Exam 13: Strategy,balanced Scorecard,and Profitability Analysis

Lake Company manufactures small boats.Because its managers all have engineering backgrounds,they prefer nonfinancial information for their decision-making models.Therefore,they require the accountants gather data to assist in the examination of nonfinancial results of operations.The following information relates to the manufacture of a small boat. 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?

What is the primary purpose of the balanced scorecard?

Answer the following questions using the information below: Stewart Corporation plans to grow by offering a sound system,the SS3000,that is superior and unique from the competition.Stewart believes that putting additional resources into R&D and staying ahead of the competition with technological innovations is critical to implementing its strategy. -Stewart's strategy is

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

What is the direct manufacturing labour partial productivity,assuming 20,000 units were produced during the year and 80,000 direct manufacturing labour-hours were used?

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 financial perspective?

Downsizing is also called rightsizing.

The accounting scorecard translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for implementing its strategy.

________ measures the change in operating income attributable solely to changes in a company's profit margins between years one and two.

Identify and explain Porter's Five Forces model.

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 productivity component of change in operating income?

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 change in operating income from year 1 to year 2?

Grader Company manufactures road graders.Because its managers all have engineering backgrounds,it prefers nonfinancial information for its decision-making models.Therefore,it requires that the accountants gather data to assist in the examination of nonfinancial results of operations.The following information relates to the manufacture of a mobile paver: 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?

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 an objective of the learning and growth perspective?

________ measures the reduction in costs attributable to a reduction in the quantity of inputs used in year two relative to the quantity of inputs that would have been used in year one to produce the year two output.

Use the information below to answer the following question(s). Following a strategy of product differentiation,Instruments Inc.makes a hand held calculator,II400.Instruments Inc.presents the following data for the years 1 and 2: Instruments Inc.produces no defective units but it wants to reduce direct materials usage per unit of II400 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of II400 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.Instruments Inc.has 23 customers in year 1 and 25 customers in year 2.The industry market size for hand held calculators increased 5% from year 1 to year 2.Of the $4 increase in unit selling price,$1 is due to a general increase in prices. -Required: a.What is the operating income for Year 1? b.What is the operating income in Year 2? c.What is the change in operating income from Year 1 to Year 2?

Downsizing is an integrated approach to configure processes,products,and people to by match costs to the activities that need to be performed,to operate efficiently and effectively,now and in the future.

The growth component measures the increase in revenues minus the increase in costs from selling more units of a product.

Use the information below to answer the following question(s). Following a strategy of product differentiation,Despotovich Corporation makes a high-end Computer Monitor,CM12.Despotovich Corporation presents the following data for the years 1 and 2: Despotovich Corporation produces no defective units but it wants to reduce direct materials usage per unit of CM12 in Year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of CM12 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 nor customer-service costs are affected by changes in actual volume.Despotovich Corporation has 46 customers in Year 1 and 50 customers in Year 2 .The industry market size for high-end computer monitors increased 5% from Year 1 to Year 2.Of the $40 increase in unit selling price,$10 was attributable to a general increase in prices. -Required: a.What amount is the revenue effect of growth component? b.What amount is the cost effect of growth component? c.What is the change in operating income as a result of the 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. -What is the Luke Company's operating income in Year 2?