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

Answer the following questions using the information below: Following a strategy of product differentiation, Arseniq Company makes a high-end Appliance, XT15. Arseniq presents the following data for the years 2014 and 2015: 2014 2015 Units of XT15 produced and sold 50,000 52,500 Selling price \ 500 \ 550 Direct materials (square feet) 150,000 153,750 Direct materials costs per square foot \ 50 \ 55 Manufacturing capacity in units of XT15 62,500 62,500 Total conversion costs \ 6,250,000 \ 6,875,000 Conversion costs per unit of capacity \ 100 \ 110 Selling and customer-service capacity (customers) 150 150 Total selling and customer-service costs \ 2,250,000 \ 2,343,750 Selling and customer-service capacity cost per customer \ 15,000 \ 15,625 Arseniq produces no defective units but it wants to reduce direct materials usage per unit of XT15. Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 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. Arseniq had 140 customers in 2014 and 145 customers in 2015. -What is the net effect on operating income as a result of the price-recovery component?

Reengineering benefits are most significant when they focus on one business function rather than crossing functional lines of the business process.

Managers can reduce capacity-based fixed costs by measuring and managing ________.

Answer the following questions using the information below: Nicolt Company produced 120,000 sport jackets during 2015 and 480,000 direct manufacturing labor-hours were used at $2 per hour.The conversion costs were $1.2 per jackets produced. - What is the direct manufacturing labor partial productivity for Nicolt Company?

For each of the following measures,identify which perspective of the balanced scorecard it represents: financial,customer,internal-business-process,or learning-and growth. 1.service response time 2.market share 3.gross margin percentage 4.defect rates 5.customer satisfaction 6.information system availability 7.new-product development time 8.revenue growth 9.employee turnover rates 10.setup time

Answer the following questions using the information below: Crynton Company makes a household appliance with model number L800. The goal for 2015 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 L800 units that can be produced. The industry market size for appliances increased 5% from 2014 to 2015. The following additional data are available for 2014 and 2015: 2014 2015 Units of L800 produced and sold 30,000 31,500 Selling price \ 300 \ 285 Direct materials (square feet) 90,000 87,000 Direct material costs per square foot \ 30 \ 33 Manufacturing capacity for L800 (units) 37,500 36,000 Total conversion costs \ 750,000 \ 720,000 Conversion costs per unit of capacity \ 60 \ 60 -What is the cost effect of the growth component for conversion costs?

What is reengineering.Can you contrast a reengineering approach to change with a kaizen approach to change?

Which of the following is the correct mathematical expression to calculate total factor productivity?

The employee turnover rates is an example of the ________ measure of a balanced-scorecard.

The financial perspective of the balanced scorecard focuses on the profits and value created for shareholders.

________ is a measure of the balanced scorecard's customer perspective.

Which of the following statements is true of strategic analysis of operating income?

The cost leadership strategy is best for a company if the engineering staff is more skilled at creatively designing new products than at making process improvements.

Which of the following statements is true of productivity measures?

Which of the following statements is a disadvantage of balanced scorecards?

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 revenue effect of the productivity component (b)?

Answer the following questions using the information below: Following a strategy of product differentiation, Arseniq Company makes a high-end Appliance, XT15. Arseniq presents the following data for the years 2014 and 2015: 2014 2015 Units of XT15 produced and sold 50,000 52,500 Selling price \ 500 \ 550 Direct materials (square feet) 150,000 153,750 Direct materials costs per square foot \ 50 \ 55 Manufacturing capacity in units of XT15 62,500 62,500 Total conversion costs \ 6,250,000 \ 6,875,000 Conversion costs per unit of capacity \ 100 \ 110 Selling and customer-service capacity (customers) 150 150 Total selling and customer-service costs \ 2,250,000 \ 2,343,750 Selling and customer-service capacity cost per customer \ 15,000 \ 15,625 Arseniq produces no defective units but it wants to reduce direct materials usage per unit of XT15. Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 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. Arseniq had 140 customers in 2014 and 145 customers in 2015. -What is the net effect on operating income as a result of the growth component?

Which of the following statements is a benefit of measuring environmental and social performance?

Bromint Company provided the following information: Budgeted input 89,500 gallons Actual input 87,700 gallons Budgeted production 42,000 units Actual production 43,000 units What is the partial productivity ratio?

________ 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.