Exam 16: Quality, Time and the Balanced Scorecard

What is the tool which indicates how frequently each type of defect occurs? Variant question

Answer the following questions using the information below: Mount Tamborine Furniture manufactures high quality tables.Its varnishing department is fully automated and requires substantial inspection to keep the machines operating properly.An improperly varnished table is very expensive to correct.Inspection hours for the 10 000 tables varnished in September totalled 2500 hours by 16 employees.Eight litres of varnish were used,on average,for each table.The standard amount of varnish per table is nine litres.The cost of inspection for September was equal to the budgeted amount of $76 000. -The $76 000 represents a(n):

Aunt Lydia's Biscuits prepares frozen gourmet biscuits for shipment to upscale grocery stores as well as mailing to web and catalogue customers.The company has two workstations: cooking and distribution.The cooking station is limited by the cooking time of the food.Distribution is limited by the speed of the workers.Distribution normally waits on food from cooking.Because the demand has increased in recent months to 4000 dozen biscuits,management is considering adding another oven in the cooking station or else having the cooks start work earlier.The monthly cost of operating the cooking station one more hour each day is $1500.The cost of adding another cooking station would add an average of $8 per hour.The current operating hours total eight hours a day,24 days a month.The contribution margin of the finished products is currently $2 per dozen.Inventory carrying costs average $0.50 per dozen per month.Either the extra hour or the new cooking station would increase production by 50 dozen a day,with a long-run increase of 100 dozen units in finished goods inventory to 500 dozen. Required: a.What is the total production per month if the change is made? b.What is the increase in the expected monthly product contribution for each of the possible changes? Assume long-run production equals sales. c.What course of action would you recommend? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Discuss the means by which a company goes about evaluating and installing a new quality improvement program. _____________________________________________________________________________________________ _____________________________________________________________________________________________

In the banking industry,depositing a customer's cheque into the wrong bank account is an example of quality of design failure.

What is the inspection cost per unit?

Making improvements in internal business processes affects the COQ numbers reported in the financial perspective of the balanced scorecard.

A quality improvement program is very costly to implement across a large corporation.Why do they do it? Explain. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Management accountants are usually not responsible for maintaining and presenting non-financial measures.

Diane has been asked to consider plans to add the retrieval of larger tooling fixtures to her duties.She anticipates that there would be an average of 12 tooling fixtures per day requested.Each tooling fixture would take Diane 4 minutes to retrieve. What is the average waiting time,in minutes,if Diane continues to be the only worker that would retrieve the small tools as well as the larger tooling fixtures?

With control charts,observations that fall outside the control limits are regarded as __________ and worth investigating.

A tool which identifies potential causes of failures or defects is a:

Costs incurred to find individual units of products that do not conform to specifications are:

Answer the following questions using the information below: Nurioopta Products has a budget of $900 000 in 2018 for prevention costs.If it decides to automate a portion of its prevention activities,it will save $65 000 in variable costs.The new method will require $24 000 in training costs and $110 000 in annual equipment costs.Management is willing to adjust the budget for an amount up to the cost of the new equipment.The budgeted production level is 170 000 units. Appraisal costs for the year are budgeted at $600 000.The new prevention procedures will save appraisal costs of $30 000.Internal failure costs average $15 per failed unit of finished goods.The internal failure rate is expected to be 3% of all completed items.The proposed changes will cut the internal failure rate by one-third.Internal failure units are destroyed.External failure costs average $54 per failed unit.The company's average external failures average 3% of units sold.The new proposal will reduce this rate by 50%.Assume all units produced are sold and there are no ending inventories. -How much will appraisal costs change assuming the new prevention methods reduce material failures by 40% in the appraisal phase?

How is the amount of time from when an order is ready to start on the production line to when it becomes a finished good referred to as? Variant question

A control chart identifies potential causes of failures or defects.

What is scrap an example of? Variant question

Non-financial methods and measures are useful indicators of long-term future performance (e.g.through measures of customer satisfaction and employee satisfaction).

In the formula to calculate the average waiting time,the manufacturing time is squared because:

The average waiting time is the average amount of time an order will wait at the company's shipping office before it is sent to the customer.