Question 1

Strategic Analysis of Profitability of King Philip Company:
 
What is the cost effect of the growth component (a)?

Accepted Answer

A) $9500 F 
B) $4500 U 
C) $9500 U 
D) $4500 F 
A) $9500 F 
B) $4500 U 
C) $9500 U 
D) $4500 F

Question 2

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 3

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

Accepted Answer

A) Change in operating income from one period to any future period can be subdivided into product differentiation,cost leadership,and growth components. 
B) Subdividing the change in operating income to evaluate the success of a strategy has no similarity to the variance analysis. 
C) Management accountants compare actual and budgeted operating performance over the same time periods. 
D) It focuses on differences in individual categories of costs (direct materials,direct manufacturing labor,and overheads). 
A) Change in operating income from one period to any future period can be subdivided into product differentiation,cost leadership,and growth components. 
B) Subdividing the change in operating income to evaluate the success of a strategy has no similarity to the variance analysis. 
C) Management accountants compare actual and budgeted operating performance over the same time periods. 
D) It focuses on differences in individual categories of costs (direct materials,direct manufacturing labor,and overheads).

Question 4

Direct material cost is an example of ________.

Accepted Answer

A) conversion costs 
B) discretionary costs 
C) engineered costs 
D) downsized costs 
A) conversion costs 
B) discretionary costs 
C) engineered costs 
D) downsized costs

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Following a strategy of product differentiation,Izzy's Limited Company makes a high-end Appliance,XT15.Izzy's Limited presents the following data for the years 2017 and 2018:
 
Izzy's Limited 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.Izzy's Limited had 135 customers in 2017 and 140 customers in 2018.
What is operating income for 2017?

Accepted Answer

A) $4,974,000 
B) $7,860,000 
C) $7,269,000 
D) $5,203,500 
A) $4,974,000 
B) $7,860,000 
C) $7,269,000 
D) $5,203,500

Question 7

Strategic Analysis of Profitability of King Philip Company:
 
What is the operating income amount for 2017 (d)?

Accepted Answer

A) $45,500 
B) $32,500 
C) $15,400 
D) $9600 
A) $45,500 
B) $32,500 
C) $15,400 
D) $9600

Question 8

What is re-engineering.Can you contrast a re-engineering approach to change with a kaizen approach to change?

Accepted Answer

Reengineering is the rethinking of busin

Question 9

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

Accepted Answer

1.internal-business-process
2.customer
3

Question 10

Which of the following efforts would most likely yield the greatest re-engineering benefits?

Accepted Answer

A) focusing on a single activity to determine if it is necessary 
B) decreasing quantity of output produced to increase total factor productivity 
C) increasing costs of all inputs used to increase total factor productivity 
D) focusing on entire processes and elimination of unnecessary activities and task 
A) focusing on a single activity to determine if it is necessary 
B) decreasing quantity of output produced to increase total factor productivity 
C) increasing costs of all inputs used to increase total factor productivity 
D) focusing on entire processes and elimination of unnecessary activities and task

Question 11

In a strategy map,a strategic objective where many ties spur out from it resulting in the achievement of many strategic objectives is called ________.

Accepted Answer

A) distinctive objectives 
B) trigger point 
C) focal points 
D) orphan objectives 
A) distinctive objectives 
B) trigger point 
C) focal points 
D) orphan objectives

Question 12

Which of the following statements is true of productivity?

Accepted Answer

A) Partial productivity compares the quantity of output produced with the cost of all inputs used. 
B) Productivity will increase when the partial productivity is high. 
C) Prices of inputs are incorporated in the partial productivity ratio. 
D) Partial productivity compares the quantity of output produced with the quantity of all inputs used. 
A) Partial productivity compares the quantity of output produced with the cost of all inputs used. 
B) Productivity will increase when the partial productivity is high. 
C) Prices of inputs are incorporated in the partial productivity ratio. 
D) Partial productivity compares the quantity of output produced with the quantity of all inputs used.

Question 13

Following a strategy of product differentiation,Izzy's Limited Company makes a high-end Appliance,XT15.Izzy's Limited presents the following data for the years 2017 and 2018:
 
Izzy's Limited 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.Izzy's Limited had 140 customers in 2017 and 145 customers in 2018.
What is operating income in 2018?

Accepted Answer

A) $7,463,500 
B) $15,841,900 
C) $9,212,000 
D) $15,921,775 
A) $7,463,500 
B) $15,841,900 
C) $9,212,000 
D) $15,921,775

Question 14

The cost effect of productivity for variable costs is calculated by multiplying the difference in actual input units used to produce current year output and units of input required to produce current year output in previous year by the ________.

Accepted Answer

A) price per input unit of previous year 
B) price per unit of capacity in the previous year 
C) price per unit of capacity in the current year 
D) price per input unit of current year 
A) price per input unit of previous year 
B) price per unit of capacity in the previous year 
C) price per unit of capacity in the current year 
D) price per input unit of current year

Question 15

Following a strategy of product differentiation,Izzy's Limited Company makes a high-end Appliance,XT15.Izzy's Limited presents the following data for the years 2017 and 2018:
 
Izzy's Limited 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.Izzy's Limited had 145 customers in 2017 and 150 customers in 2018.
What is the net effect on operating income as a result of the productivity component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar. )

Accepted Answer

A) $1,664,016 U 
B) $124,672 F 
C) $1,664,016 F 
D) $124,672 U 
A) $1,664,016 U 
B) $124,672 F 
C) $1,664,016 F 
D) $124,672 U

Question 16

Magic Corporation manufactures water toys.It plans to grow by producing high-quality water toys that are delivered in a timely manner.There are a number of other manufacturers who produce similar water toys.Magic believes that continuously improving its manufacturing processes and re-engineering processes to downsize and eliminate excess capacity are critical to implementing its strategy.Which of the following best describes Magic's strategy?

Accepted Answer

A) product differentiation 
B) product leadership 
C) cost differentiation 
D) cost leadership 
A) product differentiation 
B) product leadership 
C) cost differentiation 
D) cost leadership

Question 17

Feedback on how a company is doing from the perspectives of financial,customer,internal business processes,and learning and growth.

Accepted Answer

A) Master budget 
B) Product differentiation 
C) Differential report 
D) Balanced scorecard 
A) Master budget 
B) Product differentiation 
C) Differential report 
D) Balanced scorecard

Question 18

Heliem Corp.uses the balanced scorecard technique to achieve its long term objectives.Managers of Heliem came to know that all the balanced scorecards objectives were achieved other than financial perspective measures for the previous period.While the learning and growth and internal business processes perspective measures were achieved with relative ease,Heliem had to strive extremely hard to achieve customer oriented measures.The company had failed miserably in achieving its financial measures.
Using the given information,evaluate the strategy of Heliem and its implementation.

Accepted Answer

Heliem failed miserably in achieving its

Question 19

Power Company has been unhappy with the financial accounting variances that its cost accounting system has been producing,because its managers believe that there is more to evaluating an operation than just examining accounting numbers.Therefore,it has started gathering data to assist in the examination of nonfinancial results of operations.The following information relates to the manufacture of remote control units for televisions,radios,and stereo components:
   
Required:
a.What is the partial productivity of direct materials for each year?
b.What is the partial productivity of direct manufacturing labor for each year?
c.Did each area improve between 2016 and 2017? Explain.
d.What will be the projected direct material and labor needs for 2013 if remote control units increase by 12,000 units,assuming Power Company applies the constant returns to scale technology?

Accepted Answer

a.2016 Partial productivity of direct ma

Question 20

An increase in production capacity will always result in a favorable cost effect of productivity for variable costs in the short run.

Accepted Answer

A) True 
 B)False

Strategic Analysis of Profitability of King Philip Company: What is the cost effect of the growth component (a)?

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?

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

Direct material cost is an example of ________.

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

Strategic Analysis of Profitability of King Philip Company: What is the operating income amount for 2017 (d)?

What is re-engineering.Can you contrast a re-engineering approach to change with a kaizen approach to change?

Which of the following efforts would most likely yield the greatest re-engineering benefits?

In a strategy map,a strategic objective where many ties spur out from it resulting in the achievement of many strategic objectives is called ________.

Which of the following statements is true of productivity?

The cost effect of productivity for variable costs is calculated by multiplying the difference in actual input units used to produce current year output and units of input required to produce current year output in previous year by the ________.

Feedback on how a company is doing from the perspectives of financial,customer,internal business processes,and learning and growth.

An increase in production capacity will always result in a favorable cost effect of productivity for variable costs in the short run.

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

Strategic Analysis of Profitability of King Philip Company: What is the cost effect of the growth component (a)?

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?

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

Direct material cost is an example of ________.

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

Strategic Analysis of Profitability of King Philip Company: What is the operating income amount for 2017 (d)?

What is re-engineering.Can you contrast a re-engineering approach to change with a kaizen approach to change?

Which of the following efforts would most likely yield the greatest re-engineering benefits?

In a strategy map,a strategic objective where many ties spur out from it resulting in the achievement of many strategic objectives is called ________.

Which of the following statements is true of productivity?

The cost effect of productivity for variable costs is calculated by multiplying the difference in actual input units used to produce current year output and units of input required to produce current year output in previous year by the ________.

Feedback on how a company is doing from the perspectives of financial,customer,internal business processes,and learning and growth.

An increase in production capacity will always result in a favorable cost effect of productivity for variable costs in the short run.

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