Question 1

Which is false of just-in-time (JIT)manufacturing systems?

Accepted Answer

A) Demand pull means a closer relationship with the customer 
B) The power of suppliers is reduced 
C) Warehousing needs are reduced 
D) After process re-engineering,time to complete the product is reduced 
E) None of the choices are correct 
A) Demand pull means a closer relationship with the customer 
B) The power of suppliers is reduced 
C) Warehousing needs are reduced 
D) After process re-engineering,time to complete the product is reduced 
E) None of the choices are correct B

Question 2

The balanced scorecard as a measure of corporate performance has been both criticized and lauded.Which is true?

Accepted Answer

A) Deviation from a single financial measure,such as EPS,ROA or EVA,in order to focus on the multiple measures of the balanced scorecard may cause management to reduce firm value 
B) Managers can focus on multiple performance indicators simultaneously 
C) Maximizing customer satisfaction maximizes value of the firm 
D) Maximizing employee satisfaction and learning maximizes value of the firm 
E) None of the choices are correct 
A) Deviation from a single financial measure,such as EPS,ROA or EVA,in order to focus on the multiple measures of the balanced scorecard may cause management to reduce firm value 
B) Managers can focus on multiple performance indicators simultaneously 
C) Maximizing customer satisfaction maximizes value of the firm 
D) Maximizing employee satisfaction and learning maximizes value of the firm 
E) None of the choices are correct A

Question 3

Zagart's Zambonis manufactures Zambonis (ice rink machines).Its cost of quality data appears below.Total manufacturing cost this year was $4.6 million. $$\begin{array} { l c } 
& \text { \$in } \
&\quad \quad \text { thousand } &  \ 
\text { Enginering tests at supplier's factary } & 18 \
\text { Fied tetting new product } &12  \
\text { Irtpection casts } &  42\
\text { Process re-engineering } & 50 \
\text { Product redesipn } & 42 \
\text { Rewark } & 45\
\text { Sales retuns (at cost) } &  105 \
\text { Serap } & 22 \
\text { Traing englayens an new systan } & 6 \
\text { Waranty repairs } &60\
\text { Waste } & 14   \
\text { Tatal } &416
\end{array}$$
 In evaluating Zagart's Zambonis cost of quality report,which is false?

Accepted Answer

A) ZZ is likely not spending enough on training relative to other costs of quality 
B) The external failure costs are likely understated 
C) ZZ is not spending enough on appraisal relative to internal and external failure costs 
D) ZZ is likely to have achieved its optimum quality level 
E) None of the choices are correct 
A) ZZ is likely not spending enough on training relative to other costs of quality 
B) The external failure costs are likely understated 
C) ZZ is not spending enough on appraisal relative to internal and external failure costs 
D) ZZ is likely to have achieved its optimum quality level 
E) None of the choices are correct D

Question 4

Kosmic Kan produces Kaos,a leading edge computer game.It is implementing a balanced scorecard to assess performance across multiple dimensions.Which is not an appropriate measure?

Accepted Answer

A) Financial: increase earnings per share by $0.12 
B) Customer: add customer value 
C) Learning and innovation: recruit 50 new staff from leading schools 
D) Internal processes: reduce programming errors by 3% 
E) None of the choices are correct 
A) Financial: increase earnings per share by $0.12 
B) Customer: add customer value 
C) Learning and innovation: recruit 50 new staff from leading schools 
D) Internal processes: reduce programming errors by 3% 
E) None of the choices are correct

Question 5

Internal accounting systems,including performance measures,affect behavior.It is often suggested that people pay attention to the dimensions of their work performance that are measured and rewarded.When,if ever,should these systems be revised?

Accepted Answer

A) Extremely seldom: it is too costly 
B) Rarely: people understand how to perform under the present system 
C) Sometimes: whenever it can be shown that significant dysfunctional results exist 
D) Often: whenever management consultants develop a 'new and improved' system or measure 
E) Never 
A) Extremely seldom: it is too costly 
B) Rarely: people understand how to perform under the present system 
C) Sometimes: whenever it can be shown that significant dysfunctional results exist 
D) Often: whenever management consultants develop a 'new and improved' system or measure 
E) Never

Question 6

Which is not true of Total Quality Management (TQM)?

Accepted Answer

A) TQM is focused on improving product and customer service quality 
B) TQM is expensive to initiate 
C) TQM requires top management support 
D) TQM requires ISO 9000 certification 
E) All of the choices are correct 
A) TQM is focused on improving product and customer service quality 
B) TQM is expensive to initiate 
C) TQM requires top management support 
D) TQM requires ISO 9000 certification 
E) All of the choices are correct

Question 7

Zagart's Zambonis manufactures Zambonis (ice rink machines).Its cost of quality data appears below.Total manufacturing cost this year was $4.6 million. $$\begin{array} { l c } 
& \text { \$in } \
&\quad \quad \text { thousand } &  \ 
\text { Enginering tests at supplier's factary } & 18 \
\text { Fied tetting new product } &12  \
\text { Irtpection casts } &  42\
\text { Process re-engineering } & 50 \
\text { Product redesipn } & 42 \
\text { Rewark } & 45\
\text { Sales retuns (at cost) } &  105 \
\text { Serap } & 22 \
\text { Traing englayens an new systan } & 6 \
\text { Waranty repairs } &60\
\text { Waste } & 14   \
\text { Tatal } &416
\end{array}$$ Which is true?

