Question 1

An example of a leading performance measure is:

Accepted Answer

A)  Production cycle time 
B)  Number of new customers 
C)  Company's percent of total number of customers in the market 
D)  Customer retention rates 
A)  Production cycle time 
B)  Number of new customers 
C)  Company's percent of total number of customers in the market 
D)  Customer retention rates

Question 2

Listed below are scorecard measures for a merchandising company:
  
Classify each scorecard measure according to perspective (financial, customer, internal process, or learning and growth), focus (cost, quality, or time), and relationship within the perspective (leading or outcome).

Accepted Answer

Classify each scorecard measure accordin

Question 3

Which of the following is NOT a factor with respect to learning and growth?

Accepted Answer

A)  Alignment of goals 
B)  Effective communication 
C)  Identifying and creating new products 
D)  Integration of efforts across departments 
A)  Alignment of goals 
B)  Effective communication 
C)  Identifying and creating new products 
D)  Integration of efforts across departments

Question 4

Which of the following processes is NOT effective in supporting customer satisfaction?

Accepted Answer

A)  Learning and growth measures 
B)  Innovation process measures 
C)  Service-after-sale process measures 
D)  Operations process measures 
A)  Learning and growth measures 
B)  Innovation process measures 
C)  Service-after-sale process measures 
D)  Operations process measures

Question 5

An example of an operations process measure is:

Accepted Answer

A)  Customer requests handled on first call 
B)  Modifications required per design 
C)  Six sigma quality 
D)  Costs per customer service incident 
A)  Customer requests handled on first call 
B)  Modifications required per design 
C)  Six sigma quality 
D)  Costs per customer service incident

Question 6

The process of measuring, monitoring, and minimizing prevention, appraisal, internal failure, and external failure costs is:

Accepted Answer

A)  Activity-based costing 
B)  Cost of quality 
C)  Just-in-time 
D)  Prevention costing 
A)  Activity-based costing 
B)  Cost of quality 
C)  Just-in-time 
D)  Prevention costing

Question 7

Just-in-time provides savings by:

Accepted Answer

A)  Lowering inventory levels 
B)  Freeing resources for other uses 
C)  Reducing returns from customers 
D)  All of these are correct 
A)  Lowering inventory levels 
B)  Freeing resources for other uses 
C)  Reducing returns from customers 
D)  All of these are correct

Question 8

An example of an innovation process measure is:

Accepted Answer

A)  Customer requests handled on first call 
B)  Modifications required per design 
C)  Six sigma quality 
D)  Costs per customer service incident 
A)  Customer requests handled on first call 
B)  Modifications required per design 
C)  Six sigma quality 
D)  Costs per customer service incident

Question 9

An operation process that has six sigma quality:

Accepted Answer

A)  Has very high quality 
B)  Has the lowest possible cost 
C)  Is very competitive 
D)  Is completed on schedule nearly every time 
A)  Has very high quality 
B)  Has the lowest possible cost 
C)  Is very competitive 
D)  Is completed on schedule nearly every time

Question 10

Defective products per million produced is an example of a(n):

Accepted Answer

A)  Innovation process measure 
B)  Financial performance measure 
C)  Service-after-sale process measure 
D)  Operations process measure 
A)  Innovation process measure 
B)  Financial performance measure 
C)  Service-after-sale process measure 
D)  Operations process measure

Question 11

Mohave Company has decided to start calculating economic value added. Mohave's accountant gathered the following information:
  
Using this information, calculate Yavapai's economic value added.

Accepted Answer

Using this informati

Question 12

Cochise Company manufacturers top of the line camping tents. The customers of Cochise Company expect, and usually receive, high-quality tents. The following chart is an accumulated list of all of the costs that Cochise acquired during the past year that relate to quality.
  
Compute the total cost for each of the following categories: prevention costs, appraisal costs, internal failure costs, and external failure costs.

Accepted Answer

Compute the total cost for eac

Question 13

Which of the following is NOT an outcome performance measure?

Accepted Answer

A)  Customer retention rates 
B)  Customer acquisition rates 
C)  Costs to recruit customers 
D)  Returns by customers 
A)  Customer retention rates 
B)  Customer acquisition rates 
C)  Costs to recruit customers 
D)  Returns by customers

Question 14

List and describe the three major differences between residual income and economic value added.

