Question 1

Companies which strive to achieve cost leadership should never try to implement business process re-engineering measures.

Accepted Answer

A) True 
 B)False

Question 2

Balanced scorecards show reveal as many measures as possible to connect objectives with measures and initiatives to help assure the success of the enterprise.

Accepted Answer

A) True 
 B)False

Question 3

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 is ________.

Accepted Answer

A) directing 
B) controlling 
C) reengineering 
D) structuring 
A) directing 
B) controlling 
C) reengineering 
D) structuring

Question 4

Partial productivity and total factor productivity measures work best together because both measures have the same kind of strengths and weaknesses.

Accepted Answer

A) True 
 B)False

Question 5

Assuming previous year's production capacity was adequate to produce current year output,the cost effect of growth for fixed costs is calculated by multiplying the difference between ________ by price per unit of capacity in the previous year.

Accepted Answer

A) actual units of capacity in current year and actual units of capacity in previous year 
B) capacity units required to produce current year output in previous year and the current year capacity units 
C) actual units of capacity in previous year and actual units of capacity in previous year 
D) capacity units required to produce previous year output in current year and the previous year capacity units 
A) actual units of capacity in current year and actual units of capacity in previous year 
B) capacity units required to produce current year output in previous year and the current year capacity units 
C) actual units of capacity in previous year and actual units of capacity in previous year 
D) capacity units required to produce previous year output in current year and the previous year capacity units

Question 6

An analysis of Terbolt Corporation's operating income changes between 2017 and 2018 show the following:
   
Required:
Is Terbolt's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly.

Accepted Answer

Terbolt's operating income gain is consi

Question 7

Trusted Products Company makes a household appliance with model number L800.The goal for 2018 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 2% from 2017 to 2018.The following additional data are available for 2017 and 2018:
 
Overall,was Trusted Products's strategy successful in 2018?

Accepted Answer

A) Yes,because total revenues increased 
B) No,because operating income decreased 
C) No,because direct materials usage per unit increased 
D) No,because direct material cost per unit decreased 
A) Yes,because total revenues increased 
B) No,because operating income decreased 
C) No,because direct materials usage per unit increased 
D) No,because direct material cost per unit decreased

Question 8

When analyzing the change in operating income,the strategy component of growth will increase when more units are sold.

Accepted Answer

A) True 
 B)False

Question 9

Trusted Products Company makes a household appliance with model number L800.The goal for 2018 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 15% from 2017 to 2018.The following additional data are available for 2017 and 2018:
 
What is the cost effect of the growth component for conversion costs?

Accepted Answer

A) $1600 U 
B) $0 
C) $40,000 U 
D) $40,000 F 
A) $1600 U 
B) $0 
C) $40,000 U 
D) $40,000 F

Question 10

Advanced Productivity Company provided the following information:
 
What is the partial productivity ratio?

Accepted Answer

A) 0)34 units per gallon 
B) 0)42 units per gallon 
C) 0)35 units per gallon 
D) 0)43 units per gallon 
A) 0)34 units per gallon 
B) 0)42 units per gallon 
C) 0)35 units per gallon 
D) 0)43 units per gallon

Question 11

Advertising cost is an example of a discretionary cost.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following statements is true of discretionary costs?

Accepted Answer

A) They arise from day-to-day operational decisions. 
B) They include conversion cost,direct material costs. 
C) They have measurable cause-and-effect relationship between output and resources used. 
D) They have high level of uncertainty. 
A) They arise from day-to-day operational decisions. 
B) They include conversion cost,direct material costs. 
C) They have measurable cause-and-effect relationship between output and resources used. 
D) They have high level of uncertainty.

Question 13

BarGraphs Corp.had capacity to produce 4000 units of L3 using 40,000 kg of direct materials.BarGraphs produced 3850 units of L3 by processing 35,500 kg of direct materials.Conversion cost per unit is $7.00.BarGraphs can add or reduce manufacturing capacity in increments of 4500 kgs.
What would be the cost savings if BarGraphs decides to reduce manufacturing capacity by 4500 kgs?

Accepted Answer

A) $3150 
B) $700 
C) $1050 
D) $4500 
A) $3150 
B) $700 
C) $1050 
D) $4500

Question 14

The revenue effect of price recovery is calculated by multiplying the difference in selling price (current year minus the previous year)by ________.

Accepted Answer

A) actual units sold in the current year 
B) budgeted units sold in the previous year 
C) budgeted units sold in the current year 
D) actual units sold in the previous year 
A) actual units sold in the current year 
B) budgeted units sold in the previous year 
C) budgeted units sold in the current year 
D) actual units sold in the previous year

Question 15

Which of the following statements is a possible pitfall while implementing a balanced scorecard?

