Question 1

Increasing the capacity of a ____________ resource reduces manufacturing cycle times and delays.

Accepted Answer

A) bottleneck 
B) strategic 
C) complex 
D) Pareto 
A) bottleneck 
B) strategic 
C) complex 
D) Pareto

Question 2

A corporation can measure its quality performance by using financial or non-financial measures of quality.Discuss the merits of each method and whether the use of one precludes the use of the other.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

Financial measures of quality are quanti

Question 3

Answer the following questions using the information below:
Kosciuszko Landscapes produces Landscape photographs for sale through catalogues.The company has two workstations: photo production and framing.The photo production station is limited by the speed of operating the photo development machine.Framing is limited by the speed of the employees.Framing normally waits for work from photo production.Each department works an eight-hour day.If Kosciuszko Landscapes adds an earlier half shift so that photo production begins work four hours earlier than framing each day,the two departments generally finish their work at about the same time.This eliminates the bottleneck,and increases finished units produced each day by 300 units.All units produced can be sold.The cost of operating the photo production department four more hours each day is $2800.The contribution margin of the finished products is $15 each.
-Customer-response time is a measure of how long it takes for the customer to return a call.

Accepted Answer

A) True 
 B)False

Question 4

Quality of design measures how closely the characteristics of products or services match the needs and wants of customers.Conformance quality:

Accepted Answer

A) focuses on fitness of uses from a customer perspective. 
B) measures the same things. 
C) is the performance of a product or service according to design and product specifications. 
D) is making the product according to design,engineering and manufacturing specifications. 
A) focuses on fitness of uses from a customer perspective. 
B) measures the same things. 
C) is the performance of a product or service according to design and product specifications. 
D) is making the product according to design,engineering and manufacturing specifications.

Question 5

Without ________________ quality measures,quality problems might not be identified until it is too late.

Accepted Answer

A) non-financial 
B) throughput 
C) financial 
D) balanced 
A) non-financial 
B) throughput 
C) financial 
D) balanced

Question 6

One way to increase __________ is to reduce the time it takes for set-ups and processing.

Accepted Answer

A) capacity 
B) cycle time 
C) uncertainty 
D) opportunities 
A) capacity 
B) cycle time 
C) uncertainty 
D) opportunities

Question 7

Costs of Quality (COQ)are classified into four categories: prevention costs,appraisal costs,inspection costs and warranty costs.

Accepted Answer

A) True 
 B)False

Question 8

Max's Fastfood Takeaways has a variable demand.The daily demand ranges from 100 to 150 customers a day who average purchasing 5 items each.The average daily demand is 125 customers.The convenience store currently operates 6 hours a day.Each order takes approximately 2 minutes.
Required:
a.What is the average customer waiting time,in minutes?
b.What is the cycle time for an order?
c.Ralph has decided that the waiting time is too long and has increased his workday to 7.5 hours.What is the waiting time now?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

a.Waiting minutes = [125 × (2)²]/{2 × [36

Question 9

Answer the following questions using the information below:
Gourmet Baking Shop has two departments,mixing and baking.The mixing department is limited by the speed of operating the mixing machine.Baking is limited by the speed of the workers.Baking normally waits for work from mixing.Each department works an eight-hour day.If mixing begins work two hours earlier than baking each day,the two departments generally finish their work at about the same time.Not only does this eliminate the bottleneck,but also it increases finished units produced each day by 240 units.All units produced can be sold even though the change increases inventory stock by 20% from 400 units.The cost of operating the mixing department two more hours each day is $1600.The contribution margin of the finished products is $8 each.Inventory carrying costs are $0.40 per unit per day.
-What is the total production per day if the change is made?

Accepted Answer

A) 2400 units 
B) 1200 units 
C) 6400 units 
D) 880 units 
A) 2400 units 
B) 1200 units 
C) 6400 units 
D) 880 units

Question 10

Critics of Six Sigma argue that it emphasises incremental rather than dramatic or disruptive innovation.

Accepted Answer

A) True 
 B)False

Question 11

The amount of time from when a customer places an order for a product or requests a service to when the product or service is delivered to the customer is referred to as:

Accepted Answer

A) bottleneck. 
B) customer-response time. 
C) manufacturing lead time. 
D) a time driver. 
A) bottleneck. 
B) customer-response time. 
C) manufacturing lead time. 
D) a time driver.

Question 12

The balanced scorecard includes both financial and non-financial measures of customer satisfaction.

Accepted Answer

A) True 
 B)False

Question 13

Discuss the methods used to identify quality problems.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

1.A control chart is a graph of a series

Question 14

Quality of design measures how closely the characteristics of products or services meet the needs and wants of customers.

Accepted Answer

A) True 
 B)False

Question 15

Bottlenecks can also occur on the internet when many people try to view a company's website at the same time,or on a mobile network when too many people are trying to transfer data at the same time.

Accepted Answer

A) True 
 B)False

Question 16

Three tools used to detect quality problems include control charts,Pareto charts and cause-and-effect diagrams.Briefly explain each of these tools.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

A control chart is a graph of a series o

Question 17

Answer the following questions using the information below:
Gourmet Baking Shop has two departments,mixing and baking.The mixing department is limited by the speed of operating the mixing machine.Baking is limited by the speed of the workers.Baking normally waits for work from mixing.Each department works an eight-hour day.If mixing begins work two hours earlier than baking each day,the two departments generally finish their work at about the same time.Not only does this eliminate the bottleneck,but also it increases finished units produced each day by 240 units.All units produced can be sold even though the change increases inventory stock by 20% from 400 units.The cost of operating the mixing department two more hours each day is $1600.The contribution margin of the finished products is $8 each.Inventory carrying costs are $0.40 per unit per day.
-What is the change in the daily contribution margin if the change is made?

Accepted Answer

A) $(634) 
B) $(608) 
C) $272 
D) $800 
A) $(634) 
B) $(608) 
C) $272 
D) $800

Question 18

Examples of opportunity costs include:

Accepted Answer

A) forgone contribution margin. 
B) lost sales. 
C) lower production. 
D) All of these answers are correct. 
A) forgone contribution margin. 
B) lost sales. 
C) lower production. 
D) All of these answers are correct.

Question 19

Costs of quality (COQ)reports usually do not consider opportunity costs.

Accepted Answer

A) True 
 B)False

Question 20

Answer the following questions using the information below:
Mildura Products has a budget of $1 200 000 in 2018 for prevention costs.If it decides to automate a portion of its prevention activities,it will save $75 000 in variable costs.The new method will require $24 000 in training costs and $145 000 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 210 000 units.
Appraisal costs for the year are budgeted at $500 000.The new prevention procedures will save appraisal costs of $35 000.Internal failure costs average $20 per failed unit of finished goods.The internal failure rate is expected to be 4% of all completed items.The proposed changes will cut the internal failure rate by one-half.Internal failure units are destroyed.External failure costs average $48 per failed unit.The company's average external failures average 2.5% of units sold.The new proposal will reduce this rate to 1%.Assume all units produced are sold and there are no ending inventories.
-What is the net change in the budget of prevention costs if the procedures are automated in 2018? Will management agree with the changes?

Accepted Answer

A) $75 000 increase,no 
B) $75 000 decrease,yes 
C) $94 000 decrease,yes 
D) $94 000 increase,yes 
A) $75 000 increase,no 
B) $75 000 decrease,yes 
C) $94 000 decrease,yes 
D) $94 000 increase,yes

Increasing the capacity of a ____________ resource reduces manufacturing cycle times and delays.

A corporation can measure its quality performance by using financial or non-financial measures of quality.Discuss the merits of each method and whether the use of one precludes the use of the other. _ _

Quality of design measures how closely the characteristics of products or services match the needs and wants of customers.Conformance quality:

Without ________________ quality measures,quality problems might not be identified until it is too late.

One way to increase __________ is to reduce the time it takes for set-ups and processing.

Costs of Quality (COQ)are classified into four categories: prevention costs,appraisal costs,inspection costs and warranty costs.

Critics of Six Sigma argue that it emphasises incremental rather than dramatic or disruptive innovation.

The amount of time from when a customer places an order for a product or requests a service to when the product or service is delivered to the customer is referred to as:

The balanced scorecard includes both financial and non-financial measures of customer satisfaction.

Discuss the methods used to identify quality problems. _ _

Quality of design measures how closely the characteristics of products or services meet the needs and wants of customers.

Bottlenecks can also occur on the internet when many people try to view a company's website at the same time,or on a mobile network when too many people are trying to transfer data at the same time.

Three tools used to detect quality problems include control charts,Pareto charts and cause-and-effect diagrams.Briefly explain each of these tools. _ _

Examples of opportunity costs include:

Costs of quality (COQ)reports usually do not consider opportunity costs.

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters

Exam 16: Quality, Time and the Balanced Scorecard

Increasing the capacity of a ____________ resource reduces manufacturing cycle times and delays.

Quality of design measures how closely the characteristics of products or services match the needs and wants of customers.Conformance quality:

Without ________________ quality measures,quality problems might not be identified until it is too late.

One way to increase __________ is to reduce the time it takes for set-ups and processing.

Costs of Quality (COQ)are classified into four categories: prevention costs,appraisal costs,inspection costs and warranty costs.

Critics of Six Sigma argue that it emphasises incremental rather than dramatic or disruptive innovation.

The amount of time from when a customer places an order for a product or requests a service to when the product or service is delivered to the customer is referred to as:

The balanced scorecard includes both financial and non-financial measures of customer satisfaction.

Discuss the methods used to identify quality problems. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Quality of design measures how closely the characteristics of products or services meet the needs and wants of customers.

Bottlenecks can also occur on the internet when many people try to view a company's website at the same time,or on a mobile network when too many people are trying to transfer data at the same time.

Examples of opportunity costs include:

Costs of quality (COQ)reports usually do not consider opportunity costs.

Management Accounting in Context

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters

Discuss the methods used to identify quality problems. _ _