Question 1

What are the dimensions used in a two-dimensional matrix when identifying value streams?

Accepted Answer

A) activities/processes and products 
B) activities/processes and costs 
C) quality indicators and products 
D) value indicators and costs 
A) activities/processes and products 
B) activities/processes and costs 
C) quality indicators and products 
D) value indicators and costs

Question 2

Information about Cheng Corporation is as follows:
$\begin{array}{lrr}
&20 \times 1 & 20 \times 2\
\text { Output (units) } & 14,000 & 15,000 \
\text { Selling price per unit } & \$ 16 & \$ 16 \
\text { Input quantities: } & & \
\quad \text { Materials (kg) } & 1,750 & 1,900 \
\text { Labour (hours) } & 1,400 & 1,525 \
\text { Input prices: } & & \
\quad \text { Materials (per kg) } & \$ 3 & \$ 4 \
\quad \text { Labour (per hour) } & \$ 6 & \$ 7
\end{array}$
-Refer to the figure.By how much did profits change as a result of changes in productivity related to labour?

Accepted Answer

A) $175 decrease 
B) $175 increase 
C) $100 decrease 
D) $100 increase 
A) $175 decrease 
B) $175 increase 
C) $100 decrease 
D) $100 increase

Question 3

What is the term for the point at which,for any mix of inputs that will produce a given output,no more of any one input is used than is absolutely necessary?

Accepted Answer

A) input trade-off efficiency 
B) productivity 
C) total productive efficiency 
D) technical efficiency 
A) input trade-off efficiency 
B) productivity 
C) total productive efficiency 
D) technical efficiency

Question 4

The following information relates to Markely Manufacturing:
$$\begin{array} { l l } 
\text { Mixing Department } & 2 \text { minutes per unit } \
\text { Moulding Department } & 4 \text { minutes per unit } \
\text { Casting Department } & 6 \text { minutes per unit } \
\text { Finishing Department } & 3 \text { minutes per unit }
\end{array}$$
There is a wait time of 8 minutes before the Mixing Department begins a batch, 5 minutes between the Mixing and Moulding departments, a move and pre-wait between Moulding and Casting of 10 minutes, and a move and pre-wait between the Casting and Finishing departments of 12 minutes.
-Refer to the figure.How long does it take to produce a batch of 20 units under a traditional manufacturing approach?

Accepted Answer

A) 335 minutes 
B) 300 minutes 
C) 15 minutes 
D) 12 minutes 
A) 335 minutes 
B) 300 minutes 
C) 15 minutes 
D) 12 minutes

Question 5

The following information relates to Markely Manufacturing:
$$\begin{array} { l l } 
\text { Mixing Department } & 2 \text { minutes per unit } \
\text { Moulding Department } & 4 \text { minutes per unit } \
\text { Casting Department } & 6 \text { minutes per unit } \
\text { Finishing Department } & 3 \text { minutes per unit }
\end{array}$$
There is a wait time of 8 minutes before the Mixing Department begins a batch, 5 minutes between the Mixing and Moulding departments, a move and pre-wait between Moulding and Casting of 10 minutes, and a move and pre-wait between the Casting and Finishing departments of 12 minutes.
-Refer to the figure.How long would it take to process the first unit of a 20-unit batch under a cellular manufacturing setup?

Accepted Answer

A) 15 minutes 
B) 17 minutes 
C) 23 minutes 
D) 50 minutes 
A) 15 minutes 
B) 17 minutes 
C) 23 minutes 
D) 50 minutes

Question 6

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.Calculate the time required to produce a batch of 10 units using a batch processing departmental structure.
b.Calculate the time required to produce 10 units using cellular manufacturing.
c.How much manufacturing time will the cellular manufacturing structure save for a batch of 10 units?

Accepted Answer

a.  
b.Assuming the cell is processing c

Question 7

In calculating product costs for a value stream with multiple products,when would average product costs be a good estimate of individual product costs?

Accepted Answer

A) when the products are similar and consume resources in approximately the same proportion 
B) when the product mix is relatively unstable 
C) when the products are very different in size,style,and production 
D) when the products consume labour at different rates 
A) when the products are similar and consume resources in approximately the same proportion 
B) when the product mix is relatively unstable 
C) when the products are very different in size,style,and production 
D) when the products consume labour at different rates

Question 8

What is the term for an assessment of the amount of profit change-from the base period to the current period-attributable to productivity changes?

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 9

How are conversion costs normally assigned under features and characteristics costing?

