450,000 B) $292,500 C) $270,000 D) $180,000 A) $450,000 B) $292,500 C) $270,000 D) $180,000

Information about Haulover Company is as follows: $\begin{array}{lll}&2018&2019\\ \text { Output (units) }&200,000&200,000\\\\ \text { Input quantities: }\\ \text { Materi als (pounds) } & 90,000 & 80,000 \\ \text { Labor (hours) } & 50,000 & 40,000\\\\\text { Input prices: }\\ \text { Materials (per pound) } & \$ 5 & \$ 6\\ \text { Labor (per hour) } & \$ 8& \$ 9 \end{array}$ What is the partial operational productivity measure for labor for 2018?

A) 1.42 B) 2.22 C) 4.00 D) 4.25 A) 1.42 B) 2.22 C) 4.00 D) 4.25

Exam 15: Lean Accounting and Productivity Measurement

Information about Harlequin Corporation is as follows: 2018 2019 Output (units) 40,000 42,000 Selling price per unit \ 25 \ 25 Input quantities: Materials (pounds) 2,000 2,000 Labor (hours) 1,600 1,625 Input prices: Materials (per pound) \5 .00 \5 .50 Labor (per hour) \7 .00 \7 .50 By how much did profits change as a result of changes in productivity related to labor?

(Multiple Choice)

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Question 41

At the end of 2018, San Leandro Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2019, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows: 2018 2019 Output 20,000 24,000 Output prices \ 10 \ 10 Materials (lbs.) 10,000 10,200 Materials unit price \ 3 \4 Labor (hrs.) 8,000 7,500 Labor rate per hour \ 5 \ 5 Power (kwh) 5,000 6,500 Price per kwh \ 2 \ 3 Required: a.Compute the partial operational measures for each input for both 2018 and 2019. What can be said about productivity improvement? b.Prepare an income statement for each year and calculate the total change in profits. c.Calculate the profit-linked productivity measure for 2019. What can be said about the productivity program? d.Calculate the price-recovery component. What does this tell you?

(Essay)

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Question 42

The document used by the lean control system that compares operational, capacity, and financial metrics with prior week performances and with a future desired state is called:

(Multiple Choice)

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Question 43

If a facility has costs of $100,000 per year and 20,000 square feet, and if 19,000 square feet are absorbed by the value streams, what happens to the unabsorbed cost of the remaining 1,000 feet?

(Multiple Choice)

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Question 44

The Marakesh Company provides the following data: 2018 2019 Output (units) 12,000 13,000 Input quantities: Materials (pounds) 3,750 4,000 Input prices: Materials (per pound) \2 \3 What is the partial operational productivity measure for materials for 2018?

(Multiple Choice)

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Question 45

The measure of input and output used by a financial productivity measure is called:

(Multiple Choice)

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Question 46

The quantitative assessment of productivity changes is called:

(Multiple Choice)

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Question 47

The profit linkage rate

(Multiple Choice)

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Question 48

Describe the objectives and characteristics of a Lean Manufacturing system.

(Essay)

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Question 49

Information about Taekwondo Corporation is as follows: 2018 2019 Output (units) 14,000 15,000 Selling price per unit \ 16 \ 16 Input quantities: Materials (pounds) 1,750 1,900 Labor (hours) 1,400 1,525 Input prices: Materials (per pound) \3 \4 Labor (per hour) \6 \7 By how much did profits change as a result of changes in productivity related to labor?

(Multiple Choice)

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Question 50

The methodologies and concepts adopted by just-in-time (JIT) manufacturing is very similar to:

(Multiple Choice)

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Question 51

In calculating the profit linkage, PQ represents the productivity-neutral quantity of input. How is PQ calculated?

(Multiple Choice)

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Question 52

At the end of 2018, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2019, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows: 2019 2018 Output 45,000 54,000 Output prices \ 10 \ 10 Materials (lbs.) 22,500 22,950 Materials unit price \ 3 \4 Labor (hrs.) 18,000 16,875 Labor rate per hour \ 5 \ 5 Power (kwh) 11,250 14,625 Price per kwh \ 2 \ 3 How much profit was generated in 2018?

(Multiple Choice)

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Question 53

In a traditional manufacturing setup

(Multiple Choice)

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Question 54

The component which provides a server or vector of separate and distinct partial operational measures is called __________ measurement.

(Short Answer)

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Question 55

Which of the following is NOT considered a major source of waste?

(Multiple Choice)

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Question 56

Information about Haulover Company is as follows: 2018 2019 Output (units) 200,000 200,000 Input quantities: Materi als (pounds) 90,000 80,000 Labor (hours) 50,000 40,000 Input prices: Materials (per pound) \ 5 \ 6 Labor (per hour) \ 8 \ 9 What is the partial operational productivity measure for labor for 2018?

(Multiple Choice)

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Question 57

The Kristofferson Company provides the following information: 2018 2019 Output (units) 25,000 27,000 Selling price per unit \2 5 \2 5 Input quantities: Materials (pounds) 8,000 7,500 Labor (hours) 5,500 7,000 Input prices: Materials (per pound) \ 4.00 \ 5.00 Labor (per hour) \ 9.00 \ 10.00 Required: a.Calculate the materials and labor productivity ratios for 2018 and 2019. b.Did materials productivity improve? c.Did labor productivity improve? d.By how much did profits change as a result of changes in productivity?

(Essay)

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Question 58

The component which provides a series or vector of separate and distinct partial operational measures is called:

(Multiple Choice)

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Question 59

Operational partial measures are difficult to interpret by those within an organization.

(True/False)

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Question 60

The document used by the lean control system that compares operational, capacity, and financial metrics with prior week performances and with a future desired state is called:

If a facility has costs of $100,000 per year and 20,000 square feet, and if 19,000 square feet are absorbed by the value streams, what happens to the unabsorbed cost of the remaining 1,000 feet?

The Marakesh Company provides the following data: 2018 2019 Output (units) 12,000 13,000 Input quantities: Materials (pounds) 3,750 4,000 Input prices: Materials (per pound) \2 \3 What is the partial operational productivity measure for materials for 2018?

The measure of input and output used by a financial productivity measure is called:

The quantitative assessment of productivity changes is called:

The profit linkage rate

Describe the objectives and characteristics of a Lean Manufacturing system.

The methodologies and concepts adopted by just-in-time (JIT) manufacturing is very similar to:

In calculating the profit linkage, PQ represents the productivity-neutral quantity of input. How is PQ calculated?

In a traditional manufacturing setup

The component which provides a server or vector of separate and distinct partial operational measures is called __________ measurement.

Which of the following is NOT considered a major source of waste?

The component which provides a series or vector of separate and distinct partial operational measures is called:

Operational partial measures are difficult to interpret by those within an organization.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

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