Question 1

On a box scorecard, capacity can be labeled as

Accepted Answer

A) productive, non-productive, and excess. 
B) available, excess, and budgeted. 
C) productive, non-productive, and available. 
D) valued, excess, and wasted. 
A) productive, non-productive, and excess. 
B) available, excess, and budgeted. 
C) productive, non-productive, and available. 
D) valued, excess, and wasted.

Question 2

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 materials?

Accepted Answer

A) $16,200 increase 
B) $16,200 decrease 
C) $36,000 decrease 
D) $36,000 increase 
A) $16,200 increase 
B) $16,200 decrease 
C) $36,000 decrease 
D) $36,000 increase

Question 3

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 labor?

Accepted Answer

A) $5,625 increase 
B) $45,000 increase 
C) $23,625 increase 
D) $23,625 decrease 
A) $5,625 increase 
B) $45,000 increase 
C) $23,625 increase 
D) $23,625 decrease

Question 4

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: $\begin{array}{lrr}&2018&2019
\text { Output } & 45,000 & 54,000 \
\text { Output prices } & \$ 10 & \$ 10 \
\text { Materials (lbs.) } & 22,500 & 22,950 \
\text { Materials unit price } & \$ 3 & \$ 4 \
\text { Labor (hrs.) } & 18,000 & 16,875 \
\text { Labor rate per hour } & \$ 5 & \$ 5 \
\text { Power (kwh) } & 11,250 & 14,625 \
\text { Price per kwh } & \$ 2 & \$ 3
\end{array}$ What is the partial operational measure for power for 2019?

Accepted Answer

A) 3.69 
B) 1.00 
C) 1.15 
D) 4.00 
A) 3.69 
B) 1.00 
C) 1.15 
D) 4.00

Question 5

In a lean environment, many overhead costs are assigned to products as directly __________ costs.

Accepted Answer

The answer of In a lean environment, many overhead costs...

Question 6

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: $\begin{array}{lrr}&2018&2019
\text { Output } & 45,000 & 54,000 \
\text { Output prices } & \$ 10 & \$ 10 \
\text { Materials (lbs.) } & 22,500 & 22,950 \
\text { Materials unit price } & \$ 3 & \$ 4 \
\text { Labor (hrs.) } & 18,000 & 16,875 \
\text { Labor rate per hour } & \$ 5 & \$ 5 \
\text { Power (kwh) } & 11,250 & 14,625 \
\text { Price per kwh } & \$ 2 & \$ 3
\end{array}$ What is the partial operational measure for labor for 2019?

Accepted Answer

A) 1.00 
B) 3.20 
C) 2.50 
D) 1.25 
A) 1.00 
B) 3.20 
C) 2.50 
D) 1.25

Question 7

Employee empowerment is a major difference between traditional and lean environments.

Accepted Answer

A) True 
 B)False

Question 8

Productivity is concerned with the efficiency of input usage in producing output.

Accepted Answer

A) True 
 B)False

Question 9

Salvavidas Incorporated has the following departmental structure for producing its products:   A consultant designed a cellular manufacturing structure for the same product:   The times given represent the time required to process one unit of product.
Required: 
a.Calculate the time required to produce a batch of 10 units using a batch processing departmental structure.
b.Calculate the time required to produce 10 units using cellular manufacturing.
c.How much manufacturing time will the cellular manufacturing structure save for a batch of 10 units?

Accepted Answer

The answer of Salvavidas Incorporated has the following departmental structure...

Question 10

The value stream

Accepted Answer

A) is made up of all activities, both value-added and non-value-added, required to bring a product group or service from its starting point to a finished product in the hands of the customer. 
B) is made up value-added activities required to bring a product group or service from its starting point to a finished product in the hands of the customer. 
C) is where the production stream is triggered by forecast. 
D) is a series of steps designed to set target costs. 
A) is made up of all activities, both value-added and non-value-added, required to bring a product group or service from its starting point to a finished product in the hands of the customer. 
B) is made up value-added activities required to bring a product group or service from its starting point to a finished product in the hands of the customer. 
C) is where the production stream is triggered by forecast. 
D) is a series of steps designed to set target costs.

Question 11

The quantitative assessment of productivity changes is called __________ measurement.

Accepted Answer

The answer of The quantitative assessment of productivity changes is...

Question 12

The JIT solution

Accepted Answer

A) requires carrying materials inventory in order to lower the cost of inventory without production delays. 
B) requires selection of vendors based on lowest cost alone. 
C) exploits supplier linkages by negotiating long-term contracts with a few chosen suppliers located closest to the production facility and establishing more supplier involvement. 
D) requires a solid forecast to push production. 
A) requires carrying materials inventory in order to lower the cost of inventory without production delays. 
B) requires selection of vendors based on lowest cost alone. 
C) exploits supplier linkages by negotiating long-term contracts with a few chosen suppliers located closest to the production facility and establishing more supplier involvement. 
D) requires a solid forecast to push production.

Question 13

The pursuit of perfection is realized in

Accepted Answer

A) zero setup times. 
B) producing on demand. 
C) maximizing customer value. 
D) all of the above. 
A) zero setup times. 
B) producing on demand. 
C) maximizing customer value. 
D) all of the above.

Question 14

The processing department can produce one unit every 5 minutes and is the last department before the finishing department. Under traditional manufacturing where a batch equals 10 units, how long will it be before the first unit in the batch can move from the processing department to the finishing department?

Accepted Answer

A) 5 minutes 
B) 50 minutes 
C) 10 minutes 
D) not enough information is given 
A) 5 minutes 
B) 50 minutes 
C) 10 minutes 
D) not enough information is given

Question 15

Information about Haulover Company is as follows: $\begin{array}{lll}&2018&2019\
\text { Output (units) }&200,000&2000,000\\
\text { Input quantities: }\
\text { Materi als (pounds) } & 90,000 & 80,000 \
\text { Labor (hours) } & 50,000 & 40,000\\\text { Input prices: }\
\text { Materials (per pound) } & \$ 5 & \$ 6\
\text { Labor (per hour) } & \$ 8& \$ 9
\end{array}$ What is the partial operational productivity measure for materials for 2018?

Accepted Answer

A) 1.50 
B) 2.00 
C) 1.67 
D) 2.50 
A) 1.50 
B) 2.00 
C) 1.67 
D) 2.50

Question 16

At the end of 2018, Hargreaves 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: $\begin{array}{lrr}&2018&2019\
\text { Output } & 66,000 & 85,000 \
\text { Output prices } & \$ 12 & \$ 14 \
\text { Materials (lbs.) } & 24,800 & 25,550 \
\text { Materials unit price } & \$ 5 & \$ 7\
\text { Labor (hrs.) } & 25,000 & 30,875 \
\text { Labor rate per hour } & \$ 9 & \$ 9.50 \
\text { Power (kwh) } & 12,280 & 18,955 \
\text { Price per kwh } & \$ 4 & \$ 4.50
\end{array}$
What is the partial operational measure for materials for 2018? (Round the answer to two decimal places.)

Accepted Answer

A) 2.04 
B) 3.33 
C) 2.66 
D) 1.63 
A) 2.04 
B) 3.33 
C) 2.66 
D) 1.63

Question 17

Information about Beagle Corporation is as follows: $$\begin{array} { l c r } 
& 2018 & 2019 \
\text { Output (units) } & 59,000 & 63,000 \
\text { Selling price per unit } & \$ 32 & \$ 36 \
& & \
\text { Input quantities: } & & \
\text { Materials (pounds) } & 3,100 & 3,500 \
\text { Labor (hours) } & 1,800 & 1,925 \
& & \
\text { Input prices: } & & \
\text { Materials (per pound) } & \$ 8.00 & \$ 9.50 \
\text { Labor (per hour) } & \$ 9.00 & \$ 10.00
\end{array}$$ What is the materials productivity ratio for 2018? (Round the answer to two decimal places.)

Accepted Answer

A) 16.86 
B) 19.03 
C) 32.73 
D) 18.00 
A) 16.86 
B) 19.03 
C) 32.73 
D) 18.00

Question 18

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.
What is the cycle time of operation?

Accepted Answer

A) 60 minutes 
B) 20 minutes 
C) 35 minutes 
D) 16 minutes 
A) 60 minutes 
B) 20 minutes 
C) 35 minutes 
D) 16 minutes

Question 19

The difference between the total profit change and the profit-linked productivity change is called the __________ component.

Accepted Answer

The answer of The difference between the total profit change...

Question 20

Changes in product-costing and operational control approaches are crucial to a value-stream based lean manufacturing system.

Accepted Answer

A) True 
 B)False

On a box scorecard, capacity can be labeled as

In a lean environment, many overhead costs are assigned to products as directly __________ costs.

Employee empowerment is a major difference between traditional and lean environments.

Productivity is concerned with the efficiency of input usage in producing output.

The value stream

The quantitative assessment of productivity changes is called __________ measurement.

The JIT solution

The pursuit of perfection is realized in

The difference between the total profit change and the profit-linked productivity change is called the __________ component.

Changes in product-costing and operational control approaches are crucial to a value-stream based lean manufacturing system.

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

On a box scorecard, capacity can be labeled as

In a lean environment, many overhead costs are assigned to products as directly __________ costs.

Employee empowerment is a major difference between traditional and lean environments.

Productivity is concerned with the efficiency of input usage in producing output.

The value stream

The quantitative assessment of productivity changes is called __________ measurement.

The JIT solution

The pursuit of perfection is realized in

The difference between the total profit change and the profit-linked productivity change is called the __________ component.

Changes in product-costing and operational control approaches are crucial to a value-stream based lean manufacturing system.

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