Accepted Answer

A) Prevention costs are $116,000 
B) Appraisal costs total $72,000 
C) Internal failure costs amount to $186,000 
D) External failure cost ZZ $105,000 
E) None of the choices are correct 
A) Prevention costs are $116,000 
B) Appraisal costs total $72,000 
C) Internal failure costs amount to $186,000 
D) External failure cost ZZ $105,000 
E) None of the choices are correct

Question 8

Typical measures of quality include:

Accepted Answer

A) percentage of defects 
B) dollars spent on rework 
C) number of on-time deliveries 
D) customer satisfaction surveys 
E) All of the choices are correct 
A) percentage of defects 
B) dollars spent on rework 
C) number of on-time deliveries 
D) customer satisfaction surveys 
E) All of the choices are correct

Question 9

Typical quality improvements include:

Accepted Answer

A) product redesign 
B) electronic defect detection 
C) alteration of organizational architecture to increase local responsiveness to customer needs 
D) purchase of robotic manufacturing systems 
E) All of the choices are correct 
A) product redesign 
B) electronic defect detection 
C) alteration of organizational architecture to increase local responsiveness to customer needs 
D) purchase of robotic manufacturing systems 
E) All of the choices are correct

Question 10

The balanced scorecard approach

Accepted Answer

A) Derives its name from the balance it attempts to achieve among a firm's executives,managers,and shareholders. 
B) Combines both decision management and decision control. 
C) Translates a plan of action that identifies objectives and performance drivers into a strategy to help the organization move in the right direction. 
D) Focuses on vague,open statements when setting objectives in order to allow managers flexibility to apply the objective to their individual business units. 
E) Evaluates performance using 8-10 different perspectives in order to effectively incorporate all areas of the organization. 
A) Derives its name from the balance it attempts to achieve among a firm's executives,managers,and shareholders. 
B) Combines both decision management and decision control. 
C) Translates a plan of action that identifies objectives and performance drivers into a strategy to help the organization move in the right direction. 
D) Focuses on vague,open statements when setting objectives in order to allow managers flexibility to apply the objective to their individual business units. 
E) Evaluates performance using 8-10 different perspectives in order to effectively incorporate all areas of the organization.

Which is false of just-in-time (JIT)manufacturing systems?

The balanced scorecard as a measure of corporate performance has been both criticized and lauded.Which is true?

Kosmic Kan produces Kaos,a leading edge computer game.It is implementing a balanced scorecard to assess performance across multiple dimensions.Which is not an appropriate measure?

Internal accounting systems,including performance measures,affect behavior.It is often suggested that people pay attention to the dimensions of their work performance that are measured and rewarded.When,if ever,should these systems be revised?

Which is not true of Total Quality Management (TQM)?

Typical measures of quality include:

Typical quality improvements include:

The balanced scorecard approach

Introduction

The Nature of Costs

Opportunity Cost of Capital and Capital Budgeting

Organizational Architecture

Responsibility Accounting and Transfer Pricing

Budgeting

Cost Allocation: Theory

Cost Allocation: Practices

Absorption Cost Systems

Criticisms of Absorption Cost Systems: Incentive to Overproduce

Criticisms of Absorption Cost Systems: Inaccurate Product Costs

Standard Costs: Direct Labor and Materials

Overhead and Marketing Variances

Filters

Exam 14: Management Accounting in a Changing Environment

Which is false of just-in-time (JIT)manufacturing systems?

The balanced scorecard as a measure of corporate performance has been both criticized and lauded.Which is true?

Kosmic Kan produces Kaos,a leading edge computer game.It is implementing a balanced scorecard to assess performance across multiple dimensions.Which is not an appropriate measure?

Internal accounting systems,including performance measures,affect behavior.It is often suggested that people pay attention to the dimensions of their work performance that are measured and rewarded.When,if ever,should these systems be revised?

Which is not true of Total Quality Management (TQM)?

Typical measures of quality include:

Typical quality improvements include:

The balanced scorecard approach

Introduction

The Nature of Costs

Opportunity Cost of Capital and Capital Budgeting

Organizational Architecture

Responsibility Accounting and Transfer Pricing

Budgeting

Cost Allocation: Theory

Cost Allocation: Practices

Absorption Cost Systems

Criticisms of Absorption Cost Systems: Incentive to Overproduce

Criticisms of Absorption Cost Systems: Inaccurate Product Costs

Standard Costs: Direct Labor and Materials

Overhead and Marketing Variances

Filters