An operating profit analysis of ACT Incorporated revealed the following: \[\begin{array} { l r } \text { Operating profit for } 2017 & \$ 500000 \\ \text { Add growth component } & 25000 \\ \text { Deduct price-recovery component } & ( 15000 ) \\ \text { Add productivity component } & 60000 \\ \text { Operating profit for } 2018 & \$ 570000 \end{array}\] ACT's operating profit gain is consistent with the:

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

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 the revenue effect of the growth component? b.What is the cost effect of the growth component? c.What is the net effect on operating profit as a result of the growth component? _____________________________________________________________________________________________ _____________________________________________________________________________________________

a.(5500 - 5000)× $400 = $200 0

Grebe Company provided the following information: \[\begin{array} { l l } \text { Budgeted input } & 39000 \text { litres } \\ \text { Actual input } & 35800 \text { litres } \\ \text { Budgeted production } & 40000 \text { units } \\ \text { Actual production } & 38000 \text { units } \end{array}\] What is the partial productivity ratio?

A) 1.02 units per litre B) 0.97 units per litre C) 1.06 units per litre D) 1.12 units per litre A) 1.02 units per litre B) 0.97 units per litre C) 1.06 units per litre D) 1.12 units per litre

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

A product differentiation strategy is probably best for a company if the engineering team is more skilled at making process improvements than at creatively designing new products.

(True/False)

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Question 141

Which of the following is NOT a measure of the balanced scorecard's financial perspective?

(Multiple Choice)

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Question 142

An operating profit analysis of ACT Incorporated revealed the following: Operating profit for 2017 \ 500000 Add growth component 25000 Deduct price-recovery component (15000) Add productivity component 60000 Operating profit for 2018 \ 570000 ACT's operating profit gain is consistent with the:

(Multiple Choice)

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Question 143

What is rightsizing another term for?

(Multiple Choice)

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Question 144

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 growth component? b.What is the cost effect of the growth component? c.What is the net effect on operating profit as a result of the growth component? _ _

(Essay)

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Question 145

What is re-engineering? Explain. _ _

(Essay)

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Question 146

Managers need to evaluate the success of a strategy by:

(Multiple Choice)

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Question 147

Define engineered and discretionary costs and give two examples of each. _ _

(Essay)

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Question 148

Which of the following need to be clarified FIRST for successful balanced scorecard implementation?

(Multiple Choice)

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Question 149

_______________ companies set aggressive environmental goals,and measure and report their performance against them.

(Multiple Choice)

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Question 150

The balanced scorecard uses only financial performance measures to evaluate short-run and long-run performance.

(True/False)

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Question 151

Limiting the number of measures focuses managers' attention on those that most affect strategy implementation.

(True/False)

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Question 152

What is the direct manufacturing labour partial productivity,assuming 40 000 units were produced during 2018 and 160 000 direct manufacturing labour-hours were used?

(Multiple Choice)

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Question 153

Managers can coordinate beliefs and boundary systems to simultaneously stimulate search activity and avoid risks,while communicating vision and strategic domain.

(True/False)

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Question 154

A _____________ is a diagram that shows how an organisation creates value by connecting strategic objectives in explicit cause-and-effect relationships with one another in the financial,customer,internal-business-process and learning-and-growth perspectives.

(Multiple Choice)

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Question 155

Grebe Company provided the following information: Budgeted input 39000 litres Actual input 35800 litres Budgeted production 40000 units Actual production 38000 units What is the partial productivity ratio?

(Multiple Choice)

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Question 156

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 change in operating profit from 2017 to 2018?

(Multiple Choice)

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Question 157

A product differentiation strategy is probably best for a company if the engineering team is more skilled at making process improvements than at creatively designing new products.

Which of the following is NOT a measure of the balanced scorecard's financial perspective?

An operating profit analysis of ACT Incorporated revealed the following: Operating profit for 2017 \ 500000 Add growth component 25000 Deduct price-recovery component (15000) Add productivity component 60000 Operating profit for 2018 \ 570000 ACT's operating profit gain is consistent with the:

What is rightsizing another term for?

What is re-engineering? Explain. _ _

Managers need to evaluate the success of a strategy by:

Define engineered and discretionary costs and give two examples of each. _ _

Which of the following need to be clarified FIRST for successful balanced scorecard implementation?

_______________ companies set aggressive environmental goals,and measure and report their performance against them.

The balanced scorecard uses only financial performance measures to evaluate short-run and long-run performance.

Limiting the number of measures focuses managers' attention on those that most affect strategy implementation.

What is the direct manufacturing labour partial productivity,assuming 40 000 units were produced during 2018 and 160 000 direct manufacturing labour-hours were used?

Managers can coordinate beliefs and boundary systems to simultaneously stimulate search activity and avoid risks,while communicating vision and strategic domain.

A _____________ is a diagram that shows how an organisation creates value by connecting strategic objectives in explicit cause-and-effect relationships with one another in the financial,customer,internal-business-process and learning-and-growth perspectives.

Grebe Company provided the following information: Budgeted input 39000 litres Actual input 35800 litres Budgeted production 40000 units Actual production 38000 units What is the partial productivity ratio?

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

A product differentiation strategy is probably best for a company if the engineering team is more skilled at making process improvements than at creatively designing new products.

Which of the following is NOT a measure of the balanced scorecard's financial perspective?

An operating profit analysis of ACT Incorporated revealed the following: Operating profit for 2017 \ 500000 Add growth component 25000 Deduct price-recovery component (15000) Add productivity component 60000 Operating profit for 2018 \ 570000 ACT's operating profit gain is consistent with the:

What is rightsizing another term for?

What is re-engineering? Explain. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Managers need to evaluate the success of a strategy by:

Define engineered and discretionary costs and give two examples of each. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Which of the following need to be clarified FIRST for successful balanced scorecard implementation?

_______________ companies set aggressive environmental goals,and measure and report their performance against them.

The balanced scorecard uses only financial performance measures to evaluate short-run and long-run performance.

Limiting the number of measures focuses managers' attention on those that most affect strategy implementation.

What is the direct manufacturing labour partial productivity,assuming 40 000 units were produced during 2018 and 160 000 direct manufacturing labour-hours were used?

Managers can coordinate beliefs and boundary systems to simultaneously stimulate search activity and avoid risks,while communicating vision and strategic domain.

A _____________ is a diagram that shows how an organisation creates value by connecting strategic objectives in explicit cause-and-effect relationships with one another in the financial,customer,internal-business-process and learning-and-growth perspectives.

Grebe Company provided the following information: Budgeted input 39000 litres Actual input 35800 litres Budgeted production 40000 units Actual production 38000 units What is the partial productivity ratio?

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 re-engineering? Explain. _ _

Define engineered and discretionary costs and give two examples of each. _ _