Question 1

Which of the following is true of non-value-added activities?

Accepted Answer

A) These activities are a source of waste in the value stream of a product. 
B) These activities are identified only after the finished goods reaches final customers. 
C) These activities result from adopting new technology for the production process. 
D) These activities ensure that no rework is required as the final product has zero-defects. 
A) These activities are a source of waste in the value stream of a product. 
B) These activities are identified only after the finished goods reaches final customers. 
C) These activities result from adopting new technology for the production process. 
D) These activities ensure that no rework is required as the final product has zero-defects.

Question 2

Lean manufacturing is best defined as

Accepted Answer

A) an operating approach that reports on the effectiveness of the management of the organization. 
B) an operating approach designed to eliminate waste and maximize customer value. 
C) an operating approach that is designed to analyze the activities of the organization. 
D) an operating approach that is designed to compute variances between expectations and actual performance. 
A) an operating approach that reports on the effectiveness of the management of the organization. 
B) an operating approach designed to eliminate waste and maximize customer value. 
C) an operating approach that is designed to analyze the activities of the organization. 
D) an operating approach that is designed to compute variances between expectations and actual performance.

Question 3

Explain the difference between partial and total measures of productivity.

Accepted Answer

If the productivity ratio (out

Question 4

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: $\begin{array}{lrr}&2019&2018\
\text { Output } & 45,000 & 54,000 \
\text { Output prices } & \$ 10 & \$ 10 \
\text { Materials (lbs.) } & 22,500 & 22,950 \
\text { Materials unit price } & \$ 3 & \$4 \
\text { Labor (hrs.) } & 18,000 & 16,875 \
\text { Labor rate per hour } & \$ 5 & \$ 5 \
\text { Power (kwh) } & 11,250 & 14,625 \
\text { Price per kwh } & \$ 2 & \$ 3
\end{array}$
What is the total change in profits from 2018 to 2019?

Accepted Answer

A) $319,950 
B) $270,000 
C) $90,000 
D) $49,950 
A) $319,950 
B) $270,000 
C) $90,000 
D) $49,950

Question 5

What approach is normally used to calculate product costs when products in a value stream are heterogeneous?

Accepted Answer

A) variable costing 
B) features and characteristics costing 
C) absorption costing 
D) functional costing 
A) variable costing 
B) features and characteristics costing 
C) absorption costing 
D) functional costing

Question 6

The measure of input and output used by an operational productivity measure is called:

Accepted Answer

A) revenues 
B) costs 
C) physical quantities 
D) dollars 
A) revenues 
B) costs 
C) physical quantities 
D) dollars

Question 7

Identification of a "value stream," pursuit of perfection, and making value flow without interruption are examples of

Accepted Answer

A) total quality management. 
B) activity-based costing. 
C) principles of lean thinking. 
D) Kanban processing. 
A) total quality management. 
B) activity-based costing. 
C) principles of lean thinking. 
D) Kanban processing.

Question 8

Holstein Company produces pants that use two inputs-materials and labor. During the past quarter, 1,000 units were produced, requiring 2,000 pounds of material and 1,000 hours of labor. An engineering efficiency study commissioned by the local university revealed that Holstein Company can produce the same output of 1,000 units using either of the following two combinations of inputs:
 $\begin{array}{lll}& \text {Materials }& \text { labor}\
\text { Combination } A & 1,750 & 875 \
\text { Combination } B & 2,000 & 750
\end{array}$ 
The cost of materials is $2.50 per pound; the cost of labor is $5 per hour.
Required: 
a.Compute the productivity ratio for each input of Combination A.
b.Does this represent a productivity improvement over the current use of inputs?
c.What is the total dollar value of the combination A improvement? Classify this as a technical or input trade-off efficiency improvement.

Accepted Answer

The answer of Holstein Company produces pants that use two...

Question 9

Which of the following is NOT a limitation of a value stream cost assignment?

Accepted Answer

A) Initially, it may not be possible to allocate all the people needed in a value stream to that stream exclusively. 
B) There will always be some individuals whose related costs will remain outside of any particular value stream. 
C) A value stream is usually organized around a family of products. 
D) Having a value stream for each product is not practical. 
A) Initially, it may not be possible to allocate all the people needed in a value stream to that stream exclusively. 
B) There will always be some individuals whose related costs will remain outside of any particular value stream. 
C) A value stream is usually organized around a family of products. 
D) Having a value stream for each product is not practical.

Question 10

Which of the following is true of the two-dimensional matrix with respect to lean manufacturing?

Accepted Answer

A) It compares actual operational and financial metrics with budgeted metrics. 
B) It focuses on measuring the move and wait time of a batch of products. 
C) It has products on one dimension and quality indicators on a second dimension. 
D) It is one of the ways to identify the value stream of a product. 
A) It compares actual operational and financial metrics with budgeted metrics. 
B) It focuses on measuring the move and wait time of a batch of products. 
C) It has products on one dimension and quality indicators on a second dimension. 
D) It is one of the ways to identify the value stream of a product.

