Question 1

The partial direct labor operational productivity ratio for 2013 is:

Accepted Answer

A) 262 per unit. 
B) 169 per unit. 
C) 428 per unit. 
D) 300 per unit. 
E) 333 per unit. 
A) 262 per unit. 
B) 169 per unit. 
C) 428 per unit. 
D) 300 per unit. 
E) 333 per unit.

Question 2

In 2013, the partial financial productivity of Material A is:

Accepted Answer

A) .030. 
B) .045. 
C) 2.22. 
D) 3.33. 
E) 5.00. 
A) .030. 
B) .045. 
C) 2.22. 
D) 3.33. 
E) 5.00.

Question 3

What additional information would be needed for Folsom to calculate the dollar impact of changes in market share on November's operating income?

Accepted Answer

A) Folsom's budgeted market share and the budgeted total market size. 
B) Folsom's budgeted market share, the budgeted total market size, and average market selling price. 
C) Folsom's budgeted market share and the actual total market size. 
D) Folsom's actual market share and the actual total market size. 
E) There is no information that would make such a calculation possible. 
A) Folsom's budgeted market share and the budgeted total market size. 
B) Folsom's budgeted market share, the budgeted total market size, and average market selling price. 
C) Folsom's budgeted market share and the actual total market size. 
D) Folsom's actual market share and the actual total market size. 
E) There is no information that would make such a calculation possible.

Question 4

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 5

Which of the following is a total productivity measure?

Accepted Answer

A) Units of output per dollar value of input. 
B) Units of output per units of materials. 
C) Units of output per labor hour. 
D) Units of output per machine hour. 
A) Units of output per dollar value of input. 
B) Units of output per units of materials. 
C) Units of output per labor hour. 
D) Units of output per machine hour.

Question 6

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 7

What is ET's sales quantity variance?

Accepted Answer

A) $8,000 favorable. 
B) $8,960 favorable. 
C) $12,000 favorable. 
D) $13,440 favorable. 
E) $24,960 favorablE.Total units: budget = 4,000 + 4,000 = 8,000; actual units = 3,960 + 5,040 = 9,000 
A) $8,000 favorable. 
B) $8,960 favorable. 
C) $12,000 favorable. 
D) $13,440 favorable. 
E) $24,960 favorablE.Total units: budget = 4,000 + 4,000 = 8,000; actual units = 3,960 + 5,040 = 9,000

Question 8

Decreasing selling prices in order to secure higher sales volumes or market shares:

Accepted Answer

A) Will always generate higher sales volumes and market shares. 
B) Can have a negative impact on a firm's profitability. 
C) Should not usually affect profitability. 
D) Should not usually affect contribution margins. 
E) Should not usually affect sales mix. 
A) Will always generate higher sales volumes and market shares. 
B) Can have a negative impact on a firm's profitability. 
C) Should not usually affect profitability. 
D) Should not usually affect contribution margins. 
E) Should not usually affect sales mix.

Question 9

The selling price variance for Product Y is:

Accepted Answer

A) $90,000 favorable. 
B) $43,200 unfavorable. 
C) $90,000 unfavorable. 
D) $35,000 favorable. 
E) $50,000 unfavorablE.Actual price: $540,000/9,000 = $60 
A) $90,000 favorable. 
B) $43,200 unfavorable. 
C) $90,000 unfavorable. 
D) $35,000 favorable. 
E) $50,000 unfavorablE.Actual price: $540,000/9,000 = $60

Question 10

The total contribution margin sales volume variance of the period is:

Accepted Answer

A) $5,800 favorable. 
B) $36,400 unfavorable. 
C) $48,000 unfavorable. 
D) $63,950 unfavorable. 
E) $107,920 favorablE.[(42,000 - 22,500) x $4.8] + [(80,000 - 90,000) x $13] = $36,400 unfavorable 
A) $5,800 favorable. 
B) $36,400 unfavorable. 
C) $48,000 unfavorable. 
D) $63,950 unfavorable. 
E) $107,920 favorablE.[(42,000 - 22,500) x $4.8] + [(80,000 - 90,000) x $13] = $36,400 unfavorable

Question 11

The partial operational productivity of Material A in 2012 is:

Accepted Answer

A) 0.28. 
B) 0.33. 
C) 3.00. 
D) 3.33. 
E) 3.60. 
A) 0.28. 
B) 0.33. 
C) 3.00. 
D) 3.33. 
E) 3.60.

Question 12

Lau & Lau, Ltd., of Hong Kong manufacture two products for the same market. Its budget and operating results for the year just completed follow:
   At the time of budget preparation, the budgeting department and sales department agreed that the industry volume for the year would likely be 1,500,000 units. Actual industry volume turned out to be 2,000,000 units.
Required:
(you may round fractions to three decimal places)
1. What is the average budgeted contribution margin per unit?
2. What is the sales volume contribution margin variance for each product?
3. What is the sales mix contribution margin variance for each product?
4. What is the sales quantity contribution margin variance for each product?
5. What is the market size contribution margin variance?
6. What is the market share contribution margin variance?
7. What is the total flexible budget contribution margin variance?
8. What is the total variable cost price variance if the total contribution margin price variance is $50,000 favorable?
9. What is the total variable cost efficiency variance if the total contribution margin price variance is $50,000 favorable?

