Exam 13: Strategy, Balanced Scorecard, and Profitability Analysis

Frazier Company provided the following information: What is the partial productivity ratio?

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. -________ measures the reduction in costs attributable to a reduction in the quantity of inputs used in year two relative to the quantity of inputs that would have been used in year one to produce the year two output.

Although total factor productivity (TFP)measures are comprehensive, operations personnel find financial TFP measures more difficult to understand and less useful than physical partial productivity measures in performing their tasks.

Fairytale Weddings manufactures wedding dresses.The following information relates to the manufacture of gowns in its Perth plant: Required: Prepare an analysis of change in annual costs from year 1 to year 2 including direct materials, direct manufacturing labour, and total inputs.

Which of the following would result in an increase in total factor productivity, assuming all other variables are held constant?

Ralph Company has been very aggressive in developing various types of financial and nonfinancial measurement schemes to help with the evaluation of its manufacturing processes.It appears that some of the managers are suboptimizing in that their decision processes are geared solely for their department's benefit, sometimes to the detriment of the organization as a whole.Required: What changes in the evaluation system could the company implement to help minimize the suboptimization of the managers' decision-making process?

Total factor productivity (TFP)is the ratio of the quantity of output produced to the costs of all inputs used, where the inputs are combined on the basis of current period prices.

The number of complaints about the company's product is a potential measure of the

A disadvantage of total factor productivity over partial productivity is that

Downsizing often means eliminating jobs, which can have an adverse effect on employee morale.

The price-recovery component of a change in operating income measures the effect of price changes on revenues and costs.

Power Company has been unhappy with the financial accounting variances that its cost accounting system has been producing, because its managers believe that there is more to evaluating an operation than just examining accounting numbers.Therefore, it has started gathering data to assist in the examination of nonfinancial results of operations.The following information relates to the manufacture of remote control units for televisions, radios, and stereo components. Required: a.What is the partial productivity of direct materials for each year? b.What is the partial productivity of direct manufacturing labour for each year? c.Did each area improve between year 1 and year 2? Explain. d.What will be the projected direct material and labour needs for year 3 if remote control units increase by 6,000 units, assuming Power Company applies the constant returns to scale technology?