Question 1

The point at which technical and allocative efficiency are achieved is called __________ efficiency.

Accepted Answer

The answer of The point at which technical and allocative...

Question 2

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.
Which area represents the bottleneck operation?

Accepted Answer

A) finishing 
B) casting 
C) molding 
D) mixing 
A) finishing 
B) casting 
C) molding 
D) mixing

Question 3

Under features and characteristics costing, conversion costs are normally assigned

Accepted Answer

A) using a predetermined overhead rate. 
B) using a labor rate. 
C) based on proportion of production. 
D) using a conversion ratio that considers different features. 
A) using a predetermined overhead rate. 
B) using a labor rate. 
C) based on proportion of production. 
D) using a conversion ratio that considers different features.

Question 4

The formula "Total value-stream cost of period / Units shipped in period" is used to calculate _____.

Accepted Answer

A) value-stream product cost 
B) value-stream operational cost 
C) value-stream period cost 
D) value-stream financialcost 
A) value-stream product cost 
B) value-stream operational cost 
C) value-stream period cost 
D) value-stream financialcost

Question 5

The only allocation used regularly in a value stream cost assignment is

Accepted Answer

A) facilities. 
B) depreciation. 
C) maintenance. 
D) setup costs. 
A) facilities. 
B) depreciation. 
C) maintenance. 
D) setup costs.

Question 6

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 cost? (Round to nearest cent.)

Accepted Answer

A) $54.05 
B) $42.59 
C) $48.32 
D) $93.37 
A) $54.05 
B) $42.59 
C) $48.32 
D) $93.37

Question 7

Emphasis on departmental efficiency by a firm:

Accepted Answer

A) causes non-bottleneck departments to over-produce and build work-in-process inventories. 
B) eliminates wasteful activities involved in production as end product is produced in batches. 
C) is a critical component of a lean accounting system. 
D) motivates managers to reduce inventories. 
A) causes non-bottleneck departments to over-produce and build work-in-process inventories. 
B) eliminates wasteful activities involved in production as end product is produced in batches. 
C) is a critical component of a lean accounting system. 
D) motivates managers to reduce inventories.

Question 8

In value-stream reporting, costs incurred outside the value-stream are reported as:

Accepted Answer

A) nonproductive costs. 
B) nonfunctional costs. 
C) sustaining costs. 
D) wasteful costs. 
A) nonproductive costs. 
B) nonfunctional costs. 
C) sustaining costs. 
D) wasteful costs.

Question 9

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 labor?

Accepted Answer

A) $1,237.50 increase 
B) $1,650.00 increase 
C) $1,650.00 decrease 
D) $1,237.50 decrease 
A) $1,237.50 increase 
B) $1,650.00 increase 
C) $1,650.00 decrease 
D) $1,237.50 decrease

Question 10

The two approaches for measuring total productivity are

Accepted Answer

A) profile measurement and profit-linked productivity measurement. 
B) partial productivity measures and relative proportions. 
C) allocative efficiency and technical efficiency. 
D) ABC and ABM. 
A) profile measurement and profit-linked productivity measurement. 
B) partial productivity measures and relative proportions. 
C) allocative efficiency and technical efficiency. 
D) ABC and ABM.

Question 11

Information about Rigel Corporation is as follows: $\begin{array}{lcr}&2018&2019\
\text { Output (units) } & 168,000 & 185,000 \
\text { Selling price per unit } & \$ 32 & \$ 35\\
\text { Input quantities: }\
\text { Materials (pounds) }&8,000&8,200\
\text { Labor (hours) }&5,050&6,000\\
\text { Input prices: }\
\text { Materials (per pound) }&\$6.50&\$7.50\
\text { Labor (per hour) }&\$8.00&\$9.50
\end{array}$ What is the materials productivity ratio for 2019? (Round the answer to two decimal places.)

Accepted Answer

A) 33.27 
B) 22.56 
C) 30.83 
D) 36.63 
A) 33.27 
B) 22.56 
C) 30.83 
D) 36.63

Question 12

__________ allocation is the only allocation used regularly in a value stream cost assignment.

Accepted Answer

The answer of __________ allocation is the only allocation used...

Question 13

The disadvantage of using partial measures in isolation is that it can be misleading.

Accepted Answer

A) True 
 B)False

Question 14

In cellular manufacturing, cells are dedicated to:

Accepted Answer

A) produce families of similar products. 
B) set the benchmark for measuring changes in productive efficiency. 
C) decrease the processing time of the slowest department. 
D) assess the nature of overall productivity change. 
A) produce families of similar products. 
B) set the benchmark for measuring changes in productive efficiency. 
C) decrease the processing time of the slowest department. 
D) assess the nature of overall productivity change.

