Question 1

List three benefits of a value chain perspective.

Accepted Answer

The answer of List three benefits of a value chain...

Question 2

Which of the following would be a lag measure?

Accepted Answer

A)  budget forecasts 
B)  sales per employee 
C)  plant investment 
D)  employee training hours 
A)  budget forecasts 
B)  sales per employee 
C)  plant investment 
D)  employee training hours B

Question 3

Unlike tangible products, services have the characteristic of perishability. This means that services

Accepted Answer

A)  may lose their value over time 
B)  may lose their value due to improper conservation 
C)  cannot be stored for future use 
D)  none of the above 
A)  may lose their value over time 
B)  may lose their value due to improper conservation 
C)  cannot be stored for future use 
D)  none of the above C

Question 4

Strategic-based performance measures are balanced measures. Give examples of four types of balanced measures.

Accepted Answer

There are lead and lag measures. Lead me

Question 5

_____ provide some idea of what to expect currently or in the near future.

Accepted Answer

A)  Trailing measures 
B)  Leading measures 
C)  Financial measures 
D)  All of the above 
A)  Trailing measures 
B)  Leading measures 
C)  Financial measures 
D)  All of the above

Question 6

Hugh, SA., recently evaluated its manufacturing process and determined the following about its main product: The manufacturing cycle efficiency (MCE) for the product is

Accepted Answer

A)  1.00 
B)  0.75 
C)  0.67 
D)  0.50 
A)  1.00 
B)  0.75 
C)  0.67 
D)  0.50

Question 7

Which of the following statements about a balanced scorecard is true?

Accepted Answer

A)  The balanced scorecard gives managers a perspective of the organization's performance using a recurring set of criteria. 
B)  The advantage of a balanced scorecard approach is that it can best be used as a single, comprehensive measure of corporate performance. 
C)  The advantage of a balanced scorecard approach is that it eliminates the need for management accounting data. 
D)  The advantage of a balanced scorecard approach is that it leads management to focus exclusively on critical downstream issues such as consumer demand, and away from lesser upstream issues such as design and production. 
A)  The balanced scorecard gives managers a perspective of the organization's performance using a recurring set of criteria. 
B)  The advantage of a balanced scorecard approach is that it can best be used as a single, comprehensive measure of corporate performance. 
C)  The advantage of a balanced scorecard approach is that it eliminates the need for management accounting data. 
D)  The advantage of a balanced scorecard approach is that it leads management to focus exclusively on critical downstream issues such as consumer demand, and away from lesser upstream issues such as design and production.

Question 8

Briefly discuss the three major categories of cost drivers and how they relate to an organization's internal value chain.

Accepted Answer

Although the most obvious cost drivers a

Question 9

_____ are outcome measures that are a result of past efforts.

Accepted Answer

A)  Objective measures 
B)  External measures 
C)  Financial measures 
D)  Lag measures 
A)  Objective measures 
B)  External measures 
C)  Financial measures 
D)  Lag measures

Question 10

Describe the basic features of the Balanced Scorecard.

Accepted Answer

The Balanced Scorecard is a strategic ma

Question 11

On-time delivery performance is calculated as follows:

Accepted Answer

A)  Orders delivered on time/Total number of orders delivered 
B)  Orders delivered on time/Total sales dollars 
C)  Orders delivered on time/Total production 
D)  Orders delivered/Orders delivered on time 
A)  Orders delivered on time/Total number of orders delivered 
B)  Orders delivered on time/Total sales dollars 
C)  Orders delivered on time/Total production 
D)  Orders delivered/Orders delivered on time

Question 12

Which of the following anticipates the emerging and potential needs of customers and creates new products and services to satisfy those needs?

Accepted Answer

A)  the innovation process 
B)  the operations process 
C)  the postsales process 
D)  none of the above 
A)  the innovation process 
B)  the operations process 
C)  the postsales process 
D)  none of the above

Question 13

When a computer company selects a mix of strategies in order to create sustainable competitive advantage, it is following a

Accepted Answer

A)  focusing strategy. 
B)  low-cost strategy. 
C)  differentiation strategy. 
D)  strategic positioning strategy. 
A)  focusing strategy. 
B)  low-cost strategy. 
C)  differentiation strategy. 
D)  strategic positioning strategy.

Question 14

_____ is the use of cost data to develop and identify superior strategies that will produce a sustainable competitive advantage.

Accepted Answer

A)  Strategic decision making 
B)  Strategic cost management 
C)  Competitive advantage 
D)  Customer value 
A)  Strategic decision making 
B)  Strategic cost management 
C)  Competitive advantage 
D)  Customer value

Question 15

Objectives for increasing revenue growth include

Accepted Answer

A)  adopting a new pricing strategy. 
B)  reducing the cost per unit. 
C)  eliminating nonvalue-added activities. 
D)  reducing distribution channel cost. 
A)  adopting a new pricing strategy. 
B)  reducing the cost per unit. 
C)  eliminating nonvalue-added activities. 
D)  reducing distribution channel cost.

Question 16

Define value chain. What is the relationship among a value chain, processes, and activities?

Accepted Answer

The value chain for a product or service

Question 17

Which of the following would be a lead measure?

Accepted Answer

A)  customer profitability 
B)  cost per employee 
C)  return on investment 
D)  employee training hours 
A)  customer profitability 
B)  cost per employee 
C)  return on investment 
D)  employee training hours

Question 18

When a computer company maintains the internal storage space for a lower price, it is following a

Accepted Answer

A)  focusing strategy. 
B)  low-cost strategy. 
C)  differentiation strategy. 
D)  strategic positioning strategy. 
A)  focusing strategy. 
B)  low-cost strategy. 
C)  differentiation strategy. 
D)  strategic positioning strategy.

Question 19

Clotheshound is a local clothing store in New England. Clotheshound has been experiencing increased competition form the national clothing chains. In an effort to improve performance, management intends to create a Balanced Scorecard. In a meeting, several measures were suggested by various managers.
Management has identified a key problem. Customers are taking too long to pay their department store's charge card bills, and the company has an abnormal amount of bad debts. If this problem were solved, the company would have far more cash to invest in store improvements. Investigation has revealed that much of the problem with late payments and unpaid bills is apparently due to disputes about incorrect charges on the customer bills. Incorrect charges usually occur because sales clerks enter data incorrectly on the charge account slip.
The performance measures suggested by the managers are given below:
Required:
   
a.
Build an integrated Balanced Scorecard using only performance measures suggested by the managers. You do not have to use all the measures, but build a Balanced Scorecard that reveals a strategy for dealing with the problems with accounts receivable and unsold merchandise.
b.
Construct a testable strategy by showing the causal links (with arrows) between measures in the different perspectives, and show whether the performance measure should show an increase or decrease.
c.
Assume that the company adopts the Balanced Scorecard. After operating for a year, there are improvements in some performance measures but not in others. What should management do next?

Accepted Answer

The answer of Clotheshound is a local clothing store in...

Question 20

Allegro Industries is planning to change its manufacturing plant by automating and installing a flexible manufacturing system. The company is also changing its performance measures as well as its operating procedures. In an effort to evaluate performance and determine where improvements can be made, management has gathered the following data relating to activities over the last four months:
Many of these measures are new and the president has asked you to interpret the results. Throughput is the time it takes to turn materials into a completed product. Delivery cycle time is the time between receiving an order and shipping the goods.
Required:
Using the performance measures given, do the following:
   
a.
Identify the areas where the company seems to be improving.
b.
Identify the areas where the company seems to be deteriorating.

Accepted Answer

The answer of Allegro Industries is planning to change its...

List three benefits of a value chain perspective.

Which of the following would be a lag measure?

Unlike tangible products, services have the characteristic of perishability. This means that services

Strategic-based performance measures are balanced measures. Give examples of four types of balanced measures.

_____ provide some idea of what to expect currently or in the near future.

Hugh, SA., recently evaluated its manufacturing process and determined the following about its main product: The manufacturing cycle efficiency (MCE) for the product is

Which of the following statements about a balanced scorecard is true?

Briefly discuss the three major categories of cost drivers and how they relate to an organization's internal value chain.

_____ are outcome measures that are a result of past efforts.

Describe the basic features of the Balanced Scorecard.

On-time delivery performance is calculated as follows:

Which of the following anticipates the emerging and potential needs of customers and creates new products and services to satisfy those needs?

When a computer company selects a mix of strategies in order to create sustainable competitive advantage, it is following a

_____ is the use of cost data to develop and identify superior strategies that will produce a sustainable competitive advantage.

Objectives for increasing revenue growth include

Define value chain. What is the relationship among a value chain, processes, and activities?

Which of the following would be a lead measure?

When a computer company maintains the internal storage space for a lower price, it is following a

Introduction to Management Accounting

An Introduction to Cost Terms and Concepts

Cost-Volume-Profit Analysis

Measuring Relevant Costs and Revenues for Decision-Making

Pricing Decisions and Profitability Analysis

Capital Investment Decisions

Cost Assignment

Activity-Based Costing

The Budgeting Process

Management Control Systems

Standard Costing and Variance Analysis

Divisional Financial Performance Measurement

Transfer Pricing in Divisionalized Companies

Cost Management

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Exam 15: Strategic Performance Management

List three benefits of a value chain perspective.

Which of the following would be a lag measure?

Unlike tangible products, services have the characteristic of perishability. This means that services

Strategic-based performance measures are balanced measures. Give examples of four types of balanced measures.

_____ provide some idea of what to expect currently or in the near future.

Hugh, SA., recently evaluated its manufacturing process and determined the following about its main product: The manufacturing cycle efficiency (MCE) for the product is

Which of the following statements about a balanced scorecard is true?

Briefly discuss the three major categories of cost drivers and how they relate to an organization's internal value chain.

_____ are outcome measures that are a result of past efforts.

Describe the basic features of the Balanced Scorecard.

On-time delivery performance is calculated as follows:

Which of the following anticipates the emerging and potential needs of customers and creates new products and services to satisfy those needs?

When a computer company selects a mix of strategies in order to create sustainable competitive advantage, it is following a

_____ is the use of cost data to develop and identify superior strategies that will produce a sustainable competitive advantage.

Objectives for increasing revenue growth include

Define value chain. What is the relationship among a value chain, processes, and activities?

Which of the following would be a lead measure?

When a computer company maintains the internal storage space for a lower price, it is following a

Introduction to Management Accounting

An Introduction to Cost Terms and Concepts

Cost-Volume-Profit Analysis

Measuring Relevant Costs and Revenues for Decision-Making

Pricing Decisions and Profitability Analysis

Capital Investment Decisions

Cost Assignment

Activity-Based Costing

The Budgeting Process

Management Control Systems

Standard Costing and Variance Analysis

Divisional Financial Performance Measurement

Transfer Pricing in Divisionalized Companies

Cost Management

Filters