Question 1

The process of producing output efficiently using the least amount of inputs is called __________ .

Accepted Answer

The answer of The process of producing output efficiently using...

Question 2

Implementing the value-stream structure requires an increase in employees.

Accepted Answer

A) True 
 B)False

Question 3

The __________ is used by the lean control system to compare operational, capacity, and financial metrics.

Accepted Answer

The answer of The __________ is used by the lean...

Question 4

The accounting approach designed to support and encourage lean manufacturing is called __________ accounting.

Accepted Answer

The answer of The accounting approach designed to support and...

Question 5

Technical efficiency is concerned with a given input using no more than needed output.

Accepted Answer

A) True 
 B)False

Question 6

Allocating efficiency chooses the least costly, technically efficient combination of inputs.

Accepted Answer

A) True 
 B)False

Question 7

The following information is supplied by the Mountain State Company: $\begin{array} { l  }&2018&2019\
\text { Output (units) }&120,000&130,000\\
\text { Input quantities: }\\text { Materials (pounds) }&37,500&40,000\\
\text { Input prices: }\\text { Materials (per pound) }&\$4&\$6
\end{array}$
 What is the partial operational productivity measure for materials for 2019?

Accepted Answer

A) 3.2500 
B) 3.2000 
C) 0.3077 
D) 0.3125 
A) 3.2500 
B) 3.2000 
C) 0.3077 
D) 0.3125

Question 8

The new product value stream focuses on

Accepted Answer

A) developing new products for new customers. 
B) providing current products to current customers. 
C) providing current products to new customers and new products to new customers. 
D) the production, sale, and delivery of products. 
A) developing new products for new customers. 
B) providing current products to current customers. 
C) providing current products to new customers and new products to new customers. 
D) the production, sale, and delivery of products.

Question 9

Based on the following information: $\begin{array}{lrrrrr}
&\text { Materials }&\text { Wages }&\text { Machining }&\text { Other }&\text { Total cost }\
\text { Order Processing}&\$28,000& & &&28,000\
\text { Purchasing } & 43,000 & & && 43,000 \
\text { Cutting } & \$ 160,000 & 36,000 & \$ 33,000 & \$ 8,000 & 237,000 \
\text { Forming } & 57,500 & 49,000 & 22,000 & 12,000 & 140,500 \
\text { Finishing } & 42,500 & 28,000 & 5,000 & & 75,500 \
\text { Testing } & & 30,000 & & & 30,000\\text { Packaging and }\
\text { shipping }&&10,000&&&10,000\
\text { Invoicing }&&6,000&&&6,000\\hline
\text { Totals }&\$260,000&\$230,000&\$60,000&\$20,000&\$570,000
\end{array}$

$\begin{array}{ll}
\text { Part } A & 2,005 \text { units } \
\text { Part Q } & 4,100 \text { units } \
\text { Total } & 6.105 \text { units }
\end{array}$ What is the product cost based on total average conversion cost? (Round to nearest cent.)

Accepted Answer

A) $100.56 
B) $48.32 
C) $36.04 
D) $50.78 
A) $100.56 
B) $48.32 
C) $36.04 
D) $50.78

Question 10

Information about Bodacious Corporation is as follows: $\begin{array}{lcr}&2018&2019\
\text { Output (units) } & 120,000 & 126,000 \
\text { Selling price per unit } & \$ 25 & \$ 25\\
\text { Input quantities: }\
\text { Materials (pounds) }&6,000&6,000\
\text { Labor (hours) }&4,800&4,825\\
\text { Input prices: }\
\text { Materials (per pound) }&\$5.00&\$5.50\
\text { Labor (per hour) }&\$7.00&\$7.50
\end{array}$ By how much did profits change as a result of changes in productivity related to materials?

Accepted Answer

A) $1,650.00 increase 
B) $1,650.00 decrease 
C) $937.50 decrease 
D) $937.50 increase 
A) $1,650.00 increase 
B) $1,650.00 decrease 
C) $937.50 decrease 
D) $937.50 increase

Question 11

Information about Remarkable Corporation is as follows: $\begin{array}{lll}&2018&2019\
\text { Output (units) }&50,000&50,000\\
\text { Input quantities: }\
\text { Materi als (pounds) } & 22,500 & 20,000 \
\text { Labor (hours) } & 12,500 & 10,000\\\text { Input prices: }\
\text { Materials (per pound) } & \$ 6 & \$ 7\
\text { Labor (per hour) } & \$ 9& \$ 10
\end{array}$ What is the partial operational productivity measure for materials for 2018?

Accepted Answer

A) 1.42 
B) 2.22 
C) 1.80 
D) 1.60 
A) 1.42 
B) 2.22 
C) 1.80 
D) 1.60

Question 12

Technical improvements in productivity can be achieved by:

Accepted Answer

A) using less inputs and producing less output. 
B) producing more outputs using relatively more inputs. 
C) producing more outputs using the same inputs. 
D) using more inputs and producing the same output. 
A) using less inputs and producing less output. 
B) producing more outputs using relatively more inputs. 
C) producing more outputs using the same inputs. 
D) using more inputs and producing the same output.

Question 13

The following data is from the records of the Mendelsohn Corporation:
 $\begin{array} { l  }&2018&2019\
\text { Output (units) }&300,000&270,000\
\text { Selling price per unit }&\$30&\$30\\\text { Input quantities: }\
\text { Materials (pounds) } & 75,000 & 60,000 \
\text { Labor (hours) } & 48,000 &50,000\\\text { Input prices: }\
\text { Materials (per pound) } & \$ 8.00 & \$ 9.00 \
\text { Labor (per hour) } & \$ 11.00 & \$ 12.00
\end{array}$
 
Required: 
a.Calculate the materials and labor productivity ratios for 2018 and 2019.
b.Did materials productivity improve?
c.Did labor productivity improve?
d.By how much did profits change as a result of changes in productivity?
e.How much of the profit change is attributable to price recovery?

Accepted Answer

The answer of The following data is from the records...

Question 14

Productivity measurement is a quantitative assessment of increases or decreases in productivity.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true in regards to a lean accounting system?

Accepted Answer

A) The cost of people with specialized skills, such as industrial engineers, are allocated to all manufacturing cells based on an activity driver. 
B) Workers are multiskilled and responsible for setting up equipment, maintaining equipment, and operating equipment. 
C) Implementing a value stream system will require more workers. 
D) Workers are highly skilled in one specialized area or activity and are not expected to spend time on other value-added activities. 
A) The cost of people with specialized skills, such as industrial engineers, are allocated to all manufacturing cells based on an activity driver. 
B) Workers are multiskilled and responsible for setting up equipment, maintaining equipment, and operating equipment. 
C) Implementing a value stream system will require more workers. 
D) Workers are highly skilled in one specialized area or activity and are not expected to spend time on other value-added activities.

Question 16

The departments or cells which contain all the operations in close proximity that are needed to produce a family of products.

Accepted Answer

A) Manufacturing cells 
B) Value stream cells 
C) Batch departments 
D) Plant departments 
A) Manufacturing cells 
B) Value stream cells 
C) Batch departments 
D) Plant departments

Question 17

The following information relates to Cranmore Manufacturing: To produce a unit of product: $\begin{array}{ll}
\text { Cutting department } & 5 \text { minutes per unit } \
\text { Wel ding department } & 8 \text { minutes per unit } \
\text { Polishing department } & 3 \text { minutes per unit } \
\text { Finishing department } & 4 \text { minutes per unit }
\end{array}$ There is a wait time of 5 minutes before the cutting department begins a batch, 15 minutes between the cutting and welding departments, a move and pre-wait between welding and polishing of 12 minutes, and a move and pre-wait between the polishing and finishing departments of 8 minutes.
If Cranmore produces in batches of 10 units, how much time would have elapsed by the time the 10th unit is produced under a manufacturing cell environment (assuming the cell is processing continuously)?

Accepted Answer

A) 60 minutes 
B) 65 minutes 
C) 150 minutes 
D) some other amount 
A) 60 minutes 
B) 65 minutes 
C) 150 minutes 
D) some other amount

Question 18

Profit-linked productivity measurement involves the measuring of the amount of profit related to productivity change.

Accepted Answer

A) True 
 B)False

Question 19

The Cuperoid Company provides the following data: $\begin{array} { l  }&2018&2019\
\text { Output (units) } & 14,000 & 15,900 \\
\text { Input quantities: } & & \
\text { Materials (pounds) } & 4,350 & 4,985\\
\text { Input prices: }\
\text { Materials (per pound) }&\$4&\$5
\end{array}$
 What is the partial operational productivity measure for materials for 2018? (Round the answer to two decimal places.)

Accepted Answer

A) 3.22 
B) 3.19 
C) 3.66 
D) 2.81 
A) 3.22 
B) 3.19 
C) 3.66 
D) 2.81

Question 20

At the end of 2018, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2019, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows: $\begin{array}{lrr}&2019&2018\
\text { Output } & 45,000 & 54,000 \
\text { Output prices } & \$ 10 & \$ 10 \
\text { Materials (lbs.) } & 22,500 & 22,950 \
\text { Materials unit price } & \$ 3 & \$4 \
\text { Labor (hrs.) } & 18,000 & 16,875 \
\text { Labor rate per hour } & \$ 5 & \$ 5 \
\text { Power (kwh) } & 11,250 & 14,625 \
\text { Price per kwh } & \$ 2 & \$ 3
\end{array}$
How much profit was generated in 2019?

Accepted Answer

A) $540,000 
B) $319,950 
C) $220,050 
D) $270,000 
A) $540,000 
B) $319,950 
C) $220,050 
D) $270,000

The process of producing output efficiently using the least amount of inputs is called __________ .

Implementing the value-stream structure requires an increase in employees.

The __________ is used by the lean control system to compare operational, capacity, and financial metrics.

The accounting approach designed to support and encourage lean manufacturing is called __________ accounting.

Technical efficiency is concerned with a given input using no more than needed output.

Allocating efficiency chooses the least costly, technically efficient combination of inputs.

The following information is supplied by the Mountain State Company: 2018 2019 Output (units) 120,000 130,000 Input quantities: Materials (pounds) 37,500 40,000 Input prices: Materials (per pound) \4 \6 What is the partial operational productivity measure for materials for 2019?

The new product value stream focuses on

Technical improvements in productivity can be achieved by:

Productivity measurement is a quantitative assessment of increases or decreases in productivity.

Which of the following is true in regards to a lean accounting system?

The departments or cells which contain all the operations in close proximity that are needed to produce a family of products.

Profit-linked productivity measurement involves the measuring of the amount of profit related to productivity change.

The Cuperoid Company provides the following data: 2018 2019 Output (units) 14,000 15,900 Input quantities: Materials (pounds) 4,350 4,985 Input prices: Materials (per pound) \4 \5 What is the partial operational productivity measure for materials for 2018? (Round the answer to two decimal places.)

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

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

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 15: Lean Accounting and Productivity Measurement

The process of producing output efficiently using the least amount of inputs is called __________ .

Implementing the value-stream structure requires an increase in employees.

The __________ is used by the lean control system to compare operational, capacity, and financial metrics.

The accounting approach designed to support and encourage lean manufacturing is called __________ accounting.

Technical efficiency is concerned with a given input using no more than needed output.

Allocating efficiency chooses the least costly, technically efficient combination of inputs.

The following information is supplied by the Mountain State Company: 2018 2019 Output (units) 120,000 130,000 Input quantities: Materials (pounds) 37,500 40,000 Input prices: Materials (per pound) \4 \6 What is the partial operational productivity measure for materials for 2019?

The new product value stream focuses on

Technical improvements in productivity can be achieved by:

Productivity measurement is a quantitative assessment of increases or decreases in productivity.

Which of the following is true in regards to a lean accounting system?

The departments or cells which contain all the operations in close proximity that are needed to produce a family of products.

Profit-linked productivity measurement involves the measuring of the amount of profit related to productivity change.

The Cuperoid Company provides the following data: 2018 2019 Output (units) 14,000 15,900 Input quantities: Materials (pounds) 4,350 4,985 Input prices: Materials (per pound) \4 \5 What is the partial operational productivity measure for materials for 2018? (Round the answer to two decimal places.)

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

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

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