Question 1

When choosing the right performance measures,the best measures relate to day-to-day operations.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a measure that relates to the internal business processes perspective?

Accepted Answer

A) Return on investment 
B) Cost per unit 
C) Rework hours 
D) Defect rate 
A) Return on investment 
B) Cost per unit 
C) Rework hours 
D) Defect rate

Question 3

To balance the scorecard,organizations should select all of the following except

Accepted Answer

A) Leading measures. 
B) Dashboard measures. 
C) Lagging measures. 
D) Qualitative measures. 
A) Leading measures. 
B) Dashboard measures. 
C) Lagging measures. 
D) Qualitative measures.

Question 4

Which of the following is not a measure that relates to the customer perspective?

Accepted Answer

A) Customer satisfaction 
B) Customer loyalty index 
C) Customer profitability 
D) Response time to customer request 
A) Customer satisfaction 
B) Customer loyalty index 
C) Customer profitability 
D) Response time to customer request

Question 5

The steps involved in building a balanced scorecard are

Accepted Answer

A) Selecting measures,setting targets for measures and adjusting the scorecard as strategies change. 
B) Selecting measures,setting targets for measures and changing objectives that do not meet scorecard measures. 
C) Setting targets for measures,adjusting objectives to meet the scorecard,and eliminating processes that do not meet objectives. 
D) None of these answer choices are correct. 
A) Selecting measures,setting targets for measures and adjusting the scorecard as strategies change. 
B) Selecting measures,setting targets for measures and changing objectives that do not meet scorecard measures. 
C) Setting targets for measures,adjusting objectives to meet the scorecard,and eliminating processes that do not meet objectives. 
D) None of these answer choices are correct.

Question 6

When using the balanced scorecard to monitor performance,the customer 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 creating products and hiring employees with skills to create product and deliver them in a timely manner? 
C) Are we meeting our customers' 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 creating products and hiring employees with skills to create product and deliver them in a timely manner? 
C) Are we meeting our customers' expectations? 
D) Are we growing in a manner to be competitive in the industry?

Question 7

Measuring and evaluating performance is important to managers.They need to explore how individual and performance measures and other measures can be combined to create a better tool for measuring past performance and driving the future achievement of strategic goals.
Required:
Define the following terms and give one example of each that you can use in this class.
a.Lagging indicator
b.Leading indicator
c.Nonfinancial measure
d.Benchmarking
e.Best practices
Unit 11-1,3,

Accepted Answer

a.Lagging indicator - measures that can

Question 8

Barry's Ice Cream Shoppe is interested in improving his performance in the area of quality control and customer service.This interest came about after Barry put a "suggestions box" near the counter.Several suggestions related to employees not being clean in handling their orders,not filling orders properly,and rudeness from employees.Barry has discussed his problems with his neighboring store,a local dry cleaning business.
Required:
List five processes that Barry and the dry cleaning business have in common.

Accepted Answer

Answer will vary.Several processes are:

Question 9

Which of the following not a qualitative measure that McDonald's would use?

Accepted Answer

A) Accidents per month 
B) Customer retention 
C) Current ratio 
D) Number of orders filled incorrectly 
A) Accidents per month 
B) Customer retention 
C) Current ratio 
D) Number of orders filled incorrectly

Question 10

A balanced scorecard should include five to seven measures in each of four perspectives: Learning and growth,internal business processes,customer,and financial.
Required:
List five measures that relate to the financial perspective.

Accepted Answer

Answers will vary,several meas

Question 11

Measures that are predictors of your ultimate performance on a particular activity are referred to as predictor indicators.

Accepted Answer

A) True 
 B)False

Question 12

Nonfinancial measures can be

Accepted Answer

The answer of Nonfinancial measures can be  ...

Question 13

Ledbetter Industries makes and sells two types of outdoor canvas canopies.Ledbetter has provided you with the following timeline information stated in hours for its two products: Standard and Deluxe.
   Required: 
a.Calculate the manufacturing cycle time for each product.
b.Calculate the manufacturing cycle efficiency for each product.
Appendix,

Accepted Answer

a.Standard: .25 + 6.00 + .25 +

Question 14

Which of the following is not a measure that relates to the learning and growth perspective?

Accepted Answer

A) Revenue growth 
B) Revenue per employee 
C) Training dollars spent per employee 
D) Technology spending per employee 
A) Revenue growth 
B) Revenue per employee 
C) Training dollars spent per employee 
D) Technology spending per employee

Question 15

In selecting the measures for the balanced scorecard,managers should choose between four and seven measures for each perspective to avoid

Accepted Answer

A) Strategy overload 
B) Measurement overload 
C) Information overload 
D) Scorecard overload 
A) Strategy overload 
B) Measurement overload 
C) Information overload 
D) Scorecard overload

Question 16

Even if an organization relies solely on one performance measurement,it cannot easily be misled into thinking all is well,when in reality,all is not well.

Accepted Answer

A) True 
 B)False

Question 17

Perfect manufacturing cycle efficiency would yield a ratio of zero - that is,no processing time would be non-value-added.
Appendix,

Accepted Answer

A) True 
 B)False

Question 18

Identifying whether a measure is a leading or lagging indicator can be difficult,because a lagging indicator of one event can be a leading indicator of another.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Summer Time Sports operates an ocean side rental stand for motorcycles,bicycles,and small watercraft along with umbrellas,chairs,toys and rubber rafts.Because several other stands are in the area,it is important for Summer Time to remain competitive.Summer Time must generate enough cash revenue during the summer to carry it through the slower winter months.
Required:
Identify two measures for each of the four balanced scorecard perspectives that will help Summer Time to achieve its strategy.
Learning and Growth perspective:
1.
2.
Internal Business Processes perspective:
1.
2.
Customer perspective:
1.
2.
Financial perspective
1.
2.

Accepted Answer

Answers will vary,ex

When choosing the right performance measures,the best measures relate to day-to-day operations.

Which of the following is not a measure that relates to the internal business processes perspective?

To balance the scorecard,organizations should select all of the following except

Which of the following is not a measure that relates to the customer perspective?

The steps involved in building a balanced scorecard are

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

Which of the following not a qualitative measure that McDonald's would use?

A balanced scorecard should include five to seven measures in each of four perspectives: Learning and growth,internal business processes,customer,and financial. Required: List five measures that relate to the financial perspective.

Measures that are predictors of your ultimate performance on a particular activity are referred to as predictor indicators.

Nonfinancial measures can be

Which of the following is not a measure that relates to the learning and growth perspective?

In selecting the measures for the balanced scorecard,managers should choose between four and seven measures for each perspective to avoid

Even if an organization relies solely on one performance measurement,it cannot easily be misled into thinking all is well,when in reality,all is not well.

Perfect manufacturing cycle efficiency would yield a ratio of zero - that is,no processing time would be non-value-added. Appendix,

Identifying whether a measure is a leading or lagging indicator can be difficult,because a lagging indicator of one event can be a leading indicator of another.

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

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

When choosing the right performance measures,the best measures relate to day-to-day operations.

Which of the following is not a measure that relates to the internal business processes perspective?

To balance the scorecard,organizations should select all of the following except

Which of the following is not a measure that relates to the customer perspective?

The steps involved in building a balanced scorecard are

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

Which of the following not a qualitative measure that McDonald's would use?

A balanced scorecard should include five to seven measures in each of four perspectives: Learning and growth,internal business processes,customer,and financial. Required: List five measures that relate to the financial perspective.

Measures that are predictors of your ultimate performance on a particular activity are referred to as predictor indicators.

Nonfinancial measures can be

Which of the following is not a measure that relates to the learning and growth perspective?

In selecting the measures for the balanced scorecard,managers should choose between four and seven measures for each perspective to avoid

Even if an organization relies solely on one performance measurement,it cannot easily be misled into thinking all is well,when in reality,all is not well.

Perfect manufacturing cycle efficiency would yield a ratio of zero - that is,no processing time would be non-value-added. Appendix,

Identifying whether a measure is a leading or lagging indicator can be difficult,because a lagging indicator of one event can be a leading indicator of another.

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

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