Exam 13: Strategy,balanced Scorecard,and Profitability Analysis

Power Company has been unhappy with the financial accounting variances that its cost accounting system has been producing,because its managers believe that there is more to evaluating an operation than just examining accounting numbers.Therefore,it has started gathering data to assist in the examination of nonfinancial results of operations.The following information relates to the manufacture of remote control units for televisions,radios,and stereo components. Required: a.What is the partial productivity of direct materials for each year? b.What is the partial productivity of direct manufacturing labour for each year? c.Did each area improve between year 1 and year 2? Explain. d.What will be the projected direct material and labour needs for year 3 if remote control units increase by 6,000 units,assuming Power Company applies the constant returns to scale technology?

Westcoast Ltd.provided the following information: What is the total factor productivity ratio?

Cost leadership is an organization's ability to offer products or services that are perceived by its own customers as being superior and unique relative to those of its competitors.

Measures of the balanced scorecard's financial perspective include all of the following EXCEPT

An analysis of Gardner Corporation's operating income changes between Year 1 and Year 2 show the following: Required: Is Gardner's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly.

Which of the following is a feature of a good balanced scorecard?

Unused capacity is difficult to determine for

Ranger Electronics Ltd.manufactures a variety of high quality electronic components.Data from the last three months are presented below: You are the new assistant controller for Ranger and the controller has asked you to review the performance over the last 3 months and write a summary analysis with your recommendations for follow up or further monitoring.In addition,the controller notes that the company,although it has many detailed performance measures,is considering implementing a balanced scorecard and asks you to identify the measures you think would be most appropriate to include in the balanced scorecard. Required: Evaluate the performance of Ranger Electronics over the 3 month period.

Use the information below to answer the following question(s). Following a strategy of product differentiation,Barry Company makes an XX 300.Barry Company presents the following data for the years 1 and 2. Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 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.Neither conversion costs or customer-service costs are affected by changes in actual volume.Barry Company has 23 customers in year 1 and 25 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2. -What is the Barry Company's operating income in year 2?

Use the information below to answer the following question(s). Following a strategy of product differentiation,Barry Company makes an XX 300.Barry Company presents the following data for the years 1 and 2. Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 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.Neither conversion costs or customer-service costs are affected by changes in actual volume.Barry Company has 23 customers in year 1 and 25 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2. -What is the Barry Company's cost effect of growth component?

Use the information below to answer the following question(s). Following a strategy of product differentiation,Luke Company makes a high-end Appliance,AP15.Luke Company presents the following data for the years 1 and 2. Luke Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in year 2.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.Neither conversion costs or customer-service costs are affected by changes in actual volume.Luke Company has 46 customers in year 1 and 50 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2. -Referring to Luke Company,which of the following is a measure of the internal business process perspective?

Successful implementation of a cost leadership strategy will result in

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

Describe three key components in doing a strategic analysis of operating income.

Answer the following questions using the information below: Merrill Company makes a household appliance with model number X800.The goal for Year 2 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 X800 units that can be produced.The industry market size for appliances increased 5% from Year 1 to Year 2.The following additional data are available for Years 1 and 2: -What is the Merrill Company's cost effect of the growth component for direct materials?

Surveys of employee satisfaction is a potential measure of the

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

The return-on-investment ratio is an example of a scorecard measure under the

Which of the following statements is TRUE concerning productivity?

Research and development cost is an example of an engineered cost.