Accepted Answer

The answer of List and describe the three major differences...

Question 15

Which of the following statements is NOT true under the JIT philosophy?

Accepted Answer

A)  Inventory is completed only when ordered by customers 
B)  Raw materials are received when needed for production 
C)  Safety stock is maintained to deal with defective products 
D)  Manufacturing activities must be pulled by need for output 
A)  Inventory is completed only when ordered by customers 
B)  Raw materials are received when needed for production 
C)  Safety stock is maintained to deal with defective products 
D)  Manufacturing activities must be pulled by need for output

Question 16

An example of a prevention cost would be:

Accepted Answer

A)  Product recalls 
B)  Adjusting test equipment 
C)  Scrap 
D)  Process or product design 
A)  Product recalls 
B)  Adjusting test equipment 
C)  Scrap 
D)  Process or product design

Question 17

The emphasis of JIT is to:

Accepted Answer

A)  Improve non-value-added activities 
B)  Reduce value-added activities 
C)  Manage the flow of goods with a push process 
D)  Remove all waste from a production or service process 
A)  Improve non-value-added activities 
B)  Reduce value-added activities 
C)  Manage the flow of goods with a push process 
D)  Remove all waste from a production or service process

Question 18

Suppliers for a company using a just-in-time inventory system:

Accepted Answer

A)  Must be low cost 
B)  Must be dependable 
C)  Must deliver quality products 
D)  All of these are correct 
A)  Must be low cost 
B)  Must be dependable 
C)  Must deliver quality products 
D)  All of these are correct

Question 19

Costs incurred to inspect products after manufacturing are:

Accepted Answer

A)  Prevention costs 
B)  Appraisal costs 
C)  Internal failure costs 
D)  External failure costs 
A)  Prevention costs 
B)  Appraisal costs 
C)  Internal failure costs 
D)  External failure costs

Question 20

Organizations using just-in-time:

Accepted Answer

A)  Must obtain material only when needed for production 
B)  Must manufacture quality into the products 
C)  Must keep inventories at a minimum 
D)  All of these are correct 
A)  Must obtain material only when needed for production 
B)  Must manufacture quality into the products 
C)  Must keep inventories at a minimum 
D)  All of these are correct

Exam 24: New Measures of Performance

An example of a leading performance measure is:

Listed below are scorecard measures for a merchandising company: Classify each scorecard measure according to perspective (financial, customer, internal process, or learning and growth), focus (cost, quality, or time), and relationship within the perspective (leading or outcome).

Which of the following is NOT a factor with respect to learning and growth?

Which of the following processes is NOT effective in supporting customer satisfaction?

An example of an operations process measure is:

The process of measuring, monitoring, and minimizing prevention, appraisal, internal failure, and external failure costs is:

Just-in-time provides savings by:

An example of an innovation process measure is:

An operation process that has six sigma quality:

Defective products per million produced is an example of a(n):

Mohave Company has decided to start calculating economic value added. Mohave's accountant gathered the following information: Using this information, calculate Yavapai's economic value added.

Which of the following is NOT an outcome performance measure?

List and describe the three major differences between residual income and economic value added.

Which of the following statements is NOT true under the JIT philosophy?

An example of a prevention cost would be:

The emphasis of JIT is to:

Suppliers for a company using a just-in-time inventory system:

Costs incurred to inspect products after manufacturing are:

Organizations using just-in-time:

Accounting Information: Users and Uses

Financial Statements: An Overview

The Accounting Cycle: The Mechanics of Accounting

Completing the Accounting Cycle

Internal Controls: Ensuring the Integrity of Financial Information

Receivables: Selling a Product or a Service

Inventory and the Cost of Sales

Completing the Operating Cycle

Investments: Property, Plant, and Equipment and Intangible Assets

Financing: Long-Term Liabilities

Financing: Equity

Investments: Debt and Equity Securities

Statement of Cash Flows

Analyzing Financial Statements

Management Accounting and Cost Concepts

Cost Flows and Business Organizations

Activity-Based Costing

Budgeting and Control

Controlling Cost and Profit

Inventory Management and Variable and Absorption Costing

Cost Behavior and Decisions Using C-V-P Analysis

Relevant Information and Decisions

Capital Investment Decisions

Filters