An analysis of Didgeridoo Corporation's operating profit changes between 2017 and 2018 show the following: \[\begin{array} { l r } \text { Operating profit for } 2017 & \$ 1000000 \\ \text { Add growth component } & 30000 \\ \text { Add price-recovery component } & 200000 \\ \text { Deduct prod uctivity component } & ( 10000 ) \\ \text { Operating profit for } 2018 & \$ 1220000 \end{array}\] Required: Is Didgeridoo's operating profit gain consistent with the product differentiation or cost leadership strategy? Explain briefly. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Didgeridoo's operating profit gain is co

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 cost effect of the price-recovery component?

A) $30 000 U B) $29 000 F C) $1000 F D) $30 900 U A) $30 000 U B) $29 000 F C) $1000 F D) $30 900 U

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

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 the revenue effect of the price-recovery component? b.What is the cost effect of the price-recovery component? c.What is the net effect on operating profit as a result of the price-recovery component? d.What is the net effect on operating profit as a result of the productivity component? _ _

(Essay)

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(73)

Question 81

The primary purpose of the balanced scorecard is to obtain increased operating profits for the current year.

(True/False)

4.9/5

(75)

Question 82

An analysis of Didgeridoo Corporation's operating profit changes between 2017 and 2018 show the following: Operating profit for 2017 \ 1000000 Add growth component 30000 Add price-recovery component 200000 Deduct prod uctivity component (10000) Operating profit for 2018 \ 1220000 Required: Is Didgeridoo's operating profit gain consistent with the product differentiation or cost leadership strategy? Explain briefly. _ _

(Essay)

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(82)

Question 83

Can a company identify unused capacity and,if so,how can unused capacity be managed? _ _

(Essay)

4.8/5

(84)

Question 84

Engineered costs may be variable or fixed in the short-run.

(True/False)

4.9/5

(75)

Question 85

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

(True/False)

4.8/5

(81)

Question 86

Coogee Company provided the following information: Budgeted input 19 500 litres Actual input 17 900 litres Budgeted production 20 000 units Actual production 19 000 units What is the partial productivity ratio?

(Multiple Choice)

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(69)

Question 87

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 the revenue effect of the growth component?

(Multiple Choice)

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(79)

Question 88

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 2017?

(Multiple Choice)

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Question 89

The balanced scorecard reduces managers' emphasis on short-run __________ performance (such as quarterly earnings)because the key strategic non-financial and operational indicators (such as product quality and customer satisfaction)measure changes that a company is making for the long run.

(Multiple Choice)

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Question 90

Which of the following statements concerning the balanced scorecard is TRUE?

(Multiple Choice)

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Question 91

Strategic objectives that distinguish an organisation from its competitors,based on the organisation's strategy,are distinctive objectives.

(True/False)

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Question 92

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

(Multiple Choice)

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Question 93

Which of the following needs to happen in order to deal with unused capacity effectively?

(Multiple Choice)

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Question 94

What is an organisation's ability to offer products or services that are perceived by its customers as being superior and unique relative to those of its competitors called?

(Multiple Choice)

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(76)

Question 95

Excessive emphasis on __________ control systems and critical performance variables has the potential to cause an organisation to ignore emerging threats and opportunities.

(Multiple Choice)

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(74)

Question 96

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 cost effect of the price-recovery component?

(Multiple Choice)

4.8/5

(70)

Question 97

Answer the following questions using the information below: TasiAudio Corporation plans to grow by offering an audio-visual system,the AV-5000 which is superior and unique from the competition.TasiAudio believes that putting additional resources into R&D and staying ahead of the competition with technological innovations is critical to implementing its strategy. -To further company strategy,measures on the balanced scorecard would MOST likely include:

(Multiple Choice)

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(75)

Question 98

An organisation would do one of the following actions in demonstrating using the cost leadership approach.Which one?

(Multiple Choice)

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Question 99

A high level of uncertainty is represented in:

(Multiple Choice)

4.9/5

(77)

Question 100

The primary purpose of the balanced scorecard is to obtain increased operating profits for the current year.

Can a company identify unused capacity and,if so,how can unused capacity be managed? _ _

Engineered costs may be variable or fixed in the short-run.

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

Coogee Company provided the following information: Budgeted input 19 500 litres Actual input 17 900 litres Budgeted production 20 000 units Actual production 19 000 units What is the partial productivity ratio?

The balanced scorecard reduces managers' emphasis on short-run __________ performance (such as quarterly earnings)because the key strategic non-financial and operational indicators (such as product quality and customer satisfaction)measure changes that a company is making for the long run.

Which of the following statements concerning the balanced scorecard is TRUE?

Strategic objectives that distinguish an organisation from its competitors,based on the organisation's strategy,are distinctive objectives.

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

Which of the following needs to happen in order to deal with unused capacity effectively?

What is an organisation's ability to offer products or services that are perceived by its customers as being superior and unique relative to those of its competitors called?

Excessive emphasis on __________ control systems and critical performance variables has the potential to cause an organisation to ignore emerging threats and opportunities.

An organisation would do one of the following actions in demonstrating using the cost leadership approach.Which one?

A high level of uncertainty is represented in:

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

The primary purpose of the balanced scorecard is to obtain increased operating profits for the current year.

Can a company identify unused capacity and,if so,how can unused capacity be managed? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Engineered costs may be variable or fixed in the short-run.

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

Coogee Company provided the following information: Budgeted input 19 500 litres Actual input 17 900 litres Budgeted production 20 000 units Actual production 19 000 units What is the partial productivity ratio?

The balanced scorecard reduces managers' emphasis on short-run __________ performance (such as quarterly earnings)because the key strategic non-financial and operational indicators (such as product quality and customer satisfaction)measure changes that a company is making for the long run.

Which of the following statements concerning the balanced scorecard is TRUE?

Strategic objectives that distinguish an organisation from its competitors,based on the organisation's strategy,are distinctive objectives.

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

Which of the following needs to happen in order to deal with unused capacity effectively?

What is an organisation's ability to offer products or services that are perceived by its customers as being superior and unique relative to those of its competitors called?

Excessive emphasis on __________ control systems and critical performance variables has the potential to cause an organisation to ignore emerging threats and opportunities.

An organisation would do one of the following actions in demonstrating using the cost leadership approach.Which one?

A high level of uncertainty is represented in:

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

Can a company identify unused capacity and,if so,how can unused capacity be managed? _ _