Question 15

In a lean environment, many overhead costs are assigned to

Accepted Answer

A) products using driver tracing. 
B) products as directly traceable costs. 
C) products using allocation methods. 
D) costs using plantwide overhead rates. 
A) products using driver tracing. 
B) products as directly traceable costs. 
C) products using allocation methods. 
D) costs using plantwide overhead rates.

Question 16

Discuss the advantages and disadvantages of partial productivity measures.

Accepted Answer

Partial measures can be misleading since

Question 17

Which of the following statements is true about the box scorecard?

Accepted Answer

A) Operational, non-financial measures are used at the cell level. 
B) There is a comparison between prior week metrics, current week metrics, and desired future state metrics. 
C) The expectation to achieve desired future state provides motivation towards constant performance improvement. 
D) all of the above. 
A) Operational, non-financial measures are used at the cell level. 
B) There is a comparison between prior week metrics, current week metrics, and desired future state metrics. 
C) The expectation to achieve desired future state provides motivation towards constant performance improvement. 
D) all of the above.

Question 18

The following information relates to Lancashire Manufacturing: To produce a unit of product: Mixing dep artment $\quad 3$ minutes per unit
Mol ding department $\quad 5$ minutes per unit
Casting department $\quad 7$ minutes per unit
Finishing department $\quad 4$ minutes per unit 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 does it take to produce a batch of 20 units under a traditional manufacturing approach?

Accepted Answer

A) 380 minutes 
B) 415 minutes 
C) 35 minutes 
D) none of the above 
A) 380 minutes 
B) 415 minutes 
C) 35 minutes 
D) none of the above

Question 19

Information about Roosevelt Corporation is as follows: $\begin{array} { l  }&2018&2019\
\text { Output (units) }&10,000&12,000\
\text { Selling price per unit }&\$25&\$25\\
\text { Change in profits }&&\$96,025\\\text { Profit-linked measurements: }\
\text { Materials }&&\$1,100\
\text { Labor }&&825\
\end{array}$
 What is the price-recovery component?

Accepted Answer

A) $1,925 
B) ($96,025) 
C) $96,025 
D) $94,100 
A) $1,925 
B) ($96,025) 
C) $96,025 
D) $94,100

Question 20

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

The point at which technical and allocative efficiency are achieved is called __________ efficiency.

Under features and characteristics costing, conversion costs are normally assigned

The formula "Total value-stream cost of period / Units shipped in period" is used to calculate _____.

The only allocation used regularly in a value stream cost assignment is

Emphasis on departmental efficiency by a firm:

In value-stream reporting, costs incurred outside the value-stream are reported as:

The two approaches for measuring total productivity are

__________ allocation is the only allocation used regularly in a value stream cost assignment.

The disadvantage of using partial measures in isolation is that it can be misleading.

In cellular manufacturing, cells are dedicated to:

In a lean environment, many overhead costs are assigned to

Discuss the advantages and disadvantages of partial productivity measures.

Which of the following statements is true about the box scorecard?

Information about Roosevelt Corporation is as follows: 2018 2019 Output (units) 10,000 12,000 Selling price per unit \2 5 \2 5 Change in profits \9 6,025 Profit-linked measurements: Materials \1 ,100 Labor 825 What is the price-recovery component?

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 point at which technical and allocative efficiency are achieved is called __________ efficiency.

Under features and characteristics costing, conversion costs are normally assigned

The formula "Total value-stream cost of period / Units shipped in period" is used to calculate _____.

The only allocation used regularly in a value stream cost assignment is

Emphasis on departmental efficiency by a firm:

In value-stream reporting, costs incurred outside the value-stream are reported as:

The two approaches for measuring total productivity are

__________ allocation is the only allocation used regularly in a value stream cost assignment.

The disadvantage of using partial measures in isolation is that it can be misleading.

In cellular manufacturing, cells are dedicated to:

In a lean environment, many overhead costs are assigned to

Discuss the advantages and disadvantages of partial productivity measures.

Which of the following statements is true about the box scorecard?

Information about Roosevelt Corporation is as follows: 2018 2019 Output (units) 10,000 12,000 Selling price per unit \2 5 \2 5 Change in profits \9 6,025 Profit-linked measurements: Materials \1 ,100 Labor 825 What is the price-recovery component?

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