Question 1

Which of the following is a measure of the balanced scorecard's internal process perspective?

Accepted Answer

A)  Service response time 
B)  Customer satisfaction 
C)  Gross profit percentage 
D)  Cost reduction 
A)  Service response time 
B)  Customer satisfaction 
C)  Gross profit percentage 
D)  Cost reduction

Question 2

________ measures the relationship between actual inputs used and actual outputs achieved.

Accepted Answer

A)  Strategy map 
B)  Planning variance 
C)  Productivity 
D)  Discretionary costs 
A)  Strategy map 
B)  Planning variance 
C)  Productivity 
D)  Discretionary costs

Question 3

Explain the term cost leadership. What are the possible ways through which a company would try to become a cost leader? How far is it desirable to implement cost reduction measures?

Accepted Answer

Cost leadership is an organization's abi

Question 4

Cost-leadership strategy usually focuses productivity and efficiency improvements , elimination of waste along with effective cost control systems.

Accepted Answer

A) True 
 B)False

Question 5

When analyzing the change in operating income, the strategy component of productivity ________.

Accepted Answer

A)  calculations are similar to the sales-volume variance calculations 
B)  compares the change in output price with the changes in input prices 
C)  will report a large positive amount when a company has successfully pursued the cost leadership strategy 
D)  isolates the change attributed solely to an increase in the quantity of units sold 
A)  calculations are similar to the sales-volume variance calculations 
B)  compares the change in output price with the changes in input prices 
C)  will report a large positive amount when a company has successfully pursued the cost leadership strategy 
D)  isolates the change attributed solely to an increase in the quantity of units sold

Question 6

When analyzing the change in operating income, the strategy component of growth will increase when more units are sold.

Accepted Answer

A) True 
 B)False

Question 7

Feedback on how a company is doing from the perspectives of financial, customer, internal business processes, and learning and growth.

Accepted Answer

A)  Master budget 
B)  Product differentiation 
C)  Differential report 
D)  Balanced scorecard 
A)  Master budget 
B)  Product differentiation 
C)  Differential report 
D)  Balanced scorecard

Question 8

Which of the following statements is true of productivity factors?

Accepted Answer

A)  Partial-productivity focus on a multiple inputs simultaneously. 
B)  Total factor productivity (TFP) focus on a single input. 
C)  It is the ratio of the quantity of output produced to the costs of all inputs used based on current prices. 
D)  Comparable data for total factor productivity measurements are easily available. 
A)  Partial-productivity focus on a multiple inputs simultaneously. 
B)  Total factor productivity (TFP) focus on a single input. 
C)  It is the ratio of the quantity of output produced to the costs of all inputs used based on current prices. 
D)  Comparable data for total factor productivity measurements are easily available.

Question 9

Grader Company manufactures road graders. Because its managers all have engineering backgrounds, they prefer nonfinancial information for their decision-making models. Therefore, they require the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a paver:
   
Required:
a.What is the partial productivity for direct materials for each year?
b.What is the partial productivity for direct manufacturing labor for each year?
c.What is the total factor productivity for each year?

Accepted Answer

The answer of Grader Company manufactures road graders. Because its...

Question 10

Which of the following is the correct mathematical expression to calculate total factor productivity?

Accepted Answer

A)  Sales value of output produced ÷ Quantity of all inputs used 
B)  Quantity of output produced ÷ Quantity of the input used 
C)  Quantity of output produced ÷ Costs of all inputs used 
D)  Sales value of output produced ÷ Cost of inputs required to produce current year production in previous year 
A)  Sales value of output produced ÷ Quantity of all inputs used 
B)  Quantity of output produced ÷ Quantity of the input used 
C)  Quantity of output produced ÷ Costs of all inputs used 
D)  Sales value of output produced ÷ Cost of inputs required to produce current year production in previous year

Question 11

________ is a measure of the balanced scorecard's internal-business-process perspective.

Accepted Answer

A)  Market share 
B)  Manufacturing downtime 
C)  Return on investment 
D)  Number of customer complaints 
A)  Market share 
B)  Manufacturing downtime 
C)  Return on investment 
D)  Number of customer complaints

Question 12

Which component of strategy measures the reduction in costs attributable to a reduction in the quantity of inputs used in Year 2 relative to the quantity of inputs that would have been used in Year 1 to produce the Year 2 output?

Accepted Answer

A)  the growth component 
B)  the price-recovery component 
C)  the productivity component 
D)  the cost leadership component 
A)  the growth component 
B)  the price-recovery component 
C)  the productivity component 
D)  the cost leadership component

Question 13

The customer perspective under the balanced scorecard approach would include measures on cost reduction.

Accepted Answer

A) True 
 B)False

Question 14

Managers can reduce capacity-based fixed costs by measuring and managing ________.

Accepted Answer

A)  unused capacity 
B)  variable costs 
C)  engineered costs 
D)  discretionary costs 
A)  unused capacity 
B)  variable costs 
C)  engineered costs 
D)  discretionary costs

Question 15

Direct material cost is an example of ________.