Accepted Answer

A) Managers using cost-benefit considerations while designing a balanced scorecard. 
B) Managers ignoring objective measures as market share,manufacturing yield. 
C) Managers using subjective measures in the balanced scorecard. 
D) Top management ignoring nonfinancial measures when evaluating employee performance. 
A) Managers using cost-benefit considerations while designing a balanced scorecard. 
B) Managers ignoring objective measures as market share,manufacturing yield. 
C) Managers using subjective measures in the balanced scorecard. 
D) Top management ignoring nonfinancial measures when evaluating employee performance.

Question 16

Partial productivity and TFP measures work best together because the strengths of one offset the weaknesses of the other.

Accepted Answer

A) True 
 B)False

Question 17

When analyzing the change in operating income,the strategy component of price-recovery ________.

Accepted Answer

A) calculations are similar to the efficiency-variance calculations 
B) compares the change in output price with the changes in input prices 
C) will report a large positive amount when a company has successfully pursued the cost leadership strategy 
D) isolates the change attributed solely to an increase in production efficiencies 
A) calculations are similar to the efficiency-variance calculations 
B) compares the change in output price with the changes in input prices 
C) will report a large positive amount when a company has successfully pursued the cost leadership strategy 
D) isolates the change attributed solely to an increase in production efficiencies

Question 18

One of the five forces of industry analysis is understand the bargaining power of customers.

Accepted Answer

A) True 
 B)False

Question 19

What are the four key perspectives in the balanced scorecard?

Accepted Answer

The four key perspectives in the balance

Question 20

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

Accepted Answer

A) unused capacity 
B) variable costs 
C) engineered costs 
D) discretionary costs 
A) unused capacity 
B) variable costs 
C) engineered costs 
D) discretionary costs

Companies which strive to achieve cost leadership should never try to implement business process re-engineering measures.

Balanced scorecards show reveal as many measures as possible to connect objectives with measures and initiatives to help assure the success of the enterprise.

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 is ________.

Partial productivity and total factor productivity measures work best together because both measures have the same kind of strengths and weaknesses.

Assuming previous year's production capacity was adequate to produce current year output,the cost effect of growth for fixed costs is calculated by multiplying the difference between ________ by price per unit of capacity in the previous year.

An analysis of Terbolt Corporation's operating income changes between 2017 and 2018 show the following: Required: Is Terbolt's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly.

When analyzing the change in operating income,the strategy component of growth will increase when more units are sold.

Advanced Productivity Company provided the following information: What is the partial productivity ratio?

Advertising cost is an example of a discretionary cost.

Which of the following statements is true of discretionary costs?

The revenue effect of price recovery is calculated by multiplying the difference in selling price (current year minus the previous year)by ________.

Which of the following statements is a possible pitfall while implementing a balanced scorecard?

Partial productivity and TFP measures work best together because the strengths of one offset the weaknesses of the other.

When analyzing the change in operating income,the strategy component of price-recovery ________.

One of the five forces of industry analysis is understand the bargaining power of customers.

What are the four key perspectives in the balanced scorecard?

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

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets,direct-Cost Variances,and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

Filters

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

Companies which strive to achieve cost leadership should never try to implement business process re-engineering measures.

Balanced scorecards show reveal as many measures as possible to connect objectives with measures and initiatives to help assure the success of the enterprise.

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 is ________.

Partial productivity and total factor productivity measures work best together because both measures have the same kind of strengths and weaknesses.

Assuming previous year's production capacity was adequate to produce current year output,the cost effect of growth for fixed costs is calculated by multiplying the difference between ________ by price per unit of capacity in the previous year.

An analysis of Terbolt Corporation's operating income changes between 2017 and 2018 show the following: Required: Is Terbolt's operating income gain consistent with the product differentiation or cost leadership strategy? Explain briefly.

When analyzing the change in operating income,the strategy component of growth will increase when more units are sold.

Advanced Productivity Company provided the following information: What is the partial productivity ratio?

Advertising cost is an example of a discretionary cost.

Which of the following statements is true of discretionary costs?

The revenue effect of price recovery is calculated by multiplying the difference in selling price (current year minus the previous year)by ________.

Which of the following statements is a possible pitfall while implementing a balanced scorecard?

Partial productivity and TFP measures work best together because the strengths of one offset the weaknesses of the other.

When analyzing the change in operating income,the strategy component of price-recovery ________.

One of the five forces of industry analysis is understand the bargaining power of customers.

What are the four key perspectives in the balanced scorecard?

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

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets,direct-Cost Variances,and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

Filters