Question 1

A measure of productivity can be either:

Accepted Answer

A)  Operational or financial. 
B)  Total or segmented. 
C)  Short-term or long-term. 
D)  Activity-based or TOC based. 
A)  Operational or financial. 
B)  Total or segmented. 
C)  Short-term or long-term. 
D)  Activity-based or TOC based.

Question 2

Which one of the following does not use the dollar amount of the input in assessing productivity?

Accepted Answer

A)  Financial productivity. 
B)  Total productivity. 
C)  Operational productivity. 
D)  Productivity. 
E)  Partial financial productivity. 
A)  Financial productivity. 
B)  Total productivity. 
C)  Operational productivity. 
D)  Productivity. 
E)  Partial financial productivity.

Question 3

One major problem in measuring the productivity of a service organization is the absence of:

Accepted Answer

A)  Overhead costs. 
B)  A common measure for its outputs. 
C)  Mandatory financial reporting. 
D)  Materials costs. 
A)  Overhead costs. 
B)  A common measure for its outputs. 
C)  Mandatory financial reporting. 
D)  Materials costs.

Question 4

Broha Company manufactured 1,500 units of its only product during 2019. The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2018 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
Round all calculations to 2 significant digits.
In 2019, the partial direct labor operational productivity is:

Accepted Answer

A)  0.20. 
B)  0.25. 
C)  0.40. 
D)  4.00. 
E)  5.00. 
A)  0.20. 
B)  0.25. 
C)  0.40. 
D)  4.00. 
E)  5.00.

Question 5

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year: The total market was estimated to be 80,000 pounds at the time of budget. The actual total market for the year is 75,000 pounds.
What is the firm's market share variance?

Accepted Answer

A)  $30,600 favorable. 
B)  $31,500 favorable. 
C)  $32,640 favorable. 
D)  $33,000 favorable. 
E)  $35,200 favorable. 
A)  $30,600 favorable. 
B)  $31,500 favorable. 
C)  $32,640 favorable. 
D)  $33,000 favorable. 
E)  $35,200 favorable.

Question 6

Gutsen Communications Inc. manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part—DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Gutsen Communications Inc. for 2018 and 2019 relative to the insertion of DTV-12. Round calculations to 2 significant digits.$\begin{array}{lrr} 
& {2018} &{2019} \
\text { Number of phones manufactured } & 600,000 & 780,000 \
\text { Units of DTV-12 used } & 960,000 & 1,072,500 \
\text { Direct labor hours for DTV-12 insertion } & 1,800 & 2,600 \
\text { Total cost of DTV-12 units } & \$ 1,443,750 & \$ 2,333,750\
\text { Direct labor wage rate per hour }&\$67&\$82
\end{array}$The partial financial productivity ratio of DTV-12 in 2019 is:

Accepted Answer

A)  0.33. 
B)  0.42. 
C)  2.35. 
D)  3.66. 
E)  4.98. 
A)  0.33. 
B)  0.42. 
C)  2.35. 
D)  3.66. 
E)  4.98.

Question 7

Which of the following is not a part of the sales mix variance equation?

Accepted Answer

A)  Actual sales mix of the product. 
B)  Budgeted sales mix of the product. 
C)  Actual contribution margin per unit of the product. 
D)  Total units sold. 
A)  Actual sales mix of the product. 
B)  Budgeted sales mix of the product. 
C)  Actual contribution margin per unit of the product. 
D)  Total units sold.

Question 8

Weighted-average budgeted contribution margin per unit is:

Accepted Answer

A)  Actual total contribution margin/actual total units. 
B)  Actual total contribution margin/budgeted total units. 
C)  Budgeted total contribution margin/actual total units. 
D)  Budgeted total contribution margin/budgeted total units. 
E)  Sum of budgeted contribution margin per unit of all products/number of products. 
A)  Actual total contribution margin/actual total units. 
B)  Actual total contribution margin/budgeted total units. 
C)  Budgeted total contribution margin/actual total units. 
D)  Budgeted total contribution margin/budgeted total units. 
E)  Sum of budgeted contribution margin per unit of all products/number of products.

Question 9

Wheat Inc. has an exclusive contract with an exporter. Two brands of wheat are imported, labeled AB and CD. The following data are provided for the current fiscal year: The total market was estimated to 40,000 bushels at the time of budget. The actual total market for the year is 32,000 bushels.
What is AB's contribution margin sales volume variance?

Accepted Answer

A)  $0. 
B)  $1,500 unfavorable. 
C)  $4,000 favorable. 
D)  $7,500 unfavorable. 
E)  $10,000 unfavorable. 
A)  $0. 
B)  $1,500 unfavorable. 
C)  $4,000 favorable. 
D)  $7,500 unfavorable. 
E)  $10,000 unfavorable.

Question 10

Which of the following is not a key determinant of productivity for most organizations?

