Exam 12: Activity-Based Management

Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: Activity Activity Driver SQ AQ SP Inspection Inspection hours 0 40,000 \ 12 Labor Hours 50,000 56,000 18 Materials Pounds 100,000 105,000 15 Receiving Orders 150 190 450 The actual prices paid per unit of each activity driver were equal to the standard prices. The actual costs for receiving are

Which of the following process dimensions of the activity-based management model deals with "how well"?

Setup time for a product is 12 hours. A firm that uses JIT and produces the same product has reduced setup time to 1 hour. Setup labor is $6 per hour. The value-added costs are

Activity-based responsibility accounting assigns responsibility to processes and uses only nonfinancial measures of performance.

The following is(are) awards made when performance is maintained or exceeds a specific measure:

The process that focuses on accountability for activities rather than costs and emphasizes systemwide performance is called __________ .

Magenta Company has developed capacity standards. The following information is provided by Magenta: Standard cost of the activity capacity acquired \ 125,000 Standard cost of the activity capacity used 90,000 Standard onst of the actial activity 100,000 The volume variance is:

The unused capacity variance is

A firm's warranty costs are $125,000 per year. A competitor's warranty costs are $25,000 per year. The non-value-added costs are

Which of the following is true of process innovation?

The activities necessary to remain in business are called:

Financial-based responsibility accounting focuses on functional organizational units.

The maintenance subcycle is defined by what sequence?

Hogwarts Company has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: Activity Activity Driver SQ AQ SP Inspection Inspection hours 0 40,000 \4 Labor Hours 33,000 39,000 7 Materials Pounds 110,000 115,000 4 Receiving Orders 150 190 150 The actual prices paid per unit of each activity driver were equal to the standard prices. The non-value-added costs for labor are

A technique for improving performance of activities and processes that searches for best practices is called

An activity output measure is

The process of improving performance and constantly eliminating waste is known as __________ .

The process which refers to the adoption of new processes to meet strategic objectives is called:

Salvador Company has developed capacity standards. Information is as follows for a value-added activity: Activity capacity acquired 60 Activity capacity used 50 Actual activity usage 30 Standard fixed activity rate \ 2,000 The volume variance is

Implementing an activity-based management requires careful planning and execution.