Question 1

Which of the following is NOT a condition that must be present for a strategy to become attainable?

Accepted Answer

A)  budgetary process must provide the resources necessary to carry out the initiatives 
B)  resources must be allocated to strategic initiatives 
C)  the organization must decide how much of the strategic targets will be achieved for the coming year 
D)  all are conditions that must be met for strategy to become actionable 
A)  budgetary process must provide the resources necessary to carry out the initiatives 
B)  resources must be allocated to strategic initiatives 
C)  the organization must decide how much of the strategic targets will be achieved for the coming year 
D)  all are conditions that must be met for strategy to become actionable

Question 2

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 3

The most common strategic-based performance management system is

Accepted Answer

A)  variance analysis with standard costs as benchmarks. 
B)  the balanced scorecard. 
C)  financial budgets. 
D)  all of these. 
A)  variance analysis with standard costs as benchmarks. 
B)  the balanced scorecard. 
C)  financial budgets. 
D)  all of these.

Question 4

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 5

An operational measure of quality is

Accepted Answer

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

Question 6

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 cycle time per unit in minutes is

Accepted Answer

A)  0.625 minutes. 
B)  6.000 minutes. 
C)  8.400 minutes. 
D)  37.500 minutes. 
A)  0.625 minutes. 
B)  6.000 minutes. 
C)  8.400 minutes. 
D)  37.500 minutes.

Question 7

Communicating strategy through measurements requires both scope and flexibility.Which of the following statements is true?

Accepted Answer

A)  Flexibility requires subjective and objective measurement as well as nonfinancial measures. 
B)  Flexibility requires that measures be optimal and dynamic. 
C)  Scope implies that internal and external measures are needed. 
D)  Both a and c are true. 
A)  Flexibility requires subjective and objective measurement as well as nonfinancial measures. 
B)  Flexibility requires that measures be optimal and dynamic. 
C)  Scope implies that internal and external measures are needed. 
D)  Both a and c are true.

Question 8

Which of the following would NOT be a core outcome measure for employee capabilities?

Accepted Answer

A)  employee satisfaction ratings 
B)  number of employees 
C)  employee turnover 
D)  employee productivity 
A)  employee satisfaction ratings 
B)  number of employees 
C)  employee turnover 
D)  employee productivity

Question 9

Cycle time is

Accepted Answer

A)  the time it takes to collect the account after the sale. 
B)  the time it takes to turn inventory over. 
C)  the time it takes to deliver the product after it is sold. 
D)  the time it takes to produce one unit of product. 
A)  the time it takes to collect the account after the sale. 
B)  the time it takes to turn inventory over. 
C)  the time it takes to deliver the product after it is sold. 
D)  the time it takes to produce one unit of product.

Question 10

Which of the following is NOT a limitation of activity-based responsibility accounting?

Accepted Answer

A)  Change efforts are often fragmented. 
B)  Change efforts lack connection to mission. 
C)  Change efforts lack connection to strategy. 
D)  Change efforts are driven by value-added analysis. 
A)  Change efforts are often fragmented. 
B)  Change efforts lack connection to mission. 
C)  Change efforts lack connection to strategy. 
D)  Change efforts are driven by value-added analysis.

Question 11

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 12

Activity-based responsibility accounting adds which of the following to the financial-based responsibility accounting perspective?

Accepted Answer

A)  process perspective 
B)  functional perspective 
C)  consumer perspective 
D)  learning perspective 
A)  process perspective 
B)  functional perspective 
C)  consumer perspective 
D)  learning perspective

Question 13

_______________ are outcome measures that are expressed in monetary terms.

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 14

The critical performance measures of the Balanced Scorecard have some special properties.Which of the following is NOT one of those properties?

Accepted Answer

A)  scorecard measures are linked by cause-and-effect relationships 
B)  performance measures are derived from strategy 
C)  benchmarking plays a critical role 
D)  performance measures should be balanced between outcome and lead measures 
A)  scorecard measures are linked by cause-and-effect relationships 
B)  performance measures are derived from strategy 
C)  benchmarking plays a critical role 
D)  performance measures should be balanced between outcome and lead measures

Question 15

Which is NOT 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 these. 
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 these.