Accepted Answer

A) using a predetermined overhead rate 
B) using a labour rate 
C) based on proportion of production 
D) using a conversion ratio that considers different features 
A) using a predetermined overhead rate 
B) using a labour rate 
C) based on proportion of production 
D) using a conversion ratio that considers different features

Question 10

What two types of efficiencies are achieved at the point of total productive efficiency?

Accepted Answer

A) cost and profit efficiency 
B) technical and allocative efficiency 
C) sales and profit efficiency 
D) maintenance and profit efficiency 
A) cost and profit efficiency 
B) technical and allocative efficiency 
C) sales and profit efficiency 
D) maintenance and profit efficiency

Question 11

How does the income statement reflect the profit/loss in value-stream reporting?

Accepted Answer

A) by individual product line 
B) by activity 
C) by value stream 
D) by customer 
A) by individual product line 
B) by activity 
C) by value stream 
D) by customer

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:
$\begin{array}{lrr}
&20 \times 1 & 20 \times 2\
\text { Output } & 30,000 & 36,000 \
\text { Output prices } & \$ 10 & \$ 10 \
\text { Materials (kg) } & 15,000 & 15,300 \
\text { Materials unit price } & \$ 3 & \$ 4 \
\text { Labour (hrs.) } & 12,000 & 11,250 \
\text { Labour rate per hour } & \$ 5 & \$ 5 \
\text { Power (kwh) } & 7,500 & 9,750 \
\text { Price per kwh } & \$ 2 & \$ 3
\end{array}$
-Refer to the figure.By how much did profit change as a result of profitability changes in power?

Accepted Answer

A) $18,000 decrease 
B) $6,750 decrease 
C) $2,250 decrease 
D) $2,250 increase 
A) $18,000 decrease 
B) $6,750 decrease 
C) $2,250 decrease 
D) $2,250 increase

Question 13

Information about Ford Corporation is as follows: $\begin{array}{lrr}
&\text {20X1}&\text {20X2}\
\text { Output (units) } & 40,000 & 42,000 \
\text { Selling price per unit } & \$ 25 & \$ 25\
\
\text { Change in profits}&\$48,012.50\ 
\text { Profit-linked measurements:}\
\text { Materials}&\$550.00\
\text { Iahour }&412.50
\end{array}$ What is the price-recovery component?

Accepted Answer

A) $47,050.00 
B) $40,012.50 
C) $962.50 
D) ($962.50) 
A) $47,050.00 
B) $40,012.50 
C) $962.50 
D) ($962.50)

Question 14

What is the definition of lean manufacturing?

Accepted Answer

A) an operating approach that reports on the effectiveness of the management of the organization 
B) an operating approach designed to eliminate waste and maximize customer value 
C) an operating approach that is designed to analyze the activities of the organization 
D) an operating approach that is designed to compute variances between expectations and actual performance 
A) an operating approach that reports on the effectiveness of the management of the organization 
B) an operating approach designed to eliminate waste and maximize customer value 
C) an operating approach that is designed to analyze the activities of the organization 
D) an operating approach that is designed to compute variances between expectations and actual performance

Question 15

Why is units shipped instead of units produced used as the denominator in the calculation of product costs for value streams with multiple products?

Accepted Answer

A) It reduces conversion costs assigned to the value stream. 
B) It motivates managers to reduce inventories. 
C) Units shipped are always greater than units produced. 
D) Units produced encourages managers to increase inventory. 
A) It reduces conversion costs assigned to the value stream. 
B) It motivates managers to reduce inventories. 
C) Units shipped are always greater than units produced. 
D) Units produced encourages managers to increase inventory.

Question 16

What is a ratio that measures productive efficiency for one input?

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 17

Information about Gausen Company is as follows:
$\begin{array}{lrr}&20X1&20X2\
\text { Output (units) } & 100,000 & 100,000 \
\text { Input quantities: } &\
\text { Materials (kg) } & 45,000 & 40,000 \\text { Labour (hours) } & 25,000 & 20,000\
\text { Input prices: }\\text { Materials (per kg) } & \$ 5 & \$ 6 \
\text { Labour (per hour) } & \$ 8 & \$ 9\&20X1&20X2\\text { Output (units) } & 10,000 & 9,300 \
\text { Input quantities: } &0 \
\text { Labour (hours) }&4,000&3,875\\text { Input prices: }\\text { Labour (per hour) }&\$7&\$8
\end{array}$
-Refer to the figure.What is the partial operational productivity measure for labour for 20X2?

Accepted Answer

A) 1.67 
B) 2.50 
C) 5.00 
D) 5.25 
A) 1.67 
B) 2.50 
C) 5.00 
D) 5.25

Question 18

Information about Cheng Corporation is as follows:
$\begin{array}{lrr}
&20 \times 1 & 20 \times 2\
\text { Output (units) } & 14,000 & 15,000 \
\text { Selling price per unit } & \$ 16 & \$ 16 \
\text { Input quantities: } & & \
\quad \text { Materials (kg) } & 1,750 & 1,900 \
\text { Labour (hours) } & 1,400 & 1,525 \
\text { Input prices: } & & \
\quad \text { Materials (per kg) } & \$ 3 & \$ 4 \
\quad \text { Labour (per hour) } & \$ 6 & \$ 7
\end{array}$
-Refer to the figure.What is the partial operational measure for power for 20X2?

Accepted Answer

A) 4.00 
B) 3.69 
C) 1.15 
D) 1.00 
A) 4.00 
B) 3.69 
C) 1.15 
D) 1.00

Question 19

Which of the following is considered a major source of waste?

Accepted Answer

A) waiting 
B) joint products 
C) production of needed goods 
D) zero-defects products 
A) waiting 
B) joint products 
C) production of needed goods 
D) zero-defects products

Question 20

Information about Laure Corporation is as follows:
$$\begin{array} { l r r } 
&20 \times 1&20 \times 2\
\text { Output (units) } & 300,000 & 270,000 \
\text { Selling price per unit } & \$ 30 & \$ 30 \
\text { Input quantites: } & & \
\text { Materials (kg) } & 75,000 & 60,000 \
\text { Labour (hours) } & 48,000 & 50,000 \
\text { Input prices: } & & \
\text { Materials (per kg) } & \$ 8.00 & \$ 9.00 \
\text { Labou (per hour) } & \$ 11.00 & \$ 12.00
\end{array}$$ 
a.Calculate the materials and labour productivity ratios for 20X1 and 20X2.
b.Did materials productivity improve?
c.Did labour productivity improve?
d.By how much did profits change as a result of changes in productivity?
e.How much of the profit change is attributable to price recovery?

Accepted Answer

a.
b.Yes 
c.No 
d.$1

What are the dimensions used in a two-dimensional matrix when identifying value streams?

What is the term for the point at which,for any mix of inputs that will produce a given output,no more of any one input is used than is absolutely necessary?

In calculating product costs for a value stream with multiple products,when would average product costs be a good estimate of individual product costs?

What is the term for an assessment of the amount of profit change-from the base period to the current period-attributable to productivity changes?

How are conversion costs normally assigned under features and characteristics costing?

What two types of efficiencies are achieved at the point of total productive efficiency?

How does the income statement reflect the profit/loss in value-stream reporting?

Information about Ford Corporation is as follows: 20X1 20X2 Output (units) 40,000 42,000 Selling price per unit \ 25 \ 25 Change in profits \4 8,012.50 Profit-linked measurements: Materials \5 50.00 Iahour 412.50 What is the price-recovery component?

What is the definition of lean manufacturing?

Why is units shipped instead of units produced used as the denominator in the calculation of product costs for value streams with multiple products?

What is a ratio that measures productive efficiency for one input?

Which of the following is considered a major source of waste?

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

What are the dimensions used in a two-dimensional matrix when identifying value streams?

What is the term for the point at which,for any mix of inputs that will produce a given output,no more of any one input is used than is absolutely necessary?

In calculating product costs for a value stream with multiple products,when would average product costs be a good estimate of individual product costs?

What is the term for an assessment of the amount of profit change-from the base period to the current period-attributable to productivity changes?

How are conversion costs normally assigned under features and characteristics costing?

What two types of efficiencies are achieved at the point of total productive efficiency?

How does the income statement reflect the profit/loss in value-stream reporting?

Information about Ford Corporation is as follows: 20X1 20X2 Output (units) 40,000 42,000 Selling price per unit \ 25 \ 25 Change in profits \4 8,012.50 Profit-linked measurements: Materials \5 50.00 Iahour 412.50 What is the price-recovery component?

What is the definition of lean manufacturing?

Why is units shipped instead of units produced used as the denominator in the calculation of product costs for value streams with multiple products?

What is a ratio that measures productive efficiency for one input?

Which of the following is considered a major source of waste?

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