Accepted Answer

Answer may vary
Feedback:
1. @#IMG-DLM& 2. @#IMG-DLM& 3. @#IMG-DLM& 4.

Question 13

The market share variance measures the effect of the difference in market shares on the firm's total contribution margin and:

Accepted Answer

A) Net income. 
B) Operating income. 
C) Investment income. 
D) Total sales. 
A) Net income. 
B) Operating income. 
C) Investment income. 
D) Total sales.

Question 14

What is the sales mix variance for Spiders?

Accepted Answer

A) $1,125 favorable. 
B) $1,500 favorable. 
C) $1,650 unfavorable. 
D) $4,800 favorable. 
E) $4,800 unfavorable. 
A) $1,125 favorable. 
B) $1,500 favorable. 
C) $1,650 unfavorable. 
D) $4,800 favorable. 
E) $4,800 unfavorable.

Question 15

The sales quantity variance for Product X is:

Accepted Answer

A) $4,000 favorable. 
B) $25,000 favorable. 
C) $26,000 favorable. 
D) $45,000 favorable. 
E) $52,000 unfavorablE.Total units: budget = 2,000 + 6,000 = 8,000; actual units = 1,500 + 8,500 = 10,000 
A) $4,000 favorable. 
B) $25,000 favorable. 
C) $26,000 favorable. 
D) $45,000 favorable. 
E) $52,000 unfavorablE.Total units: budget = 2,000 + 6,000 = 8,000; actual units = 1,500 + 8,500 = 10,000

Question 16

Erwin Co. provided the following information for a selected production factor:   The actual partial operational productivity ratio of the production factor is (round to two significant digits):

Accepted Answer

A) 0.92 units per gallon. 
B) 1.00 units per gallon. 
C) 1.01 units per gallon. 
D) 1.02 units per gallon. 
E) 1.11 units per gallon. 
A) 0.92 units per gallon. 
B) 1.00 units per gallon. 
C) 1.01 units per gallon. 
D) 1.02 units per gallon. 
E) 1.11 units per gallon.

Question 17

One major problem in measuring the productivity of a not-for-profit 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 18

Julie Hilger started New Treads to combine fashion and sustainability. The original production of sandals made from recycled plastic has expanded to a complete line of casual footwear. Current sales total over $2 million. Julie hired the firm's first controller early this year, and has asked him to detail suggestions for ways to increase profits. Adrian Warring, the new controller, has compiled a list of recommended changes that focus on quality improvements. New Treads customers expect high quality at a low price, a "value" product. So the company must simultaneously watch costs and quality. After receiving his list of suggestions, Julie calls Adrian to her office and says, "I don't see how improving quality can increase productivity. In fact, it seems to me that efforts to improve quality will slow down production and decrease productivity."
Required:
Using specific examples, help Adrian explain to Julie why efforts to improve quality can also boost productivity. How does productivity play a role in the firm's strategy and competitive environment?

Accepted Answer

Answer may vary
Feedback: Quality improv

Question 19

The partial direct labor operational productivity in 2012 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 20

In 2013, 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.

The partial direct labor operational productivity ratio for 2013 is:

In 2013, the partial financial productivity of Material A is:

What additional information would be needed for Folsom to calculate the dollar impact of changes in market share on November's operating income?

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

Which of the following is a total productivity measure?

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

What is ET's sales quantity variance?

Decreasing selling prices in order to secure higher sales volumes or market shares:

The selling price variance for Product Y is:

The total contribution margin sales volume variance of the period is:

The partial operational productivity of Material A in 2012 is:

The market share variance measures the effect of the difference in market shares on the firm's total contribution margin and:

What is the sales mix variance for Spiders?

The sales quantity variance for Product X is:

Erwin Co. provided the following information for a selected production factor: The actual partial operational productivity ratio of the production factor is (round to two significant digits):

One major problem in measuring the productivity of a not-for-profit organization is the absence of:

The partial direct labor operational productivity in 2012 is:

In 2013, the partial financial productivity of Material H is:

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

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

The partial direct labor operational productivity ratio for 2013 is:

In 2013, the partial financial productivity of Material A is:

What additional information would be needed for Folsom to calculate the dollar impact of changes in market share on November's operating income?

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

Which of the following is a total productivity measure?

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

What is ET's sales quantity variance?

Decreasing selling prices in order to secure higher sales volumes or market shares:

The selling price variance for Product Y is:

The total contribution margin sales volume variance of the period is:

The partial operational productivity of Material A in 2012 is:

The market share variance measures the effect of the difference in market shares on the firm's total contribution margin and:

What is the sales mix variance for Spiders?

The sales quantity variance for Product X is:

Erwin Co. provided the following information for a selected production factor: The actual partial operational productivity ratio of the production factor is (round to two significant digits):

One major problem in measuring the productivity of a not-for-profit organization is the absence of:

The partial direct labor operational productivity in 2012 is:

In 2013, the partial financial productivity of Material H is:

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

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