Graham Pottery Inc. Graham Pottery Inc. produces an item that gives rise to the following activities: $\begin{array} { l c } \text { Activity } & \text { Hours } \\ \hline \text { Processing (two departments) } & 25 \\ \text { Inspecting } & 2 \\ \text { Rework } & 1 \\ \text { Moving (three moves) } & 6 \\ \text { Waiting (for the second process) } & 18 \\ \text { Storage (before delivery to the customer) } & 24 \end{array}$ -The total manufacturing cycle time is:

A) 76 hours B) 52 hours C) 28 hours D) 34 hours A) 76 hours B) 52 hours C) 28 hours D) 34 hours

Grandma’s Jellies Inc. Grandma’s Jellies Inc. produces and distributes a variety of jellies. Two hundred jars of jelly are produced in a single batch. The following activities are performed per batch: $\begin{array}{lr} \text { Activity }&\text { Hours }\\ \hline\text { Processing (two departments) } & 6 \\ \text { Inspecting } & 1 \\ \text { Moving (three moves) } & 3 \\ \text { Waiting (for the second process) } & 4 \\ \text { Storage (before delivery to the customer) } & 10 \end{array}$ -The manufacturing cycle efficiency per batch is:

A) 29.2 per cent B) 41.7 per cent C) 25.0 per cent D) 83.3 per cent A) 29.2 per cent B) 41.7 per cent C) 25.0 per cent D) 83.3 per cent

A) is most useful as a way to compare individual divisions of different sizes. B) is the amount of income earned in excess of a predetermined minimum rate of return on assets. C) should not be used as a way to evaluate the manager of an investment centre. D) is often called economic value added (EV A) . A) is most useful as a way to compare individual divisions of different sizes. B) is the amount of income earned in excess of a predetermined minimum rate of return on assets. C) should not be used as a way to evaluate the manager of an investment centre. D) is often called economic value added (EV A) .

Grandma’s Jellies Inc. Grandma’s Jellies Inc. produces and distributes a variety of jellies. Two hundred jars of jelly are produced in a single batch. The following activities are performed per batch: $\begin{array}{lr} \text { Activity }&\text { Hours }\\ \hline\text { Processing (two departments) } & 6 \\ \text { Inspecting } & 1 \\ \text { Moving (three moves) } & 3 \\ \text { Waiting (for the second process) } & 4 \\ \text { Storage (before delivery to the customer) } & 10 \end{array}$ -The manufacturing cycle time per batch is:

A) 7 hours B) 14 hours C) 10 hours D) 24 hours A) 7 hours B) 14 hours C) 10 hours D) 24 hours

WSR Inc. WSR Inc. sells a variety of drink and food products including potato chips and soft drink. The segmented income statements for these two products are as follows: $\begin{array}{lrr} &\underline{\text { Soft drink}}&\underline{\text { Chips}}\\ \text { Sales } & \$ 800000 & \$ 900000 \\ \text { Variable expenses } &\underline{ 200000} &\underline{ 315000} \\ \text { Contribution margin } & 600000 & 585000 \\ \text { Traceable fixed expense } & \underline{120000} & \underline{160000} \\ \text { Segment margin } & \underline{\$ 480000} & \underline{\$ 425000} \end{array}$ WSR’s management is considering a special advertising campaign that will run during a major sporting event. The advertising campaign is expected to cost $30 000 and only one product can be featured. In-house marketing studies show that the campaign could increase sales of the soft drink division by $200 000 or increase sales of the chips division by $275 000. -What will be the overall net effect on the company's total profits if the advertising focuses on soft drink?

A) Increase of $170 000 B) Increase of $150 000 C) Increase of $120 000 D) Increase of $200 000 A) Increase of $170 000 B) Increase of $150 000 C) Increase of $120 000 D) Increase of $200 000

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

A) .56 B) 1.79 C) .64 D) .82 A) .56 B) 1.79 C) .64 D) .82

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 appraisal (detection)costs?

A) $130 000 B) $205 000 C) $ 90 000 D) $100 000 A) $130 000 B) $205 000 C) $ 90 000 D) $100 000

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

Finley Company has its company headquarters based in Raleigh,North Carolina,and has six individual retail stores spread throughout North Carolina and Virginia.Which of the following costs would most likely be treated as a common cost for segmented reporting purposes?

(Multiple Choice)

4.8/5

(82)

Question 61

Which types of quality costs are incurred once the product is produced and then found to be defective before being sold to customers?

