Exam 12: Strategy, Balanced Scorecard, and Strategic Profitability Analysis

One advantage of the total factor productivity is that operations managers can use it to easily understand specific labor productivity issues.

Fairytale Weddings manufactures wedding dresses. The following information relates to the manufacture of gowns in its Providence plant: Required: Prepare an analysis of change in annual costs from 2016 to 2017 including direct materials, direct manufacturing labor, and total inputs.

Following a strategy of product differentiation, Izzy's Limited Company makes a high-end Appliance, XT15. Izzy's Limited presents the following data for the years 2017 and 2018: Izzy's Limited produces no defective units but it wants to reduce direct materials usage per unit of XT15. Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Izzy's Limited had 155 customers in 2017 and 160 customers in 2018. What is the cost effect of the price-recovery component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar.)

Which of the following statements is of true engineered costs?

Which of the following involves a fundamental rethinking and redesign of business processes to achieve improvements in critical measures of performance?

The price-recovery component of the change in operating income measures solely the effect of price changes on revenues but not costs.

Which of the following efforts would most likely yield the greatest re-engineering benefits?

Smart Office Systems Inc, (SOSI) a manufacturer of office equipment, in 2017, one of its best years, SOSI sold 1,000,000 units of its YAZ1 calculator for $20 each. In 2016, it sold 930,000 of that same unit for $17.75 each. The cost of the calculator was $16 and $15.00 for 2017 and 2016 respectively. Using the data from 2017 and 2016, what was SOSI's revenue effect of growth?

When analyzing the change in operating income, the strategy component of price-recovery ________.

Successful implementation of a product differentiation strategy will result in ________.

Which of the following statements best relates to the balanced scorecard's financial perspective?

The time taken to fulfill clients' requests is an example of the ________ measure of a balanced-scorecard.

The balanced scorecard uses financial and nonfinancial performance measures to evaluate short-run and long-run performance in a single report.

Strategic Analysis of Profitability of King Philip Company: What is the operating income amount for 2017 (d)?

Balanced scorecards are almost exclusively utilized in profit-seeking organizations as nonprofits cannot benefit from focusing on financial perspectives such as net income and shareholder value.

The lower the inputs for a given set of outputs or the higher the outputs for a given set of inputs, the higher the level of ________.

Discretionary costs arise from periodic (usually annual) decisions and have a measurable cause-and-effect relationship between output and resources used.

Which of the following statements is true of discretionary costs?

An increase in production capacity will always result in a favorable cost effect of productivity for variable costs in the short run.

Conversion costs are an example of ________.