Answer the following questions using the information below: Following a strategy of product differentiation,Platypus Company makes a high-end appliance,AP15.Platypus Company presents the following data for the years 2017 and 2018: \[\begin{array} { l r r } & 2017 & 2018 \\ \text { Units of AP15 produced and sold } & 20000 & 21000 \\ \text { Selling price } & \$ 200 & \$ 220 \\ \text { Direct materials (square metres) } & 60000 & 61500 \\ \text { Direct materials costs per square metre } & \$ 20 & \$ 22 \\ \text { Manufacturing capacity in urits of AP15 } & 25000 & 25000 \\ \text { Total conversion costs } & \$ 1000000 & \$ 1110000 \\ \text { Conversion costs per unit of capacity } & \$ 40 & \$ 44 \\ \text { Selling and customer-service capacity (customers) } & 60 & 58 \\ \text { Total selling and customer-service costs } & \$ 360000 & \$ 362500 \\ \text { Selling and customer-service capacity cost per customer } & \$ 6000 & \$ 6250 \end{array}\] Platypus Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in 2019.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.Platypus Company has 46 customers in 2017 and 50 customers in 2018.The industry market size for high-end appliances increased 5% from 2017 to 2018. -What is the net effect on operating profit as a result of the price-recovery component?

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

Answer the following questions using the information below: Mitsufugi Company makes a kitchen appliance with model number KA450.The goal for 2018 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 KA450 units that can be produced.The industry market size for appliances increased 5% from 2017 to 2018.The following additional data are available for 2017 and 2018: \[\begin{array} { l r r } & 2017 & 2018 \\ \text { Units of KA450 produced and sold } & 10000 & 10300 \\ \text { Selling price } & \$ 150 & \$ 145 \\ \text { Direct materials (square metres) } & 30000 & 29000 \\ \text { Direct material costs per square metres } & \$ 12 & \$ 13 \\ \text { Manufacturing capacity for KA450 (units) } & 12500 & 12000 \\ \text { Total manufacturing conversion costs } & \$ 250000 & \$ 240000 \\ \text { Manufacturing conversion costs per unit of capacity } & \$ 20 & \$ 20 \end{array}\] -What is the net effect on operating profit as a result of the price-recovery component?

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

Exam 15: Strategy Formation, Strategic Control and the Balanced Scorecard

Interactive control systems relate to _________ uncertainties and focus managers' attention and learning on key strategic issues.

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

A

Managers at Chipset need to make strategic decisions.What are the five steps that the managers use to make the decision? _ _

Free

(Essay)

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Question 2

Correct Answer:

Verified

Five steps guide for making strategic decisions are:
1.Identify the problem.
2.Gather relevant information.
3.Identify and evaluate potential courses of action.
4.Make and implement decisions.
5.Evaluate performance,and learn.

Answer the following questions using the information below: Following a strategy of product differentiation,Platypus Company makes a high-end appliance,AP15.Platypus Company presents the following data for the years 2017 and 2018: 2017 2018 Units of AP15 produced and sold 20000 21000 Selling price \ 200 \ 220 Direct materials (square metres) 60000 61500 Direct materials costs per square metre \ 20 \ 22 Manufacturing capacity in urits of AP15 25000 25000 Total conversion costs \ 1000000 \ 1110000 Conversion costs per unit of capacity \ 40 \ 44 Selling and customer-service capacity (customers) 60 58 Total selling and customer-service costs \ 360000 \ 362500 Selling and customer-service capacity cost per customer \ 6000 \ 6250 Platypus Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in 2019.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.Platypus Company has 46 customers in 2017 and 50 customers in 2018.The industry market size for high-end appliances increased 5% from 2017 to 2018. -What is the net effect on operating profit as a result of the price-recovery component?

Free

(Multiple Choice)

4.8/5

(75)

Question 3

Correct Answer:

Verified

A

_______________ control systems diagnose whether or not performance is up to expectations.

(Multiple Choice)

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Question 4

Bledisloe Corporation plans to grow by offering an audio-visual training programme,the Rugger2018 that is superior and unique from the competition.Bledisloe believes that putting additional resources into R&D and staying ahead of the competition with technological innovations are critical to implementing its strategy. Required: a.Is Bledisloe's strategy one of product differentiation or cost leadership? Explain briefly. b.Identify at least one key element that you would expect to see included in the balanced scorecard: - for the financial perspective. - for the customer perspective. - for the internal business process perspective. - for the learning and growth perspective. _ _

(Essay)

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Question 5

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

(Multiple Choice)

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Question 6

What does senior management most often use to exercise diagnostic control?

