Question 1

________ compares the quantity of output produced with the quantity of a single input used.

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 2

When analyzing the change in operating income, the strategy component of growth:

Accepted Answer

A) calculations are similar to the selling-price variance calculations 
B) isolates the change attributed solely to an increase in market share 
C) isolates the change attributed solely to an increase in industry growth 
D) isolates the change attributed solely to an increase in the quantity of units sold 
A) calculations are similar to the selling-price variance calculations 
B) isolates the change attributed solely to an increase in market share 
C) isolates the change attributed solely to an increase in industry growth 
D) isolates the change attributed solely to an increase in the quantity of units sold

Question 3

Answer the following questions using the information below:
Following a strategy of product differentiation, Loftus Company makes a high-end Appliance, AP15. Loftus Company presents the following data for the years 2011 and 2012:
   Loftus Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in 2012. Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 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. Loftus Company has 46 customers in 2011 and 50 customers in 2012. The industry market size for high-end appliances increased 5% from 2011 to 2012.
-What is the change in operating income from 2011 to 2012?

Accepted Answer

A) $1,440,000 F 
B) $1,804,500 F 
C) $364,500 F 
D) $200,000 F 
A) $1,440,000 F 
B) $1,804,500 F 
C) $364,500 F 
D) $200,000 F

Question 4

Total factor productivity will increase if:

Accepted Answer

A) technical productivity occurs 
B) the company uses more total inputs per output 
C) the company incurs fewer costs per input 
D) current technology becomes obsolete 
A) technical productivity occurs 
B) the company uses more total inputs per output 
C) the company incurs fewer costs per input 
D) current technology becomes obsolete

Question 5

________ describes how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its overall objectives.

Accepted Answer

A) Strategy 
B) Planning 
C) Learning and growth perspective 
D) Customer perspective 
A) Strategy 
B) Planning 
C) Learning and growth perspective 
D) Customer perspective

Question 6

To achieve success, it is important to set nonfinancial objectives as well as financial objectives.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is NOT true of a good balanced scorecard?

Accepted Answer

A) It tells the story of a company's strategy by articulating a sequence of cause-and-effect relationships. 
B) It helps to communicate corporate strategy to all members of the organization. 
C) It identifies all measures, whether significant or small, that help to implement strategy. 
D) It uses nonfinancial measures to serve as leading indicators of future financial performance. 
A) It tells the story of a company's strategy by articulating a sequence of cause-and-effect relationships. 
B) It helps to communicate corporate strategy to all members of the organization. 
C) It identifies all measures, whether significant or small, that help to implement strategy. 
D) It uses nonfinancial measures to serve as leading indicators of future financial performance.

Question 8

Answer the following questions using the information below:
Following a strategy of product differentiation, Loftus Company makes a high-end Appliance, AP15. Loftus Company presents the following data for the years 2011 and 2012:
   Loftus Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in 2012. Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 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. Loftus Company has 46 customers in 2011 and 50 customers in 2012. The industry market size for high-end appliances increased 5% from 2011 to 2012.
-What is the net effect on operating income as a result of the price-recovery component?

Accepted Answer

A) $179,000 F 
B) $179,000 U 
C) $241,000 U 
D) $420,000 F 
A) $179,000 F 
B) $179,000 U 
C) $241,000 U 
D) $420,000 F

Question 9

Ali Company provided the following information:   What is the partial productivity ratio?

Accepted Answer

A) 0.97 units per gallon 
B) 1.02 units per gallon 
C) 1.06 units per gallon 
D) 1.12 units per gallon 
A) 0.97 units per gallon 
B) 1.02 units per gallon 
C) 1.06 units per gallon 
D) 1.12 units per gallon

Question 10

What actions can management take when unused capacity is identified?

Accepted Answer

A) eliminate the unused capacity 
B) attempt to grow to utilize the unused capacity 
C) Both A and B are correct. 
D) Neither A nor B are correct. 
A) eliminate the unused capacity 
B) attempt to grow to utilize the unused capacity 
C) Both A and B are correct. 
D) Neither A nor B are correct.

Question 11

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 12

Strategy describes how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its overall objectives.

Accepted Answer

A) True 
 B)False

Question 13

Answer the following questions using the information below:
Stewart Corporation plans to grow by offering a sound system, the SS3000, that is superior and unique from the competition. Stewart believes that putting additional resources into R&D and staying ahead of the competition with technological innovations is critical to implementing its strategy.
-Stewart's strategy is:

Accepted Answer

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

Question 14

Measures of the balanced scorecard's customer perspective include:

Accepted Answer

A) market share 
B) number of on-time deliveries 
C) number of process improvements 
D) revenue growth 
A) market share 
B) number of on-time deliveries 
C) number of process improvements 
D) revenue growth

Question 15

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 net effect on operating income as a result of the price-recovery component?

Accepted Answer

A) decreased operating income due to decreased selling price and inability to recover increased costs 
B) decreased operating income due to the inability to recover increased costs 
C) increased operating income due to the increased number of units produced and sold 
D) increased operating income due to the revenue effect of the price-recovery component 
A) decreased operating income due to decreased selling price and inability to recover increased costs 
B) decreased operating income due to the inability to recover increased costs 
C) increased operating income due to the increased number of units produced and sold 
D) increased operating income due to the revenue effect of the price-recovery component

Question 16

Discretionary costs:

Accepted Answer

A) result from a cause-and-effect relationship between the output and the input 
B) include advertising and executive training costs 
C) can be variable or fixed in the short run 
D) pertain to processes that are detailed 
A) result from a cause-and-effect relationship between the output and the input 
B) include advertising and executive training costs 
C) can be variable or fixed in the short run 
D) pertain to processes that are detailed

Question 17

An analysis of Baker, Inc.'s operating income for the last two years showed the following:   This gain in operating income is consistent with a:

Accepted Answer

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

Question 18

Successful implementation of a cost leadership strategy will result in:

Accepted Answer

A) large favorable growth and price-recovery components 
B) large favorable price-recovery and productivity components 
C) large favorable productivity and growth components 
D) only a large favorable growth component 
A) large favorable growth and price-recovery components 
B) large favorable price-recovery and productivity components 
C) large favorable productivity and growth components 
D) only a large favorable growth component

Question 19

Following a strategy of product differentiation, Sting Corporation makes a high-end computer monitor, CM7. Sting Corporation presents the following data for the years 2012 and 2013:
   Sting Corporation produces no defective units but it wants to reduce direct materials usage per unit of CM7 in 2013. Manufacturing conversion costs in each year depend on production capacity defined in terms of CM7 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. Sting Corporation has 100 customers in 2012 and 115 customers in 2013. The industry market size for high-end computer monitors increased 5% from 2012 to 2013.
Required:
a. What is operating income for 2012?
b. What is operating income in 2013?
c. What is the change in operating income from 2012 to 2013?

Accepted Answer

a. ($400 × 5,000)- [($40 × 15,

Question 20

The balanced scorecard translates an organization's mission and strategy into a set of performance measures that provides the framework for implementing its strategy.

Accepted Answer

A) True 
 B)False

________ compares the quantity of output produced with the quantity of a single input used.

When analyzing the change in operating income, the strategy component of growth:

Total factor productivity will increase if:

________ describes how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its overall objectives.

To achieve success, it is important to set nonfinancial objectives as well as financial objectives.

Which of the following is NOT true of a good balanced scorecard?

Ali Company provided the following information: What is the partial productivity ratio?

What actions can management take when unused capacity is identified?

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

Strategy describes how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its overall objectives.

Measures of the balanced scorecard's customer perspective include:

Discretionary costs:

An analysis of Baker, Inc.'s operating income for the last two years showed the following: This gain in operating income is consistent with a:

Successful implementation of a cost leadership strategy will result in:

The balanced scorecard translates an organization's mission and strategy into a set of performance measures that provides the framework for implementing its strategy.

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

________ compares the quantity of output produced with the quantity of a single input used.

When analyzing the change in operating income, the strategy component of growth:

Total factor productivity will increase if:

________ describes how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its overall objectives.

To achieve success, it is important to set nonfinancial objectives as well as financial objectives.

Which of the following is NOT true of a good balanced scorecard?

Ali Company provided the following information: What is the partial productivity ratio?

What actions can management take when unused capacity is identified?

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

Strategy describes how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its overall objectives.

Measures of the balanced scorecard's customer perspective include:

Discretionary costs:

An analysis of Baker, Inc.'s operating income for the last two years showed the following: This gain in operating income is consistent with a:

Successful implementation of a cost leadership strategy will result in:

The balanced scorecard translates an organization's mission and strategy into a set of performance measures that provides the framework for implementing its strategy.

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