Question 1

Identify and explain Porter's Five Forces model.

Accepted Answer

Porter identified five competitive force

Question 2

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 net increase in operating income as a result of the growth component?

Accepted Answer

A) $340,000 unfavourable 
B) $140,000 favourable 
C) $160,000 favourable 
D) $190,000 favourable 
E) $250,000 unfavourable 
A) $340,000 unfavourable 
B) $140,000 favourable 
C) $160,000 favourable 
D) $190,000 favourable 
E) $250,000 unfavourable

Question 3

What is reengineering? Can you contrast a reengineering approach to change with a Kaizen approach to change?

Accepted Answer

Reengineering is the rethinking of busin

Question 4

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 price-recovery?

Accepted Answer

A) $4,125,000 U 
B) $4,250,000 U 
C) $4,675,000 U 
D) $4,675,000 F 
E) $4,250,000 F 
A) $4,125,000 U 
B) $4,250,000 U 
C) $4,675,000 U 
D) $4,675,000 F 
E) $4,250,000 F

Question 5

Measures of the balanced scorecard's internal business process perspective include all of the following EXCEPT

Accepted Answer

A) operating capabilities. 
B) number of new products. 
C) employee turnover rates. 
D) defect rates. 
E) production cycle time. 
A) operating capabilities. 
B) number of new products. 
C) employee turnover rates. 
D) defect rates. 
E) production cycle time.

Question 6

Use the information below to answer the following question(s).Following a strategy of product differentiation, Instruments Inc.makes a hand held calculator, II400.Instruments Inc.presents the following data for the years 1 and 2:
   Instruments Inc.produces no defective units but it wants to reduce direct materials usage per unit of II400 in year 2.Manufacturing conversion costs in each year depend on production capacity defined in terms of II400 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.Instruments Inc.has 23 customers in year 1 and 25 customers in year 2.The industry market size for hand held calculators increased 5% from year 1 to year 2.Of the $4 increase in unit selling price, $1 is due to a general increase in prices.
-Required:
a.What is the operating income for Year 1?
b.What is the operating income in Year 2?
c.What is the change in operating income from Year 1 to Year 2?
d.What amount is the revenue effect of the growth component?
e.What amount is the cost effect of the growth component?
f.What is the net effect on operating income as a result of the growth component?
g.What amount is the revenue effect of the price-recovery component?
h.What amount is the cost effect of the price-recovery component?
i.What is the net change in operating income as a result of the price-recovery component?
j.What is the net effect on operating income as a result of the productivity component?
a
k.The change in operating income from cost leadership.l.The change in operating income due to industry wide effects.m.The effect of product differentiation on operating income and a summarization of the change in operating income between Year 1 to Year 2.

Accepted Answer

a.($40 ∗ 50,000)- ($4 ∗ 150,000)- ($8 ∗

Question 7

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 operating income for year 1?

Accepted Answer

A) $4,000,000 
B) $804,500 
C) $1,240,000 
D) $1,240,500 
E) $1,440,000 
A) $4,000,000 
B) $804,500 
C) $1,240,000 
D) $1,240,500 
E) $1,440,000

Question 8

Measures of the balanced scorecard's financial perspective include all of the following EXCEPT

Accepted Answer

A) operating income. 
B) customer satisfaction. 
C) gross profit percentage. 
D) cost reductions. 
E) return on investment. 
A) operating income. 
B) customer satisfaction. 
C) gross profit percentage. 
D) cost reductions. 
E) return on investment.

Question 9

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 net increase in operating income as a result of the price-recovery component?

Accepted Answer

A) $179,000 favourable 
B) $179,000 unfavourable 
C) $182,000 unfavourable 
D) $20,000 favourable 
E) $20,000 unfavourable 
A) $179,000 favourable 
B) $179,000 unfavourable 
C) $182,000 unfavourable 
D) $20,000 favourable 
E) $20,000 unfavourable

Question 10

The growth component measures the increase in revenues minus the increase in costs from selling more units of a product.

Accepted Answer

A) True 
 B)False

Question 11

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 cost effect of the growth component for direct materials?

Accepted Answer

A) $1,768,000 U 
B) $1,700,000 U 
C) $1,232,500 U 
D) $1,232,500 F 
E) $1,689,000 F 
A) $1,768,000 U 
B) $1,700,000 U 
C) $1,232,500 U 
D) $1,232,500 F 
E) $1,689,000 F

Question 12

Justine Ltd.provided the following information.   What is the partial productivity ratio?

Accepted Answer

A) 0.72 unit per kilogram 
B) 0.75 units per kilogram 
C) 1.34 units per kilogram 
D) 1.12 units per kilogram 
E) 0.78 units per kilogram 
A) 0.72 unit per kilogram 
B) 0.75 units per kilogram 
C) 1.34 units per kilogram 
D) 1.12 units per kilogram 
E) 0.78 units per kilogram

Question 13

The accounting scorecard translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for implementing its strategy.

Accepted Answer

A) True 
 B)False

Question 14

To achieve a cost leadership strategy companies may need to improve their internal production processes to increase yield.

Accepted Answer

A) True 
 B)False

Question 15

Wondergardens Ltd.operates amusement parks similar to those such as Six Flags, Universal Studios, Disneyland etc.Wondergardens' mission is to provide high quality family entertainment that exceed guests' expectations and will create lifelong memories.To achieve this goal, Wondergardens strives to provide safe, clean, friendly family environments at reasonable prices.In addition to the amusement parks, the company operates a community outreach program.Through volunteerism, it offers educational and recreational programs (e.
g.after school programs for children and teenagers, employment related training for adults)and special events at its facilities.Wondergardens' president, Roland Coaster, has asked you to lead a team of employees in developing a balanced scorecard for its parks.Required:
For each balanced scorecard perspective identify two measures of performance that relate to Wondergardens' key success factors.

Accepted Answer

This is intended to be an open ended que

Question 16

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 cost effect of growth component?

Accepted Answer

A) $60,000 unfavourable 
B) $30,000 favourable 
C) $60,000 favourable 
D) $200,000 favourable 
E) $30,000 unfavourable 
A) $60,000 unfavourable 
B) $30,000 favourable 
C) $60,000 favourable 
D) $200,000 favourable 
E) $30,000 unfavourable

Question 17

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.
-Successful implementation of a cost leadership strategy will result in

Accepted Answer

A) large favorable growth and price-recovery components. 
B) large favorable price-recovery and productivity components. 
C) large favorable productivity and growth components. 
D) only a large favorable growth component. 
E) a price-recovery component greater than a growth component. 
A) large favorable growth and price-recovery components. 
B) large favorable price-recovery and productivity components. 
C) large favorable productivity and growth components. 
D) only a large favorable growth component. 
E) a price-recovery component greater than a growth component.

Question 18

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 net increase in operating income as a result of the price-recovery component?

Accepted Answer

A) $101,000 unfavourable 
B) $101,000 favourable 
C) $6,100 favourable 
D) $2,700 unfavourable 
E) $6,100 unfavourable 
A) $101,000 unfavourable 
B) $101,000 favourable 
C) $6,100 favourable 
D) $2,700 unfavourable 
E) $6,100 unfavourable

Question 19

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.
-Referring to Barry Company, which of the following is a measure of the customer perspective?

Accepted Answer

A) operating income growth from charging higher margins for XX 300 
B) yield 
C) production cycle time 
D) improving manufacturing processes 
E) customer satisfaction rating 
A) operating income growth from charging higher margins for XX 300 
B) yield 
C) production cycle time 
D) improving manufacturing processes 
E) customer satisfaction rating

Question 20

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 revenue effect of growth component?

Accepted Answer

A) $440,000 favourable 
B) $400,000 unfavourable 
C) $400,000 favourable 
D) $200,000 favourable 
E) $220,000 favourable 
A) $440,000 favourable 
B) $400,000 unfavourable 
C) $400,000 favourable 
D) $200,000 favourable 
E) $220,000 favourable

Identify and explain Porter's Five Forces model.

What is reengineering? Can you contrast a reengineering approach to change with a Kaizen approach to change?

Measures of the balanced scorecard's internal business process perspective include all of the following EXCEPT

Measures of the balanced scorecard's financial perspective include all of the following EXCEPT

The growth component measures the increase in revenues minus the increase in costs from selling more units of a product.

Justine Ltd.provided the following information. What is the partial productivity ratio?

The accounting scorecard translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for implementing its strategy.

To achieve a cost leadership strategy companies may need to improve their internal production processes to increase yield.

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

Identify and explain Porter's Five Forces model.

What is reengineering? Can you contrast a reengineering approach to change with a Kaizen approach to change?

Measures of the balanced scorecard's internal business process perspective include all of the following EXCEPT

Measures of the balanced scorecard's financial perspective include all of the following EXCEPT

The growth component measures the increase in revenues minus the increase in costs from selling more units of a product.

Justine Ltd.provided the following information. What is the partial productivity ratio?

The accounting scorecard translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for implementing its strategy.

To achieve a cost leadership strategy companies may need to improve their internal production processes to increase yield.

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