Question 16

A major difference between activity-based responsibility accounting and strategic-based responsibility accounting is

Accepted Answer

A)  only strategic-based responsibility accounting is linked to strategy. 
B)  only strategic-based responsibility accounting is focused on systemwide efficiency. 
C)  only strategic-based responsibility accounting includes the process perspective. 
D)  only strategic-based responsibility accounting reinforces team accountability. 
A)  only strategic-based responsibility accounting is linked to strategy. 
B)  only strategic-based responsibility accounting is focused on systemwide efficiency. 
C)  only strategic-based responsibility accounting includes the process perspective. 
D)  only strategic-based responsibility accounting reinforces team accountability.

Question 17

Which of the following might be a measure of employee motivation, empowerment, and alignment?

Accepted Answer

A)  process efficiency 
B)  suggestions per employee 
C)  customer satisfaction 
D)  units product cost 
A)  process efficiency 
B)  suggestions per employee 
C)  customer satisfaction 
D)  units product cost

Question 18

Which of the following is NOT an advantage of strategic-based responsibility accounting?

Accepted Answer

A)  It includes perspectives that serve as a source of competitive advantage. 
B)  Change efforts are directed by the mission and strategy. 
C)  Responsibility is centralized within the organization. 
D)  All are advantages of strategic-based responsibility accounting. 
A)  It includes perspectives that serve as a source of competitive advantage. 
B)  Change efforts are directed by the mission and strategy. 
C)  Responsibility is centralized within the organization. 
D)  All are advantages of strategic-based responsibility accounting.

Question 19

From the customer perspective, which of the following might be an appropriate measure for improving product quality?

Accepted Answer

A)  customer profitability 
B)  cost per customer 
C)  percentage of returns 
D)  number of patents pending 
A)  customer profitability 
B)  cost per customer 
C)  percentage of returns 
D)  number of patents pending

Question 20

Puma Manufacturing has a theoretical capability to produce 20,250 copiers per quarter but currently produces 10,125 copiers.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 copiers 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 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 =

Which of the following is NOT a condition that must be present for a strategy to become attainable?

Which of the following would not be an outcome measure?

The most common strategic-based performance management system is

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

An operational measure of quality is

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 cycle time per unit in minutes is

Communicating strategy through measurements requires both scope and flexibility.Which of the following statements is true?

Which of the following would NOT be a core outcome measure for employee capabilities?

Cycle time is

Which of the following is NOT a limitation of activity-based responsibility accounting?

Failure of a strategy might be due to

Activity-based responsibility accounting adds which of the following to the financial-based responsibility accounting perspective?

_______________ are outcome measures that are expressed in monetary terms.

The critical performance measures of the Balanced Scorecard have some special properties.Which of the following is NOT one of those properties?

Which is NOT a major difference between activity-based measures and strategic-based measures?

A major difference between activity-based responsibility accounting and strategic-based responsibility accounting is

Which of the following might be a measure of employee motivation, empowerment, and alignment?

Which of the following is NOT an advantage of strategic-based responsibility accounting?

From the customer perspective, which of the following might be an appropriate measure for improving product quality?

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

Which of the following is NOT a condition that must be present for a strategy to become attainable?

Which of the following would not be an outcome measure?

The most common strategic-based performance management system is

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

An operational measure of quality is

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 cycle time per unit in minutes is

Communicating strategy through measurements requires both scope and flexibility.Which of the following statements is true?

Which of the following would NOT be a core outcome measure for employee capabilities?

Cycle time is

Which of the following is NOT a limitation of activity-based responsibility accounting?

Failure of a strategy might be due to

Activity-based responsibility accounting adds which of the following to the financial-based responsibility accounting perspective?

_______________ are outcome measures that are expressed in monetary terms.

The critical performance measures of the Balanced Scorecard have some special properties.Which of the following is NOT one of those properties?

Which is NOT a major difference between activity-based measures and strategic-based measures?

A major difference between activity-based responsibility accounting and strategic-based responsibility accounting is

Which of the following might be a measure of employee motivation, empowerment, and alignment?

Which of the following is NOT an advantage of strategic-based responsibility accounting?

From the customer perspective, which of the following might be an appropriate measure for improving product quality?

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