Exam 12: Strategic Performance Measurement

Quality is achieved when a product or service contains all of the features that a customer would expect, and when that product or service performs in such a way that the customer is satisfied.

A manager would generally like to see a trend indicating a decrease in setup time.

An increase in appraisal costs will usually result in an increase in:

Navern Corporation manufactures and sells custom home elevators. From the time an order is placed until the time the elevator is installed in the customer's home averages 90 days. This 90 days is spent as follows: What is Navern's manufacturing cycle efficiency (MCE) for its elevators?

Delivery cycle time is an example of which performance measure category?

The performance measures on a balanced scorecard tend to fall into four groups: financial measures, customer measures, internal business process measures, and learning and growth measures.

The balanced scorecard can only have four categories of performance measures.

A balanced scorecard contains both customer and internal business process performance measures because improvements in internal business process should result in improvements in customer satisfaction.

Employee turnover percentage is an example of which performance measure category?

Fabrick 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?

Galben Company's quality cost report is to be based on the following data: Required: Prepare a Quality Cost Report in good form with separate sections for prevention costs, appraisal costs, internal failure costs, and external failure costs.

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

Adolphson Corporation has provided the following summary of its quality cost report for the last two years: On the basis of this report, which one of the following statements is most likely correct?

Rotan 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:

The four categories of quality costs in a quality cost report are:

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

The performance measure which answers the question "Are we maintaining our ability to change and improve?" is:

If the balanced scorecard is correctly constructed, the performance measures should be independent of each other so that bad performance on one measure will not result in bad performance on another performance measure.

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

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