Question 1

Which of the following BEST describes the effect of uncertainty?

Accepted Answer

A) The higher the level of uncertainty about the relationship between resources used and outputs, the less likely a cause-and-effect relationship will exist. 
B) The higher the level of uncertainty about the relationship between resources used and outputs, the more likely a cause-and-effect relationship will exist. 
C) The higher the level of uncertainty about the relationship between resources used and outputs, the more likely the cost will classified as a discretionary cost. 
D) The higher the level of uncertainty about the relationship between resources used and outputs, the less likely the cost will classified as a discretionary cost. 
E) The higher the level of uncertainty about the relationship between resources used and outputs, the less likely a cause-and-effect relationship will exist, and the more likely the cost will classified as a discretionary cost. 
A) The higher the level of uncertainty about the relationship between resources used and outputs, the less likely a cause-and-effect relationship will exist. 
B) The higher the level of uncertainty about the relationship between resources used and outputs, the more likely a cause-and-effect relationship will exist. 
C) The higher the level of uncertainty about the relationship between resources used and outputs, the more likely the cost will classified as a discretionary cost. 
D) The higher the level of uncertainty about the relationship between resources used and outputs, the less likely the cost will classified as a discretionary cost. 
E) The higher the level of uncertainty about the relationship between resources used and outputs, the less likely a cause-and-effect relationship will exist, and the more likely the cost will classified as a discretionary cost.

Question 2

Lake Company manufactures small boats.Because its managers all have engineering backgrounds, they prefer nonfinancial information for their decision-making models.Therefore, they require the accountants gather data to assist in the examination of nonfinancial results of operations.The following information relates to the manufacture of a small boat.   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 Lake Company manufactures small boats.Because its managers...

Question 3

Successful reengineering efforts generally involve changing the roles and responsibilities of employees.

Accepted Answer

A) True 
 B)False

Question 4

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 cost effect of price-recovery component?

Accepted Answer

A) $61,000 favourable 
B) $60,850 unfavourable 
C) $60,100 favourable 
D) $60,100 unfavourable 
E) $61,000 unfavourable 
A) $61,000 favourable 
B) $60,850 unfavourable 
C) $60,100 favourable 
D) $60,100 unfavourable 
E) $61,000 unfavourable

Question 5

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 price-recovery component?

Accepted Answer

A) $126,000 favourable 
B) $126,000 unfavourable 
C) $241,000 unfavourable 
D) $420,000 favourable 
E) $238,000 unfavourable 
A) $126,000 favourable 
B) $126,000 unfavourable 
C) $241,000 unfavourable 
D) $420,000 favourable 
E) $238,000 unfavourable

Question 6

________ is an organization's ability to achieve low costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.

Accepted Answer

A) Strategy 
B) Product differentiation 
C) Cost leadership 
D) The balanced scorecard 
E) Product leadership 
A) Strategy 
B) Product differentiation 
C) Cost leadership 
D) The balanced scorecard 
E) Product leadership

Question 7

Following a strategy of product differentiation, Sting Corporation makes a high-end computer monitor, CM7.Sting Corporation presents the following data for the years 2018 and 2019:
   Sting Corporation wants to reduce direct materials usage per unit of CM7 in 2019.Manufacturing conversion costs in each year depend on production capacity defined in terms of CM7 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.Sting Corporation has 100 customers in 2018 and 115 customers in 2019.The industry market size for high-end computer monitors increased 5% from 2018 to 2019.Required:
a.Calculate the effect on the change of operating income as a result of the productivity component.   c.What is the total factor productivity for 2019 and the total factor productivity benchmark based on input costs that would have been used in 2018 to produce 2019 output?(round to 4 decimal places)
d.Provide two key success factors, and a corresponding measure for each, that relate to Sting Corporation's internal business process balanced scorecard perspective.

Accepted Answer

a.20,000 × (5,500/5,000)= 22,000;(19,460

Question 8

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 operating income for year 1?

Accepted Answer

A) $210,000 
B) $366,120 
C) $1,000,000 
D) $260,000 
E) $231,000 
A) $210,000 
B) $366,120 
C) $1,000,000 
D) $260,000 
E) $231,000

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 price-recovery component?

Accepted Answer

A) $54,000 favourable 
B) $162,000 favourable 
C) $54,000 unfavourable 
D) $92,000 favourable 
E) $50,000 unfavourable 
A) $54,000 favourable 
B) $162,000 favourable 
C) $54,000 unfavourable 
D) $92,000 favourable 
E) $50,000 unfavourable

Question 10

Ranger Electronics Ltd.manufactures a variety of high quality electronic components.Data from the last three months are presented below:
   You are the new assistant controller for Ranger and the controller has asked you to review the performance over the last 3 months and write a summary analysis with your recommendations for follow up or further monitoring.In addition, the controller notes that the company, although it has many detailed performance measures, is considering implementing a balanced scorecard and asks you to identify the measures you think would be most appropriate to include in the balanced scorecard.Required:
Evaluate the performance of Ranger Electronics over the 3 month period.

Accepted Answer

Note responses may be in short formal re

Question 11

What is the direct manufacturing labour partial productivity, assuming 20,000 units were produced during the year and 80,000 direct manufacturing labour-hours were used?

Accepted Answer

A) 0.25 unit per direct manufacturing labour-hour 
B) 0.50 unit per direct manufacturing labour-hour 
C) 0.75 unit per direct manufacturing labour-hour 
D) 4.00 unit per direct manufacturing labour-hour 
E) 1.25 unit per direct manufacturing labour-hour 
A) 0.25 unit per direct manufacturing labour-hour 
B) 0.50 unit per direct manufacturing labour-hour 
C) 0.75 unit per direct manufacturing labour-hour 
D) 4.00 unit per direct manufacturing labour-hour 
E) 1.25 unit per direct manufacturing labour-hour

Question 12

Unused capacity is the amount of productive capacity available over and above the productive capacity employed to meet customer demand in the current period.

Accepted Answer

A) True 
 B)False

Question 13

Granger Electronics Ltd.manufactures a variety of high quality electronic components.Data from the last three months are presented below:
   You are the new assistant controller for Granger and the controller has asked you to review the performance over the last 3 months and write a summary analysis with your recommendations for follow up or further monitoring.In addition, the controller notes that the company, although it has many detailed performance measures, is considering implementing a balanced scorecard and asks you to identify the measures you think would be most appropriate to include in the balanced scorecard.Required:
Evaluate the performance of Granger Electronics over the 3 month period.

Accepted Answer

Note responses may be in short formal re

Question 14

Engineered costs result specifically from a clear cause-and-effect relationship between output and the resources needed to produce that output.

Accepted Answer

A) True 
 B)False

Question 15

The price-recovery component measures the increase in operating income from selling more units of a product.

Accepted Answer

A) True 
 B)False

Question 16

Turtle Data Ltd.is an internet service provider.The company had 9,000,000 subscribers in 2019, and employed 12 customer service representatives.During 2019 each customer service representative worked 7 hours per day for 241 days at a fixed annual salary of $35,000.The company received 60,000 telephone calls from its customers in 2019 that lasted ten minutes on average.Required:
Calculate the cost of unused customer service capacity in 2019 with the assumption that customer service costs are engineered costs.

Accepted Answer

1.Available customer capacity
 @#IMG-DLM& 2.Custom

Question 17

Partial productivity multiplied by the quantity of input used results in

Accepted Answer

A) expected production. 
B) budgeted output. 
C) quantity of output produced. 
D) a ratio. 
E) productivity. 
A) expected production. 
B) budgeted output. 
C) quantity of output produced. 
D) a ratio. 
E) productivity.

Question 18

The lower the inputs for a given set of outputs or the higher the outputs for a given set of inputs, the higher the level of

Accepted Answer

A) standard costs. 
B) sales. 
C) productivity. 
D) labour costs. 
E) labour costs and productivity. 
A) standard costs. 
B) sales. 
C) productivity. 
D) labour costs. 
E) labour costs and productivity.

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 internal business process perspective?

Accepted Answer

A) operating income growth from charging higher margins for XX 300 
B) market share in the high-end appliance market 
C) production cycle time 
D) number of employees trained in quality management 
E) real-time customer feedback 
A) operating income growth from charging higher margins for XX 300 
B) market share in the high-end appliance market 
C) production cycle time 
D) number of employees trained in quality management 
E) real-time customer feedback

Question 20

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 conversion costs?

Accepted Answer

A) $1,500,000 U 
B) $0 
C) $1,650,000 U 
D) $1,650,000 F 
E) $1,500,000 F 
A) $1,500,000 U 
B) $0 
C) $1,650,000 U 
D) $1,650,000 F 
E) $1,500,000 F

Which of the following BEST describes the effect of uncertainty?

Successful reengineering efforts generally involve changing the roles and responsibilities of employees.

________ is an organization's ability to achieve low costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.

What is the direct manufacturing labour partial productivity, assuming 20,000 units were produced during the year and 80,000 direct manufacturing labour-hours were used?

Unused capacity is the amount of productive capacity available over and above the productive capacity employed to meet customer demand in the current period.

Engineered costs result specifically from a clear cause-and-effect relationship between output and the resources needed to produce that output.

The price-recovery component measures the increase in operating income from selling more units of a product.

Partial productivity multiplied by the quantity of input used results in

The lower the inputs for a given set of outputs or the higher the outputs for a given set of inputs, the higher the level 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 BEST describes the effect of uncertainty?

Successful reengineering efforts generally involve changing the roles and responsibilities of employees.

________ is an organization's ability to achieve low costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.

What is the direct manufacturing labour partial productivity, assuming 20,000 units were produced during the year and 80,000 direct manufacturing labour-hours were used?

Unused capacity is the amount of productive capacity available over and above the productive capacity employed to meet customer demand in the current period.

Engineered costs result specifically from a clear cause-and-effect relationship between output and the resources needed to produce that output.

The price-recovery component measures the increase in operating income from selling more units of a product.

Partial productivity multiplied by the quantity of input used results in

The lower the inputs for a given set of outputs or the higher the outputs for a given set of inputs, the higher the level 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