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 productivity component?

A) Decreased operating profit due to direct material inefficiencies and capacity reduction. B) Increased operating profit due to direct material efficiencies only. C) Increased operating profit due to direct material efficiencies and capacity reduction. D) Decreased operating profit due to direct material inefficiencies only. A) Decreased operating profit due to direct material inefficiencies and capacity reduction. B) Increased operating profit due to direct material efficiencies only. C) Increased operating profit due to direct material efficiencies and capacity reduction. D) Decreased operating profit due to direct material inefficiencies only.

A) are physically observable activities. B) possess a high level of certainty. C) are usually large total amounts. D) have detailed processes. A) are physically observable activities. B) possess a high level of certainty. C) are usually large total amounts. D) have detailed processes.

A) is most difficult with discretionary costs. B) may include eliminating jobs. C) should be done within the context of a company's overall strategy. D) All of these answers are correct. A) is most difficult with discretionary costs. B) may include eliminating jobs. C) should be done within the context of a company's overall strategy. D) All of these answers are correct.

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 revenue effect of the price-recovery component?

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

An analysis of Yarra Corporation's operating profit changes between 2017 and 2018 show the following: \[\begin{array} { l r } \text { Operating profit for } 2017 & \$ 1000000 \\ \text { Add growth component } & 50000 \\ \text { Ded uct price-recovery component } & ( 30000 ) \\ \text { Add productivity component } & 120000 \\ \text { Operating profit for } 2018 & \$ 1140000 \end{array}\] Required: Is Yarra's operating profit gain consistent with the product differentiation or cost leadership strategy? Explain briefly. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Yarra's operating profit gain is consist

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

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 productivity component?

(Multiple Choice)

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Question 101

What is the primary purpose of the balanced scorecard? _ _

(Essay)

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Question 102

Discretionary costs:

(Multiple Choice)

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Question 103

Downsizing:

(Multiple Choice)

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Question 104

Answer the following questions using the information below: Barrier Reef Corporation manufactures jet skis.It plans to grow by producing high-quality jet skis at a low cost that are delivered in a timely manner.There are a number of other manufacturers who produce similar jet skis.Barrier Reef believes that continuously improving its manufacturing processes and having satisfied employees are critical to implementing its strategy. -To further company strategy,measures on the balanced scorecard would MOST likely include:

(Multiple Choice)

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Question 105

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 price-recovery component?

(Multiple Choice)

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Question 106

In contrast to a focal point,a ________ point is a strategic objective out of which many ties spur,resulting in the achievement of many strategic objectives.

(Multiple Choice)

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Question 107

Manly Company provided the following information: Budgeted input 24 000 litres Actual input 30 000 litres Budgeted production 10 000 units Actual production 9500 units What is the partial productivity ratio?

(Multiple Choice)

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Question 108

______ are the causal links between strategic objectives,and can be qualified as strong,moderate or weak.

(Multiple Choice)

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Question 109

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 cost effect of the growth component for direct materials?

(Multiple Choice)

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Question 110

An opportunity to evaluate the contribution that the strategic objective brings to the overall strategy is known as:

(Multiple Choice)

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Question 111

Orphan status represents an opportunity to evaluate the contribution that the strategic objective brings to the overall strategy.

(True/False)

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Question 112

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

(Multiple Choice)

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Question 113

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 -Which strategy is Mitsufugi Corporation pursuing?

(Multiple Choice)

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Question 114

Re-engineering is the fundamental rethinking and redesign of business processes to achieve improvements in critical measures of performance such as cost,quality,service,speed and customer satisfaction.

(True/False)

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Question 115

The balanced scorecard is said to be 'balanced' because it measures:

(Multiple Choice)

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Question 116

An analysis of Yarra Corporation's operating profit changes between 2017 and 2018 show the following: Operating profit for 2017 \ 1000000 Add growth component 50000 Ded uct price-recovery component (30000) Add productivity component 120000 Operating profit for 2018 \ 1140000 Required: Is Yarra's operating profit gain consistent with the product differentiation or cost leadership strategy? Explain briefly. _ _

(Essay)

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Question 117

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. -TasiAudio's strategy is:

(Multiple Choice)

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Question 118

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 cost effect of the growth component?

(Multiple Choice)

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Question 119

Managements of profit-seeking companies identify measures that are part of a cause-and-effect chain leading to financial outcomes.

(True/False)

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Question 120

What is the primary purpose of the balanced scorecard? _ _

Discretionary costs:

Downsizing:

In contrast to a focal point,a ________ point is a strategic objective out of which many ties spur,resulting in the achievement of many strategic objectives.

Manly Company provided the following information: Budgeted input 24 000 litres Actual input 30 000 litres Budgeted production 10 000 units Actual production 9500 units What is the partial productivity ratio?

______ are the causal links between strategic objectives,and can be qualified as strong,moderate or weak.

An opportunity to evaluate the contribution that the strategic objective brings to the overall strategy is known as:

Orphan status represents an opportunity to evaluate the contribution that the strategic objective brings to the overall strategy.

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

Re-engineering is the fundamental rethinking and redesign of business processes to achieve improvements in critical measures of performance such as cost,quality,service,speed and customer satisfaction.

The balanced scorecard is said to be 'balanced' because it measures:

Managements of profit-seeking companies identify measures that are part of a cause-and-effect chain leading to financial outcomes.

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

What is the primary purpose of the balanced scorecard? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Discretionary costs:

Downsizing:

In contrast to a focal point,a ________ point is a strategic objective out of which many ties spur,resulting in the achievement of many strategic objectives.

Manly Company provided the following information: Budgeted input 24 000 litres Actual input 30 000 litres Budgeted production 10 000 units Actual production 9500 units What is the partial productivity ratio?

______ are the causal links between strategic objectives,and can be qualified as strong,moderate or weak.

An opportunity to evaluate the contribution that the strategic objective brings to the overall strategy is known as:

Orphan status represents an opportunity to evaluate the contribution that the strategic objective brings to the overall strategy.

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

Re-engineering is the fundamental rethinking and redesign of business processes to achieve improvements in critical measures of performance such as cost,quality,service,speed and customer satisfaction.

The balanced scorecard is said to be 'balanced' because it measures:

Managements of profit-seeking companies identify measures that are part of a cause-and-effect chain leading to financial outcomes.

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

What is the primary purpose of the balanced scorecard? _ _