Mt Pilbara Bicycles Company manufactures mountain bikes.Because its managers all have engineering backgrounds,they prefer non-financial information for their decision-making models.Therefore,they require the accountants gather data to assist in the examination of non-financial results of operations.The following information relates to the manufacture of the bicycles: \[\begin{array} { l r r } & 2017 & 2018 \\ \text { Units produced and sold } & 6800 & 5600 \\ \text { Direct manufacture labour-hours } & 68000 & 57600 \\ \text { Direct materials used (tonnes) } & 14500 & 12200 \\ \text { Direct manufacture cost per hour } & \$ 21 & \$ 22 \\ \text { Direct materials cost per tonne } & \$ 431 & \$ 443 \end{array}\] Required: a.What is the partial productivity for direct materials for each year? b.What is the partial productivity for direct manufacturing labour for each year? c.What is the total factor productivity for each year? _____________________________________________________________________________________________ _____________________________________________________________________________________________

a.Partial productivity of direct materia

An operating profit analysis of Deb Schmidt Ltd revealed the following: \[\begin{array} { l r } \text { Operating profit for } 2017 & \$ 500000 \\ \text { Add growth component } & 15000 \\ \text { Add price-recovery component } & 100000 \\ \text { Deduct productivity component } & ( 8000 ) \\ \text { Operating profit for } 2018 & \$ 607000 \end{array}\] Schmidt's operating profit gain is consistent with the:

A) re-engineering strategy. B) cost leadership strategy. C) downsizing strategy. D) product differentiation strategy. A) re-engineering strategy. B) cost leadership strategy. C) downsizing strategy. D) product differentiation strategy.

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 growth component?

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

A) are from physically observable activities. B) have processes that are sketchy or unavailable. C) possess a high level of uncertainty. D) are non-repetitive. A) are from physically observable activities. B) have processes that are sketchy or unavailable. C) possess a high level of uncertainty. D) are non-repetitive.

Following a strategy of product differentiation,Jitsubishi Corporation makes a high-end flat screen television monitor,TV04.Jitsubishi Corporation presents the following data for the years 2017 and 2018: \[\begin{array} { l r r } & 2017 & 2018 \\ \text { Units of TV04 produced and sold } & 5000 & 5500 \\ \text { Selling price } & \$ 400 & \$ 440 \\ \text { Direct materials (kilos) } & 15000 & 15375 \\ \text { Direct materials costs per kilo } & \$ 40 & \$ 44 \\ \text { Manufacturing capacity for TV04 (units) } & 10000 & 10000 \\ \text { Conversion costs } & \$ 1000000 & \$ 1100000 \\ \text { Conversion costs per unit of capacity } & \$ 100 & \$ 110 \\ \text { Selling and customer-service capacity (customers) } & 60 & 58 \\ \text { Total selling and customer-service costs } & \$ 360000 & \$ 362500 \\ \text { Selling and customer-service capacity cost per customer } & \$ 6000 & \$ 6250 \end{array}\] Jitsubishi Corporation produces no defective units but it wants to reduce direct materials usage per unit of TV04 in 2019.Manufacturing conversion costs in each year depend on production capacity defined in terms of TV04 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.Jitsubishi Corporation has 46 customers in 2017 and 50 customers in 2018.The industry market size for high-end flat screen television monitors increased 5% from 2017 to 2018. Required: a.What is operating profit for 2017? b.What is operating profit in 2018? c.What is the change in operating profit from 2017 to 2018? _____________________________________________________________________________________________ _____________________________________________________________________________________________

a.($400 × 5000)- [($40 × 15 00

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

Mt Pilbara Bicycles Company manufactures mountain bikes.Because its managers all have engineering backgrounds,they prefer non-financial information for their decision-making models.Therefore,they require the accountants gather data to assist in the examination of non-financial results of operations.The following information relates to the manufacture of the bicycles: 2017 2018 Units produced and sold 6800 5600 Direct manufacture labour-hours 68000 57600 Direct materials used (tonnes) 14500 12200 Direct manufacture cost per hour \ 21 \ 22 Direct materials cost per tonne \ 431 \ 443 Required: a.What is the partial productivity for direct materials for each year? b.What is the partial productivity for direct manufacturing labour for each year? c.What is the total factor productivity for each year? _ _

(Essay)

5.0/5

(92)

Question 21

An operating profit analysis of Deb Schmidt Ltd revealed the following: Operating profit for 2017 \ 500000 Add growth component 15000 Add price-recovery component 100000 Deduct productivity component (8000) Operating profit for 2018 \ 607000 Schmidt's operating profit gain is consistent with the:

(Multiple Choice)

4.8/5

(80)

Question 22

Which of the following is a measure of the balanced scorecard's financial perspective?

(Multiple Choice)

4.8/5

(70)

Question 23

Many managers recognise that good environmental and social performance helps to attract and inspire outstanding employees,improves employee safety and health,increases productivity and lowers operating costs.

(True/False)

4.9/5

(84)

Question 24

A high level of precision between resources used and output produced exists with:

(Multiple Choice)

4.9/5

(92)

Question 25

Identify and describe the three key components in performing a strategic analysis of operating profit. _ _

(Essay)

4.7/5

(78)

Question 26

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 growth component?

(Multiple Choice)

4.9/5

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Question 27

Manufacturing cycle efficiency is an example of a balanced-scorecard measure of the:

(Multiple Choice)

4.8/5

(63)

Question 28

Organisations with a long-run orientation emphasise environmental and social performance.

