Question 1

Discuss the advantages and disadvantages of partial productivity measures.

Accepted Answer

Partial measures can be misleading since

Question 2

Using average product cost for a value stream means that individual product costs are not known.Why is this adequate?

Accepted Answer

A) Waste cannot be eliminated at the activity and process level. 
B) A fully accurate product cost is not needed for many decisions. 
C) Budget costing variances may actually impede improvement decisions. 
D) Detailed variances by department are not needed to eliminate waste. 
A) Waste cannot be eliminated at the activity and process level. 
B) A fully accurate product cost is not needed for many decisions. 
C) Budget costing variances may actually impede improvement decisions. 
D) Detailed variances by department are not needed to eliminate waste.

Question 3

At the end of 20X1,Carianne Corporation 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: $\begin{array}{lrr}
&\text {20X1}&\text {20X2}\
\text { Output (units) } & 20,000 & 24,000 \
\text { Selling price per unit } & \$ 10 & \$ 10\
\
\text { Change in profits}&\$22,200\ 
\text { Profit-linked measurements:}\
\text { Materials}&\$7,200\
\text { Iahour }&10,500\
\text { Power }&(1,500)
\end{array}$ What is the price-recovery component?

Accepted Answer

A) $22,200 
B) $16,200 
C) $6,000 
D) ($6,000) 
A) $22,200 
B) $16,200 
C) $6,000 
D) ($6,000)

Question 4

Which of the following provides a series or vector of separate and distinct partial operational measures?

Accepted Answer

A) price recovery component 
B) profile measurement 
C) profit-linked productivity measurement 
D) total productivity measurement 
A) price recovery component 
B) profile measurement 
C) profit-linked productivity measurement 
D) total productivity measurement

Question 5

What is the only allocation used regularly in a value stream cost assignment?

Accepted Answer

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

Question 6

The following information relates to Ramesy Manufacturing:
To produce a unit of product
$$\begin{array} { l l } 
\text { Cutting Deparment } & 5 \text { mintes per unit } \
\text { Welding Department } & 8 \text { minutes per unit } \
\text { Polishing Department } & 3 \text { minutes per unit } \
\text { Finishing Department } & 4 \text { minutes per unit }
\end{array}$$
There is a wait time of 5 minutes before the Cutting Department begins a batch, 15 minutes between the Cutting and Welding departments, a move and pre-wait between Welding and Polishing of 12 minutes, and a move and pre-wait between the Polishing and Finishing departments of 8 minutes.
-Refer to the figure.What is the production rate?

Accepted Answer

A) 7.5 units per hour 
B) 12 units per hour 
C) 15 units per hour 
D) 20 units per hour 
A) 7.5 units per hour 
B) 12 units per hour 
C) 15 units per hour 
D) 20 units per hour

Question 7

-Refer to the figure.If the materials costs for both products are $75 per unit produced,and conversion costs are $120 per hour,what is the per-unit cost of Product A under the features and approach costing method?

Accepted Answer

A) $81.75 
B) $87 
C) $91 
D) $195 
A) $81.75 
B) $87 
C) $91 
D) $195

Question 8

The following Box Scorecard template was prepared for a value stream at Coston Company:
 $$\begin{array} { l l } 
& \text { This Weak } \
\text { Last Weak } & \text { (1/5/20X1) }&\text { Desired Future State }
\end{array} $$ Operational
Units per person
On-time delivery
Dock-to-dock days
First-time through
Average product cost
Capacity
Productive
Nonproductive
Available
Financial
Weekly sales
Weekly material cost
Weekly conversion cost
Weekly value-stream profit
ROS
 1. How many nonfinancial measures are there?
2. What are the three dimensions of a lean firm? Give an example of each.
3. What targets could be set for the planned state?
4. What role does capacity play in a value stream? Contrast value-added and non-value-added activities.
5. What is the financial impact of becoming lean?

