Question 1

One way to increase capacity is to reduce the time it takes for setups and processing.

Accepted Answer

A) True 
 B)False

Question 2

An illustration that resembles the bone structure of a fish and identifies potential reasons why a problem exists is called ________.

Accepted Answer

A) control chart 
B) Pareto diagram 
C) cause-and-effect diagram 
D) time-series graphs 
A) control chart 
B) Pareto diagram 
C) cause-and-effect diagram 
D) time-series graphs

Question 3

Spoilage,rework,scrap,and machine repairs are all examples of ________.

Accepted Answer

A) prevention costs 
B) appraisal costs 
C) internal failure costs 
D) external failure costs 
A) prevention costs 
B) appraisal costs 
C) internal failure costs 
D) external failure costs

Question 4

Baby Care Products has just completed a very successful program of improving quality in its manufacturing operations.The next step is to improve the operations of its administrative functions,starting with the accounting information system.As the manager of the accounting operations,you are requested to begin a quality improvement program.
Required:
What are some possibilities of finding out about the current status of quality in the accounting system?

Accepted Answer

The manager might begin by identifying "

Question 5

Any factor where a change in the factor causes a change in the speed with which an activity is undertaken is referred to as ________.

Accepted Answer

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

Question 6

Tony placed an order for a customized watch.The customer response time is 43 hours,its receipt time is 9 hours,and manufacturing cycle time is 25 hours.Calculate the delivery time of the product.

Accepted Answer

A) 18 hours 
B) 9 hours 
C) 16 hours 
D) 4)5 hours 
A) 18 hours 
B) 9 hours 
C) 16 hours 
D) 4)5 hours

Question 7

Ventaz Corp manufactures small windows for back yard sheds.Historically,its demand has ranged from 30 to 50 windows per day with an average of 41.Alex is one of the production workers and he works eight hours a day,five days a week.Each order is one window and each window takes 10 minutes.
What is the cycle time for an order?

Accepted Answer

A) 10 minutes per window 
B) 100.00 minutes per window 
C) 39.29 minutes per window 
D) 500.00 minutes per window 
A) 10 minutes per window 
B) 100.00 minutes per window 
C) 39.29 minutes per window 
D) 500.00 minutes per window

Question 8

Process engineering is an example of ________.

Accepted Answer

A) prevention costs 
B) appraisal costs 
C) internal failure costs 
D) external failure costs 
A) prevention costs 
B) appraisal costs 
C) internal failure costs 
D) external failure costs

Question 9

An on-time delivery rate is considered a nonfinancial measure of customer satisfaction.

Accepted Answer

A) True 
 B)False

Question 10

Customer response time is the time it takes from the time a customer places an order for a product or service to the time the product or service is delivered to the customer.

Accepted Answer

A) True 
 B)False

Question 11

Prevention costs include inspection and product testing.

Accepted Answer

A) True 
 B)False

Question 12

Two common operational measures of time are customer-response time and on-time performance.

Accepted Answer

A) True 
 B)False

Question 13

Brown Laundry has a variable demand.The daily demand ranges from 100 to 140 customers a day with an average of 5 items.The average daily demand is 110 customers.The laundry operates 10 hours a day.Each order takes approximately 5 minutes.
Required:
a.What is the average customer waiting time,in minutes?
b.What is the cycle time for an order?
c.The manager has decided that the waiting time is too long and has increased the workday to 11 hours.What is the waiting time now? Will the customers be any happier?

Accepted Answer

a.Waiting minutes = [110 × (5)²]/{2 × [60

Question 14

Ventaz Corp manufactures small windows for back yard sheds.Historically,its demand has ranged from 30 to 50 windows per day with an average of 43.Alex is the one production worker and he works eight hours a day,five days a week.Each order is one window and each window takes 5 minutes.
What is the average waiting time in minutes?

Accepted Answer

A) 2)50 
B) 4)06 
C) 2)03 
D) 21.50 
A) 2)50 
B) 4)06 
C) 2)03 
D) 21.50

Question 15

Which of the following true of nonfinancial measures of quality?

Accepted Answer

A) They direct attention to financial processes that help managers identify the precise problem areas that need improvement. 
B) They focus managers' attention on how poor quality affects operating income. 
C) They assist in problem solving by comparing costs and benefits of different quality-improvement programs and by setting priorities for cost reduction. 
D) They provide immediate short-run feedback on whether quality-improvement efforts are succeeding. 
A) They direct attention to financial processes that help managers identify the precise problem areas that need improvement. 
B) They focus managers' attention on how poor quality affects operating income. 
C) They assist in problem solving by comparing costs and benefits of different quality-improvement programs and by setting priorities for cost reduction. 
D) They provide immediate short-run feedback on whether quality-improvement efforts are succeeding.

Question 16

Cysco Corp has a budget of $1,207,000 in 2017 for prevention costs.If it decides to automate a portion of its prevention activities,it will save $106,000 in variable costs.The new method will require $50,200 in training costs and $143,000 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 201,000 units.
Appraisal costs for the year are budgeted at $503,000.The new prevention procedures will save appraisal costs of $50,600.Internal failure costs average $34 per failed unit of finished goods.The internal failure rate is expected to be 6% 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 $58 per failed unit.The company's average external failures average 2.5% of units sold.The new proposal will reduce this rate to 2%.Assume all units produced are sold and there are no ending inventories.
How much will appraisal costs change assuming that the new prevention methods reduce material failures by 40% in the appraisal phase?

Accepted Answer

A) $156,200 decrease 
B) $307,545 decrease 
C) $50,600 increase 
D) $50,600 decrease 
A) $156,200 decrease 
B) $307,545 decrease 
C) $50,600 increase 
D) $50,600 decrease

Question 17

Longer manufacturing cycle times can result in ________.

Accepted Answer

A) lower revenues and higher inventory carrying costs 
B) higher opportunity costs and low profit margins 
C) lower opportunity costs and high profit margins 
D) higher revenues and lower inventory carrying costs 
A) lower revenues and higher inventory carrying costs 
B) higher opportunity costs and low profit margins 
C) lower opportunity costs and high profit margins 
D) higher revenues and lower inventory carrying costs

Question 18

Norton's Convenience store has a variable demand.The daily demand ranges from 270 to 330 customers a day who average purchasing 5 items each.The average daily demand is 300 customers.The convenience store currently operates 12 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.Norton has decided that the waiting time is too long and has increased the hours the store is open to 15 hours.What is the waiting time now?

Accepted Answer

a.Waiting minutes = [300 × (2)²]/{2 × [72

Question 19

Warranty repair cost is an example of which of the following?

Accepted Answer

A) prevention costs 
B) appraisal costs 
C) internal failure costs 
D) external failure costs 
A) prevention costs 
B) appraisal costs 
C) internal failure costs 
D) external failure costs

Question 20

Which of the following is an advantage of COQ measures?

Accepted Answer

A) They help managers aggregate costs to evaluate the tradeoffs of incurring prevention costs and appraisal costs to eliminate internal and external failure costs. 
B) They detect and provide immediate short-run feedback on whether quality-improvement efforts are succeeding. 
C) They forecast customer satisfaction and employee satisfaction,which are useful indicators of long-run performance. 
D) They direct attention to financial processes that help managers identify the precise problem areas that need improvement. 
A) They help managers aggregate costs to evaluate the tradeoffs of incurring prevention costs and appraisal costs to eliminate internal and external failure costs. 
B) They detect and provide immediate short-run feedback on whether quality-improvement efforts are succeeding. 
C) They forecast customer satisfaction and employee satisfaction,which are useful indicators of long-run performance. 
D) They direct attention to financial processes that help managers identify the precise problem areas that need improvement.

One way to increase capacity is to reduce the time it takes for setups and processing.

An illustration that resembles the bone structure of a fish and identifies potential reasons why a problem exists is called ________.

Spoilage,rework,scrap,and machine repairs are all examples of ________.

Any factor where a change in the factor causes a change in the speed with which an activity is undertaken is referred to as ________.

Tony placed an order for a customized watch.The customer response time is 43 hours,its receipt time is 9 hours,and manufacturing cycle time is 25 hours.Calculate the delivery time of the product.

Process engineering is an example of ________.

An on-time delivery rate is considered a nonfinancial measure of customer satisfaction.

Customer response time is the time it takes from the time a customer places an order for a product or service to the time the product or service is delivered to the customer.

Prevention costs include inspection and product testing.

Two common operational measures of time are customer-response time and on-time performance.

Which of the following true of nonfinancial measures of quality?

Longer manufacturing cycle times can result in ________.

Warranty repair cost is an example of which of the following?

Which of the following is an advantage of COQ measures?

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets,direct-Cost Variances,and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy,balanced Scorecard,and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

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

Filters

Exam 19: Balanced Scorecard: Quality and Time

One way to increase capacity is to reduce the time it takes for setups and processing.

An illustration that resembles the bone structure of a fish and identifies potential reasons why a problem exists is called ________.

Spoilage,rework,scrap,and machine repairs are all examples of ________.

Any factor where a change in the factor causes a change in the speed with which an activity is undertaken is referred to as ________.

Tony placed an order for a customized watch.The customer response time is 43 hours,its receipt time is 9 hours,and manufacturing cycle time is 25 hours.Calculate the delivery time of the product.

Process engineering is an example of ________.

An on-time delivery rate is considered a nonfinancial measure of customer satisfaction.

Customer response time is the time it takes from the time a customer places an order for a product or service to the time the product or service is delivered to the customer.

Prevention costs include inspection and product testing.

Two common operational measures of time are customer-response time and on-time performance.

Which of the following true of nonfinancial measures of quality?

Longer manufacturing cycle times can result in ________.

Warranty repair cost is an example of which of the following?

Which of the following is an advantage of COQ measures?

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets,direct-Cost Variances,and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy,balanced Scorecard,and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

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

Filters