Accepted Answer

A)  Control of waste. 
B)  Product and manufacturing process innovation. 
C)  Control of overhead costs. 
D)  Fluctuations in demand. 
A)  Control of waste. 
B)  Product and manufacturing process innovation. 
C)  Control of overhead costs. 
D)  Fluctuations in demand.

Question 11

Broha Company manufactured 1,500 units of its only product during 2019. The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2018 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
Round all calculations to 2 significant digits.
The partial direct labor operational productivity in 2018 is:

Accepted Answer

A)  0.22. 
B)  0.25. 
C)  4.00. 
D)  4.50. 
E)  5.00. 
A)  0.22. 
B)  0.25. 
C)  4.00. 
D)  4.50. 
E)  5.00.

Question 12

An unfavorable sales mix variance arises for a product when the:

Accepted Answer

A)  Actual units sold are greater than the budgeted units to be sold. 
B)  Actual units sold are less than the budgeted units to be sold. 
C)  Actual sales mix percentage is less than the budgeted sales mix percentage. 
D)  Budgeted sales mix percentage is less than the actual sales mix percentage. 
E)  Total actual sales dollar from the product is less than the budgeted sales dollar for the product. 
A)  Actual units sold are greater than the budgeted units to be sold. 
B)  Actual units sold are less than the budgeted units to be sold. 
C)  Actual sales mix percentage is less than the budgeted sales mix percentage. 
D)  Budgeted sales mix percentage is less than the actual sales mix percentage. 
E)  Total actual sales dollar from the product is less than the budgeted sales dollar for the product.

Question 13

Broha Company manufactured 1,500 units of its only product during 2019. The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2018 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
Round all calculations to 2 significant digits.
In 2019, the partial financial productivity of Material H is:

Accepted Answer

A)  0.20. 
B)  0.55. 
C)  1.82. 
D)  3.33. 
E)  5.00. 
A)  0.20. 
B)  0.55. 
C)  1.82. 
D)  3.33. 
E)  5.00.

Question 14

Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed:  Industry volume was estimated to be 1,875,000 units at the time the budget was prepared. Actual industry volume for the period was 2,440,000 units. Jackson measures variances using contribution margin.
Total sales quantity variance is:

Accepted Answer

A)  $36,400 favorable. 
B)  $84,500 favorable. 
C)  $95,190 favorable. 
D)  $97,280 favorable. 
E)  $107,920 favorable. 
A)  $36,400 favorable. 
B)  $84,500 favorable. 
C)  $95,190 favorable. 
D)  $97,280 favorable. 
E)  $107,920 favorable.

Question 15

Winston Co. had two products code named X and Y. The firm had the following budget for August:$\begin{array}{lrrr} 
& \text { Product X } & \text { Product Y } & \text { Total } \
\text { Sales } & \$ 286,000 & \$ 520,000 & \$ 806,000 \
\text { Variable Costs } & 189,800 & 218,400 & 408,200\\text { Contribution Margin } & \$ 96,200 & \$ 301,600 & \$ 397,800 \
\text { Fixed costs } & 50,000 & 108,000 & 158,000\\text { Operating Income }&\$46,200&\$193,600&\$239,800\
\text { Selling Price per unit }&\$110.00&\$50.00
\end{array}$

$\text { On September 1, the following actual operating results for August were reported: }$

$\begin{array}{lrrr} 
& \text { Product X } & \text { Product Y } & \text { Total } \
\text { Sales } & \$ 360,000 & \$ 540,000 & \$ 900,000 \
\text { Variable Costs } & 195,000 & 216,000 & 411,000\\text { Contribution Margin } & \$ 165,000 & \$ 324,000 & \$ 489,000 \
\text { Fixed costs } & 50,000 & 108,000 & 158,000 \\text { Operating Income }&\$115,00&\$216,000&\$331,000\\text { Units Sold }&3,000&9,000
\end{array}$Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units.

The firm's market share variance for the period is:

Accepted Answer

A)  $5,670 unfavorable. 
B)  $30,600 unfavorable. 
C)  $23,200 favorable. 
D)  $61,200 favorable. 
E)  $91,000 favorable. 
A)  $5,670 unfavorable. 
B)  $30,600 unfavorable. 
C)  $23,200 favorable. 
D)  $61,200 favorable. 
E)  $91,000 favorable.

Question 16

The sales quantity variance of a firm arises when the:

Accepted Answer

A)  Mixes of individual products sold differ from the budgeted mixes to be sold. 
B)  Total units of all products sold differ from the budgeted total units to be sold. 
C)  Total units of a product sold differ from the budgeted units of the product to be sold. 
D)  Number of products sold differs from the budgeted number of products to be sold. 
E)  Actual market size differs from the budgeted market size. 
A)  Mixes of individual products sold differ from the budgeted mixes to be sold. 
B)  Total units of all products sold differ from the budgeted total units to be sold. 
C)  Total units of a product sold differ from the budgeted units of the product to be sold. 
D)  Number of products sold differs from the budgeted number of products to be sold. 
E)  Actual market size differs from the budgeted market size.

