Question 1

Which of the following statements is true of productivity factors?

Accepted Answer

A) Partial-productivity focus on a multiple inputs simultaneously. 
B) Total factor productivity (TFP)focus on a single input. 
C) It is the ratio of the quantity of output produced to the costs of all inputs used based on current prices. 
D) Comparable data for total factor productivity measurements are easily available. 
A) Partial-productivity focus on a multiple inputs simultaneously. 
B) Total factor productivity (TFP)focus on a single input. 
C) It is the ratio of the quantity of output produced to the costs of all inputs used based on current prices. 
D) Comparable data for total factor productivity measurements are easily available.

Question 2

________ is a measure of the balanced scorecard's internal-business-process perspective.

Accepted Answer

A) Market share 
B) Manufacturing downtime 
C) Return on investment 
D) Number of customer complaints 
A) Market share 
B) Manufacturing downtime 
C) Return on investment 
D) Number of customer complaints

Question 3

Successful implementation of a cost leadership strategy will result in ________.

Accepted Answer

A) large favorable growth and price-recovery components 
B) large favorable price-recovery and productivity components 
C) large favorable productivity and growth components 
D) only a large favorable growth component 
A) large favorable growth and price-recovery components 
B) large favorable price-recovery and productivity components 
C) large favorable productivity and growth components 
D) only a large favorable growth component

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Maloney Corporation manufactures plastic water bottles.It plans to grow by producing high-quality water bottles at a low cost that are delivered in a timely manner.There are a number of other manufacturers who produce similar water bottles.Maloney believes that continuously improving its manufacturing processes and having satisfied employees are critical to implementing its strategy.
Required:
a.Is Maloney's strategy one of product differentiation or cost leadership? Explain briefly.
Identify at least one key element that you would expect to see included in the balanced scorecard:
b.for the financial perspective.
c.for the customer perspective.
d.for the internal business process perspective.
e.for the learning and growth perspective.

Accepted Answer

a.Maloney's strategy is one of cost lead

Question 6

Engineered costs ________.

Accepted Answer

A) possess a high level of uncertainty but are significant costs when they are incurred 
B) are non repetitive but are physically observable 
C) are from physically observable activities and have a repetitive relationship with output 
D) are embedded in the manufacturing process but have no measurable cause-and-effect relationship between output and resources used 
A) possess a high level of uncertainty but are significant costs when they are incurred 
B) are non repetitive but are physically observable 
C) are from physically observable activities and have a repetitive relationship with output 
D) are embedded in the manufacturing process but have no measurable cause-and-effect relationship between output and resources used

Question 7

In the analysis of strategy maps,strong ties are those causal links where the impact of one strategic objective on realization of another is average when compared to the strength of the other ties in the map.

Accepted Answer

A) True 
 B)False

Question 8

Following a strategy of product differentiation,Americonic Corporation makes a high-end computer monitor.Americonic Corporation presents the following data for the years 2017 and 2018:
   
Somerset Corporation produces no defective units but it wants to reduce direct materials usage per unit in 2018.Manufacturing conversion costs in each year depend on production capacity defined in terms of 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.Ernsting Corporation has 100 customers in 2017 and 115 customers in 2018.The industry market size for high-end computer monitors increased 5% from 2017 to 2018.
Required:
a.What is the revenue effect of the growth component?
b.What is the cost effect of the growth component?
c.What is the net effect on operating income as a result of the growth component?

Accepted Answer

@#IMG-DLM&_TB5540_00_TB5540_00 b.16,000

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 10% from 2017 to 2018.The following additional data are available for 2017 and 2018:
 
What is the cost effect of the growth component for direct materials?

Accepted Answer

A) $291,400 U 
B) $1,326,000 F 
C) $1,326,000 U 
D) $291,400 F 
A) $291,400 U 
B) $1,326,000 F 
C) $1,326,000 U 
D) $291,400 F

Question 10

The first step to successful balanced scorecard implementation is clarifying the ________.

Accepted Answer

A) organization's vision and strategy 
B) elements that pertain to value-added aspects of the business 
C) owner's expectations about return on investment 
D) objectives of all four balanced scorecard measurement perspectives 
A) organization's vision and strategy 
B) elements that pertain to value-added aspects of the business 
C) owner's expectations about return on investment 
D) objectives of all four balanced scorecard measurement perspectives

Question 11

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

Accepted Answer

A) $0 
B) $1400 U 
C) $300 F 
D) $2600 F 
A) $0 
B) $1400 U 
C) $300 F 
D) $2600 F

Question 12

Grader Company manufactures road graders.Because its managers all have engineering backgrounds,they prefer nonfinancial information for their decision-making models.Therefore,they require the accountants gather data to assist in the examination of nonfinancial results of operations.The following information relates to the manufacture of a paver:
   
Required:
a.What is the partial productivity for direct materials for each year?
b.What is the partial productivity for direct manufacturing labor for each year?
c.What is the total factor productivity for each year?

Accepted Answer

@#IMG-DLM&_TB5540_00_TB5540_00 @#IMG-DLM&_TB5540_0

Question 13

The customer perspective under the balanced scorecard approach would include measures on cost reduction.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements best relates to the balanced scorecard's financial perspective?

Accepted Answer

A) How can we maximize profits for the current year? 
B) How can we increase shareholder value? 
C) How will we achieve continuous improvements? 
D) How can we maximize customer satisfaction? 
A) How can we maximize profits for the current year? 
B) How can we increase shareholder value? 
C) How will we achieve continuous improvements? 
D) How can we maximize customer satisfaction?

Question 15

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

Accepted Answer

A) Sales value of output produced ÷ Quantity of all inputs used 
B) Quantity of output produced ÷ Quantity of the input used 
C) Quantity of output produced ÷ Costs of all inputs used 
D) Sales value of output produced ÷ Cost of inputs required to produce current year production in previous year 
A) Sales value of output produced ÷ Quantity of all inputs used 
B) Quantity of output produced ÷ Quantity of the input used 
C) Quantity of output produced ÷ Costs of all inputs used 
D) Sales value of output produced ÷ Cost of inputs required to produce current year production in previous year

Question 16

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

Accepted Answer

A) capacity is reduced 
B) market share is increased 
C) selling prices are increased 
D) more units are sold 
A) capacity is reduced 
B) market share is increased 
C) selling prices are increased 
D) more units are sold

Question 17

Productivity describes the relationship between different quantities of inputs consumed and the quantities of output produced.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following questions best relates to the balanced scorecard's internal business processes perspective?

Accepted Answer

A) How do we streamline operations to lower costs to increase profits? 
B) How do we motivate employees so that they can become more productive? 
C) How can we increase our market share? 
D) How can our processes be executed in such a way as to l increase value to customers? 
A) How do we streamline operations to lower costs to increase profits? 
B) How do we motivate employees so that they can become more productive? 
C) How can we increase our market share? 
D) How can our processes be executed in such a way as to l increase value to customers?

Question 19

Fairytale Weddings manufactures wedding dresses.The following information relates to the manufacture of gowns in its Providence plant:
   
Required:
Prepare an analysis of change in annual costs from 2016 to 2017 including direct materials,direct manufacturing labor,and total inputs.

Accepted Answer

Direct materials:
 @#IMG-DLM&_TB5540_00_TB5540_00

Question 20

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

Accepted Answer

A) Quantity of output produced in current year ÷ Costs of inputs at current year prices that would have been used in previous year to produce current year output 
B) Quantity of output produced in previous year ÷ Costs of inputs at current year prices that would have been used in previous year to produce current year output 
C) Quantity of output produced in current year ÷ Costs of inputs at previous year prices that would have been used in previous year to produce current year output 
D) Quantity of output produced in previous year ÷ Costs of inputs at previous year prices that would have been used in previous year to produce current year output 
A) Quantity of output produced in current year ÷ Costs of inputs at current year prices that would have been used in previous year to produce current year output 
B) Quantity of output produced in previous year ÷ Costs of inputs at current year prices that would have been used in previous year to produce current year output 
C) Quantity of output produced in current year ÷ Costs of inputs at previous year prices that would have been used in previous year to produce current year output 
D) Quantity of output produced in previous year ÷ Costs of inputs at previous year prices that would have been used in previous year to produce current year output

Which of the following statements is true of productivity factors?

________ is a measure of the balanced scorecard's internal-business-process perspective.

Successful implementation of a cost leadership strategy will result in ________.

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

Engineered costs ________.

In the analysis of strategy maps,strong ties are those causal links where the impact of one strategic objective on realization of another is average when compared to the strength of the other ties in the map.

The first step to successful balanced scorecard implementation is clarifying the ________.

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

The customer perspective under the balanced scorecard approach would include measures on cost reduction.

Which of the following statements best relates to the balanced scorecard's financial perspective?

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

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

Productivity describes the relationship between different quantities of inputs consumed and the quantities of output produced.

Which of the following questions best relates to the balanced scorecard's internal business processes perspective?

Fairytale Weddings manufactures wedding dresses.The following information relates to the manufacture of gowns in its Providence plant: Required: Prepare an analysis of change in annual costs from 2016 to 2017 including direct materials,direct manufacturing labor,and total inputs.

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

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

Which of the following statements is true of productivity factors?

________ is a measure of the balanced scorecard's internal-business-process perspective.

Successful implementation of a cost leadership strategy will result in ________.

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

Engineered costs ________.

In the analysis of strategy maps,strong ties are those causal links where the impact of one strategic objective on realization of another is average when compared to the strength of the other ties in the map.

The first step to successful balanced scorecard implementation is clarifying the ________.

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

The customer perspective under the balanced scorecard approach would include measures on cost reduction.

Which of the following statements best relates to the balanced scorecard's financial perspective?

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

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

Productivity describes the relationship between different quantities of inputs consumed and the quantities of output produced.

Which of the following questions best relates to the balanced scorecard's internal business processes perspective?

Fairytale Weddings manufactures wedding dresses.The following information relates to the manufacture of gowns in its Providence plant: Required: Prepare an analysis of change in annual costs from 2016 to 2017 including direct materials,direct manufacturing labor,and total inputs.

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

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