Question 1

Surveys of employee satisfaction is an example of a balanced-scorecard measure of the:

Accepted Answer

A) internal business process perspective 
B) customer perspective 
C) learning and growth perspective 
D) financial perspective 
A) internal business process perspective 
B) customer perspective 
C) learning and growth perspective 
D) financial perspective

Question 2

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 3

Describe three key components in performing a strategic analysis of operating income.

Accepted Answer

The three key components in performing a

Question 4

The average number of student credit hours taught per faculty member is an example of a(n):

Accepted Answer

A) expected performance measure 
B) budgeted productivity measure 
C) standard productivity measure 
D) partial productivity measure 
A) expected performance measure 
B) budgeted productivity measure 
C) standard productivity measure 
D) partial productivity measure

Question 5

Partial productivity multiplied by the quantity of input used results in:

Accepted Answer

A) expected production 
B) budgeted output 
C) actual output 
D) a ratio 
A) expected production 
B) budgeted output 
C) actual output 
D) a ratio

Question 6

Measures of the balanced scorecard's learning-and-growth perspective include all of the following EXCEPT:

Accepted Answer

A) employee education and skill level 
B) percentage of processes with advanced controls 
C) employee-satisfaction ratings 
D) time taken to replace defective products 
A) employee education and skill level 
B) percentage of processes with advanced controls 
C) employee-satisfaction ratings 
D) time taken to replace defective products

Question 7

Product differentiation is an organization''s ability to offer products or services perceived by its customers to be superior and unique relative to the products or services of its competitors.

Accepted Answer

A) True 
 B)False

Question 8

The balanced scorecard measures an organization's performance from all of the following perspectives EXCEPT:

Accepted Answer

A) financial 
B) government 
C) customer 
D) learning and growth 
A) financial 
B) government 
C) customer 
D) learning and growth

Question 9

Measures of the balanced scorecard's learning-and-growth perspective include:

Accepted Answer

A) employee satisfaction ratings 
B) economic value added 
C) time taken to deliver product to customers 
D) customer-retention percentage 
A) employee satisfaction ratings 
B) economic value added 
C) time taken to deliver product to customers 
D) customer-retention percentage

Question 10

Downsizing discretionary costs is easier than downsizing engineered costs.

Accepted Answer

A) True 
 B)False

Question 11

The lower the inputs for a given set of outputs or the higher the outputs for a given set of inputs, the higher the level of:

Accepted Answer

A) standard costs 
B) sales 
C) productivity 
D) labor costs 
A) standard costs 
B) sales 
C) productivity 
D) labor costs

Question 12

The first step to successful balanced scorecard implementation is clarifying the:

Accepted Answer

A) organization's vision and strategy 
B) elements that pertain to value-added aspects of the business 
C) owner's expectations about return on investment 
D) objectives of all four balanced scorecard measurement perspectives 
A) organization's vision and strategy 
B) elements that pertain to value-added aspects of the business 
C) owner's expectations about return on investment 
D) objectives of all four balanced scorecard measurement perspectives

Question 13

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 revenue effect of the growth component?

Accepted Answer

A) $220,000 F 
B) $420,000 F 
C) $400,000 F 
D) $200,000 F 
A) $220,000 F 
B) $420,000 F 
C) $400,000 F 
D) $200,000 F

Question 14

Rightsizing is another term for:

Accepted Answer

A) growth management 
B) downsizing 
C) price recovery analysis 
D) cost recovery analysis 
A) growth management 
B) downsizing 
C) price recovery analysis 
D) cost recovery analysis

Question 15

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 operating income in 2012?

Accepted Answer

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

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 direct materials?

Accepted Answer

A) $15,000 U 
B) $10,000 U 
C) $10,000 F 
D) $16,500 F 
A) $15,000 U 
B) $10,000 U 
C) $10,000 F 
D) $16,500 F

Question 17

Answer the following questions using the information below:
Meale Company makes a household appliance with model number X500. 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 X500 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 operating income for 2012?

Accepted Answer

A) $1,045,000 
B) $726,000 
C) $486,000 
D) $476,000 
A) $1,045,000 
B) $726,000 
C) $486,000 
D) $476,000

Question 18

Which of the following statements is true?

Accepted Answer

A) The lower the partial productivity ratio, the greater the productivity. 
B) Productivity has increased when the partial productivity is high. 
C) Prices of inputs are incorporated in the partial productivity ratio. 
D) The partial productivity ratio measures the number of outputs produced per multiple input. 
A) The lower the partial productivity ratio, the greater the productivity. 
B) Productivity has increased when the partial productivity is high. 
C) Prices of inputs are incorporated in the partial productivity ratio. 
D) The partial productivity ratio measures the number of outputs produced per multiple input.

Question 19

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 cost effect of the growth component?

Accepted Answer

A) $60,000 U 
B) $140,000 F 
C) $60,000 F 
D) $200,000 F 
A) $60,000 U 
B) $140,000 F 
C) $60,000 F 
D) $200,000 F

Question 20

The partial productivity of overhead resources can be measured by considering the cost driver as:

Accepted Answer

A) budgeted input 
B) the denominator 
C) the fixed input 
D) the numerator 
A) budgeted input 
B) the denominator 
C) the fixed input 
D) the numerator

Surveys of employee satisfaction is an example of a balanced-scorecard measure of the:

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

Describe three key components in performing a strategic analysis of operating income.

The average number of student credit hours taught per faculty member is an example of a(n):

Partial productivity multiplied by the quantity of input used results in:

Measures of the balanced scorecard's learning-and-growth perspective include all of the following EXCEPT:

Product differentiation is an organization''s ability to offer products or services perceived by its customers to be superior and unique relative to the products or services of its competitors.

The balanced scorecard measures an organization's performance from all of the following perspectives EXCEPT:

Measures of the balanced scorecard's learning-and-growth perspective include:

Downsizing discretionary costs is easier than downsizing engineered costs.

The lower the inputs for a given set of outputs or the higher the outputs for a given set of inputs, the higher the level of:

The first step to successful balanced scorecard implementation is clarifying the:

Rightsizing is another term for:

Which of the following statements is true?

The partial productivity of overhead resources can be measured by considering the cost driver as:

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

Surveys of employee satisfaction is an example of a balanced-scorecard measure of the:

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

Describe three key components in performing a strategic analysis of operating income.

The average number of student credit hours taught per faculty member is an example of a(n):

Partial productivity multiplied by the quantity of input used results in:

Measures of the balanced scorecard's learning-and-growth perspective include all of the following EXCEPT:

Product differentiation is an organization''s ability to offer products or services perceived by its customers to be superior and unique relative to the products or services of its competitors.

The balanced scorecard measures an organization's performance from all of the following perspectives EXCEPT:

Measures of the balanced scorecard's learning-and-growth perspective include:

Downsizing discretionary costs is easier than downsizing engineered costs.

The lower the inputs for a given set of outputs or the higher the outputs for a given set of inputs, the higher the level of:

The first step to successful balanced scorecard implementation is clarifying the:

Rightsizing is another term for:

Which of the following statements is true?

The partial productivity of overhead resources can be measured by considering the cost driver as:

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