(Multiple Choice)

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Question 7

Although the ___________ benefits of these long-run changes might not show up immediately in short-run earnings,strong improvements in non-financial measures usually presage the creation of future economic value.

(Multiple Choice)

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Question 8

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

(Multiple Choice)

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Question 9

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

(Multiple Choice)

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Question 10

Total factor productivity (TFP)is easy to calculate for a single-product company.When dealing with a multi-product company,one of two adjustments must be made.What are these adjustments? _ _

(Essay)

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Question 11

In general,profit potential increases with greater competition,stronger potential entrants,products that are similar,and tougher customers and suppliers.

(True/False)

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Question 12

One of the two basic strategies for a business is achieving market leadership.

(True/False)

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Question 13

Answer the following questions using the information below: Following a strategy of product differentiation,Platypus Company makes a high-end appliance,AP15.Platypus Company presents the following data for the years 2017 and 2018: 2017 2018 Units of AP15 produced and sold 20000 21000 Selling price \ 200 \ 220 Direct materials (square metres) 60000 61500 Direct materials costs per square metre \ 20 \ 22 Manufacturing capacity in urits of AP15 25000 25000 Total conversion costs \ 1000000 \ 1110000 Conversion costs per unit of capacity \ 40 \ 44 Selling and customer-service capacity (customers) 60 58 Total selling and customer-service costs \ 360000 \ 362500 Selling and customer-service capacity cost per customer \ 6000 \ 6250 Platypus Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in 2019.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.Platypus Company has 46 customers in 2017 and 50 customers in 2018.The industry market size for high-end appliances increased 5% from 2017 to 2018. -What is the revenue effect of the growth component?

(Multiple Choice)

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(81)

Question 14

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

(True/False)

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Question 15

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

(Multiple Choice)

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Question 16

Employee satisfaction is a measure of the internal business perspective of the balanced scorecard.

(True/False)

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Question 17

Answer the following questions using the information below: Mitsufugi Company makes a kitchen appliance with model number KA450.The goal for 2018 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 KA450 units that can be produced.The industry market size for appliances increased 5% from 2017 to 2018.The following additional data are available for 2017 and 2018: 2017 2018 Units of KA450 produced and sold 10000 10300 Selling price \ 150 \ 145 Direct materials (square metres) 30000 29000 Direct material costs per square metre \ 12 \ 13 Manufacturing capacity for KA450 (units) 12500 12000 Total conversion costs \ 250000 \ 240000 Conversion costs per unit of capacity \ 20 \ 20 -What is operating profit for 2018?

(Multiple Choice)

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(89)

Question 18

Engineered costs have no measurable cause-and-effect relationship between output and resources used.

(True/False)

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Question 19

Answer the following questions using the information below: Mitsufugi Company makes a kitchen appliance with model number KA450.The goal for 2018 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 KA450 units that can be produced.The industry market size for appliances increased 5% from 2017 to 2018.The following additional data are available for 2017 and 2018: 2017 2018 Units of KA450 produced and sold 10000 10300 Selling price \ 150 \ 145 Direct materials (square metres) 30000 29000 Direct material costs per square metres \ 12 \ 13 Manufacturing capacity for KA450 (units) 12500 12000 Total manufacturing conversion costs \ 250000 \ 240000 Manufacturing conversion costs per unit of capacity \ 20 \ 20 -What is the net effect on operating profit as a result of the price-recovery component?

(Multiple Choice)

4.9/5

(72)

Question 20

Interactive control systems relate to _________ uncertainties and focus managers' attention and learning on key strategic issues.

Managers at Chipset need to make strategic decisions.What are the five steps that the managers use to make the decision? _ _

_______________ control systems diagnose whether or not performance is up to expectations.

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

What does senior management most often use to exercise diagnostic control?

Although the ___________ benefits of these long-run changes might not show up immediately in short-run earnings,strong improvements in non-financial measures usually presage the creation of future economic value.

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

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

Total factor productivity (TFP)is easy to calculate for a single-product company.When dealing with a multi-product company,one of two adjustments must be made.What are these adjustments? _ _

In general,profit potential increases with greater competition,stronger potential entrants,products that are similar,and tougher customers and suppliers.

One of the two basic strategies for a business is achieving market leadership.

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

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

Employee satisfaction is a measure of the internal business perspective of the balanced scorecard.

Engineered costs have no measurable cause-and-effect relationship between output and resources used.

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Quality, Time and the Balanced Scorecard

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

Measuring and Reporting Sustainability

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