Question 1

Lake Company manufactures small boats.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 small boat.
  
Required:
a.What is the partial productivity for direct materials for each year?
b.What is the partial productivity for direct manufacturing labour for each year?
c.What is the total factor productivity for each year?

Accepted Answer

The answer of Lake Company manufactures small boats.Because its managers...

Question 2

What is the primary purpose of the balanced scorecard?

Accepted Answer

The answer of What is the primary purpose of the...

Question 3

Answer the following questions using the information below:
Stewart Corporation plans to grow by offering a sound system,the SS3000,that is superior and unique from the competition.Stewart believes that putting additional resources into R&D and staying ahead of the competition with technological innovations is critical to implementing its strategy.
-Stewart's strategy is

Accepted Answer

A) product differentiation. 
B) downsizing. 
C) reengineering. 
D) cost leadership. 
E) salability.

Question 4

________ is an organization's ability to offer products or services that are perceived by its customers as being superior and unique relative to those of its competitors.

Accepted Answer

A) Strategy 
B) Product differentiation 
C) Cost leadership 
D) The balanced scorecard 
E) Cost differentiation

Question 5

What is the direct manufacturing labour partial productivity,assuming 20,000 units were produced during the year and 80,000 direct manufacturing labour-hours were used?

Accepted Answer

A) 0.25 unit per direct manufacturing labour-hour 
B) 0.50 unit per direct manufacturing labour-hour 
C) 0.75 unit per direct manufacturing labour-hour 
D) 4.00 unit per direct manufacturing labour-hour 
E) 1.25 unit per direct manufacturing labour-hour

Question 6

Use the information below to answer the following question(s).
Following a strategy of product differentiation,Luke Company makes a high-end Appliance,AP15.Luke Company presents the following data for the years 1 and 2.
  Luke Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 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.Neither conversion costs or customer-service costs are affected by changes in actual volume.Luke Company has 46 customers in year 1 and 50 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-Referring to Luke Company,which of the following is a measure of the financial perspective?

Accepted Answer

A) reengineering process 
B) market share in the high-end appliance market 
C) order delivery time 
D) production cycle time 
E) operating income growth from changing higher margins

Question 7

Downsizing is also called rightsizing.

Accepted Answer

A) True 
 B)False

Question 8

The accounting scorecard translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for implementing its strategy.

Accepted Answer

A) True 
 B)False

Question 9

________ measures the change in operating income attributable solely to changes in a company's profit margins between years one and two.

Accepted Answer

A) The growth component 
B) The price-recovery component 
C) The productivity component 
D) The cost leadership component 
E) The strategy component

Question 10

Identify and explain Porter's Five Forces model.

Accepted Answer

The answer of Identify and explain Porter's Five Forces model....

Question 11

Use the information below to answer the following question(s).
Following a strategy of product differentiation,Barry Company makes an XX 300.Barry Company presents the following data for the years 1 and 2.
  Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 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.Neither conversion costs or customer-service costs are affected by changes in actual volume.Barry Company has 23 customers in year 1 and 25 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-What is the Barry Company's productivity component of change in operating income?

Accepted Answer

A) $31,620 favourable 
B) $11,120 favourable 
C) $11,120 unfavourable 
D) $33,520 favourable 
E) $33,520 unfavourable

Question 12

Use the information below to answer the following question(s).
Following a strategy of product differentiation,Barry Company makes an XX 300.Barry Company presents the following data for the years 1 and 2.
  Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 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.Neither conversion costs or customer-service costs are affected by changes in actual volume.Barry Company has 23 customers in year 1 and 25 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-What is the Barry Company's change in operating income from year 1 to year 2?

Accepted Answer

A) $147,600 favourable 
B) $143,520 favourable 
C) $156,120 favourable 
D) $156,120 unfavourable 
E) $242,000 favourable

Question 13

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

Accepted Answer

The answer of Grader Company manufactures road graders.Because its managers...

Question 14

Use the information below to answer the following question(s).
Following a strategy of product differentiation,Luke Company makes a high-end Appliance,AP15.Luke Company presents the following data for the years 1 and 2.
  Luke Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 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.Neither conversion costs or customer-service costs are affected by changes in actual volume.Luke Company has 46 customers in year 1 and 50 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-Referring to Luke Company,which of the following is an objective of the learning and growth perspective?

Accepted Answer

A) increase return on investment 
B) increase market share in the high-end appliance market 
C) improve order delivery time 
D) development of new products or services 
E) increase customer satisfaction

Question 15

________ measures the reduction in costs attributable to a reduction in the quantity of inputs used in year two relative to the quantity of inputs that would have been used in year one to produce the year two output.

Accepted Answer

A) The growth component 
B) The price-recovery component 
C) The productivity component 
D) The cost leadership component 
E) The strategy component

Question 16

Use the information below to answer the following question(s).
Following a strategy of product differentiation,Instruments Inc.makes a hand held calculator,II400.Instruments Inc.presents the following data for the years 1 and 2:
  Instruments Inc.produces no defective units but it wants to reduce direct materials usage per unit of II400 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of II400 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.Neither conversion costs or customer-service costs are affected by changes in actual volume.Instruments Inc.has 23 customers in year 1 and 25 customers in year 2.The industry market size for hand held calculators increased 5% from year 1 to year 2.Of the $4 increase in unit selling price,$1 is due to a general increase in prices.
-Required:
a.What is the operating income for Year 1?
b.What is the operating income in Year 2?
c.What is the change in operating income from Year 1 to Year 2?

Accepted Answer

The answer of Use the information below to answer the...

Question 17

Downsizing is an integrated approach to configure processes,products,and people to by match costs to the activities that need to be performed,to operate efficiently and effectively,now and in the future.

Accepted Answer

A) True 
 B)False

Question 18

The growth component measures the increase in revenues minus the increase in costs from selling more units of a product.

Accepted Answer

A) True 
 B)False

Question 19

Use the information below to answer the following question(s).
Following a strategy of product differentiation,Despotovich Corporation makes a high-end Computer Monitor,CM12.Despotovich Corporation presents the following data for the years 1 and 2:
  Despotovich Corporation produces no defective units but it wants to reduce direct materials usage per unit of CM12 in Year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of CM12 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.Neither conversion costs nor customer-service costs are affected by changes in actual volume.Despotovich Corporation has 46 customers in Year 1 and 50 customers in Year 2 .The industry market size for high-end computer monitors increased 5% from Year 1 to Year 2.Of the $40 increase in unit selling price,$10 was attributable to a general increase in prices.
-Required:
a.What amount is the revenue effect of growth component?
b.What amount is the cost effect of growth component?
c.What is the change in operating income as a result of the growth component?

Accepted Answer

The answer of Use the information below to answer the...

Question 20

Use the information below to answer the following question(s).
Following a strategy of product differentiation,Luke Company makes a high-end Appliance,AP15.Luke Company presents the following data for the years 1 and 2.
  Luke Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 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.Neither conversion costs or customer-service costs are affected by changes in actual volume.Luke Company has 46 customers in year 1 and 50 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-What is the Luke Company's operating income in Year 2?

Accepted Answer

A) $1,804,500 
B) $1,440,000 
C) $4,620,000 
D) $200,000 
E) $188,000

Exam 13: Strategy,balanced Scorecard,and Profitability Analysis

What is the primary purpose of the balanced scorecard?

________ is an organization's ability to offer products or services that are perceived by its customers as being superior and unique relative to those of its competitors.

What is the direct manufacturing labour partial productivity,assuming 20,000 units were produced during the year and 80,000 direct manufacturing labour-hours were used?

Downsizing is also called rightsizing.

The accounting scorecard translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for implementing its strategy.

________ measures the change in operating income attributable solely to changes in a company's profit margins between years one and two.

Identify and explain Porter's Five Forces model.

________ measures the reduction in costs attributable to a reduction in the quantity of inputs used in year two relative to the quantity of inputs that would have been used in year one to produce the year two output.

Downsizing is an integrated approach to configure processes,products,and people to by match costs to the activities that need to be performed,to operate efficiently and effectively,now and in the future.

The growth component measures the increase in revenues minus the increase in costs from selling more units of a product.