Question 11

The worth of one or more features of a product for which the customer is willing to pay is defined as:

Accepted Answer

A) Value 
B) Quality 
C) Efficiency 
D) Innovation 
A) Value 
B) Quality 
C) Efficiency 
D) Innovation

Question 12

Reducing the time it takes to configure equipment to produce a different product is an example of

Accepted Answer

A) cellular manufacturing. 
B) batch processing. 
C) reduced setup/changeover times. 
D) value flow stream. 
A) cellular manufacturing. 
B) batch processing. 
C) reduced setup/changeover times. 
D) value flow stream.

Question 13

The productivity measure(s) in which inputs and outputs are expressed in dollars is(are) called:

Accepted Answer

A) Productivity measurement 
B) Operational productivity measures 
C) Partial productivity measurement 
D) Financial productivity measures 
A) Productivity measurement 
B) Operational productivity measures 
C) Partial productivity measurement 
D) Financial productivity measures

Question 14

The prior period used to set the benchmark for measuring productivity changes is(are) called:

Accepted Answer

A) Financial productivity measures 
B) Base period 
C) Operational productivity measures 
D) Target period 
A) Financial productivity measures 
B) Base period 
C) Operational productivity measures 
D) Target period

Question 15

Partial measures allow managers to focus on the use of the total production and are easily interpreted.

Accepted Answer

A) True 
 B)False

Question 16

The productivity measure of all inputs simultaneously is called total productivity measurement.

Accepted Answer

A) True 
 B)False

Question 17

Maximizing customer value, on-demand production, and zero setup times are realized in the pursuit of __________ .

Accepted Answer

The answer of Maximizing customer value, on-demand production, and zero...

Question 18

Allocative efficiency can be defined as

Accepted Answer

A) all non-value activities performed with minimal quantities needed to produce the given outputs. 
B) elimination of all non-value-added activities. 
C) input prices determining the relative proportions of each input that should be used. 
D) input prices determining the relative proportions of each output that should be produced. 
A) all non-value activities performed with minimal quantities needed to produce the given outputs. 
B) elimination of all non-value-added activities. 
C) input prices determining the relative proportions of each input that should be used. 
D) input prices determining the relative proportions of each output that should be produced.

Question 19

Why might labor costs be reduced in a value stream system?

Accepted Answer

A) The elimination of the need for any specialized skilled employees such as industrial engineers or production schedulers. 
B) The labor costs of industrial engineers and production schedulers can be pooled and allocated to the value streams. 
C) Some of the workers can be cross-trained to perform value-added activities within the value stream. 
D) none of the above. 
A) The elimination of the need for any specialized skilled employees such as industrial engineers or production schedulers. 
B) The labor costs of industrial engineers and production schedulers can be pooled and allocated to the value streams. 
C) Some of the workers can be cross-trained to perform value-added activities within the value stream. 
D) none of the above.

Question 20

Discuss the linkage between quality and productivity.

Accepted Answer

Cost, quality, and productivity are all

Which of the following is true of non-value-added activities?

Lean manufacturing is best defined as

Explain the difference between partial and total measures of productivity.

What approach is normally used to calculate product costs when products in a value stream are heterogeneous?

The measure of input and output used by an operational productivity measure is called:

Identification of a "value stream," pursuit of perfection, and making value flow without interruption are examples of

Which of the following is NOT a limitation of a value stream cost assignment?

Which of the following is true of the two-dimensional matrix with respect to lean manufacturing?

The worth of one or more features of a product for which the customer is willing to pay is defined as:

Reducing the time it takes to configure equipment to produce a different product is an example of

The productivity measure(s) in which inputs and outputs are expressed in dollars is(are) called:

The prior period used to set the benchmark for measuring productivity changes is(are) called:

Partial measures allow managers to focus on the use of the total production and are easily interpreted.

The productivity measure of all inputs simultaneously is called total productivity measurement.

Maximizing customer value, on-demand production, and zero setup times are realized in the pursuit of __________ .

Allocative efficiency can be defined as

Why might labor costs be reduced in a value stream system?

Discuss the linkage between quality and productivity.

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

Filters

Exam 15: Lean Accounting and Productivity Measurement

Which of the following is true of non-value-added activities?

Lean manufacturing is best defined as

Explain the difference between partial and total measures of productivity.

What approach is normally used to calculate product costs when products in a value stream are heterogeneous?

The measure of input and output used by an operational productivity measure is called:

Identification of a "value stream," pursuit of perfection, and making value flow without interruption are examples of

Which of the following is NOT a limitation of a value stream cost assignment?

Which of the following is true of the two-dimensional matrix with respect to lean manufacturing?

The worth of one or more features of a product for which the customer is willing to pay is defined as:

Reducing the time it takes to configure equipment to produce a different product is an example of

The productivity measure(s) in which inputs and outputs are expressed in dollars is(are) called:

The prior period used to set the benchmark for measuring productivity changes is(are) called:

Partial measures allow managers to focus on the use of the total production and are easily interpreted.

The productivity measure of all inputs simultaneously is called total productivity measurement.

Maximizing customer value, on-demand production, and zero setup times are realized in the pursuit of __________ .

Allocative efficiency can be defined as

Why might labor costs be reduced in a value stream system?

Discuss the linkage between quality and productivity.

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

Filters