Question 1

A difference between Toyota's lean manufacturing system and Ford's lean enterprise system is

Accepted Answer

A) Toyota incorporated employee empowerment, team structure, cellular manufacturing, small batches, and reduced setup times as integral pieces of their system. 
B) Toyota was not structured to deal with product variety. 
C) Toyota valued process over employees. 
D) Low volume products were not compatible with either system. 
A) Toyota incorporated employee empowerment, team structure, cellular manufacturing, small batches, and reduced setup times as integral pieces of their system. 
B) Toyota was not structured to deal with product variety. 
C) Toyota valued process over employees. 
D) Low volume products were not compatible with either system.

Question 2

Which of the following is true of a lean manufacturing system?

Accepted Answer

A) It results in a major reduction of inventories and productivity. 
B) It helps to increase efficiency by allowing a minimum tolerable level of defects in products. 
C) It allows managers to maximize customer value but results in increased manufacturing costs. 
D) It allows managers to eliminate waste, reduce costs, and reduce lead times. 
A) It results in a major reduction of inventories and productivity. 
B) It helps to increase efficiency by allowing a minimum tolerable level of defects in products. 
C) It allows managers to maximize customer value but results in increased manufacturing costs. 
D) It allows managers to eliminate waste, reduce costs, and reduce lead times.

Question 3

Lean manufacturing is concerned with eliminating waste in manufacturing processes.

Accepted Answer

A) True 
 B)False

Question 4

Identifying value streams may be accomplished by using a two-dimensional matrix where __________ are listed on one dimension, and __________ on a second dimension.

Accepted Answer

activities

Question 5

A Box Scorecard is used by the lean control system to compare operational, capacity, and financial figures

Accepted Answer

A) True 
 B)False

Question 6

Define what constitutes total productive efficiency, including a definition of technical efficiency and allocative efficiency.

Accepted Answer

Total productive efficiency is the point

Question 7

The Monterrey Company has recorded the following data: $\begin{array} { l  }&2018&2019\
\text { Output (units) }&42,000&48,000\
\text { Selling price per unit }&\$12&\$12\\\text { Input quantities: }\
\text { Materials (pounds) } & 8,000 & 7,500 \
\text { Labor (hours) } & 5,000 & 6,000\\\text { Input prices: }\
\text { Materials (per pound) } & \$ 4.00 & \$ 5.00 \
\text { Labor (per hour) } & \$ 8.00 & \$ 9.00
\end{array}$
 
Required: 
a.Calculate the materials productivity ratios for 2018 and 2019.
b.Calculate the labor productivity ratios for 2018 and 2019.
c.How much did profits change as a result of changes in productivity related to materials?
d.How much did profits change as a result of changes in productivity related to labor?

Accepted Answer

The answer of The Monterrey Company has recorded the following...

Question 8

The following data is recorded by the Antonio Company: $\begin{array} { l  }&2018&2019\
\text { Output (units) }&10,000&9,300\\
\text { Input quantities: }\\text { Labor (hours) }&4,000&3,875\\
\text { Input prices: }\\text { Labor (per hour) }&\$7&\$8
\end{array}$
 What is the partial operational productivity measure for labor for 2018?

Accepted Answer

A) 3.300 
B) 2.500 
C) 2.400 
D) 2.325 
A) 3.300 
B) 2.500 
C) 2.400 
D) 2.325

Question 9

The following information is supplied by the Redmond State Company: $\begin{array} { l  }&2018&2019\
\text { Output (units) }&175,000&190,500\\
\text { Input quantities: }\\text { Materials (pounds) }&40,500&52,000\\
\text { Input prices: }\\text { Materials (per pound) }&\$6.50&\$9
\end{array}$
 What is the partial operational productivity measure for materials for 2018? (Round the answer to two decimal places.)

Accepted Answer

A) 4.70 
B) 4.32 
C) 3.66 
D) 3.37 
A) 4.70 
B) 4.32 
C) 3.66 
D) 3.37

Question 10

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: $\begin{array}{lrr}&2019&2018\
\text { Output } & 45,000 & 54,000 \
\text { Output prices } & \$ 10 & \$ 10 \
\text { Materials (lbs.) } & 22,500 & 22,950 \
\text { Materials unit price } & \$ 3 & \$4 \
\text { Labor (hrs.) } & 18,000 & 16,875 \
\text { Labor rate per hour } & \$ 5 & \$ 5 \
\text { Power (kwh) } & 11,250 & 14,625 \
\text { Price per kwh } & \$ 2 & \$ 3
\end{array}$
By how much did profit change as a result of profitability changes in power?

Accepted Answer

A) $27,000 decrease 
B) $10,125 decrease 
C) $3,375 increase 
D) $3,375 decrease 
A) $27,000 decrease 
B) $10,125 decrease 
C) $3,375 increase 
D) $3,375 decrease

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 labor for 2019?

Accepted Answer

A) 1.67 
B) 5.00 
C) 2.50 
D) 5.25 
A) 1.67 
B) 5.00 
C) 2.50 
D) 5.25

Question 12

The following information relates to Cranmore Manufacturing: To produce a unit of product: Cutting department $\quad 5$ minutes per unit
Wel ding department $\quad 8$ minutes per unit
Polishing department $\quad 3$ minutes per unit
Finishing department $\quad 4$ minutes per unit 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.
What is the production rate?

Accepted Answer

A) 12 units per hour 
B) 20 units per hour 
C) 15 units per hour 
D) 7.5 units per hour 
A) 12 units per hour 
B) 20 units per hour 
C) 15 units per hour 
D) 7.5 units per hour

Question 13

The following information relates to Lancashire Manufacturing: To produce a unit of product: $\begin{array}{ll}
\text { Mixing dep artment } & 3 \text { minutes per unit } \
\text { Colding department } & 5 \text { minutes per unit } \
\text { Casting department } & 7 \text { minutes per unit } \
\text { Finishing department } & 4 \text { minutes per unit }
\end{array}$ There is a wait time of 8 minutes before the mixing department begins a batch, 5 minutes between the mixing and molding departments, a move and pre-wait between molding and casting of 10 minutes, and a move and pre-wait between the casting and finishing departments of 12 minutes.
What is the production rate?

Accepted Answer

A) 8.6 units per hour 
B) 7 units per hour 
C) 21 units per hour 
D) 19 units per hour 
A) 8.6 units per hour 
B) 7 units per hour 
C) 21 units per hour 
D) 19 units per hour

Question 14

There are two basic types of non-value added activities. They are

Accepted Answer

A) activities avoidable in the long run and activities unavoidable in the short run due to current technology or production methods. 
B) activities avoidable in the short run and activities unavoidable in the long run due to current technology or production methods. 
C) activities unavoidable in the short run due to current technology and activities avoidable due to production methods. 
D) activities avoidable in the short run and activities unavoidable in the short run due to current technology or production methods. 
A) activities avoidable in the long run and activities unavoidable in the short run due to current technology or production methods. 
B) activities avoidable in the short run and activities unavoidable in the long run due to current technology or production methods. 
C) activities unavoidable in the short run due to current technology and activities avoidable due to production methods. 
D) activities avoidable in the short run and activities unavoidable in the short run due to current technology or production methods.

Question 15

Information about Harlequin Corporation is as follows: $\begin{array}{lcr}&2018&2019\
\text { Output (units) } & 40,000 & 42,000 \
\text { Selling price per unit } & \$ 25 & \$ 25\\
\text { Input quantities: }\
\text { Materials (pounds) }&2,000&2,000\
\text { Labor (hours) }&1,600&1,625\\
\text { Input prices: }\
\text { Materials (per pound) }&\$5.00&\$5.50\
\text { Labor (per hour) }&\$7.00&\$7.50
\end{array}$ By how much did profits change as a result of changes in productivity related to materials?

Accepted Answer

A) $550.00 decrease 
B) $312.50 decrease 
C) $550.00 increase 
D) $312.50 increase 
A) $550.00 decrease 
B) $312.50 decrease 
C) $550.00 increase 
D) $312.50 increase

Question 16

At the end of 2018, Immaculate Productions 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:
 $\begin{array}{lrr}&2018&2019\
\text { Output } & 20,000 & 24,000 \
\text { Output prices } & \$ 20 & \$ 20 \
\text { Materials (lbs.) } & 16,000 & 16,800 \
\text { Materials unit price } & \$ 6 & \$ 8 \
\text { Labor (hrs.) } & 10,000 & 9,600 \
\text { Labor rate per hour } & \$ 10 & \$ 10 \
\text { Power (kwh) } & 4,000 & 6,000 \
\text { Price per kwh } & \$ 2 & \$ 3
\end{array}$ 
Required: 
a.Compute the partial operational measures for each input for both 2018 and 2019. What can be said about productivity improvement?
b.Prepare an income statement for each year and calculate the total change in profits.
c.Calculate the profit-linked productivity measure for 2018. What can be said about the productivity program?
d.Calculate the price-recovery component. What does this tell you?

Accepted Answer

a. Partial measures:
  more th

Question 17

Which of the following is true of the features and characteristics approach to product costing?

Accepted Answer

A) It focuses only on total quality and zero-defects. 
B) It recognizes that differences in features and characteristics of product components cause cost differences. 
C) It is designed to add value through waste reduction. 
D) It focuses on pursuing perfection in product costing and making value flow without interruptions. 
A) It focuses only on total quality and zero-defects. 
B) It recognizes that differences in features and characteristics of product components cause cost differences. 
C) It is designed to add value through waste reduction. 
D) It focuses on pursuing perfection in product costing and making value flow without interruptions.

Question 18

In calculating product costs for a value stream with multiple products, average product costs are a good estimate of individual product costs if

Accepted Answer

A) the products are similar and consume resources in approximately the same proportion. 
B) the product mix is relatively stable. 
C) the products are homogenous. 
D) all of the above. 
A) the products are similar and consume resources in approximately the same proportion. 
B) the product mix is relatively stable. 
C) the products are homogenous. 
D) all of the above.

Question 19

The following information relates to Lancashire Manufacturing: To produce a unit of product: $\begin{array}{ll}
\text { Mixing dep artment } & 3 \text { minutes per unit } \
\text { Colding department } & 5 \text { minutes per unit } \
\text { Casting department } & 7 \text { minutes per unit } \
\text { Finishing department } & 4 \text { minutes per unit }
\end{array}$ There is a wait time of 8 minutes before the mixing department begins a batch, 5 minutes between the mixing and molding departments, a move and pre-wait between molding and casting of 10 minutes, and a move and pre-wait between the casting and finishing departments of 12 minutes.
How long would it take to process the first unit of a 20-unit batch under a cellular manufacturing setup?

Accepted Answer

A) 21 minutes 
B) 12 minutes 
C) 19 minutes 
D) 60 minutes 
A) 21 minutes 
B) 12 minutes 
C) 19 minutes 
D) 60 minutes

Question 20

The value stream focuses on just value-added activities.

Accepted Answer

A) True 
 B)False

A difference between Toyota's lean manufacturing system and Ford's lean enterprise system is

Which of the following is true of a lean manufacturing system?

Lean manufacturing is concerned with eliminating waste in manufacturing processes.

Identifying value streams may be accomplished by using a two-dimensional matrix where are listed on one dimension, and on a second dimension.

A Box Scorecard is used by the lean control system to compare operational, capacity, and financial figures

Define what constitutes total productive efficiency, including a definition of technical efficiency and allocative efficiency.

The following data is recorded by the Antonio Company: 2018 2019 Output (units) 10,000 9,300 Input quantities: Labor (hours) 4,000 3,875 Input prices: Labor (per hour) \7 \8 What is the partial operational productivity measure for labor for 2018?

There are two basic types of non-value added activities. They are

Which of the following is true of the features and characteristics approach to product costing?

In calculating product costs for a value stream with multiple products, average product costs are a good estimate of individual product costs if

The value stream focuses on just value-added activities.

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

A difference between Toyota's lean manufacturing system and Ford's lean enterprise system is

Which of the following is true of a lean manufacturing system?

Lean manufacturing is concerned with eliminating waste in manufacturing processes.

Identifying value streams may be accomplished by using a two-dimensional matrix where __________ are listed on one dimension, and __________ on a second dimension.

A Box Scorecard is used by the lean control system to compare operational, capacity, and financial figures

Define what constitutes total productive efficiency, including a definition of technical efficiency and allocative efficiency.

The following data is recorded by the Antonio Company: 2018 2019 Output (units) 10,000 9,300 Input quantities: Labor (hours) 4,000 3,875 Input prices: Labor (per hour) \7 \8 What is the partial operational productivity measure for labor for 2018?

There are two basic types of non-value added activities. They are

Which of the following is true of the features and characteristics approach to product costing?

In calculating product costs for a value stream with multiple products, average product costs are a good estimate of individual product costs if

The value stream focuses on just value-added activities.

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

Identifying value streams may be accomplished by using a two-dimensional matrix where are listed on one dimension, and on a second dimension.