Accepted Answer

A)  conversion costs 
B)  discretionary costs 
C)  engineered costs 
D)  downsized costs 
A)  conversion costs 
B)  discretionary costs 
C)  engineered costs 
D)  downsized costs

Question 16

Which of the strategic perspectives of the balanced scorecard focuses on a company's own operations that create value for customers that, in turn, help achieve financial objectives?

Accepted Answer

A)  Financial 
B)  Customer 
C)  Internal-business-process 
D)  Learning-and-growth 
A)  Financial 
B)  Customer 
C)  Internal-business-process 
D)  Learning-and-growth

Question 17

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 160 customers in 2017 and 165 customers in 2018.
What is the cost effect of the growth component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar.)

Accepted Answer

A)  $280,500 U 
B)  $1,449,700 U 
C)  $1,449,700 F 
D)  $280,500 F 
A)  $280,500 U 
B)  $1,449,700 U 
C)  $1,449,700 F 
D)  $280,500 F

Question 18

Engineered costs contain a higher level of uncertainty than discretionary costs.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements best define strategy?

Accepted Answer

A)  It describes how an organization can create value for its customers while differentiating itself from its competitors. 
B)  It is an organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control. 
C)  It is an organization's ability to offer products or services its customers perceive to be superior and unique relative to the products or services of its competitors. 
D)  It describes how an organization motivates its employees to work for more hours without any increase in their wages. 
A)  It describes how an organization can create value for its customers while differentiating itself from its competitors. 
B)  It is an organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control. 
C)  It is an organization's ability to offer products or services its customers perceive to be superior and unique relative to the products or services of its competitors. 
D)  It describes how an organization motivates its employees to work for more hours without any increase in their wages.

Question 20

Bosely Corporation is reviewing its business strategy. The first step for Bosely is to perform an industry analysis. You have been hired to help the company go through the strategy formulation process.
Required:
To perform the industry analysis, what areas should Bosely focus on and give at least one example of how Bosely can effectively deal with each area.

Accepted Answer

The industry analysis is composed of fiv

Which of the following is a measure of the balanced scorecard's internal process perspective?

________ measures the relationship between actual inputs used and actual outputs achieved.

Explain the term cost leadership. What are the possible ways through which a company would try to become a cost leader? How far is it desirable to implement cost reduction measures?

Cost-leadership strategy usually focuses productivity and efficiency improvements , elimination of waste along with effective cost control systems.

When analyzing the change in operating income, the strategy component of productivity ________.

When analyzing the change in operating income, the strategy component of growth will increase when more units are sold.

Feedback on how a company is doing from the perspectives of financial, customer, internal business processes, and learning and growth.

Which of the following statements is true of productivity factors?

Which of the following is the correct mathematical expression to calculate total factor productivity?

________ is a measure of the balanced scorecard's internal-business-process perspective.

Which component of strategy measures the reduction in costs attributable to a reduction in the quantity of inputs used in Year 2 relative to the quantity of inputs that would have been used in Year 1 to produce the Year 2 output?

The customer perspective under the balanced scorecard approach would include measures on cost reduction.

Managers can reduce capacity-based fixed costs by measuring and managing ________.

Direct material cost is an example of ________.

Which of the strategic perspectives of the balanced scorecard focuses on a company's own operations that create value for customers that, in turn, help achieve financial objectives?

Engineered costs contain a higher level of uncertainty than discretionary costs.

Which of the following statements best define strategy?

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, Direct-Cost Variances, and Management Control

Flexible Budgets, Overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Pricing Decisions and Cost Management

Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, Common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, Just-in-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing, and Multinational Considerations

Performance Measurement, Compensation, and Multinational Considerations

Filters

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

Which of the following is a measure of the balanced scorecard's internal process perspective?

________ measures the relationship between actual inputs used and actual outputs achieved.

Explain the term cost leadership. What are the possible ways through which a company would try to become a cost leader? How far is it desirable to implement cost reduction measures?

Cost-leadership strategy usually focuses productivity and efficiency improvements , elimination of waste along with effective cost control systems.

When analyzing the change in operating income, the strategy component of productivity ________.

When analyzing the change in operating income, the strategy component of growth will increase when more units are sold.

Feedback on how a company is doing from the perspectives of financial, customer, internal business processes, and learning and growth.

Which of the following statements is true of productivity factors?

Which of the following is the correct mathematical expression to calculate total factor productivity?

________ is a measure of the balanced scorecard's internal-business-process perspective.

Which component of strategy measures the reduction in costs attributable to a reduction in the quantity of inputs used in Year 2 relative to the quantity of inputs that would have been used in Year 1 to produce the Year 2 output?

The customer perspective under the balanced scorecard approach would include measures on cost reduction.

Managers can reduce capacity-based fixed costs by measuring and managing ________.

Direct material cost is an example of ________.

Which of the strategic perspectives of the balanced scorecard focuses on a company's own operations that create value for customers that, in turn, help achieve financial objectives?

Engineered costs contain a higher level of uncertainty than discretionary costs.

Which of the following statements best define strategy?

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, Direct-Cost Variances, and Management Control

Flexible Budgets, Overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Pricing Decisions and Cost Management

Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, Common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, Just-in-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing, and Multinational Considerations

Performance Measurement, Compensation, and Multinational Considerations

Filters