Question 1

Which of the following is a feature of a good balanced scorecard?

Accepted Answer

A) It tells the story of a company's strategy by articulating costs along the value chain. 
B) It helps to communicate the strategy to all members of the organization by translating the strategy into a coherent and linked set of understandable and measurable operational targets. 
C) The scorecard measures match those of other companies. 
D) It provides cause-and-effect linkages that are precise. 
E) The scorecard contains dozens of different measures across many different categories. 
A) It tells the story of a company's strategy by articulating costs along the value chain. 
B) It helps to communicate the strategy to all members of the organization by translating the strategy into a coherent and linked set of understandable and measurable operational targets. 
C) The scorecard measures match those of other companies. 
D) It provides cause-and-effect linkages that are precise. 
E) The scorecard contains dozens of different measures across many different categories. B

Question 2

Research and development cost is an example of an engineered cost.

Accepted Answer

A) True 
 B)False  False

Question 3

Use the information below to answer the following question(s).Following a strategy of product differentiation, Luke Company makes a high-end Appliance, AP15.Luke Company presents the following data for the years 1 and 2.   Luke Company produces no defective units but it wants to reduce direct materials usage per unit of AP15 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of AP15 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Neither conversion costs or customer-service costs are affected by changes in actual volume.Luke Company has 46 customers in year 1 and 50 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-What is the Luke Company's productivity component of change in operating income?

Accepted Answer

A) $33,000 favourable 
B) $45,500 favourable 
C) $33,000 unfavourable 
D) $45,500 unfavourable 
E) $20,500 unfavourable 
A) $33,000 favourable 
B) $45,500 favourable 
C) $33,000 unfavourable 
D) $45,500 unfavourable 
E) $20,500 unfavourable B

Question 4

Answer the following questions using the information below:
Riter Corporation manufactures water toys.It plans to grow by producing high-quality water toys at a low cost that are delivered in a timely manner.There are a number of other manufacturers who produce similar water toys.Riter believes that continuously improving its manufacturing processes are critical to implementing its strategy.
-To execute the company strategy, measures on the balanced scorecard would most likely include the

Accepted Answer

A) number of process improvements. 
B) price premium earned. 
C) market share. 
D) the amount invested in new product features. 
E) employee satisfaction. 
A) number of process improvements. 
B) price premium earned. 
C) market share. 
D) the amount invested in new product features. 
E) employee satisfaction.

Question 5

Manufacturing cycle efficiency is a potential measure of the

Accepted Answer

A) financial perspective. 
B) customer perspective. 
C) internal business process perspective. 
D) learning and growth perspective. 
E) real-time feedback capacity. 
A) financial perspective. 
B) customer perspective. 
C) internal business process perspective. 
D) learning and growth perspective. 
E) real-time feedback capacity.

Question 6

Answer the following questions using the information below:
One of the makeup kit models that Tiegs Corporation produces is targeted at professional women.The goal for Year 2 is to reduce direct materials usage per unit.No defective units are currently produced.Manufacturing conversion costs depend on production capacity defined in terms of makeup kits that can be produced.The industry market size for makeup kits increased 5% from Year 1 to Year 2.The following additional data are available for Years 1 and 2:
  
-What is the Tiegs Corporation revenue effect of the growth component?

Accepted Answer

A) $14,875,000 U 
B) $4,675,000 U 
C) $4,250,000 F 
D) $14,875,000 F 
E) $15,300,000 F 
A) $14,875,000 U 
B) $4,675,000 U 
C) $4,250,000 F 
D) $14,875,000 F 
E) $15,300,000 F

Question 7

Strategies have been classified in many different ways, but what is common is to set the business within its external environment.

Accepted Answer

A) True 
 B)False

Question 8

What are the four key perspectives in the balanced scorecard?

Accepted Answer

The four key perspectives in the balance

Question 9

Use the information below to answer the following question(s).Following a strategy of product differentiation, Barry Company makes an XX 300.Barry Company presents the following data for the years 1 and 2.   Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Neither conversion costs or customer-service costs are affected by changes in actual volume.Barry Company has 23 customers in year 1 and 25 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-What is the Barry Company's revenue effect of growth component?

Accepted Answer

A) $92,000 favourable 
B) $92,000 unfavourable 
C) $80,000 unfavourable 
D) $162,000 favourable 
E) $80,000 favourable 
A) $92,000 favourable 
B) $92,000 unfavourable 
C) $80,000 unfavourable 
D) $162,000 favourable 
E) $80,000 favourable

Question 10

The ratio of the quantity of output produced divided by the quantity of a single input used, is called

Accepted Answer

A) total factor productivity. 
B) partial productivity. 
C) productivity. 
D) product yield variance. 
E) productivity variance. 
A) total factor productivity. 
B) partial productivity. 
C) productivity. 
D) product yield variance. 
E) productivity variance.

Question 11

Define engineered and discretionary costs and give two examples of each.

Accepted Answer

An engineered cost results from a cause-

Question 12

Grader Company manufactures road graders.Because its managers all have engineering backgrounds, it prefers nonfinancial information for its decision-making models.Therefore, it requires that the accountants gather data to assist in the examination of nonfinancial results of operations.The following information relates to the manufacture of a mobile paver:
   Required:
a.What is the partial productivity for direct materials for each year?
b.What is the partial productivity for direct manufacturing labour for each year?
c.What is the total factor productivity for each year?

Accepted Answer

The answer of Grader Company manufactures road graders.Because its managers...

Question 13

Partial productivity equals quantity of output produced divided by quantity of individual input used.

Accepted Answer

A) True 
 B)False

Question 14

The return-on-investment ratio is an example of a scorecard measure under the

Accepted Answer

A) internal business process. 
B) customer perspective. 
C) financial perspective. 
D) learning and growth perspective. 
E) manufacturing perspective. 
A) internal business process. 
B) customer perspective. 
C) financial perspective. 
D) learning and growth perspective. 
E) manufacturing perspective.

Question 15

Maloney Corporation manufactures plastic water bottles.It plans to grow by producing high-quality water bottles at a low cost that are delivered in a timely manner.There are a number of other manufacturers who produce similar water bottles.Maloney believes that continuously improving its manufacturing processes and having satisfied employees are critical to implementing its strategy.Required:
a.Is Maloney's strategy one of product differentiation or cost leadership? Explain briefly.
b.Identify at least one key measure for each balanced scorecard perspective.

Accepted Answer

a.Maloney's strategy is one of cost lead

Question 16

Use the information below to answer the following question(s).Following a strategy of product differentiation, Barry Company makes an XX 300.Barry Company presents the following data for the years 1 and 2.   Barry Company produces no defective units but it wants to reduce direct materials usage per unit of XX 300 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of XX 300 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Neither conversion costs or customer-service costs are affected by changes in actual volume.Barry Company has 23 customers in year 1 and 25 customers in year 2.The industry market size for high-end appliances increased 5% from year 1 to year 2.
-What is the Barry Company's change in operating income from year 1 to year 2?

Accepted Answer

A) $147,600 favourable 
B) $143,520 favourable 
C) $156,120 favourable 
D) $156,120 unfavourable 
E) $242,000 favourable 
A) $147,600 favourable 
B) $143,520 favourable 
C) $156,120 favourable 
D) $156,120 unfavourable 
E) $242,000 favourable

Question 17

Answer the following questions using the information below:
Stewart Corporation plans to grow by offering a sound system, the SS3000, that is superior and unique from the competition.Stewart believes that putting additional resources into R&D and staying ahead of the competition with technological innovations is critical to implementing its strategy.
-Stewart's strategy is

Accepted Answer

A) product differentiation. 
B) downsizing. 
C) reengineering. 
D) cost leadership. 
E) salability. 
A) product differentiation. 
B) downsizing. 
C) reengineering. 
D) cost leadership. 
E) salability.

Question 18

The price-recovery component of a change in operating income from one year to the next measures the increase in operating income from selling more units of the product.

Accepted Answer

A) True 
 B)False

Question 19

Germaine Company provided the following information.   What is the partial productivity ratio?

Accepted Answer

A) 0.97 unit per litre 
B) 1.02 units per litre 
C) 1.06 units per litre 
D) 1.12 units per litre 
E) 1.71 units per litre 
A) 0.97 unit per litre 
B) 1.02 units per litre 
C) 1.06 units per litre 
D) 1.12 units per litre 
E) 1.71 units per litre

Question 20

The average number of student credit hours taught per faculty member is an example of

Accepted Answer

A) an expected performance measure. 
B) a budgeted productivity measure. 
C) a standard productivity measure. 
D) a partial productivity measure. 
E) a total factor productivity measure. 
A) an expected performance measure. 
B) a budgeted productivity measure. 
C) a standard productivity measure. 
D) a partial productivity measure. 
E) a total factor productivity measure.

Which of the following is a feature of a good balanced scorecard?

Research and development cost is an example of an engineered cost.

Manufacturing cycle efficiency is a potential measure of the

Strategies have been classified in many different ways, but what is common is to set the business within its external environment.

What are the four key perspectives in the balanced scorecard?

The ratio of the quantity of output produced divided by the quantity of a single input used, is called

Define engineered and discretionary costs and give two examples of each.

Partial productivity equals quantity of output produced divided by quantity of individual input used.

The return-on-investment ratio is an example of a scorecard measure under the

The price-recovery component of a change in operating income from one year to the next measures the increase in operating income from selling more units of the product.

Germaine Company provided the following information. What is the partial productivity ratio?

The average number of student credit hours taught per faculty member is an example of

The Accountants Vital Role in Decision Making

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Analysis of Cost Behaviour

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, Rework, and Scrap

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters

Exam 13: Strategy, Balanced Scorecard, and Profitability Analysis

Which of the following is a feature of a good balanced scorecard?

Research and development cost is an example of an engineered cost.

Manufacturing cycle efficiency is a potential measure of the

Strategies have been classified in many different ways, but what is common is to set the business within its external environment.

What are the four key perspectives in the balanced scorecard?

The ratio of the quantity of output produced divided by the quantity of a single input used, is called

Define engineered and discretionary costs and give two examples of each.

Partial productivity equals quantity of output produced divided by quantity of individual input used.

The return-on-investment ratio is an example of a scorecard measure under the

The price-recovery component of a change in operating income from one year to the next measures the increase in operating income from selling more units of the product.

Germaine Company provided the following information. What is the partial productivity ratio?

The average number of student credit hours taught per faculty member is an example of

The Accountants Vital Role in Decision Making

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Analysis of Cost Behaviour

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, Rework, and Scrap

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters