Question 1

_______________ are outcome measures that can be readily quantified and verified.

Accepted Answer

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

Question 2

Allegro Industries is planning to change its manufacturing plant by automating and installing a flexible manufacturing system.The company is also changing its performance measures as well as its operating procedures.In an effort to evaluate performance and determine where improvements can be made, management has gathered the following data relating to activities over the last four months:
   Many of these measures are new and the president has asked you to interpret the results.Throughput is the time it takes to turn materials into a completed product.Delivery cycle time is the time between receiving an order and shipping the goods.
Required:
Using the performance measures given, do the following:

Accepted Answer

The answer of Allegro Industries is planning to change its...

Question 3

Which feature is related solely to strategic-based responsibility and not to activity-based responsibility?

Accepted Answer

A)  financial perspective 
B)  process perspective 
C)  team accountability 
D)  customer perspective 
A)  financial perspective 
B)  process perspective 
C)  team accountability 
D)  customer perspective D

Question 4

_______________ are outcome measures that are a result of past efforts.

Accepted Answer

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

Question 5

What are the two additional perspectives that are added to the activity-based approach to achieve strategic-based responsibility?

Accepted Answer

A)  a customer perspective and a learning and growth perspective 
B)  an infrastructure perspective and a process perspective 
C)  a customer perspective and a financial perspective 
D)  a financial perspective and a process perspective 
A)  a customer perspective and a learning and growth perspective 
B)  an infrastructure perspective and a process perspective 
C)  a customer perspective and a financial perspective 
D)  a financial perspective and a process perspective

Question 6

At the beginning of 2011, Smith 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)  1.8 units. 
B)  2.0 units. 
C)  0.5 units. 
D)  0.55units. 
A)  1.8 units. 
B)  2.0 units. 
C)  0.5 units. 
D)  0.55units.

Question 7

How can management communicate strategy? What are three methods for achieving strategic alignment? What management failure can keep strategy from being actionable?

Accepted Answer

Strategy can be communicated to employee

Question 8

A strategy map

Accepted Answer

A)  links the cause-and-effect relationships in the proposed strategy, creating a testable strategy. 
B)  maps the organization's strategies over time. 
C)  documents the performance results of an organization. 
D)  strategizes about the organization's competitors. 
A)  links the cause-and-effect relationships in the proposed strategy, creating a testable strategy. 
B)  maps the organization's strategies over time. 
C)  documents the performance results of an organization. 
D)  strategizes about the organization's competitors.

Question 9

Objectives for increasing revenue growth include

Accepted Answer

A)  adopting a new pricing strategy. 
B)  reducing the cost per unit. 
C)  eliminating non-value-added activities. 
D)  reducing distribution channel cost. 
A)  adopting a new pricing strategy. 
B)  reducing the cost per unit. 
C)  eliminating non-value-added activities. 
D)  reducing distribution channel cost.

Question 10

Strategic-based performance measures are balanced measures.Give examples of four types of balanced measures.

Accepted Answer

There are lead and lag measures.Lead mea

Question 11

Which of the following features make stretch targets feasible?

Accepted Answer

A)  The targets are set in isolation by top management. 
B)  The measures are linked by causal relationships. 
C)  The measures are based on currently attainable standard costs. 
D)  The targets are set at desired levels for twenty years to ensure long-term performance. 
A)  The targets are set in isolation by top management. 
B)  The measures are linked by causal relationships. 
C)  The measures are based on currently attainable standard costs. 
D)  The targets are set at desired levels for twenty years to ensure long-term performance.

Question 12

A testable strategy can be constructed

Accepted Answer

A)  by prioritizing objectives. 
B)  by sequencing if-then statements. 
C)  by creating alternative scenarios. 
D)  by creating lead measures. 
A)  by prioritizing objectives. 
B)  by sequencing if-then statements. 
C)  by creating alternative scenarios. 
D)  by creating lead measures.

Question 13

The balanced scorecard

Accepted Answer

A)  is an activity-based responsibility accounting model that measures operating activities. 
B)  is a financial-based responsibility accounting model that focuses on the financial performance of units, rewarding performance with static financial-oriented standards. 
C)  is a strategic-based financial reporting system that balances assets with liabilities and owner's equity. 
D)  is a strategic-based performance management system that identifies objectives and measures from a financial perspective, customer perspective, process perspective, and learning and growth perspective. 
A)  is an activity-based responsibility accounting model that measures operating activities. 
B)  is a financial-based responsibility accounting model that focuses on the financial performance of units, rewarding performance with static financial-oriented standards. 
C)  is a strategic-based financial reporting system that balances assets with liabilities and owner's equity. 
D)  is a strategic-based performance management system that identifies objectives and measures from a financial perspective, customer perspective, process perspective, and learning and growth perspective.

Question 14

Balanced scorecard is designed to bring about organizational change.Which of the following is NOT a means of alignment?

Accepted Answer

A)  Employees must share ownership of objectives, measures, targets, and initiatives. 
B)  Incentives must be structured to support strategy. 
C)  Resources must be allocated to support strategy. 
D)  All of these. 
A)  Employees must share ownership of objectives, measures, targets, and initiatives. 
B)  Incentives must be structured to support strategy. 
C)  Resources must be allocated to support strategy. 
D)  All of these.

Question 15

In the customer perspective, objectives and measures that drive the creation of customer value are

Accepted Answer

A)  customer survey ratings. 
B)  post-purchase cost. 
C)  on-time deliveries. 
D)  all of these. 
A)  customer survey ratings. 
B)  post-purchase cost. 
C)  on-time deliveries. 
D)  all of these.

Question 16

Which of the following statements comparing activity-based performance and strategic-based performance evaluation is NOT true?

Accepted Answer

A)  Strategic-based performance evaluation expands the set of metrics. 
B)  Only strategic-based performance evaluation leads to cost reductions. 
C)  Only strategic-based performance standards set stretch targets for all four perspectives. 
D)  Both systems encourage quality improvements. 
A)  Strategic-based performance evaluation expands the set of metrics. 
B)  Only strategic-based performance evaluation leads to cost reductions. 
C)  Only strategic-based performance standards set stretch targets for all four perspectives. 
D)  Both systems encourage quality improvements.

Question 17

Performance expectations are communicated by setting

Accepted Answer

A)  new initiatives. 
B)  targets. 
C)  a strategic vision. 
D)  activity measures. 
A)  new initiatives. 
B)  targets. 
C)  a strategic vision. 
D)  activity measures.

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

A manufacturing cell has the theoretical capability of producing 40,000 microchips per quarter.The conversion cost per quarter is $25,000.There are 4,000 production hours available within the cell per quarter. The theoretical velocity per hour is

Accepted Answer

A)  25.00 units. 
B)  16.00 units. 
C)  10.00 units. 
D)  2.24 units. 
A)  25.00 units. 
B)  16.00 units. 
C)  10.00 units. 
D)  2.24 units.

Question 20

Which of the following would be an external measure?

Accepted Answer

A)  profitability 
B)  employee satisfaction 
C)  process efficiency 
D)  all of these 
A)  profitability 
B)  employee satisfaction 
C)  process efficiency 
D)  all of these

_______________ are outcome measures that can be readily quantified and verified.

Which feature is related solely to strategic-based responsibility and not to activity-based responsibility?

_______________ are outcome measures that are a result of past efforts.

What are the two additional perspectives that are added to the activity-based approach to achieve strategic-based responsibility?

At the beginning of 2011, Smith 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

How can management communicate strategy? What are three methods for achieving strategic alignment? What management failure can keep strategy from being actionable?

A strategy map

Objectives for increasing revenue growth include

Strategic-based performance measures are balanced measures.Give examples of four types of balanced measures.

Which of the following features make stretch targets feasible?

A testable strategy can be constructed

The balanced scorecard

Balanced scorecard is designed to bring about organizational change.Which of the following is NOT a means of alignment?

In the customer perspective, objectives and measures that drive the creation of customer value are

Which of the following statements comparing activity-based performance and strategic-based performance evaluation is NOT true?

Performance expectations are communicated by setting

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?

A manufacturing cell has the theoretical capability of producing 40,000 microchips per quarter.The conversion cost per quarter is $25,000.There are 4,000 production hours available within the cell per quarter. The theoretical velocity per hour is

Which of the following would be an external measure?

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

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

_______________ are outcome measures that can be readily quantified and verified.

Which feature is related solely to strategic-based responsibility and not to activity-based responsibility?

_______________ are outcome measures that are a result of past efforts.

What are the two additional perspectives that are added to the activity-based approach to achieve strategic-based responsibility?

At the beginning of 2011, Smith 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

How can management communicate strategy? What are three methods for achieving strategic alignment? What management failure can keep strategy from being actionable?

A strategy map

Objectives for increasing revenue growth include

Strategic-based performance measures are balanced measures.Give examples of four types of balanced measures.

Which of the following features make stretch targets feasible?

A testable strategy can be constructed

The balanced scorecard

Balanced scorecard is designed to bring about organizational change.Which of the following is NOT a means of alignment?

In the customer perspective, objectives and measures that drive the creation of customer value are

Which of the following statements comparing activity-based performance and strategic-based performance evaluation is NOT true?

Performance expectations are communicated by setting

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?

A manufacturing cell has the theoretical capability of producing 40,000 microchips per quarter.The conversion cost per quarter is $25,000.There are 4,000 production hours available within the cell per quarter. The theoretical velocity per hour is

Which of the following would be an external measure?

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

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