Question 1

One of the five forces of industry analysis is understanding the bargaining power of your input suppliers.

Accepted Answer

A) True 
 B)False  True

Question 2

Which component of strategy measures the changes in operating income attributed solely to an increase in the quantity of output between Year 1 and Year 2?

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 A

Question 3

The purpose of the balanced scorecard is best described as helping an organization:

Accepted Answer

A) develop customer relations 
B) mobilize employee skills for continuous improvements in processing capabilities, quality, and response times 
C) introduce innovative products and services desired by target customers 
D) translate an organization's mission and strategy into a set of performance measures that help to implement the strategy 
A) develop customer relations 
B) mobilize employee skills for continuous improvements in processing capabilities, quality, and response times 
C) introduce innovative products and services desired by target customers 
D) translate an organization's mission and strategy into a set of performance measures that help to implement the strategy D

Question 4

What terms describe the relationship between different quantities of inputs consumed and the quantities of output produced?

Accepted Answer

A) budgeted costs or actual costs 
B) production technology or production function 
C) static budget or flexible budget 
D) production technology or production setup 
A) budgeted costs or actual costs 
B) production technology or production function 
C) static budget or flexible budget 
D) production technology or production setup

Question 5

Fairytale Weddings manufactures wedding dresses. The following information relates to the manufacture of gowns in its Perth plant:
   Required:
Prepare an analysis of change in annual costs from 20X1 to 20X2 including direct materials, direct manufacturing labor, and total inputs.

Accepted Answer

Direct materials:
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Question 6

The revenue effect of growth is calculated by multiplying the difference in units sold (current year minus the previous year)by ________.

Accepted Answer

A) selling price in the current year 
B) selling price in the previous year 
C) gross profit in the previous year 
D) gross profit in the current year 
A) selling price in the current year 
B) selling price in the previous year 
C) gross profit in the previous year 
D) gross profit in the current year

Question 7

In general, profit potential ________ with greater competition, stronger potential entrants, products that are similar, and more-demanding customers and suppliers.

Accepted Answer

A) increases 
B) stays constant 
C) decreases 
D) increases exponentially 
A) increases 
B) stays constant 
C) decreases 
D) increases exponentially

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Answer the following questions using the information below:
Wingard Company makes a household appliance with model number X200. The goal for 2012 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of X200 units that can be produced. The industry market size for appliances increased 10% from 2011 to 2012. The following additional data are available for 2011 and 2012:
  
-What is the cost effect of the price-recovery component?

Accepted Answer

A) $30,500 F 
B) $31,500 U 
C) $2,500 F 
D) $33,000 U 
A) $30,500 F 
B) $31,500 U 
C) $2,500 F 
D) $33,000 U

Question 10

A strategy map is a diagram that describes how an organization creates value by connecting strategic objectives in explicit cause-and-effect relationships with each other in the financial, customer, internal business process, and learning and growth perspectives.

Accepted Answer

A) True 
 B)False

Question 11

________ is an organization's ability to offer products or services that are perceived by its customers as being superior and unique relative to those of its competitors.

Accepted Answer

A) Strategy 
B) Product differentiation 
C) Cost leadership 
D) The balanced scorecard 
A) Strategy 
B) Product differentiation 
C) Cost leadership 
D) The balanced scorecard

Question 12

It is relatively easy to identify unused capacity for discretionary costs.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) Total factor productivity 
B) Partial productivity 
C) Productivity 
D) Product yield variance 
A) Total factor productivity 
B) Partial productivity 
C) Productivity 
D) Product yield variance

Question 14

Which of the following is a force that shapes an organization's profit potential?

Accepted Answer

A) Investors 
B) Potential entrants into the market 
C) Creditors 
D) Research and development 
A) Investors 
B) Potential entrants into the market 
C) Creditors 
D) Research and development

Question 15

An operating income analysis of Paul Reynolds Incorporated revealed the following:   Reynolds' operating income gain is consistent with the:

Accepted Answer

A) product differentiation strategy 
B) downsizing strategy 
C) reengineering strategy 
D) cost leadership strategy 
A) product differentiation strategy 
B) downsizing strategy 
C) reengineering strategy 
D) cost leadership strategy

Question 16

Answer the following questions using the information below:
Merrill Company makes a household appliance with model number X800. The goal for 2012 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of X800 units that can be produced. The industry market size for appliances increased 5% from 2011 to 2012. The following additional data are available for 2011 and 2012:
  
-What is the cost effect of the growth component for conversion costs?

Accepted Answer

A) $12,500 U 
B) Zero 
C) $10,000 U 
D) $10,000 F 
A) $12,500 U 
B) Zero 
C) $10,000 U 
D) $10,000 F

Question 17

Which component of strategy measures the change in operating income attributable solely to changes in a company's profit margins between Year 1 and Year 2?

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 18

Maloney Corporation manufactures plastic water bottles. It plans to grow by producing high-quality water bottles at a low cost that are delivered in a timely manner. There are a number of other manufacturers who produce similar water bottles. Maloney believes that continuously improving its manufacturing processes and having satisfied employees are critical to implementing its strategy.
Required:
a. Is Maloney's strategy one of product differentiation or cost leadership? Explain briefly.
Identify at least one key element that you would expect to see included in the balanced scorecard:
b. for the financial perspective.
c. for the customer perspective.
d. for the internal business process perspective.
e. for the learning and growth perspective.

Accepted Answer

a. Maloney's strategy is one of cost lea

Question 19

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

Accepted Answer

A) calculations are similar to the efficiency-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 production efficiencies 
A) calculations are similar to the efficiency-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 production efficiencies

Question 20

Which of the following statements about productivity measures is FALSE?

Accepted Answer

A) It may be stated in terms of dollars. 
B) It provides a convenient and easily interpreted means of aggregating across different physical outputs. 
C) The productivity measure may not be made for companies with multiple products. 
D) The key is the identification of cost drivers. 
A) It may be stated in terms of dollars. 
B) It provides a convenient and easily interpreted means of aggregating across different physical outputs. 
C) The productivity measure may not be made for companies with multiple products. 
D) The key is the identification of cost drivers.

One of the five forces of industry analysis is understanding the bargaining power of your input suppliers.

Which component of strategy measures the changes in operating income attributed solely to an increase in the quantity of output between Year 1 and Year 2?

The purpose of the balanced scorecard is best described as helping an organization:

What terms describe the relationship between different quantities of inputs consumed and the quantities of output produced?

Fairytale Weddings manufactures wedding dresses. The following information relates to the manufacture of gowns in its Perth plant: Required: Prepare an analysis of change in annual costs from 20X1 to 20X2 including direct materials, direct manufacturing labor, and total inputs.

The revenue effect of growth is calculated by multiplying the difference in units sold (current year minus the previous year)by ________.

In general, profit potential ________ with greater competition, stronger potential entrants, products that are similar, and more-demanding customers and suppliers.

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

A strategy map is a diagram that describes how an organization creates value by connecting strategic objectives in explicit cause-and-effect relationships with each other in the financial, customer, internal business process, and learning and growth perspectives.

________ is an organization's ability to offer products or services that are perceived by its customers as being superior and unique relative to those of its competitors.

It is relatively easy to identify unused capacity for discretionary costs.

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

Which of the following is a force that shapes an organization's profit potential?

An operating income analysis of Paul Reynolds Incorporated revealed the following: Reynolds' operating income gain is consistent with the:

Which component of strategy measures the change in operating income attributable solely to changes in a company's profit margins between Year 1 and Year 2?

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

Which of the following statements about productivity measures is FALSE?

The Accountants Role in the Organization

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, Time, and the Theory of Constraints

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 13: Strategy, Balanced Scorecard, and Strategic Profitability Analysis

One of the five forces of industry analysis is understanding the bargaining power of your input suppliers.

Which component of strategy measures the changes in operating income attributed solely to an increase in the quantity of output between Year 1 and Year 2?

The purpose of the balanced scorecard is best described as helping an organization:

What terms describe the relationship between different quantities of inputs consumed and the quantities of output produced?

Fairytale Weddings manufactures wedding dresses. The following information relates to the manufacture of gowns in its Perth plant: Required: Prepare an analysis of change in annual costs from 20X1 to 20X2 including direct materials, direct manufacturing labor, and total inputs.

The revenue effect of growth is calculated by multiplying the difference in units sold (current year minus the previous year)by ________.

In general, profit potential ________ with greater competition, stronger potential entrants, products that are similar, and more-demanding customers and suppliers.

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

A strategy map is a diagram that describes how an organization creates value by connecting strategic objectives in explicit cause-and-effect relationships with each other in the financial, customer, internal business process, and learning and growth perspectives.

________ is an organization's ability to offer products or services that are perceived by its customers as being superior and unique relative to those of its competitors.

It is relatively easy to identify unused capacity for discretionary costs.

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

Which of the following is a force that shapes an organization's profit potential?

An operating income analysis of Paul Reynolds Incorporated revealed the following: Reynolds' operating income gain is consistent with the:

Which component of strategy measures the change in operating income attributable solely to changes in a company's profit margins between Year 1 and Year 2?

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

Which of the following statements about productivity measures is FALSE?

The Accountants Role in the Organization

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, Time, and the Theory of Constraints

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