(True/False)

4.7/5

(82)

Question 29

Evans Corporation manufactures carbon bicycle frames.It plans to grow by producing high-quality carbon frames at a low cost that are delivered in a timely manner.There are a number of other manufacturers who produce similar carbon frames.Evans believes that continuously improving its manufacturing processes and having satisfied employees are critical to implementing its strategy. Required: a.Is Evans'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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(83)

Question 30

Engineered costs:

(Multiple Choice)

4.8/5

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Question 31

Identify the BEST description of the balanced scorecard's internal business processes perspective.To achieve our firm's vision and strategy:

(Multiple Choice)

4.8/5

(75)

Question 32

Following a strategy of product differentiation,Jitsubishi Corporation makes a high-end flat screen television monitor,TV04.Jitsubishi Corporation presents the following data for the years 2017 and 2018: 2017 2018 Units of TV04 produced and sold 5000 5500 Selling price \ 400 \ 440 Direct materials (kilos) 15000 15375 Direct materials costs per kilo \ 40 \ 44 Manufacturing capacity for TV04 (units) 10000 10000 Conversion costs \ 1000000 \ 1100000 Conversion costs per unit of capacity \ 100 \ 110 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 Jitsubishi Corporation produces no defective units but it wants to reduce direct materials usage per unit of TV04 in 2019.Manufacturing conversion costs in each year depend on production capacity defined in terms of TV04 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.Jitsubishi Corporation has 46 customers in 2017 and 50 customers in 2018.The industry market size for high-end flat screen television monitors increased 5% from 2017 to 2018. Required: a.What is operating profit for 2017? b.What is operating profit in 2018? c.What is the change in operating profit from 2017 to 2018? _ _

(Essay)

4.8/5

(93)

Question 33

The price-recovery component measures the increase in operating profit from selling more units of a product.

(True/False)

4.8/5

(94)

Question 34

Productivity measures the relationship between actual inputs used (both quantities and costs)and standard outputs produced.

(True/False)

4.8/5

(82)

Question 35

What is the direct manufacturing labour partial productivity,assuming 10 000 widgets were produced during 2018 and 40 000 direct manufacturing labour-hours were used?

(Multiple Choice)

4.9/5

(80)

Question 36

Measures of the balanced scorecard's internal-business-process perspective include:

(Multiple Choice)

4.8/5

(74)

Question 37

Managements of organisations are increasingly recognising that they must earn the right to operate in the communities and countries in which they do business.

(True/False)

4.8/5

(75)

Question 38

Unused capacity is difficult to determine for:

(Multiple Choice)

4.8/5

(79)

Question 39

Which of these statements is NOT true?

(Multiple Choice)

4.8/5

(69)

Question 40

An operating profit analysis of Deb Schmidt Ltd revealed the following: Operating profit for 2017 \ 500000 Add growth component 15000 Add price-recovery component 100000 Deduct productivity component (8000) Operating profit for 2018 \ 607000 Schmidt's operating profit gain is consistent with the:

Which of the following is a measure of the balanced scorecard's financial perspective?

Many managers recognise that good environmental and social performance helps to attract and inspire outstanding employees,improves employee safety and health,increases productivity and lowers operating costs.

A high level of precision between resources used and output produced exists with:

Identify and describe the three key components in performing a strategic analysis of operating profit. _ _

Manufacturing cycle efficiency is an example of a balanced-scorecard measure of the:

Organisations with a long-run orientation emphasise environmental and social performance.

Engineered costs:

Identify the BEST description of the balanced scorecard's internal business processes perspective.To achieve our firm's vision and strategy:

The price-recovery component measures the increase in operating profit from selling more units of a product.

Productivity measures the relationship between actual inputs used (both quantities and costs)and standard outputs produced.

What is the direct manufacturing labour partial productivity,assuming 10 000 widgets were produced during 2018 and 40 000 direct manufacturing labour-hours were used?

Measures of the balanced scorecard's internal-business-process perspective include:

Managements of organisations are increasingly recognising that they must earn the right to operate in the communities and countries in which they do business.

Unused capacity is difficult to determine for:

Which of these statements is NOT true?

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

Filters

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

An operating profit analysis of Deb Schmidt Ltd revealed the following: Operating profit for 2017 \ 500000 Add growth component 15000 Add price-recovery component 100000 Deduct productivity component (8000) Operating profit for 2018 \ 607000 Schmidt's operating profit gain is consistent with the:

Which of the following is a measure of the balanced scorecard's financial perspective?

Many managers recognise that good environmental and social performance helps to attract and inspire outstanding employees,improves employee safety and health,increases productivity and lowers operating costs.

A high level of precision between resources used and output produced exists with:

Identify and describe the three key components in performing a strategic analysis of operating profit. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Manufacturing cycle efficiency is an example of a balanced-scorecard measure of the:

Organisations with a long-run orientation emphasise environmental and social performance.

Engineered costs:

Identify the BEST description of the balanced scorecard's internal business processes perspective.To achieve our firm's vision and strategy:

The price-recovery component measures the increase in operating profit from selling more units of a product.

Productivity measures the relationship between actual inputs used (both quantities and costs)and standard outputs produced.

What is the direct manufacturing labour partial productivity,assuming 10 000 widgets were produced during 2018 and 40 000 direct manufacturing labour-hours were used?

Measures of the balanced scorecard's internal-business-process perspective include:

Managements of organisations are increasingly recognising that they must earn the right to operate in the communities and countries in which they do business.

Unused capacity is difficult to determine for:

Which of these statements is NOT true?

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

Filters

Identify and describe the three key components in performing a strategic analysis of operating profit. _ _