Accepted Answer

1.Seven nonfinancial measures ( 4 operat

Question 9

Information about Holm Corporation is as follows:
$\begin{array}{lrr}
&20 \times 1 & 20 \times 2\
\text { Output (units) } & 120,000 & 126,000 \
\text { Selling price per unit } & \$ 25 & \$ 25 \
\text { Input quantities: } & & \
\text { Materials (kg) } & 6,000 & 6,000 \
\text { Labour (hours) } & 4,800 & 4,825 \
\text { Input prices: } & & \
\text { Materials (per } \mathrm{kg} \text { ) } & \$ 5.00 & \$ 5.50 \
\text { Labour (per hour) } & \$ 7.00 & \$ 7.50
\end{array}$
-Refer to the figure.What is the labour productivity ratio for 20X1?

Accepted Answer

A) 25.00 
B) 24.80 
C) 24.00 
D) 22.84 
A) 25.00 
B) 24.80 
C) 24.00 
D) 22.84

Question 10

Which of the following contain all the operations in close proximity that are needed to produce a family of products?

Accepted Answer

A) batch departments 
B) value stream cells 
C) manufacturing cells 
D) plant departments 
A) batch departments 
B) value stream cells 
C) manufacturing cells 
D) plant departments

Question 11

Which of the following is characteristic of a lean accounting system?

Accepted Answer

A) The cost of people with specialized skills,such as industrial engineers,is allocated to all manufacturing cells based on an activity driver. 
B) Workers are multiskilled and responsible for setting up equipment,maintaining equipment,and operating equipment. 
C) Implementing a value stream system will require more workers. 
D) Workers are highly skilled in one specialized area or activity and are not expected to spend time on other value-added activities. 
A) The cost of people with specialized skills,such as industrial engineers,is allocated to all manufacturing cells based on an activity driver. 
B) Workers are multiskilled and responsible for setting up equipment,maintaining equipment,and operating equipment. 
C) Implementing a value stream system will require more workers. 
D) Workers are highly skilled in one specialized area or activity and are not expected to spend time on other value-added activities.

Question 12

How can capacity be labelled on a box scorecard?

Accepted Answer

A) as productive,nonproductive,and excess 
B) as available,excess,and budgeted 
C) as productive,nonproductive,and available 
D) as valued,excess,and wasted 
A) as productive,nonproductive,and excess 
B) as available,excess,and budgeted 
C) as productive,nonproductive,and available 
D) as valued,excess,and wasted

Question 13

Information about Jones Corporation is as follows:
$\begin{array}{llr}
&20 \times 1 & 20 \times 2\
  \text { Output (units) } &120,000&130,000\
 \text {  Input quantities:} &\
 \text { Materials \( (\mathrm{kg}) $ } &37,500&40,000\
 \text {Input prices:  } &\
 \text {Materials (per $ \mathrm{kg} $ )  } &\$4&\$6\

\end{array}\)

-Refer to the figure.What is the partial operational productivity measure for materials for 20X1?

Accepted Answer

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

Question 14

At the end of 20X1,Wilson 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:
 $\begin{array}{lrr}&20X1&20X1\
\text { Output } & 20,000 & 24,000 \
\text { Output prices } & \$ 20 & \$ 20 \
\text { Materials (kg) } & 16,000 & 16,800 \
\text { Materials unit price } & \$ 6 & \$ 8 \
\text { Labour (hrs.) } & 10,000 & 9,600 \
\text { Labour rate per hour } & \$ 10 & \$ 10 \
\text { Power (kwh) } & 4,000 & 6,000 \
\text { Price per kwh } & \$ 2 & \$ 3
\end{array}$ 
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?

Accepted Answer

a.@#IMG-DLM&
Profile analysis indicates that produ

Question 15

If a facility has costs of $100,000 per year and 20,000 square metres,and if 19,000 square metres are absorbed by the value streams,what happens to the unabsorbed cost of the remaining 1,000 metres?

Accepted Answer

A) The cost is allocated to all the value streams based on proportionate square foot usage. 
B) The cost is assigned to all value streams equally. 
C) The cost is absorbed by the largest value stream. 
D) The cost is deducted from revenue as a separate item. 
A) The cost is allocated to all the value streams based on proportionate square foot usage. 
B) The cost is assigned to all value streams equally. 
C) The cost is absorbed by the largest value stream. 
D) The cost is deducted from revenue as a separate item.

Question 16

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

Accepted Answer

A) $47.50 
B) $48.46 
C) $49.14 
D) $95.00 
A) $47.50 
B) $48.46 
C) $49.14 
D) $95.00

Question 17

Wabash Manufacturing implemented lean manufacturing in its Mississauga plant as a pilot program.During the most recent three weeks,the following data pertaining to a specific product line value stream was collected:
 $\begin{array}{ll}
\text { Week 1: } & \text { Sales }=500 \text { units } @ \$ 50 \text { per unit selling price } \
& \text { Beginning inventory }=80 \text { units } @ 15 \text { ( } \$ 5 \text { materials, } \$ 10 \text { conversion) } \
& \text { Production }=500 \text { units } @ \$ 15(\$ 5 \text { materials, } \$ 10 \text { conversion) } \
\text { Week 2: } & \text { Sales }=675 \text { units at } \$ 50 \text { per unit selling price } \
& \text { Beginning inventory }=80 \text { units at } \$ 15(\$ 5 \text { materials, } \$ 10 \text { conversion }) \
& \text { Production }=595 \text { units at } \$ 15(\$ 5 \text { materials, } \$ 10 \text { conversion }) \
\text { Week 3: } & \text { Sales }=650 \text { units at } \$ 50 \text { per unit selling price } \
& \text { Beginning Inventory }=0 \
& \text { Production }=700 \text { units at } \$ 15(\$ 5 \text { materials, } \$ 10 \text { conversion })
\end{array}$ 
a.Prepare a traditional income statement for each week.
b.Calculate the average value stream product cost for each week.What does this cost signal,if anything?
c.Prepare a value stream income statement for each week.Assume that any increase in inventory is valued at average cost.Comment on the financial performance of the value stream and its relationship to traditional income measurement.

Accepted Answer

a. 
b.Week 1: Average cost = Value strea

Question 18

What are the two approaches for measuring total productivity?

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 19

What is the productivity measure in which inputs and outputs are expressed in dollars?

Accepted Answer

A) financial productivity measure 
B) operational productivity measure 
C) partial productivity measurement 
D) productivity measurement 
A) financial productivity measure 
B) operational productivity measure 
C) partial productivity measurement 
D) productivity measurement

Question 20

Define what constitutes total productive efficiency,including a definition of technical efficiency and allocative efficiency.

Accepted Answer

Total productive efficiency is the point

Discuss the advantages and disadvantages of partial productivity measures.

Using average product cost for a value stream means that individual product costs are not known.Why is this adequate?

Which of the following provides a series or vector of separate and distinct partial operational measures?

What is the only allocation used regularly in a value stream cost assignment?

-Refer to the figure.If the materials costs for both products are $75 per unit produced,and conversion costs are $120 per hour,what is the per-unit cost of Product A under the features and approach costing method?

Which of the following contain all the operations in close proximity that are needed to produce a family of products?

Which of the following is characteristic of a lean accounting system?

How can capacity be labelled on a box scorecard?

If a facility has costs of $100,000 per year and 20,000 square metres,and if 19,000 square metres are absorbed by the value streams,what happens to the unabsorbed cost of the remaining 1,000 metres?

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

What are the two approaches for measuring total productivity?

What is the productivity measure in which inputs and outputs are expressed in dollars?

Define what constitutes total productive efficiency,including a definition of technical efficiency and allocative efficiency.

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

Filters

Exam 17: Lean Accounting and Productivity Measurement

Discuss the advantages and disadvantages of partial productivity measures.

Using average product cost for a value stream means that individual product costs are not known.Why is this adequate?

Which of the following provides a series or vector of separate and distinct partial operational measures?

What is the only allocation used regularly in a value stream cost assignment?

-Refer to the figure.If the materials costs for both products are $75 per unit produced,and conversion costs are $120 per hour,what is the per-unit cost of Product A under the features and approach costing method?

Which of the following contain all the operations in close proximity that are needed to produce a family of products?

Which of the following is characteristic of a lean accounting system?

How can capacity be labelled on a box scorecard?

If a facility has costs of $100,000 per year and 20,000 square metres,and if 19,000 square metres are absorbed by the value streams,what happens to the unabsorbed cost of the remaining 1,000 metres?

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

What are the two approaches for measuring total productivity?

What is the productivity measure in which inputs and outputs are expressed in dollars?

Define what constitutes total productive efficiency,including a definition of technical efficiency and allocative efficiency.

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

Filters