(Multiple Choice)

4.9/5

(71)

Question 62

Graham Pottery Inc. Graham Pottery Inc. produces an item that gives rise to the following activities: Activity Hours Processing (two departments) 25 Inspecting 2 Rework 1 Moving (three moves) 6 Waiting (for the second process) 18 Storage (before delivery to the customer) 24 -The total manufacturing cycle time is:

(Multiple Choice)

4.8/5

(85)

Question 63

Fun Treats Inc.sells a variety of drink and food products including fruit juice and ice cream.The segmented income statements for these two products are as follows: Sales \ 500000 \ 600000 Variable expenses Contribution margin 300000 300000 Traceable fixed expense Segment margin The company's management is considering a special advertising campaign that will run on a Saturday morning when many children are watching television.The advertising campaign is expected to cost $25 000 and only one product can be featured.In-house marketing studies show that the campaign could increase sales of the fruit juice division by $100 000 or increase sales of the ice cream division by $100 000. The marketing supervisor has decided that since both products have the same segment margin,the company will be equally as well off regardless of which product is featured. Required: A. Do you agee ar disagee wrth the marketing sugervest? Why ar why not. B. Which product do you feel should be featured? Show calculations to support your anfwer.

(Essay)

4.9/5

(88)

Question 64

Which types of quality costs are incurred to eliminate quality problems before they occur?

(Multiple Choice)

4.9/5

(81)

Question 65

Grandma’s Jellies Inc. Grandma’s Jellies Inc. produces and distributes a variety of jellies. Two hundred jars of jelly are produced in a single batch. The following activities are performed per batch: Activity Hours Processing (two departments) 6 Inspecting 1 Moving (three moves) 3 Waiting (for the second process) 4 Storage (before delivery to the customer) 10 -The manufacturing cycle efficiency per batch is:

(Multiple Choice)

4.8/5

(78)

Question 66

Residual income:

(Multiple Choice)

4.9/5

(85)

Question 67

Grandma’s Jellies Inc. Grandma’s Jellies Inc. produces and distributes a variety of jellies. Two hundred jars of jelly are produced in a single batch. The following activities are performed per batch: Activity Hours Processing (two departments) 6 Inspecting 1 Moving (three moves) 3 Waiting (for the second process) 4 Storage (before delivery to the customer) 10 -The manufacturing cycle time per batch is:

(Multiple Choice)

4.8/5

(74)

Question 68

Determining the market share for a company's product would be a measure of performance under which perspective of the balanced scorecard?

(Multiple Choice)

4.7/5

(88)

Question 69

WSR Inc. WSR Inc. sells a variety of drink and food products including potato chips and soft drink. The segmented income statements for these two products are as follows: Sales \ 800000 \ 900000 Variable expenses Contribution margin 600000 585000 Traceable fixed expense Segment margin WSR’s management is considering a special advertising campaign that will run during a major sporting event. The advertising campaign is expected to cost $30 000 and only one product can be featured. In-house marketing studies show that the campaign could increase sales of the soft drink division by $200 000 or increase sales of the chips division by $275 000. -What will be the overall net effect on the company's total profits if the advertising focuses on soft drink?

(Multiple Choice)

4.9/5

(82)

Question 70

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 -RWhat is the total throughput per production hour?

(Multiple Choice)

4.8/5

(79)

Question 71

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

(Essay)

4.8/5

(79)

Question 72

A manager of a cost centre would most likely be held responsible for which of the following variances?

(Multiple Choice)

4.9/5

(76)

Question 73

The manager of a revenue centre has control over:

(Multiple Choice)

4.8/5

(78)

Question 74

Which of the following statements regarding the structure of organisations is false?

(Multiple Choice)

4.9/5

(81)

Question 75

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 appraisal (detection)costs?

(Multiple Choice)

4.8/5

(79)

Question 76

Boone Manufacturing Boone Manufacturing produces a variety of lamp shades which it sells to retail stores throughout the country. The following data is available for the year: -What is the manufacturing cycle time efficiency for the year?

(Multiple Choice)

4.8/5

(80)

Question 77

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 prevention costs?

(Multiple Choice)

4.9/5

(82)

Question 78

You are the manager of a new restaurant in town.List one method that you might use as a measure of quality.

(Essay)

4.9/5

(80)

Question 79

Which types of quality costs are incurred in the course of inspecting,identifying,and isolating defective products and services before they reach the customer?

(Multiple Choice)

4.8/5

(96)

Question 80

Finley Company has its company headquarters based in Raleigh,North Carolina,and has six individual retail stores spread throughout North Carolina and Virginia.Which of the following costs would most likely be treated as a common cost for segmented reporting purposes?

Which types of quality costs are incurred once the product is produced and then found to be defective before being sold to customers?

Which types of quality costs are incurred to eliminate quality problems before they occur?

Residual income:

Determining the market share for a company's product would be a measure of performance under which perspective of the balanced scorecard?

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

A manager of a cost centre would most likely be held responsible for which of the following variances?

The manager of a revenue centre has control over:

Which of the following statements regarding the structure of organisations is false?

Boone Manufacturing Boone Manufacturing produces a variety of lamp shades which it sells to retail stores throughout the country. The following data is available for the year: -What is the manufacturing cycle time efficiency for the year?

You are the manager of a new restaurant in town.List one method that you might use as a measure of quality.

Which types of quality costs are incurred in the course of inspecting,identifying,and isolating defective products and services before they reach the customer?

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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