Listed below are several possible combinations for producing 10,000 units of a lamp: $\begin{array}{llll} &\text { Materials } &\text { Labour } &\text { Power }\\ \text {Unit input prices}&\$ 16 \text { per kg } & \$ 20 \text { per hr. } &\$ 4 \text { per kwh}\\ \text { Input combinations:}\\ \text { A } & 190 \mathrm{~kg} & 380 \mathrm{hrs} . & 1,520 \mathrm{kwh} \\ \text { B } & 180 \mathrm{~kg} & 360 \mathrm{hrs} . & 1,440 \mathrm{kwh} \\ \text { C } & 200 \mathrm{~kg} & 400 \mathrm{hrs} . & 1,000 \mathrm{kwh} \\ \text { D } & 220 \mathrm{~kg} & 440 \mathrm{hrs} . & 1,100 \mathrm{kwh} \end{array}$ a.Identify the technically efficient input combinations.Explain your choices. b.Which of the technically efficient input combinations should be used? Explain.

a.Combinations B and C are technically e

Hieber Company produces pants that use two inputs-materials and labour.During the past quarter,1,000 units were produced,requiring 2,000 kilograms of material and 1,000 hours of labour.An engineering efficiency study commissioned by the local university revealed that Hieber Company can produce the same output of 1,000 units using either of the following two combinations of inputs: $\begin{array}{cccc} & \text { Materials } & \text { Labour } \\ \text { Combination A } & 1,750 & 875 \\ \text { Combination B }& 2,000 & 750 \end{array}$ The cost of materials is $2.50 per kilogram; the cost of labour is $5 per hour. a.Compute the productivity ratio for each input of Combination A. b.Does this represent a productivity improvement over the current use of inputs? c.What is the total dollar value of the improvement? Classify this as a technical or input trade-off efficiency improvement.

a.Materials: 1,000/1,750 = 0.57 Labour:

Information about Hinze Corporation is as follows: \[\begin{array} { l r r } &20 \times 1&20 \times 2\\ \text { Output (urits) } & 40,000 & 42,000 \\ \text { Selling price per unit } & \$ 25 & \$ 25 \\ \text { Input quantites: } & & \\ \text { Materials (kg) } & 2,000 & 2,000 \\ \text { Labour (hours) } & 1,600 & 1,625 \\ \text { Input prices: } & & \\ \text { Materials (per kg) } & \$ 5.00 & \$ 5.50 \\ \text { Labour (per hour) } & 500 & \$ 7.50 \end{array}\] -Refer to the figure.What is the materials productivity ratio for 20X1?

A) 28 B) 25 C) 20 D) 16 A) 28 B) 25 C) 20 D) 16

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.By how much did profits change as a result of changes in productivity related to labour?

A) $1,650.00 decrease B) $1,650.00 increase C) $1,237.50 decrease D) $1,237.50 increase A) $1,650.00 decrease B) $1,650.00 increase C) $1,237.50 decrease D) $1,237.50 increase

Exam 17: Lean Accounting and Productivity Measurement

The Processing Department can produce one unit every 5 minutes and is the last department before the Finishing Department.Under traditional manufacturing where a batch equals 10 units,how long will it be before the first unit in the batch can move from the Processing Department to the Finishing Department?

(Multiple Choice)

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Question 121

What is the purpose of the production rate?

(Multiple Choice)

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Question 122

What would cause unit cost to increase with multiple products in a value stream?

(Multiple Choice)

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Question 123

What is a difference between Toyota's lean manufacturing system and Ford's lean enterprise system?

(Multiple Choice)

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Question 124

What is the JIT solution?

(Multiple Choice)

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Question 125

Listed below are several possible combinations for producing 10,000 units of a lamp: Materials Labour Power Unit input prices \ 16 per kg \ 20 per hr. \ 4 per kwh Input combinations: A 190 380. 1,520 B 180 360. 1,440 C 200 400. 1,000 D 220 440. 1,100 a.Identify the technically efficient input combinations.Explain your choices. b.Which of the technically efficient input combinations should be used? Explain.

(Essay)

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Question 126

Explain the difference between technical and input trade-off efficiency.

(Essay)

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Question 127

What is an advantage of using partial productivity measures?

(Multiple Choice)

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Question 128

What is the term for the difference between the total profit change and the profit-linked productivity change?

(Multiple Choice)

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Question 129

What is partial productivity measurement?

(Multiple Choice)

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Question 130

Hieber Company produces pants that use two inputs-materials and labour.During the past quarter,1,000 units were produced,requiring 2,000 kilograms of material and 1,000 hours of labour.An engineering efficiency study commissioned by the local university revealed that Hieber Company can produce the same output of 1,000 units using either of the following two combinations of inputs: Materials Labour Combination A 1,750 875 Combination B 2,000 750 The cost of materials is $2.50 per kilogram; the cost of labour is $5 per hour. a.Compute the productivity ratio for each input of Combination A. b.Does this represent a productivity improvement over the current use of inputs? c.What is the total dollar value of the improvement? Classify this as a technical or input trade-off efficiency improvement.

(Essay)

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Question 131

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

(Multiple Choice)

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Question 132

What is the term for a prior period used to set the benchmark for measuring productivity changes?

(Multiple Choice)

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Question 133

Information about Hinze Corporation is as follows: 20\times1 20\times2 Output (urits) 40,000 42,000 Selling price per unit \ 25 \ 25 Input quantites: Materials (kg) 2,000 2,000 Labour (hours) 1,600 1,625 Input prices: Materials (per kg) \ 5.00 \ 5.50 Labour (per hour) 500 \ 7.50 -Refer to the figure.What is the materials productivity ratio for 20X1?

(Multiple Choice)

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Question 134

What is characteristic of lean manufacturing setup?

(Multiple Choice)

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Question 135

What term is defined as the worth of one or more features of a product for which the customer is willing to pay?

(Multiple Choice)

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Question 136

Information about Holm Corporation is as follows: 20\times1 20\times2 Output (units) 120,000 126,000 Selling price per unit \ 25 \ 25 Input quantities: Materials (kg) 6,000 6,000 Labour (hours) 4,800 4,825 Input prices: Materials (per ) \ 5.00 \ 5.50 Labour (per hour) \ 7.00 \ 7.50 -Refer to the figure.By how much did profits change as a result of changes in productivity related to labour?

(Multiple Choice)

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Question 137

Theis Incorporated has the following departmental structure for producing its products: $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.What are the production rates of Model 1 and Model 2? d.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? e.If the company uses a Product Cost Conversion Cost Chart as follows: \quad \quad \quad \quad \quad \quad \quad \quad \quad \text { Materials } \begin{array}{l} \begin{array} { | l | l | c | c | } \hline & & \text { Steel } & \text { Titanium } \\ \hline & 2.5 \mathrm {~kg} & .75 & .90 \\ \hline \text { Size } & 5.0 \mathrm {~kg} & 1.00 & 1.20 \\ \hline & 7.5 \mathrm {~kg} & 1.15 & 1.50 \\ \hline & & & \\ \hline \end{array} \end{array} and the average conversion cost = $50,what is the product cost of Model 1,a 5.0 kg unit made of Titanium and Model 2,a 7.5 kg unit made of steel? (Assume materials cost remains at $60 per unit.)$ A consultant designed a cellular manufacturing structure for the same product: $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.What are the production rates of Model 1 and Model 2? d.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? e.If the company uses a Product Cost Conversion Cost Chart as follows: \quad \quad \quad \quad \quad \quad \quad \quad \quad \text { Materials } \begin{array}{l} \begin{array} { | l | l | c | c | } \hline & & \text { Steel } & \text { Titanium } \\ \hline & 2.5 \mathrm {~kg} & .75 & .90 \\ \hline \text { Size } & 5.0 \mathrm {~kg} & 1.00 & 1.20 \\ \hline & 7.5 \mathrm {~kg} & 1.15 & 1.50 \\ \hline & & & \\ \hline \end{array} \end{array} and the average conversion cost = $50,what is the product cost of Model 1,a 5.0 kg unit made of Titanium and Model 2,a 7.5 kg unit made of steel? (Assume materials cost remains at $60 per unit.)$ 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.What are the production rates of Model 1 and Model 2? d.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? e.If the company uses a Product Cost Conversion Cost Chart as follows: $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Materials }$ Steel Titanium 2.5 .75 .90 Size 5.0 1.00 1.20 7.5 1.15 1.50 and the average conversion cost = $50,what is the product cost of Model 1,a 5.0 kg unit made of Titanium and Model 2,a 7.5 kg unit made of steel? (Assume materials cost remains at $60 per unit.)

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Question 138

Showing 121 - 138 of 138

What is the purpose of the production rate?

What would cause unit cost to increase with multiple products in a value stream?

What is a difference between Toyota's lean manufacturing system and Ford's lean enterprise system?

What is the JIT solution?

Explain the difference between technical and input trade-off efficiency.

What is an advantage of using partial productivity measures?

What is the term for the difference between the total profit change and the profit-linked productivity change?

What is partial productivity measurement?

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

What is the term for a prior period used to set the benchmark for measuring productivity changes?

What is characteristic of lean manufacturing setup?

What term is defined as the worth of one or more features of a product for which the customer is willing to pay?

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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