Question 1

Which perspective defines the capabilities needed by the organization to create long-term improvement?

Accepted Answer

A) the financial perspective 
B) the customer perspective 
C) the process perspective 
D) the learning and growth perspective 
A) the financial perspective 
B) the customer perspective 
C) the process perspective 
D) the learning and growth perspective

Question 2

The following measures belong to one of four perspectives on the balanced scorecard:
1 Return on investment
2 Time to market
3 Number of new customers
4 Percentage of revenues from new sources
5 Quality costs
6 Employee productivity
Required:
a.Identify the perspective appropriate for each measure listed above.
b.Suggest a possible strategic objective that might be associated with each measure.

Accepted Answer

None

Question 3

When does increased customer value occur?

Accepted Answer

A) when the customer receives more benefits 
B) when the customer perceives a greater gap between benefits and sacrifice 
C) when customer costs are reduced 
D) when customer prices are increased 
A) when the customer receives more benefits 
B) when the customer perceives a greater gap between benefits and sacrifice 
C) when customer costs are reduced 
D) when customer prices are increased

Question 4

Which of the following is NOT a step in developing the Balanced Scorecard?

Accepted Answer

A) setting balanced objectives 
B) outlining control procedures 
C) setting target values 
D) establishing a reward program 
A) setting balanced objectives 
B) outlining control procedures 
C) setting target values 
D) establishing a reward program

Question 5

If only the return on investment were used to measure performance,what would it be considered?

Accepted Answer

A) double-loop feedback 
B) triple-loop feedback 
C) testable strategy feedback 
D) single-loop feedback 
A) double-loop feedback 
B) triple-loop feedback 
C) testable strategy feedback 
D) single-loop feedback

Question 6

Which of the following is a perspective of strategic-based responsibility accounting but is NOT a perspective of activity-based responsibility accounting?

Accepted Answer

A) financial perspective 
B) process perspective 
C) customer perspective 
D) responsibility perspective 
A) financial perspective 
B) process perspective 
C) customer perspective 
D) responsibility perspective

Question 7

Allegro Industries is planning to change its manufacturing plant by automating and installing a flexible manufacturing system.The company is also changing its performance measures as well as its operating procedures.In an effort to evaluate performance and determine where improvements can be made,management has gathered the following data relating to activities over the last four months:
   Many of these measures are new and the president has asked you to interpret the results.Throughput is the time it takes to turn materials into a completed product.Delivery cycle time is the time between receiving an order and shipping the goods.
Required:
Using the performance measures given,do the following: 
a.Identify the areas where the company seems to be improving.
b.Identify the areas where the company seems to be deteriorating.

Accepted Answer

a.Areas where the company is improving:

Question 8

How can delivery performance be improved?

Accepted Answer

A) by decreasing cycle time 
B) by increasing ROI 
C) by decreasing velocity 
D) by increasing turnover 
A) by decreasing cycle time 
B) by increasing ROI 
C) by decreasing velocity 
D) by increasing turnover

Question 9

Diversifying customers and product lines are initiatives important to which of the following goals?

Accepted Answer

A) revenue growth 
B) cost reduction 
C) asset utilization 
D) risk management 
A) revenue growth 
B) cost reduction 
C) asset utilization 
D) risk management

Question 10

Which of the following features make stretch targets feasible?

Accepted Answer

A) The targets are set in isolation by top management. 
B) The measures are linked by causal relationships. 
C) The measures are based on currently attainable standard costs. 
D) The targets are set at desired levels for twenty years to ensure long-term performance. 
A) The targets are set in isolation by top management. 
B) The measures are linked by causal relationships. 
C) The measures are based on currently attainable standard costs. 
D) The targets are set at desired levels for twenty years to ensure long-term performance.

Question 11

What is the impact of a competitive environment on an organization?

Accepted Answer

A) producing increasingly high-volume,low-variety products and services. 
B) focused internally on efficiency. 
C) viewing their actions independent of competitors,suppliers,and customers. 
D) managing cause and effect linkages to customer satisfaction. 
A) producing increasingly high-volume,low-variety products and services. 
B) focused internally on efficiency. 
C) viewing their actions independent of competitors,suppliers,and customers. 
D) managing cause and effect linkages to customer satisfaction.

Question 12

What do internal measures relate to?

Accepted Answer

A) Processes that create value for the customer 
B) Financial aspects of the business 
C) Customer satisfaction survey 
D) Shareholders that rely on ROI 
A) Processes that create value for the customer 
B) Financial aspects of the business 
C) Customer satisfaction survey 
D) Shareholders that rely on ROI

Question 13

Why might a strategy fail?

Accepted Answer

A) due to incorrect calculations 
B) due to incorrect feedback 
C) due to implementation problems 
D) due to invalid controls 
A) due to incorrect calculations 
B) due to incorrect feedback 
C) due to implementation problems 
D) due to invalid controls

Question 14

At the beginning of the current year,Peters Company installed a JIT purchasing and manufacturing system.The following information has been gathered about one of the company's products: $$\begin{array} { l r } 
\text { Theoretical anual capacity } & 2,000 \
\text { Actual production } & 1,800 \
\text { Production hours avalable } & 500 \
\text { Actual conversion cost per hour } & \$ 7
\end{array}$$
- What is the theoretical velocity per hour?

Accepted Answer

A) 1.0 units 
B) 1.1 units 
C) 3.6 units 
D) 4.0 units 
A) 1.0 units 
B) 1.1 units 
C) 3.6 units 
D) 4.0 units

Question 15

What is the term for outcome measures that relate to customers?

Accepted Answer

A) objective measures 
B) external measures 
C) financial measures 
D) lag measures 
A) objective measures 
B) external measures 
C) financial measures 
D) lag measures

Question 16

Which of the following would not be an outcome measure?

Accepted Answer

A) net income 
B) market share 
C) return on investment 
D) training hours 
A) net income 
B) market share 
C) return on investment 
D) training hours

Question 17

What are stretch targets?

Accepted Answer

A) aimed at stretching the firm's resources. 
B) aimed at static standards. 
C) aimed at transforming the organization within three to five years if achieved. 
D) aimed at transforming the organization immediately. 
A) aimed at stretching the firm's resources. 
B) aimed at static standards. 
C) aimed at transforming the organization within three to five years if achieved. 
D) aimed at transforming the organization immediately.

Question 18

Tomassi Company would like to increase its operational efficiency.For the first quarter of operations during the current year,the following data were reported:
 $$\begin{array} { l r } 
 & \text { Days } \
\text { Inspection time } & 0.3 \
\text { Process time }& 3.7 \
 \text { Move time } &1.0 \
\text { Wait time } &5.0
\end{array}$$ Required: 
a.Compute the manufacturing cycle efficiency (MCE)for the quarter.
b.If by use of JIT all wait time during production is eliminated,what will be the new MCE?

Accepted Answer

a.MCE = 3.7/(3.7 + 0

Question 19

Why does the Balanced Scorecard differ from company to company? Whose responsibility is the implementation?

Accepted Answer

A company's Balanced Scorecard should be

Question 20

Which of the following would be an external measure?

Accepted Answer

A) profitability 
B) employee satisfaction 
C) process efficiency 
D) customer profitability 
A) profitability 
B) employee satisfaction 
C) process efficiency 
D) customer profitability

Which perspective defines the capabilities needed by the organization to create long-term improvement?

When does increased customer value occur?

Which of the following is NOT a step in developing the Balanced Scorecard?

If only the return on investment were used to measure performance,what would it be considered?

Which of the following is a perspective of strategic-based responsibility accounting but is NOT a perspective of activity-based responsibility accounting?

How can delivery performance be improved?

Diversifying customers and product lines are initiatives important to which of the following goals?

Which of the following features make stretch targets feasible?

What is the impact of a competitive environment on an organization?

What do internal measures relate to?

Why might a strategy fail?

What is the term for outcome measures that relate to customers?

Which of the following would not be an outcome measure?

What are stretch targets?

Why does the Balanced Scorecard differ from company to company? Whose responsibility is the implementation?

Which of the following would be an external measure?

A: Basic Cost Management Concepts

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters

Exam 15: The Balanced Scorecard: Strategic-Based Control

Which perspective defines the capabilities needed by the organization to create long-term improvement?

When does increased customer value occur?

Which of the following is NOT a step in developing the Balanced Scorecard?

If only the return on investment were used to measure performance,what would it be considered?

Which of the following is a perspective of strategic-based responsibility accounting but is NOT a perspective of activity-based responsibility accounting?

How can delivery performance be improved?

Diversifying customers and product lines are initiatives important to which of the following goals?

Which of the following features make stretch targets feasible?

What is the impact of a competitive environment on an organization?

What do internal measures relate to?

Why might a strategy fail?

What is the term for outcome measures that relate to customers?

Which of the following would not be an outcome measure?

What are stretch targets?

Why does the Balanced Scorecard differ from company to company? Whose responsibility is the implementation?

Which of the following would be an external measure?

A: Basic Cost Management Concepts

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

Activity-Based Management

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters