At the end of 20X1, Gilley Company implemented a new labour process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 20X2, 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: $\begin{array}{lrr} &20 \times 1 & 20 \times 2\\ \text { Output } & 30,000 & 36,000 \\ \text { Output prices } & \$ 10 & \$ 10 \\ \text { Materials (kg) } & 15,000 & 15,300 \\ \text { Materials unit price } & \$ 3 & \$ 4 \\ \text { Labour (hrs.) } & 12,000 & 11,250 \\ \text { Labour rate per hour } & \$ 5 & \$ 5 \\ \text { Power (kwh) } & 7,500 & 9,750 \\ \text { Price per kwh } & \$ 2 & \$ 3 \end{array}$ -Refer to the figure.What is the total change in profits from 20X1 to 20X2?

A) $33,300 B) $60,000 C) $180,000 D) $243,300 A) $33,300 B) $60,000 C) $180,000 D) $243,300 A

At the end of 20X1,Cabot Company implemented a new labour process and redesigned its product with the expectation that input usage efficiency would increase.Now,at the end of 20X2,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: $\begin{array}{lrr} &20 \times 1&20 \times 2\\ \text { Output } & 20,000 & 24,000 \\ \text { Output prices } & \$ 10 & \$ 10 \\ \text { Materials (kg) } & 10,000 & 10,200 \\ \text { Materials unit price } & \$ 3 & \$ 2,000 \\ \text { Labour (hrs.) } & 8,000 & 750 \\ \text { Labour rate per hour } & 5,000 & 6,500 \\ \text { Power (kwh) } & \$ 2 & \$ 3 \end{array}$ a.Compute the partial operational measures for each input for both 20X1 and 20X2.What can be said about productivity improvement? b.Prepare an income statement for each year and calculate the total change in profits. c.Calculate the profit-linked productivity measure for 20X2.What can be said about the productivity program? d.Calculate the price-recovery component.What does this tell you?

a. c.11ee1328_00bb_2bc6_9ff6_b5f800d5b1ad

Information about Gausen Company is as follows: $\begin{array}{lcr} &20 \times 1 & 20 \times 2\\ \text { Output (units) } & 100,000 & 100,000 \\ \text { Input quantities: } & \\ \text { Materials (kg) } &45,000 & 40,000 \\ \text { Labour (hours) } & 25,000 & 20,000 \\ \text { Input prices: } & \\ \text { Materials (per kg) } &\$ 5 & \$ 6 \\ \text { Labour (per hour) } & \$ 8 & \$ 9 \end{array}$ What is the partial operational productivity measure for materials for 20X1?

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

At the end of 20X1, Gilley Company implemented a new labour process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 20X2, 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: $\begin{array}{lrr} &20 \times 1 & 20 \times 2\\ \text { Output } & 30,000 & 36,000 \\ \text { Output prices } & \$ 10 & \$ 10 \\ \text { Materials (kg) } & 15,000 & 15,300 \\ \text { Materials unit price } & \$ 3 & \$ 4 \\ \text { Labour (hrs.) } & 12,000 & 11,250 \\ \text { Labour rate per hour } & \$ 5 & \$ 5 \\ \text { Power (kwh) } & 7,500 & 9,750 \\ \text { Price per kwh } & \$ 2 & \$ 3 \end{array}$ -Refer to the figure.By how much did profit change as a result of profitability changes in materials?

A) $10,800 decrease B) $10,800 increase C) $24,000 decrease D) $24,000 increase A) $10,800 decrease B) $10,800 increase C) $24,000 decrease D) $24,000 increase

Information about Blair Company is as follows: $\begin{array}{lcr} &20 \times 1 & 20 \times 2\\ \text { Output (units) } & 12,000 & 13,000 \\ \text { Input quantities: } &\\ \text { Materials (kg) } & 3,750 & 4,000 \\ \text { Input prices: } &\\ \text { Materials (per kg) }& \$ 2 & \$ 3 \end{array}$ -Refer to the figure.What is the partial operational productivity measure for materials for 20X1?

A) 0.3125 B) 0.6250 C) 3.2000 D) 3.2500 A) 0.3125 B) 0.6250 C) 3.2000 D) 3.2500

At the end of 20X1, Gilley Company implemented a new labour process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 20X2, 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: $\begin{array}{lrr} &20 \times 1 & 20 \times 2\\ \text { Output } & 30,000 & 36,000 \\ \text { Output prices } & \$ 10 & \$ 10 \\ \text { Materials (kg) } & 15,000 & 15,300 \\ \text { Materials unit price } & \$ 3 & \$ 4 \\ \text { Labour (hrs.) } & 12,000 & 11,250 \\ \text { Labour rate per hour } & \$ 5 & \$ 5 \\ \text { Power (kwh) } & 7,500 & 9,750 \\ \text { Price per kwh } & \$ 2 & \$ 3 \end{array}$ -Refer to the figure.How much profit was generated in 20X2?

A) $360,000 B) $213,300 C) $180,000 D) $146,700 A) $360,000 B) $213,300 C) $180,000 D) $146,700

Exam 17: Lean Accounting and Productivity Measurement

At the end of 20X1, Gilley Company implemented a new labour process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 20X2, 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: 20\times1 20\times2 Output 30,000 36,000 Output prices \ 10 \ 10 Materials (kg) 15,000 15,300 Materials unit price \ 3 \ 4 Labour (hrs.) 12,000 11,250 Labour rate per hour \ 5 \ 5 Power (kwh) 7,500 9,750 Price per kwh \ 2 \ 3 -Refer to the figure.What is the total change in profits from 20X1 to 20X2?

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

A

What is the term for an assessment of productive efficiency for all inputs combined?

Free

(Multiple Choice)

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Question 2

Correct Answer:

Verified

D

What are the identification of a "value stream," pursuit of perfection,and making value flow without interruption examples of?

Free

(Multiple Choice)

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Question 3

Correct Answer:

Verified

C

-Refer to the figure.What is the product cost based on total average conversion cost? (Round to nearest cent.)

(Multiple Choice)

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Question 4

What does the features and characteristics approach do?

(Multiple Choice)

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Question 5

What does an operational productivity measure use to measure input and output?

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Question 6

What is productivity concerned with producing?

(Multiple Choice)

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Question 7

At the end of 20X1,Cabot Company implemented a new labour process and redesigned its product with the expectation that input usage efficiency would increase.Now,at the end of 20X2,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: 20\times1 20\times2 Output 20,000 24,000 Output prices \ 10 \ 10 Materials (kg) 10,000 10,200 Materials unit price \ 3 \ 2,000 Labour (hrs.) 8,000 750 Labour rate per hour 5,000 6,500 Power (kwh) \ 2 \ 3 a.Compute the partial operational measures for each input for both 20X1 and 20X2.What can be said about productivity improvement? b.Prepare an income statement for each year and calculate the total change in profits. c.Calculate the profit-linked productivity measure for 20X2.What can be said about the productivity program? d.Calculate the price-recovery component.What does this tell you?

(Essay)

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Question 8

Information about Gausen Company is as follows: 20\times1 20\times2 Output (units) 100,000 100,000 Input quantities: Materials (kg) 45,000 40,000 Labour (hours) 25,000 20,000 Input prices: Materials (per kg) \ 5 \ 6 Labour (per hour) \ 8 \ 9 What is the partial operational productivity measure for materials for 20X1?

(Multiple Choice)

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Question 9

Why might labour costs be reduced in a value stream system?

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Question 10

Theis 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. -Refer to the figure. a.What are the cycle times for each model? b.What is the bottleneck department and why? c.Under traditional costing,which model would be allocated more overhead expenses? Does this change under the features and characteristics approach? d.What are the production rates of Model 1 and Model 2? e.Assuming materials costs of $60 per unit for both Model 1 and Model 2 and conversion costs of $200 per hour,what is the unit cost of each model?

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Question 11

What does the profit linkage rate?

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Question 12

At the end of 20X1, Gilley Company implemented a new labour process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 20X2, 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: 20\times1 20\times2 Output 30,000 36,000 Output prices \ 10 \ 10 Materials (kg) 15,000 15,300 Materials unit price \ 3 \ 4 Labour (hrs.) 12,000 11,250 Labour rate per hour \ 5 \ 5 Power (kwh) 7,500 9,750 Price per kwh \ 2 \ 3 -Refer to the figure.By how much did profit change as a result of profitability changes in materials?

(Multiple Choice)

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Question 13

What approach is normally used to calculate product costs when products in a value stream are heterogeneous?

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Question 14

Information about Blair Company is as follows: 20\times1 20\times2 Output (units) 12,000 13,000 Input quantities: Materials (kg) 3,750 4,000 Input prices: Materials (per kg) \ 2 \ 3 -Refer to the figure.What is the partial operational productivity measure for materials for 20X1?

(Multiple Choice)

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Question 15

What does a financial productivity measure use to measure input and output?

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Question 16

Which of the following statements is NOT a characteristic of the box scorecard?

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Question 17

-Refer to the figure.Under traditional costing methods,which product would have more overhead costs allocated?

(Multiple Choice)

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Question 18

At the end of 20X1, Gilley Company implemented a new labour process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 20X2, 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: 20\times1 20\times2 Output 30,000 36,000 Output prices \ 10 \ 10 Materials (kg) 15,000 15,300 Materials unit price \ 3 \ 4 Labour (hrs.) 12,000 11,250 Labour rate per hour \ 5 \ 5 Power (kwh) 7,500 9,750 Price per kwh \ 2 \ 3 -Refer to the figure.How much profit was generated in 20X2?

(Multiple Choice)

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Question 19

Why does lean accounting work in a lean manufacturing environment?

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Question 20

What is the term for an assessment of productive efficiency for all inputs combined?

What are the identification of a "value stream," pursuit of perfection,and making value flow without interruption examples of?

-Refer to the figure.What is the product cost based on total average conversion cost? (Round to nearest cent.)

What does the features and characteristics approach do?

What does an operational productivity measure use to measure input and output?

What is productivity concerned with producing?

Why might labour costs be reduced in a value stream system?

What does the profit linkage rate?

What approach is normally used to calculate product costs when products in a value stream are heterogeneous?

Information about Blair Company is as follows: 20\times1 20\times2 Output (units) 12,000 13,000 Input quantities: Materials (kg) 3,750 4,000 Input prices: Materials (per kg) \ 2 \ 3 -Refer to the figure.What is the partial operational productivity measure for materials for 20X1?

What does a financial productivity measure use to measure input and output?

Which of the following statements is NOT a characteristic of the box scorecard?

-Refer to the figure.Under traditional costing methods,which product would have more overhead costs allocated?

Why does lean accounting work in a lean manufacturing environment?

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

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

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

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