Question 1

Benchmarking means trying to match another company's

Accepted Answer

A) Metrics. 
B) Performance. 
C) Profits. 
D) Processes 
A) Metrics. 
B) Performance. 
C) Profits. 
D) Processes

Question 2

Before a balanced scorecard can be developed,managers must

Accepted Answer

A) be clear about the strategy they are trying to achieve. 
B) understand the cause-and-effect relationship between various measures. 
C) both be clear about the strategy they are trying to achieve and understand the cause-and-effect relationship between various measures. 
D) neither be clear about the strategy they are trying to achieve nor understand the cause-and-effect relationship between various measures. 
A) be clear about the strategy they are trying to achieve. 
B) understand the cause-and-effect relationship between various measures. 
C) both be clear about the strategy they are trying to achieve and understand the cause-and-effect relationship between various measures. 
D) neither be clear about the strategy they are trying to achieve nor understand the cause-and-effect relationship between various measures.

Question 3

Which of the following does not describe the internal business processes perspective?

Accepted Answer

A) Focus is on creating products and services that customers desire 
B) This perspective is the foundation for improvement in all other areas 
C) Focus on delivering products and services in a timely manner 
D) Measures assist managers in assessing the efficiency and effectiveness of production processes 
A) Focus is on creating products and services that customers desire 
B) This perspective is the foundation for improvement in all other areas 
C) Focus on delivering products and services in a timely manner 
D) Measures assist managers in assessing the efficiency and effectiveness of production processes

Question 4

Mel Torme,sales manager for Hokque,Inc.has received numerous customer complaints about the length of time it takes to receive an order.He has gathered the following information from a recent order to help him understand the issue.
Hours Required
Process customer order 1
Wait for direct materials to arrive 24
Fabrication of parts 30
Move parts to assembly area 8
Wait for machine time 45
Assembly of parts 24
Move parts to finishing department 3
Wait for machine time 24
Finishing
a.Calculate the delivery cycle time for the order.
b.Calculate the manufacturing cycle time for the order.
c.Calculate the value-added time for the order.
d.Calculate the manufacturing cycle efficiency.

Accepted Answer

The answer of Mel Torme,sales manager for Hokque,Inc.has received numerous...

Question 5

Nonfinancial measures,which are not based on accounting results,can be either qualitative or quantitative.

Accepted Answer

A) True 
 B)False

Question 6

A measure is relevant if it

Accepted Answer

A) is complete and accurate. 
B) is clearly and directly related to the process it measures. 
C) relates to a corporate strategic objective. 
D) None of the these answer choices are correct. 
A) is complete and accurate. 
B) is clearly and directly related to the process it measures. 
C) relates to a corporate strategic objective. 
D) None of the these answer choices are correct.

Question 7

Measures that can be determined only after something is finished are called lagging indicators.

Accepted Answer

A) True 
 B)False

Question 8

Although executives recognize the importance of nonfinancial performance measures,companies are not particularly good at using them.

Accepted Answer

A) True 
 B)False

Question 9

Leading indicators provide managers with the information they need to

Accepted Answer

A) prepare direct material and direct labor variances. 
B) take timely,corrective action. 
C) prepare GAAP- based financial statements. 
D) All of these answer choices are correct. 
A) prepare direct material and direct labor variances. 
B) take timely,corrective action. 
C) prepare GAAP- based financial statements. 
D) All of these answer choices are correct.

Question 10

Manufacturing cycle efficiency is calculated as

Accepted Answer

A) Value-added processing time divided by non-valued added processing time. 
B) Non-value-added processing time divided by total manufacturing cycle time. 
C) Value-added processing time divided by total manufacturing cycle time. 
D) Direct cost of manufacturing divided by total manufacturing cost. 
A) Value-added processing time divided by non-valued added processing time. 
B) Non-value-added processing time divided by total manufacturing cycle time. 
C) Value-added processing time divided by total manufacturing cycle time. 
D) Direct cost of manufacturing divided by total manufacturing cost.

Question 11

In determining whether benchmarking is worth the effort,a company must assess the potential return from a benchmarking project.

Accepted Answer

A) True 
 B)False

Question 12

Direct material variance is a measure of

Accepted Answer

A) outcomes. 
B) inputs. 
C) qualitative factors. 
D) None of these answer choices are correct. 
A) outcomes. 
B) inputs. 
C) qualitative factors. 
D) None of these answer choices are correct.

Question 13

A strategy map

Accepted Answer

A) Is a visual display of the key measures related to an organization's strategies. 
B) Is a pictorial representation of the cause-and-effect relationships embodied in the strategies. 
C) Is a visual display of the corporation's strategies. 
D) Is a pictorial representation of the particular strategies that have been met by the organizational 
A) Is a visual display of the key measures related to an organization's strategies. 
B) Is a pictorial representation of the cause-and-effect relationships embodied in the strategies. 
C) Is a visual display of the corporation's strategies. 
D) Is a pictorial representation of the particular strategies that have been met by the organizational

Question 14

When using the balanced scorecard to monitor performance,the internal business processes perspective answers which of the following questions?

Accepted Answer

A) Are we developing employees and providing technologies that facilitate change and improvement? 
B) Are we improving our business processes in order to deliver maximum value to our customers? 
C) Are we meeting our stakeholders' expectations? 
D) Are we growing in a manner to be competitive in the industry? 
A) Are we developing employees and providing technologies that facilitate change and improvement? 
B) Are we improving our business processes in order to deliver maximum value to our customers? 
C) Are we meeting our stakeholders' expectations? 
D) Are we growing in a manner to be competitive in the industry?

Question 15

A management tool that integrates performance measures across four different perspectives to guide operations toward achieving an organization's strategy is called

Accepted Answer

A) performance dashboard. 
B) balanced scorecard. 
C) key performance measures. 
D) None of these answer choices are correct. 
A) performance dashboard. 
B) balanced scorecard. 
C) key performance measures. 
D) None of these answer choices are correct.

Question 16

The learning and growth perspective answers the question,"Are we improving our business processes in order to deliver maximum value to our customers."

Accepted Answer

A) True 
 B)False

Question 17

Midland Industries is the manufacturer of metal-frame backyard pools and pool accessories.The controller of the company recognizes that the success of the company depends on both financial and nonfinancial measures.Place an "X" in the appropriate columns to indicate whether the following measures are leading or lagging and financial or nonfinancial.

Accepted Answer

The answer of Midland Industries is the manufacturer of metal-frame...

Question 18

The key to using key performance indicators to drive performance is to understand the cause-and-effect relationships they represent.

Accepted Answer

A) True 
 B)False

Question 19

The best measures that should be captured and reported to managers relate to corporate strategy and are SMART: specific,measurable,actionable,relevant,and timely.Below are examples of poorly constructed performance measures for each of these.For each component of SMART,provide two better measures than the poorly constructed measures provided.

Accepted Answer

The answer of The best measures that should be captured...

Question 20

If a public utility company wanted to benchmark ways to protect its underground electrical cables,which of the following companies should they not contact?

Accepted Answer

A) Telephone company. 
B) Wi-Fi company. 
C) Another public utility company. 
D) Cable television company. 
A) Telephone company. 
B) Wi-Fi company. 
C) Another public utility company. 
D) Cable television company.

Benchmarking means trying to match another company's

Before a balanced scorecard can be developed,managers must

Which of the following does not describe the internal business processes perspective?

Nonfinancial measures,which are not based on accounting results,can be either qualitative or quantitative.

A measure is relevant if it

Measures that can be determined only after something is finished are called lagging indicators.

Although executives recognize the importance of nonfinancial performance measures,companies are not particularly good at using them.

Leading indicators provide managers with the information they need to

Manufacturing cycle efficiency is calculated as

In determining whether benchmarking is worth the effort,a company must assess the potential return from a benchmarking project.

Direct material variance is a measure of

A strategy map

When using the balanced scorecard to monitor performance,the internal business processes perspective answers which of the following questions?

A management tool that integrates performance measures across four different perspectives to guide operations toward achieving an organization's strategy is called

The learning and growth perspective answers the question,"Are we improving our business processes in order to deliver maximum value to our customers."

The key to using key performance indicators to drive performance is to understand the cause-and-effect relationships they represent.

If a public utility company wanted to benchmark ways to protect its underground electrical cables,which of the following companies should they not contact?

Accounting As a Tool for Management

Cost Behavior and Cost Estimation

Cost-Volume-Profit Analysis and Pricing Decisions

Product Costs and Job Order Costing

Planning and Forecasting

Performance Evaluation: Variance Analysis

Activity-Based Costing and Activity Based Management

Using Accounting Information to Make Managerial Decisions

Capital Budgeting

Decentralizing and Performance Evaluation

Financial Statement Analysis

Statement of Cash Flows

Topic Focus: Process Costing

Topic Focus Variable and Absorption Costing

Topic Focus Standard Costing Systems

Topic Focus Customer Profitability

Filters

Exam 11: Performance Evaluation Revisited: a Balanced Approach

Benchmarking means trying to match another company's

Before a balanced scorecard can be developed,managers must

Which of the following does not describe the internal business processes perspective?

Nonfinancial measures,which are not based on accounting results,can be either qualitative or quantitative.

A measure is relevant if it

Measures that can be determined only after something is finished are called lagging indicators.

Although executives recognize the importance of nonfinancial performance measures,companies are not particularly good at using them.

Leading indicators provide managers with the information they need to

Manufacturing cycle efficiency is calculated as

In determining whether benchmarking is worth the effort,a company must assess the potential return from a benchmarking project.

Direct material variance is a measure of

A strategy map

When using the balanced scorecard to monitor performance,the internal business processes perspective answers which of the following questions?

A management tool that integrates performance measures across four different perspectives to guide operations toward achieving an organization's strategy is called

The learning and growth perspective answers the question,"Are we improving our business processes in order to deliver maximum value to our customers."

The key to using key performance indicators to drive performance is to understand the cause-and-effect relationships they represent.

If a public utility company wanted to benchmark ways to protect its underground electrical cables,which of the following companies should they not contact?

Accounting As a Tool for Management

Cost Behavior and Cost Estimation

Cost-Volume-Profit Analysis and Pricing Decisions

Product Costs and Job Order Costing

Planning and Forecasting

Performance Evaluation: Variance Analysis

Activity-Based Costing and Activity Based Management

Using Accounting Information to Make Managerial Decisions

Capital Budgeting

Decentralizing and Performance Evaluation

Financial Statement Analysis

Statement of Cash Flows

Topic Focus: Process Costing

Topic Focus Variable and Absorption Costing

Topic Focus Standard Costing Systems

Topic Focus Customer Profitability

Filters