Question 1

In order for the balanced scorecard to succeed, the entire organization must be behind it.

Accepted Answer

A) True 
 B)False

Question 2

To link measures to a strategy, they must be derived from management and be balanced.

Accepted Answer

A) True 
 B)False

Question 3

At the beginning of 2014, Haroldson Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products.   The theoretical velocity per hour is

Accepted Answer

A)  3.0 units. 
B)  2.8 units. 
C)  1.5 units. 
D)  1.55units. 
A)  3.0 units. 
B)  2.8 units. 
C)  1.5 units. 
D)  1.55units.

Question 4

A testable strategy is defined as

Accepted Answer

A)  a strategy that can be implemented. 
B)  a set of profit goals. 
C)  a set of linked objectives aimed at an overall goal. 
D)  a strategy that is verifiable. 
A)  a strategy that can be implemented. 
B)  a set of profit goals. 
C)  a set of linked objectives aimed at an overall goal. 
D)  a strategy that is verifiable.

Question 5

Which of the following would be considered a lead measure for employee capabilities?

Accepted Answer

A)  employee satisfaction 
B)  employee turnover 
C)  employee productivity 
D)  number of training hours 
A)  employee satisfaction 
B)  employee turnover 
C)  employee productivity 
D)  number of training hours

Question 6

Failure of a strategy might be due to

Accepted Answer

A)  incorrect calculations. 
B)  incorrect feedback. 
C)  implementation problems. 
D)  invalid controls. 
A)  incorrect calculations. 
B)  incorrect feedback. 
C)  implementation problems. 
D)  invalid controls.

Question 7

Which of the following would not be an outcome measure?

Accepted Answer

A)  net income 
B)  market share 
C)  return on investment 
D)  training hours 
A)  net income 
B)  market share 
C)  return on investment 
D)  training hours

Question 8

Which of the following is NOT true about activity-based responsibility accounting?

Accepted Answer

A)  The emphasis changes from cost reduction through change to cost control. 
B)  The emphasis includes financial results as well as how things are done. 
C)  Responsibility moves from one dimension to two dimensions. 
D)  It moves from a control system to a performance management system. 
A)  The emphasis changes from cost reduction through change to cost control. 
B)  The emphasis includes financial results as well as how things are done. 
C)  Responsibility moves from one dimension to two dimensions. 
D)  It moves from a control system to a performance management system.

Question 9

At the beginning of 2014, Terrapin Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products:   The theoretical velocity per hour is

Accepted Answer

A)  1.3 units. 
B)  4.5 units. 
C)  1.4 units. 
D)  5.0 units. 
A)  1.3 units. 
B)  4.5 units. 
C)  1.4 units. 
D)  5.0 units.

Question 10

Dissatisfied customers are an example of a __________ measure.

Accepted Answer

The answer of Dissatisfied customers are an example of a...

Question 11

Delivery performance can be improved by

Accepted Answer

A)  decreasing cycle time. 
B)  increasing cycle time. 
C)  decreasing velocity. 
D)  increasing turnover. 
A)  decreasing cycle time. 
B)  increasing cycle time. 
C)  decreasing velocity. 
D)  increasing turnover.

Question 12

Which of the following would be a lag measure?

Accepted Answer

A)  budget forecasts 
B)  sales per employee 
C)  plant investment 
D)  employee training hours 
A)  budget forecasts 
B)  sales per employee 
C)  plant investment 
D)  employee training hours

Question 13

The balanced scorecard is a strategic-based performance management system that identifies four perspectives.

Accepted Answer

A) True 
 B)False

Question 14

The outcome measures that are expressed in monetary terms are called:

Accepted Answer

A)  Objective measures 
B)  External measures 
C)  Lag measures 
D)  Financial measures 
A)  Objective measures 
B)  External measures 
C)  Lag measures 
D)  Financial measures

Question 15

Mobility, Inc., manufactures a product that experiences the following activities:   The MCE for the product is

Accepted Answer

A)  0.48. 
B)  0.30. 
C)  0.42. 
D)  0.45. 
A)  0.48. 
B)  0.30. 
C)  0.42. 
D)  0.45.

Question 16

An operational measure of quality is

Accepted Answer

A)  defects per unit. 
B)  number of defective units. 
C)  pounds of scrap. 
D)  all of the above. 
A)  defects per unit. 
B)  number of defective units. 
C)  pounds of scrap. 
D)  all of the above.

Question 17

For purposes of strategic alignment, incentive compensation should be based upon

Accepted Answer

A)  expected performance of weighted targets for a given period. 
B)  expected financial performance of the company. 
C)  actual performance compared to weighted target values for a given period. 
D)  actual financial performance of the company. 
A)  expected performance of weighted targets for a given period. 
B)  expected financial performance of the company. 
C)  actual performance compared to weighted target values for a given period. 
D)  actual financial performance of the company.

Question 18

Activity-based evaluation and strategic-based evaluation incorporate some of the same elements. However, strategic-based responsibility adds some new elements to the common dimensions. What are the elements in common and what new elements are included?

Accepted Answer

Activity-based evaluation and strategic-

Question 19

Lionheart Manufacturing has a theoretical capability to produce 20,250 printers per quarter but currently produces 10,125 printers. The conversion cost per quarter is $4,860,000. There are 6,750 production hours available within the plant per quarter. In addition to the processing minutes per unit used, the production of printers uses 12 minutes of move time, 8 minutes of wait time, and 10 minutes of rework time. (All work is done by cell workers.)
Required:
a. Compute the theoretical and actual velocities per hour and the theoretical and actual cycle times (minutes per unit produced).
b. Compute the ideal and actual amounts of conversion cost assigned to each printer.
c. Calculate the current MCE.
d. If poor employee training is the root cause of wait time and move time, develop an improvement strategy as a series of if-then statements that will reduce the conversion cost per printer.

Accepted Answer

a. Theoretical velocity = 20,250/6,750 =

Question 20

Which is a major difference between activity-based measures and strategic-based measures?

Accepted Answer

A)  Strategic-based measures are linked to strategy. 
B)  Strategic-based measures are used to align objectives. 
C)  Strategic-based measures are balanced measures. 
D)  all of the above. 
A)  Strategic-based measures are linked to strategy. 
B)  Strategic-based measures are used to align objectives. 
C)  Strategic-based measures are balanced measures. 
D)  all of the above.

In order for the balanced scorecard to succeed, the entire organization must be behind it.

To link measures to a strategy, they must be derived from management and be balanced.

At the beginning of 2014, Haroldson Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products. The theoretical velocity per hour is

A testable strategy is defined as

Which of the following would be considered a lead measure for employee capabilities?

Failure of a strategy might be due to

Which of the following would not be an outcome measure?

Which of the following is NOT true about activity-based responsibility accounting?

At the beginning of 2014, Terrapin Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products: The theoretical velocity per hour is

Dissatisfied customers are an example of a __________ measure.

Delivery performance can be improved by

Which of the following would be a lag measure?

The balanced scorecard is a strategic-based performance management system that identifies four perspectives.

The outcome measures that are expressed in monetary terms are called:

Mobility, Inc., manufactures a product that experiences the following activities: The MCE for the product is

An operational measure of quality is

For purposes of strategic alignment, incentive compensation should be based upon

Activity-based evaluation and strategic-based evaluation incorporate some of the same elements. However, strategic-based responsibility adds some new elements to the common dimensions. What are the elements in common and what new elements are included?

Which is a major difference between activity-based measures and strategic-based measures?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 13: The Balanced Scorecard: Strategic-Based Control

In order for the balanced scorecard to succeed, the entire organization must be behind it.

To link measures to a strategy, they must be derived from management and be balanced.

At the beginning of 2014, Haroldson Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products. The theoretical velocity per hour is

A testable strategy is defined as

Which of the following would be considered a lead measure for employee capabilities?

Failure of a strategy might be due to

Which of the following would not be an outcome measure?

Which of the following is NOT true about activity-based responsibility accounting?

At the beginning of 2014, Terrapin Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products: The theoretical velocity per hour is

Dissatisfied customers are an example of a __________ measure.

Delivery performance can be improved by

Which of the following would be a lag measure?

The balanced scorecard is a strategic-based performance management system that identifies four perspectives.

The outcome measures that are expressed in monetary terms are called:

Mobility, Inc., manufactures a product that experiences the following activities: The MCE for the product is

An operational measure of quality is

For purposes of strategic alignment, incentive compensation should be based upon

Activity-based evaluation and strategic-based evaluation incorporate some of the same elements. However, strategic-based responsibility adds some new elements to the common dimensions. What are the elements in common and what new elements are included?

Which is a major difference between activity-based measures and strategic-based measures?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters