Exam 12: Strategy, balanced Scorecard, and Strategic Profitability Analysis

Engineered costs result from a cause-and-effect relationship between the cost driver output and the resources used to produce that output.

Which of the following statements is true of productivity factors?

The gross margin percentage is an example of the ________ measure of a balanced-scorecard.

________ is a measure of the balanced scorecard's learning-and-growth perspective.

Executive training costs is an example of ________.

Which of the following statements is true of productivity?

Total factor productivity will increase if ________.

Which of the following statements best relates to the balanced scorecard's learning and growth perspective?

Higher selling prices,rather than unique products or services,provide a competitive advantage for the cost leader companies.

Engineered costs ________.

The cost leadership strategy is for products and services that are similar to competitor's products and services.

Which of the following statements best define a product differentiation strategy?

The productivity component measures the amount by which operating income increases by using inputs efficiently to lower costs.

Answer the following questions using the information below: Argon Corp. had capacity to produce 15,000 units of L3 using 30,000 kg of direct materials. Argon produced 14,750 units of L3 by processing 27,500 kg of direct materials. Conversion cost per unit is $7.50. Argon can add or reduce manufacturing capacity in increments of 2,500 kgs. -What is the cost of unused capacity for conversion costs of Argon?

Eliminating excess capacity is an initiative to achieve the ________ perspective under a balanced scorecard.

Answer the following questions using the information below: Strategic Analysis of Profitability of Ransham Company: $\begin{array}{|l|l|l|l|l|l|}\hline&\text { Income } & \text { Revenueand } & \text { Revenueand } & & \\&\text { Statement } & \text { Cost Effects } & \text { Cost Effects of } & \text { Cost Effect of } & \text { Income } \\&&\text { of Growth } & \text { Price-Recovery } & \text { Productivity } & \text { Statement } \\\text { Amounts } & \text { Component } & \text { Component } & \text { Component } & \text { Amounts } \\&\text { in 2014 } & \text { in 2015 } & \text { in 2015 } & \text { in 2015 } & \text { in 2015 } \\\hline \text { Revenues }(\$) & 34,000 & 10,000 \mathrm{~F} & 1,000 \mathrm{U} & (\mathrm{b}) & (\mathrm{e}) \\\hline \text { Costs } & 23,500 & (\mathrm{a}) & 500 \mathrm{U} & \text { (c) } & 26,100 \\\hline \text { Operating } & & & & & \\\text { income } & 10,500 & 5,500 \mathrm{~F} & 1,500 \mathrm{U} & 2,400 \mathrm{~F} & \text { (d) } \\\hline\end{array}$ -What is the cost effect of the growth component (a)?

Which of the following is an example of process reengineering measure?

The financial perspective of the balanced scorecard identifies targeted customers and market segments and measures the company's success in these segments.

Which of the following statements is a valid argument for Argon to reduce its manufacturing capacity?

An organization that is using the cost leadership approach would ________.