Question 17

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year: The total market was estimated to be 80,000 pounds at the time of budget. The actual total market for the year is 75,000 pounds.
What is MT's sales mix variance?

Accepted Answer

A)  $800 unfavorable. 
B)  $9,600 unfavorable. 
C)  $10,800 unfavorable. 
D)  $12,480 unfavorable. 
E)  $14,040 unfavorable. 
A)  $800 unfavorable. 
B)  $9,600 unfavorable. 
C)  $10,800 unfavorable. 
D)  $12,480 unfavorable. 
E)  $14,040 unfavorable.

Question 18

Winston Co. had two products code named X and Y. The firm had the following budget for August:$\begin{array}{lrrr} 
& \text { Product X } & \text { Product Y } & \text { Total } \
\text { Sales } & \$ 286,000 & \$ 520,000 & \$ 806,000 \
\text { Variable Costs } & 189,800 & 218,400 & 408,200\\text { Contribution Margin } & \$ 96,200 & \$ 301,600 & \$ 397,800 \
\text { Fixed costs } & 50,000 & 108,000 & 158,000\\text { Operating Income }&\$46,200&\$193,600&\$239,800\
\text { Selling Price per unit }&\$110.00&\$50.00
\end{array}$

$\text { On September 1, the following actual operating results for August were reported: }$

$\begin{array}{lrrr} 
& \text { Product X } & \text { Product Y } & \text { Total } \
\text { Sales } & \$ 360,000 & \$ 540,000 & \$ 900,000 \
\text { Variable Costs } & 195,000 & 216,000 & 411,000\\text { Contribution Margin } & \$ 165,000 & \$ 324,000 & \$ 489,000 \
\text { Fixed costs } & 50,000 & 108,000 & 158,000 \\text { Operating Income }&\$115,00&\$216,000&\$331,000\\text { Units Sold }&3,000&9,000
\end{array}$Total industry volume for both products X and Y was estimated to be 130,000 units at the time of the budget. Actual industry volume for the period for products X and Y was 100,000 units.

The firm's market size variance for the period is:

Accepted Answer

A)  $16,000 favorable. 
B)  $26,000 favorable. 
C)  $61,200 favorable. 
D)  $30,600 unfavorable. 
E)  $91,800 unfavorable. 
A)  $16,000 favorable. 
B)  $26,000 favorable. 
C)  $61,200 favorable. 
D)  $30,600 unfavorable. 
E)  $91,800 unfavorable.

Question 19

When the mix of products sold shifts toward the high contribution margin product, the total:

Accepted Answer

A)  Sales mix variance is favorable. 
B)  Sales volume variance is favorable. 
C)  Market mix variance is favorable. 
D)  Sales mix variance is unfavorable. 
E)  Sales price variance is favorable. 
A)  Sales mix variance is favorable. 
B)  Sales volume variance is favorable. 
C)  Market mix variance is favorable. 
D)  Sales mix variance is unfavorable. 
E)  Sales price variance is favorable.

Question 20

In early 2006, the new CEO of Hewlett-Packard (H-P), Mark Hurd, became aware of a number of customer complaints about the accessibility of sales support at the company. The complaints referred to a confusing management structure and lack of contact with sales support personnel from H-P. There were 17,000 people working in H-P sales, and customers, particularly the large corporate customers, were frustrated dealing with the complexity of the H-P sales system.
Required:
What would you propose to Mark Hurd, the CEO at H-P, regarding an overhaul of the sales support systems at H-P?

Accepted Answer

Points for CEO Hurd to consider:
●	is H-

A measure of productivity can be either:

Which one of the following does not use the dollar amount of the input in assessing productivity?

One major problem in measuring the productivity of a service organization is the absence of:

Which of the following is not a part of the sales mix variance equation?

Weighted-average budgeted contribution margin per unit is:

Which of the following is not a key determinant of productivity for most organizations?

An unfavorable sales mix variance arises for a product when the:

The sales quantity variance of a firm arises when the:

When the mix of products sold shifts toward the high contribution margin product, the total:

Cost Management and Strategy

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

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Exam 16: Operational Performance Measurement: Further Analysis of Productivity and Sales

A measure of productivity can be either:

Which one of the following does not use the dollar amount of the input in assessing productivity?

One major problem in measuring the productivity of a service organization is the absence of:

Which of the following is not a part of the sales mix variance equation?

Weighted-average budgeted contribution margin per unit is:

Which of the following is not a key determinant of productivity for most organizations?

An unfavorable sales mix variance arises for a product when the:

The sales quantity variance of a firm arises when the:

When the mix of products sold shifts toward the high contribution margin product, the total:

Cost Management and Strategy

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters