HNW Ltd. HNW Ltd. manufactures and sells food processors. A popular consumer magazine has recently evaluated food processors and has ranked HNW’s processors as being of ‘poor quality’. As a result, HNW’s management team has begun to analyse all costs associated with their food processors in more detail, and the following data has been compiled: $\begin{array}{lr} \text { Scrap costs } & \$ 80000 \\ \text { Quality training } & 75000 \\ \text { Warranty claims } & 100000 \\ \text { Rework costs } & 50000 \\ \text { Inspection of incoming materials } & 30000 \\ \text { Product quality audits } & 60000 \\ \text { Statistical nrocess control } & 40000 \end{array}$ -What are HNW's total internal failure costs?

A) $ 50 000 B) $130 000 C) $230 000 D) $170 000 A) $ 50 000 B) $130 000 C) $230 000 D) $170 000

Bradford Inc. Bradford Inc. manufactures and sells digital cameras. Bradford’s management team has begun an intensive program whereby more time and effort are to be focused on product quality than were focused on in the past. The following data has been compiled regarding expected quality costs in the upcoming year: \[\begin{array} { l r } \text { Product quality audits } & \$ 60000 \\ \text { Quality training } & 50000 \\ \text { Rework costs } & 80000 \\ \text { Warranty claims } & 40000 \\ \text { Inspection of incoming materials } & 25000 \\ \text { Scrap costs } & 20000 \\ \text { Statistical process control } & 35000 \end{array}\] -What are Bradford's total external failure costs?

A) $ 40 000 B) $ 60 000 C) $140 000 D) $100 000 A) $ 40 000 B) $ 60 000 C) $140 000 D) $100 000

B & B Inc. B & B Inc. manufactures and produces widgets and has the following data available for the year: $\begin{array}{ll} \text { Units started into production } & 160000 \\ \text { Total good units completed } & 140000 \\ \text { Total hours of value-added production time } & 170000 \\ \text { Total production hours } & 250000 \end{array}$ -What is the manufacturing cycle time efficiency for the year?

A) 82.4 per cent B) 68.0 per cent C) 56.0 per cent D) 87.5 per cent A) 82.4 per cent B) 68.0 per cent C) 56.0 per cent D) 87.5 per cent

Carson Inc. Carson Inc. had the following information available at the end of its current year: $\begin{array}{lr} \text { Sales } & \$ 2000000 \\ \text { Net operating income } & 500000 \\ \text { Average operating assets } & 1200000 \end{array}$ -What was Carson's margin for the year?

A) 2.4 per cent B) 41.7 per cent C) 25.0 per cent D) 166.7 per cent A) 2.4 per cent B) 41.7 per cent C) 25.0 per cent D) 166.7 per cent

Grayson & Sons,a local car dealership,has three separate divisions: car repair,new car sales,and used car sales.The company has decided to implement a new system for evaluating the performance of its three division managers and the bonuses they receive.The following information is available with respect to each division for the current year: $\begin{array}{lrrr} & \underline{\text { Car Repair} } & \underline{ \text { New Car Sales} }& \underline{\text { Used Car Sales }}\\ \text { Operating income } & \$ 2000000 & \$ 8000000 & \$ 3000000 \\ \text { Operating assets } & 3000000 & 18000000 & 8000000 \end{array}$ In order to receive a bonus,a division manager must have an ROI greater than 50 per cent and residual income in excess of $1 400 000.If management uses a minimum required rate of return of 18 per cent,which division manager(s)would be eligible to receive a bonus?

A) Car repair only B) New car only C) Used car only D) Car repair,new car,and used car A) Car repair only B) New car only C) Used car only D) Car repair,new car,and used car

Fun-Town Amusement Centre Fun-Town Amusement Centre offers a variety of family entertainment. The amusement centre consists of three separate divisions: miniature golf, arcade, and laser tag. The following information in available regarding each of these divisions for the year just ended: $\begin{array}{lrrr} &\text { Miniature } \\ &\underline{\text { Golf }}&\underline{\text { Arcade }} &\underline{ \text { Laser Tag} }\\ \text { Revenues } & \$ 225000 & \$ 500000 & \$ 300000 \\ \text { Variable expenses } & 50000 & 100000 & 75000 \\ \text { Traceable fixed expenses } & 30000 & 40000 & 35000 \end{array}$ Common fixed costs of $60 000 are divided equally among the divisions. -The segment margin for the miniature golf division is:

A) $175 000 B) $145 000 C) $125 000 D) $ 85 000 A) $175 000 B) $145 000 C) $125 000 D) $ 85 000

Carson Inc. Carson Inc. had the following information available at the end of its current year: $\begin{array}{lr} \text { Sales } & \$ 2000000 \\ \text { Net operating income } & 500000 \\ \text { Average operating assets } & 1200000 \end{array}$ -What was Carson's asset turnover for the year?

A) 2.4 B) .417 C) .25 D) 1.7 A) 2.4 B) .417 C) .25 D) 1.7

Exam 14: Decentralisation and Modern Performance Management Systems the Balanced Scorecard

HNW Ltd. HNW Ltd. manufactures and sells food processors. A popular consumer magazine has recently evaluated food processors and has ranked HNW’s processors as being of ‘poor quality’. As a result, HNW’s management team has begun to analyse all costs associated with their food processors in more detail, and the following data has been compiled: Scrap costs \ 80000 Quality training 75000 Warranty claims 100000 Rework costs 50000 Inspection of incoming materials 30000 Product quality audits 60000 Statistical nrocess control 40000 -What are HNW's total internal failure costs?

(Multiple Choice)

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Question 21

Which of the following is least likely to be a critical success factor within the internal business perspective of the balanced scorecard?

(Multiple Choice)

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Question 22

If a company consistently produces and sells defective products,which type of quality cost is likely to be the most costly in the long-run?

(Multiple Choice)

4.9/5

(82)

Question 23

Which of the following statements about quality costs is true?

(Multiple Choice)

4.9/5

(69)

Question 24

Kenny Inc.manufactures and sells laminate flooring.Recently,management has noticed more customer complaints about product defects and,as a consequence,warranty claims have significantly increased.Kenny's management has asked their managerial accountant for a breakdown in quality costs for the past six months.The following data has been compiled: Scrap costs \4 5000 Quality training 25000 Warranty claims 100000 Rework costs 20000 Inspection of incoming materials 9000 Product quality audits 15000 Statistical process control 10000 Required: A. What are total prevention costs? B. What are total appraisal costs? C. What are total internal failure costs? D. What are total external failure costs?

(Essay)

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(80)

Question 25

Which perspective links the critical success factors of the other perspectives and ensures an environment that supports and allows the objectives of the other perspectives to be achieved?

(Multiple Choice)

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Question 26

Return on investment (ROI)is a measure of performance under which perspective of the balanced scorecard?

(Multiple Choice)

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Question 27

'Responsibility accounting' is the concept that says:

(Multiple Choice)

4.8/5

(85)

Question 28

Residual income would be a measure of performance under which perspective of the balanced scorecard?

(Multiple Choice)

4.7/5

(96)

Question 29

Bradford Inc. Bradford Inc. manufactures and sells digital cameras. Bradford’s management team has begun an intensive program whereby more time and effort are to be focused on product quality than were focused on in the past. The following data has been compiled regarding expected quality costs in the upcoming year: Product quality audits \ 60000 Quality training 50000 Rework costs 80000 Warranty claims 40000 Inspection of incoming materials 25000 Scrap costs 20000 Statistical process control 35000 -What are Bradford's total external failure costs?

(Multiple Choice)

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Question 30

Which of the following is a disadvantage of decentralisation?

(Multiple Choice)

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Question 31

Describe the customer perspective of the balanced scorecard and provide an example of a critical success factor for this perspective.

(Essay)

4.8/5

(75)

Question 32

Mahim Products has a division that generated $10 000 000 in sales and operating income of $1 700 000 on average operating assets of $6 000 000.The company's management team expects division managers to generate sufficient income to guarantee a minimum return of 30 per cent. Required: A. What is the division's residual income? B. What is the division's return on investment (ROI)?

(Essay)

4.7/5

(76)

Question 33

B & B Inc. B & B Inc. manufactures and produces widgets and has the following data available for the year: Units started into production 160000 Total good units completed 140000 Total hours of value-added production time 170000 Total production hours 250000 -What is the manufacturing cycle time efficiency for the year?

(Multiple Choice)

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Question 34

Costs that can not be traced or reasonably allocated to a particular segment are called:

(Multiple Choice)

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Question 35

Carson Inc. Carson Inc. had the following information available at the end of its current year: Sales \ 2000000 Net operating income 500000 Average operating assets 1200000 -What was Carson's margin for the year?

(Multiple Choice)

4.9/5

(95)

Question 36

Grayson & Sons,a local car dealership,has three separate divisions: car repair,new car sales,and used car sales.The company has decided to implement a new system for evaluating the performance of its three division managers and the bonuses they receive.The following information is available with respect to each division for the current year: Operating income \ 2000000 \ 8000000 \ 3000000 Operating assets 3000000 18000000 8000000 In order to receive a bonus,a division manager must have an ROI greater than 50 per cent and residual income in excess of $1 400 000.If management uses a minimum required rate of return of 18 per cent,which division manager(s)would be eligible to receive a bonus?

(Multiple Choice)

4.9/5

(88)

Question 37

Fun-Town Amusement Centre Fun-Town Amusement Centre offers a variety of family entertainment. The amusement centre consists of three separate divisions: miniature golf, arcade, and laser tag. The following information in available regarding each of these divisions for the year just ended: Miniature Revenues \ 225000 \ 500000 \ 300000 Variable expenses 50000 100000 75000 Traceable fixed expenses 30000 40000 35000 Common fixed costs of $60 000 are divided equally among the divisions. -The segment margin for the miniature golf division is:

(Multiple Choice)

4.9/5

(71)

Question 38

Carson Inc. Carson Inc. had the following information available at the end of its current year: Sales \ 2000000 Net operating income 500000 Average operating assets 1200000 -What was Carson's asset turnover for the year?

(Multiple Choice)

4.9/5

(93)

Question 39

Which of the following statements about quality costs is true?

(Multiple Choice)

4.9/5

(80)

Question 40

Showing 21 - 40 of 168

Which of the following is least likely to be a critical success factor within the internal business perspective of the balanced scorecard?

If a company consistently produces and sells defective products,which type of quality cost is likely to be the most costly in the long-run?

Which of the following statements about quality costs is true?

Which perspective links the critical success factors of the other perspectives and ensures an environment that supports and allows the objectives of the other perspectives to be achieved?

Return on investment (ROI)is a measure of performance under which perspective of the balanced scorecard?

'Responsibility accounting' is the concept that says:

Residual income would be a measure of performance under which perspective of the balanced scorecard?

Which of the following is a disadvantage of decentralisation?

Describe the customer perspective of the balanced scorecard and provide an example of a critical success factor for this perspective.

Costs that can not be traced or reasonably allocated to a particular segment are called:

Carson Inc. Carson Inc. had the following information available at the end of its current year: Sales \ 2000000 Net operating income 500000 Average operating assets 1200000 -What was Carson's margin for the year?

Carson Inc. Carson Inc. had the following information available at the end of its current year: Sales \ 2000000 Net operating income 500000 Average operating assets 1200000 -What was Carson's asset turnover for the year?

Which of the following statements about quality costs is true?

Introduction to Managerial Accounting

Product Costing: Manufacturing Processes, cost Terminology and Cost Flows

Cost Behaviour

Job Costing and Overhead Costing Systems

Process Costing Systems

Service and Operations Costing

Departmental Overhead Costing

Activity-Based Costing

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investmentdecisions

Fixed and Rolling Budgets for Planning and Decision Making

Management Accounting for Cost Control and Performance Evaluation Flexible Budgets and Variance Analysis

Accounting for Sustainability Social Reporting,environmental Reporting and Management Accounting

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