Question 1

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

Accepted Answer

An engineered cost results from a cause-

Question 2

Which of the following is a major advantage of total factor productivity?

Accepted Answer

A) It measures the combined productivity of all inputs. 
B) The control operations personnel have over inputs. 
C) The control operations personnel have over outputs. 
D) The marketing mix determined by management. 
E) It is easy for operations personnel to understand. 
A) It measures the combined productivity of all inputs. 
B) The control operations personnel have over inputs. 
C) The control operations personnel have over outputs. 
D) The marketing mix determined by management. 
E) It is easy for operations personnel to understand.

Question 3

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

Accepted Answer

It is relatively easy for a company to r

Question 4

In general,profit potential increases with greater competition,stronger potential entrants,products that are similar,and tougher customers and suppliers.

Accepted Answer

A) True 
 B)False

Question 5

Total factor productivity (TFP)is easy to compute for a single-product company.When dealing with a multiproduct company,one of two adjustments must be made.What are these potential adjustments?

Accepted Answer

One of the following two adjustments mus

Question 6

Learning and growth perspective identifies the capabilities in which the organization must excel to achieve superior internal processes that create value for customers and shareholders.

Accepted Answer

A) True 
 B)False

Question 7

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 net increase in operating income as a result of the price-recovery component?

Accepted Answer

A) $179,000 favourable 
B) $179,000 unfavourable 
C) $182,000 unfavourable 
D) $20,000 favourable 
E) $20,000 unfavourable 
A) $179,000 favourable 
B) $179,000 unfavourable 
C) $182,000 unfavourable 
D) $20,000 favourable 
E) $20,000 unfavourable

Question 8

Answer the following questions using the information below:
Riter Corporation manufactures water toys.It plans to grow by producing high-quality water toys at a low cost that are delivered in a timely manner.There are a number of other manufacturers who produce similar water toys.Riter believes that continuously improving its manufacturing processes are critical to implementing its strategy.
-To execute the company strategy,measures on the balanced scorecard would most likely include the

Accepted Answer

A) number of process improvements. 
B) price premium earned. 
C) market share. 
D) the amount invested in new product features. 
E) employee satisfaction. 
A) number of process improvements. 
B) price premium earned. 
C) market share. 
D) the amount invested in new product features. 
E) employee satisfaction.

Question 9

Granger 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 Granger 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 Granger Electronics over the 3 month period.

Accepted Answer

Note responses may be in short formal re

Question 10

Which of the following statements is TRUE concerning productivity measures?

Accepted Answer

A) Both the partial productivity and total factor productivity measures have the same weaknesses,but each has different strengths as a measure. 
B) Both the partial productivity and total factor productivity measures have the same strengths,but each has different weaknesses as a measure. 
C) Both the partial productivity and total factor productivity measures have the same strengths,and the same weaknesses as a measure. 
D) The weaknesses of the partial productivity measure are the strengths of the total factor productivity measure. 
E) The strengths and weakness in the measurements of the partial productivity measure are the strengths of the total factor productivity measures are completely unrelated to each other. 
A) Both the partial productivity and total factor productivity measures have the same weaknesses,but each has different strengths as a measure. 
B) Both the partial productivity and total factor productivity measures have the same strengths,but each has different weaknesses as a measure. 
C) Both the partial productivity and total factor productivity measures have the same strengths,and the same weaknesses as a measure. 
D) The weaknesses of the partial productivity measure are the strengths of the total factor productivity measure. 
E) The strengths and weakness in the measurements of the partial productivity measure are the strengths of the total factor productivity measures are completely unrelated to each other.

Question 11

Successful reengineering involves all of the following EXCEPT

Accepted Answer

A) cutting across functional lines to focus on the entire business process. 
B) redefining the roles and responsibilities of employees. 
C) using information technology. 
D) entering new geographic markets. 
E) improving customer satisfaction. 
A) cutting across functional lines to focus on the entire business process. 
B) redefining the roles and responsibilities of employees. 
C) using information technology. 
D) entering new geographic markets. 
E) improving customer satisfaction.

Question 12

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 net effect on operating income as a result of the productivity component?

Accepted Answer

a.52,500 × 150,000/50,000 = 15

Question 13

Which of the following is NOT a force that shapes an organization's competitive environment?

Accepted Answer

A) competitors 
B) equivalent products 
C) bargaining power of customers 
D) government regulation 
E) potential entrants into the market 
A) competitors 
B) equivalent products 
C) bargaining power of customers 
D) government regulation 
E) potential entrants into the market

Question 14

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:
Present the following,
a.The change in operating income from cost leadership.
b.The change in operating income due to industry wide effects.
c.The effect of product differentiation on operating income and a summarization of the change in operating income between Year 1 to Year 2.

Accepted Answer

a.Change in operating income from cost l

Question 15

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 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?

Accepted Answer

a.($400 × 5,000)- (($40 × 15,0

Question 16

Total factor productivity (TFP)is the ratio of the quantity of output produced to the costs of all inputs used,where the inputs are combined on the basis of current period prices.

Accepted Answer

A) True 
 B)False

Question 17

________ measures the relationship between actual inputs used and actual outputs achieved.

Accepted Answer

A) Total factor productivity 
B) Partial productivity 
C) Productivity 
D) Product yield variance 
E) Labour yield 
A) Total factor productivity 
B) Partial productivity 
C) Productivity 
D) Product yield variance 
E) Labour yield

Question 18

________ 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.

Accepted Answer

A) Strategy 
B) Customer perspective 
C) Learning and growth perspective 
D) Reengineering 
E) Product differentiation 
A) Strategy 
B) Customer perspective 
C) Learning and growth perspective 
D) Reengineering 
E) Product differentiation

Question 19

Use the information below to answer the following question(s).
Following a strategy of product differentiation,Electronics Inc.makes a hand held calculator,II300.Electronics Inc.presents the following data for the years 1 and 2:
   Electronics Inc.produces no defective units but it wants to reduce direct materials usage per unit of II300 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of II300 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.Electronics 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 $6 increase in unit selling price,$2 is due to a general increase in prices.
-Required:
a.What amount is the revenue effect of the price-recovery component?
b.What amount is the cost effect of the price-recovery component?
c.What is the net change in operating income as a result of the price-recovery component?

Accepted Answer

a.($46 - $40)× 55,000 = $330,000 (F)
b.(

Question 20

Justine Ltd.provided the following information.
 
What is the partial productivity ratio?

Accepted Answer

A) 0.72 unit per kilogram 
B) 0.75 units per kilogram 
C) 1.34 units per kilogram 
D) 1.12 units per kilogram 
E) 0.78 units per kilogram 
A) 0.72 unit per kilogram 
B) 0.75 units per kilogram 
C) 1.34 units per kilogram 
D) 1.12 units per kilogram 
E) 0.78 units per kilogram

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

Which of the following is a major advantage of total factor productivity?

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

In general,profit potential increases with greater competition,stronger potential entrants,products that are similar,and tougher customers and suppliers.

Total factor productivity (TFP)is easy to compute for a single-product company.When dealing with a multiproduct company,one of two adjustments must be made.What are these potential adjustments?

Learning and growth perspective identifies the capabilities in which the organization must excel to achieve superior internal processes that create value for customers and shareholders.

Which of the following statements is TRUE concerning productivity measures?

Successful reengineering involves all of the following EXCEPT

Which of the following is NOT a force that shapes an organization's competitive environment?

Total factor productivity (TFP)is the ratio of the quantity of output produced to the costs of all inputs used,where the inputs are combined on the basis of current period prices.

________ measures the relationship between actual inputs used and actual outputs achieved.

________ 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.

Justine Ltd.provided the following information. What is the partial productivity ratio?

The Accountants Vital Role in Decision Making

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets,variances,and Management Control: I

Flexible Budgets,variances,and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Analysis of Cost Behaviour

Decision Making and Relevant Information

Pricing Decisions, product Profitability Decisions, and Cost Management

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, rework, and Scrap

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters

Exam 13: Strategy,balanced Scorecard,and Profitability Analysis

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

Which of the following is a major advantage of total factor productivity?

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

In general,profit potential increases with greater competition,stronger potential entrants,products that are similar,and tougher customers and suppliers.

Total factor productivity (TFP)is easy to compute for a single-product company.When dealing with a multiproduct company,one of two adjustments must be made.What are these potential adjustments?

Learning and growth perspective identifies the capabilities in which the organization must excel to achieve superior internal processes that create value for customers and shareholders.

Which of the following statements is TRUE concerning productivity measures?

Successful reengineering involves all of the following EXCEPT

Which of the following is NOT a force that shapes an organization's competitive environment?

Total factor productivity (TFP)is the ratio of the quantity of output produced to the costs of all inputs used,where the inputs are combined on the basis of current period prices.

________ measures the relationship between actual inputs used and actual outputs achieved.

________ 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.

Justine Ltd.provided the following information. What is the partial productivity ratio?

The Accountants Vital Role in Decision Making

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets,variances,and Management Control: I

Flexible Budgets,variances,and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Analysis of Cost Behaviour

Decision Making and Relevant Information

Pricing Decisions, product Profitability Decisions, and Cost Management

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, rework, and Scrap

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters