Question 1

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 2

The following measures belong to one of four perspectives on the balanced scorecard:
1. Satisfaction of customer
2. Satisfaction of employees
3. Cycle time
4. Product cost per unit
Required:
a. Identify the perspective appropriate for each measure listed above.
b. Suggest a possible strategic objective that might be associated with each measure.

Accepted Answer

a.
1. Satisfaction of customer - custome

Question 3

Which of the following is NOT a measure commonly used to evaluate asset utilization?

Accepted Answer

A)  return on investment 
B)  economic value added 
C)  market share 
D)  all of the above 
A)  return on investment 
B)  economic value added 
C)  market share 
D)  all of the above

Question 4

Performance measures are derived from a company's vision, strategy, and objectives.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

At the beginning of 2016, 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 8

How does the Balanced Scorecard communicate strategy to the organization? How is strategy translated into performance measures?

Accepted Answer

Balanced scorecard operationalizes strat

Question 9

Strategic information availability include processes with real-time feedback.

Accepted Answer

A) True 
 B)False

Question 10

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

Question 11

At the beginning of 2016, Terrapin Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products:   What is the ideal conversion cost per unit?

Accepted Answer

A)  $1.02 per unit. 
B)  $29.10 per unit. 
C)  $2.00 per unit. 
D)  $32 per unit. 
A)  $1.02 per unit. 
B)  $29.10 per unit. 
C)  $2.00 per unit. 
D)  $32 per unit.

Question 12

Why does the Balanced Scorecard differ from company to company? Whose responsibility is the implementation?

Accepted Answer

A company's Balanced Scorecard should be

Question 13

Montepulciano 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: 
a. Identify the areas where the company seems to be improving.
b. Identify the areas where the company seems to be deteriorating.

Accepted Answer

a. Areas where the company is improving:

Question 14

A balanced scorecard is designed to bring about organizational change. Which of the following is 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 the above. 
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 the above.

Question 15

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 16

Lead measures

Accepted Answer

A)  are the measures with the highest priority. 
B)  are generic to different strategies. 
C)  are based on performance drivers. 
D)  represent the desired outcomes. 
A)  are the measures with the highest priority. 
B)  are generic to different strategies. 
C)  are based on performance drivers. 
D)  represent the desired outcomes.

Question 17

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 18

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

Question 19

Which of the following is NOT a major enabling factor of the learning and growth perspective?

Accepted Answer

A)  customer attributes 
B)  information system capabilities 
C)  employee attitudes 
D)  employee capabilities 
A)  customer attributes 
B)  information system capabilities 
C)  employee attitudes 
D)  employee capabilities

Question 20

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

A strategy map

Which of the following is NOT a measure commonly used to evaluate asset utilization?

Performance measures are derived from a company's vision, strategy, and objectives.

An operational measure of quality is

At the beginning of 2016, 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

How does the Balanced Scorecard communicate strategy to the organization? How is strategy translated into performance measures?

Strategic information availability include processes with real-time feedback.

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

At the beginning of 2016, Terrapin Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products: What is the ideal conversion cost per unit?

Why does the Balanced Scorecard differ from company to company? Whose responsibility is the implementation?

A balanced scorecard is designed to bring about organizational change. Which of the following is a means of alignment?

A testable strategy is defined as

Lead measures

Which of the following would not be an outcome measure?

The most common strategic-based performance management system is

Which of the following is NOT a major enabling factor of the learning and growth perspective?

Which of the following would be a lag 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

A strategy map

Which of the following is NOT a measure commonly used to evaluate asset utilization?

Performance measures are derived from a company's vision, strategy, and objectives.

An operational measure of quality is

At the beginning of 2016, 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

How does the Balanced Scorecard communicate strategy to the organization? How is strategy translated into performance measures?

Strategic information availability include processes with real-time feedback.

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

At the beginning of 2016, Terrapin Company installed a JIT purchasing and manufacturing system. The following information has been gathered about one of the company's products: What is the ideal conversion cost per unit?

Why does the Balanced Scorecard differ from company to company? Whose responsibility is the implementation?

A balanced scorecard is designed to bring about organizational change. Which of the following is a means of alignment?

A testable strategy is defined as

Lead measures

Which of the following would not be an outcome measure?

The most common strategic-based performance management system is

Which of the following is NOT a major enabling factor of the learning and growth perspective?

Which of the following would be a lag 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