Question 1

The balanced scorecard framework rejects the notion that improving process-oriented measures automatically leads to financial success.

Accepted Answer

A) True 
 B)False  True

Question 2

Simkin Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:   The manufacturing cycle efficiency (MCE) was closest to:

Accepted Answer

A)  0.67 
B)  0.18 
C)  0.30 
D)  0.24 
A)  0.67 
B)  0.18 
C)  0.30 
D)  0.24 C

Question 3

Rotan Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:   The delivery cycle time was:

Accepted Answer

A)  19.2 hours 
B)  20.6 hours 
C)  8.3 hours 
D)  3.2 hours 
A)  19.2 hours 
B)  20.6 hours 
C)  8.3 hours 
D)  3.2 hours B

Question 4

Fabrick Company's quality cost report is to be based on the following data:   What would be the total appraisal cost appearing on the quality cost report?

Accepted Answer

A)  $122,000 
B)  $174,000 
C)  $104,000 
D)  $102,000 
A)  $122,000 
B)  $174,000 
C)  $104,000 
D)  $102,000

Question 5

The corporate social responsibility measure of "Percent of raw material inputs that have been recycled" is an example of which performance measure category?

Accepted Answer

A)  internal business processes. 
B)  customer. 
C)  financial. 
D)  learning and growth. 
A)  internal business processes. 
B)  customer. 
C)  financial. 
D)  learning and growth.

Question 6

Schurz Corporation's management reports that its average delivery cycle time is 26.7 days, its average throughput time is 10.0 days, its manufacturing cycle efficiency (MCE) is 0.22, its average move time is 0.6 day, and its average queue time is 6.7 days.Required:a. What is the wait time?b. What is the process time?c. What is the inspection time?

Accepted Answer

a.Delivery cycle time = Wait time + Thro

Question 7

The corporate social responsibility measure of "Average compensation for female employees ÷ average compensation for male employees" is an example of which performance measure category?

Accepted Answer

A)  internal business processes. 
B)  customer. 
C)  financial. 
D)  learning and growth. 
A)  internal business processes. 
B)  customer. 
C)  financial. 
D)  learning and growth.

Question 8

Financial measures such as return on investment (ROI) and residual income as well as operating measures may be included in a balanced scorecard.

Accepted Answer

A) True 
 B)False

Question 9

Schapp Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:   The throughput time was:

Accepted Answer

A)  11.3 hours 
B)  21.7 hours 
C)  17.2 hours 
D)  4.5 hours 
A)  11.3 hours 
B)  21.7 hours 
C)  17.2 hours 
D)  4.5 hours

Question 10

Which of the following would be classified as an external failure cost on a quality cost report?

Accepted Answer

A)  Repairs and replacements beyond the warranty period. 
B)  Technical support provided to suppliers. 
C)  Quality improvement projects. 
D)  Rework labor and overhead. 
A)  Repairs and replacements beyond the warranty period. 
B)  Technical support provided to suppliers. 
C)  Quality improvement projects. 
D)  Rework labor and overhead.

Question 11

If the manufacturing cycle efficiency is equal to 0.6, then 60% of the time a unit is in process is spent on activities that add value to the product.

Accepted Answer

A) True 
 B)False

Question 12

Schlarbaum Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order:
   Required:a. Compute the throughput time. (Round your answer to 1 decimal places.)b. Compute the manufacturing cycle efficiency (MCE). (Do not round intermediate calculations. Round your answer to nearest whole percentage.)c. What percentage of the production time is spent in non-value-added activities? (Round your intermediate calculations and final answer to nearest whole percentage.)d. Compute the delivery cycle time. (Round your answer to 1 decimal place.)

Accepted Answer

a. Throughput time= Process time + Inspe

Question 13

Which of the following would be classified as a prevention cost on a quality cost report?

Accepted Answer

A)  Cost of field servicing and handling complaints. 
B)  Warranty repairs and replacements. 
C)  Systems development. 
D)  Rework labor and overhead. 
A)  Cost of field servicing and handling complaints. 
B)  Warranty repairs and replacements. 
C)  Systems development. 
D)  Rework labor and overhead.

Question 14

Incentive compensation for employees, such as bonuses, should be tied to balanced scorecard performance measures regardless of how long the scorecard has been in place.

Accepted Answer

A) True 
 B)False

Question 15

Beamer Corporation produces one product and it seems that the demand for that product is exceeding their manufacturing capacity. Below is the information concerning the machine that produces their product   Beamer's overall equipment effectiveness (OEE) was approximately:

Accepted Answer

A)  0.10 
B)  0.20 
C)  0.25 
D)  0.36 
A)  0.10 
B)  0.20 
C)  0.25 
D)  0.36

Question 16

To minimize its total quality costs, a company should usually try to redistribute its quality costs more toward prevention and appraisal.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following would be classified as a prevention cost on a quality cost report?

Accepted Answer

A)  Net cost of spoilage. 
B)  Supervision of testing and inspection activities. 
C)  Liability arising from defective products. 
D)  Technical support provided to suppliers. 
A)  Net cost of spoilage. 
B)  Supervision of testing and inspection activities. 
C)  Liability arising from defective products. 
D)  Technical support provided to suppliers.

Question 18

Vandenheuvel Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:   The manufacturing cycle efficiency (MCE) was closest to:

Accepted Answer

A)  0.34 
B)  0.20 
C)  0.26 
D)  0.16 
A)  0.34 
B)  0.20 
C)  0.26 
D)  0.16

Question 19

A manufacturing cycle efficiency (MCE) of less than one is impossible.

Accepted Answer

A) True 
 B)False

Question 20

Eaglin Company's quality cost report is to be based on the following data:   What would be the total prevention cost appearing on the quality cost report?

Accepted Answer

A)  $55,000 
B)  $30,000 
C)  $62,000 
D)  $133,000 
A)  $55,000 
B)  $30,000 
C)  $62,000 
D)  $133,000

The balanced scorecard framework rejects the notion that improving process-oriented measures automatically leads to financial success.

Simkin Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: The manufacturing cycle efficiency (MCE) was closest to:

Rotan Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The delivery cycle time was:

Fabrick Company's quality cost report is to be based on the following data: What would be the total appraisal cost appearing on the quality cost report?

The corporate social responsibility measure of "Percent of raw material inputs that have been recycled" is an example of which performance measure category?

The corporate social responsibility measure of "Average compensation for female employees ÷ average compensation for male employees" is an example of which performance measure category?

Financial measures such as return on investment (ROI) and residual income as well as operating measures may be included in a balanced scorecard.

Schapp Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The throughput time was:

Which of the following would be classified as an external failure cost on a quality cost report?

If the manufacturing cycle efficiency is equal to 0.6, then 60% of the time a unit is in process is spent on activities that add value to the product.

Which of the following would be classified as a prevention cost on a quality cost report?

Incentive compensation for employees, such as bonuses, should be tied to balanced scorecard performance measures regardless of how long the scorecard has been in place.

Beamer Corporation produces one product and it seems that the demand for that product is exceeding their manufacturing capacity. Below is the information concerning the machine that produces their product Beamer's overall equipment effectiveness (OEE) was approximately:

To minimize its total quality costs, a company should usually try to redistribute its quality costs more toward prevention and appraisal.

Which of the following would be classified as a prevention cost on a quality cost report?

Vandenheuvel Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The manufacturing cycle efficiency (MCE) was closest to:

A manufacturing cycle efficiency (MCE) of less than one is impossible.

Eaglin Company's quality cost report is to be based on the following data: What would be the total prevention cost appearing on the quality cost report?

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Responsibility Accounting Systems

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 12: Strategic Performance Measurement

The balanced scorecard framework rejects the notion that improving process-oriented measures automatically leads to financial success.

Simkin Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below: The manufacturing cycle efficiency (MCE) was closest to:

Rotan Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The delivery cycle time was:

Fabrick Company's quality cost report is to be based on the following data: What would be the total appraisal cost appearing on the quality cost report?

The corporate social responsibility measure of "Percent of raw material inputs that have been recycled" is an example of which performance measure category?

The corporate social responsibility measure of "Average compensation for female employees ÷ average compensation for male employees" is an example of which performance measure category?

Financial measures such as return on investment (ROI) and residual income as well as operating measures may be included in a balanced scorecard.

Schapp Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The throughput time was:

Which of the following would be classified as an external failure cost on a quality cost report?

If the manufacturing cycle efficiency is equal to 0.6, then 60% of the time a unit is in process is spent on activities that add value to the product.

Which of the following would be classified as a prevention cost on a quality cost report?

Incentive compensation for employees, such as bonuses, should be tied to balanced scorecard performance measures regardless of how long the scorecard has been in place.

Beamer Corporation produces one product and it seems that the demand for that product is exceeding their manufacturing capacity. Below is the information concerning the machine that produces their product Beamer's overall equipment effectiveness (OEE) was approximately:

To minimize its total quality costs, a company should usually try to redistribute its quality costs more toward prevention and appraisal.

Which of the following would be classified as a prevention cost on a quality cost report?

Vandenheuvel Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below: The manufacturing cycle efficiency (MCE) was closest to:

A manufacturing cycle efficiency (MCE) of less than one is impossible.

Eaglin Company's quality cost report is to be based on the following data: What would be the total prevention cost appearing on the quality cost report?

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Responsibility Accounting Systems

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters