Question 1

The time taken to fulfill clients' requests is an example of the ________ measure of a balanced-scorecard.

Accepted Answer

A) internal business process perspective 
B) customer perspective 
C) learning and growth perspective 
D) financial perspective 
A) internal business process perspective 
B) customer perspective 
C) learning and growth perspective 
D) financial perspective B

Question 2

Which of the following statements is true of strategic analysis of operating income?

Accepted Answer

A) Management accountants compare budgeted operating performance over two different periods. 
B) Management accountants compare actual and budgeted operating performance over the same time periods. 
C) Management accountants compare actual operating performance of one year and budgeted operating performance of another year. 
D) Management accountants compare actual operating performance over two different periods. 
A) Management accountants compare budgeted operating performance over two different periods. 
B) Management accountants compare actual and budgeted operating performance over the same time periods. 
C) Management accountants compare actual operating performance of one year and budgeted operating performance of another year. 
D) Management accountants compare actual operating performance over two different periods. D

Question 3

Which of the following statements is a disadvantage of balanced scorecards?

Accepted Answer

A) Balanced scorecards ignore short-run objectives. 
B) Balanced scorecards may become unwieldy and difficult to understand. 
C) Balanced scorecards use a lot of nonfinancial measures. 
D) Balanced scorecards are of little use in influencing managerial behavior. 
A) Balanced scorecards ignore short-run objectives. 
B) Balanced scorecards may become unwieldy and difficult to understand. 
C) Balanced scorecards use a lot of nonfinancial measures. 
D) Balanced scorecards are of little use in influencing managerial behavior. B

Question 4

Which of the following could be a measure of the balanced scorecard's financial perspective?

Accepted Answer

A) Service response time 
B) Number of new patents 
C) Operating income 
D) Defect rates 
A) Service response time 
B) Number of new patents 
C) Operating income 
D) Defect rates

Question 5

Following a strategy of product differentiation,Izzy's Limited Company makes a high-end Appliance,XT15.Izzy's Limited presents the following data for the years 2017 and 2018:
 
Izzy's Limited produces no defective units but it wants to reduce direct materials usage per unit of XT15.Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Izzy's Limited had 135 customers in 2017 and 140 customers in 2018.
What is the change in operating income from 2017 to 2018?

Accepted Answer

A) $2,418,350 U 
B) $3,740,000 F 
C) $2,418,350 F 
D) $3,740,000 U 
A) $2,418,350 U 
B) $3,740,000 F 
C) $2,418,350 F 
D) $3,740,000 U

Question 6

Discretionary costs are not easily controllable compared to engineered costs.

Accepted Answer

A) True 
 B)False

Question 7

Total factor productivity will increase if ________.

Accepted Answer

A) technical productivity occurs 
B) the company uses more total inputs per output 
C) the company incurs fewer costs per input 
D) current technology becomes obsolete 
A) technical productivity occurs 
B) the company uses more total inputs per output 
C) the company incurs fewer costs per input 
D) current technology becomes obsolete

Question 8

Autocratic Company provided the following information:
 
What is the partial productivity ratio?

Accepted Answer

A) 2)01 units per gallon 
B) 0)5 units per gallon 
C) 0)52 units per gallon 
D) 1)93 units per gallon 
A) 2)01 units per gallon 
B) 0)5 units per gallon 
C) 0)52 units per gallon 
D) 1)93 units per gallon

Question 9

Which of the following statements is true of a balanced scorecard?

Accepted Answer

A) The balanced scorecard reduces managers' emphasis on long-run financial performance. 
B) The balanced scorecard reduces managers' emphasis on short-run financial performance. 
C) The primary goal of using the balanced scorecard is to sustain short-run financial performance. 
D) The primary goal of using the balanced scorecard is to sustain short-run nonfinancial performance. 
A) The balanced scorecard reduces managers' emphasis on long-run financial performance. 
B) The balanced scorecard reduces managers' emphasis on short-run financial performance. 
C) The primary goal of using the balanced scorecard is to sustain short-run financial performance. 
D) The primary goal of using the balanced scorecard is to sustain short-run nonfinancial performance.

Question 10

The partial productivity of overhead resources can be measured by considering the cost driver as ________.

Accepted Answer

A) budgeted input 
B) the denominator 
C) the fixed input 
D) the numerator 
A) budgeted input 
B) the denominator 
C) the fixed input 
D) the numerator

Question 11

In 2016,Smart Office Systems Inc.(SOSI)used 25,840 pounds of plastic (direct materials)to produce 8000 units as opposed to 2017 when SOSI produced 8500 units using 27,840 pounds of plastic.The type of plastic SOSI uses cost $5 per pound in 2016 and rose to $5.25 per pound in 2017.In comparing results for these two years,what would be the cost effect of growth for the plastic material?

Accepted Answer

A) $8075 F 
B) $8479 U 
C) $8075 U 
D) $10,000 U 
A) $8075 F 
B) $8479 U 
C) $8075 U 
D) $10,000 U

Question 12

In general,profit potential of an organization decreases with ________.

Accepted Answer

A) lesser competition and stronger potential entrants 
B) greater competition and stronger potential entrants 
C) lesser competition and weaker potential entrants 
D) greater competition and weaker potential entrants 
A) lesser competition and stronger potential entrants 
B) greater competition and stronger potential entrants 
C) lesser competition and weaker potential entrants 
D) greater competition and weaker potential entrants

Question 13

Following a strategy of product differentiation,Izzy's Limited Company makes a high-end Appliance,XT15.Izzy's Limited presents the following data for the years 2017 and 2018:
 
Izzy's Limited produces no defective units but it wants to reduce direct materials usage per unit of XT15.Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Izzy's Limited had 165 customers in 2017 and 170 customers in 2018.
What is the net effect on operating income as a result of the growth component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar. )

Accepted Answer

A) $2,977,094 F 
B) $473,600 F 
C) $473,600 U 
D) $2,977,094 U 
A) $2,977,094 F 
B) $473,600 F 
C) $473,600 U 
D) $2,977,094 U

Question 14

Davis Company produced 159,000 sport jackets during 2015 and 530,000 direct manufacturing labor-hours were used at $3 per hour.The conversion costs were $1.20 per jackets produced.
What is the total factor productivity for Davis Company?

Accepted Answer

A) 0)089 units of output per dollar 
B) 0)300 units of output per dollar 
C) 0)298 units of output per dollar 
D) 2)500 units of output per dollar 
A) 0)089 units of output per dollar 
B) 0)300 units of output per dollar 
C) 0)298 units of output per dollar 
D) 2)500 units of output per dollar

Question 15

Discretionary costs arise from periodic (usually annual)decisions and have a measurable cause-and-effect relationship between output and resources used.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements best define strategy?

Accepted Answer

A) It describes how an organization can create value for its customers while differentiating itself from its competitors. 
B) It is an organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements,elimination of waste,and tight cost control. 
C) It is an organization's ability to offer products or services its customers perceive to be superior and unique relative to the products or services of its competitors. 
D) It describes how an organization motivates its employees to work for more hours without any increase in their wages. 
A) It describes how an organization can create value for its customers while differentiating itself from its competitors. 
B) It is an organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements,elimination of waste,and tight cost control. 
C) It is an organization's ability to offer products or services its customers perceive to be superior and unique relative to the products or services of its competitors. 
D) It describes how an organization motivates its employees to work for more hours without any increase in their wages.

Question 17

Which of the following statements is true of the internal-business-process perspective of a balanced scorecard?

Accepted Answer

A) Internal-business-process perspective is composed of three subprocesses: innovation process;learning-and-growth process;and post sales-service process. 
B) Internal-business-process perspective evaluates the profitability of the strategy and the creation of shareholder value. 
C) Internal-business-process improvement targets are often determined after benchmarking against an organization's main competitors standards. 
D) Internal-business-process perspective is composed of three subprocesses: operations process;learning-and-growth process;and post sales-service process. 
A) Internal-business-process perspective is composed of three subprocesses: innovation process;learning-and-growth process;and post sales-service process. 
B) Internal-business-process perspective evaluates the profitability of the strategy and the creation of shareholder value. 
C) Internal-business-process improvement targets are often determined after benchmarking against an organization's main competitors standards. 
D) Internal-business-process perspective is composed of three subprocesses: operations process;learning-and-growth process;and post sales-service process.

Question 18

Following a strategy of product differentiation,Izzy's Limited Company makes a high-end Appliance,XT15.Izzy's Limited presents the following data for the years 2017 and 2018:
 
Izzy's Limited produces no defective units but it wants to reduce direct materials usage per unit of XT15.Manufacturing conversion costs in each year depend on production capacity defined in terms of XT15 units that can be produced.Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support.Izzy's Limited had 160 customers in 2017 and 165 customers in 2018.
What is the net effect on operating income as a result of the price-recovery component? (Round any intermediary calculations to two decimals and your final answer to the nearest dollar. )

Accepted Answer

A) $1,292,700 F 
B) $1,545,000 U 
C) $1,292,700 U 
D) $1,545,000 F 
A) $1,292,700 F 
B) $1,545,000 U 
C) $1,292,700 U 
D) $1,545,000 F

Question 19

When analyzing the change in operating income,the strategy component of productivity ________.

Accepted Answer

A) calculations are similar to the sales-volume variance calculations 
B) compares the change in output price with the changes in input prices 
C) will report a large positive amount when a company has successfully pursued the cost leadership strategy 
D) isolates the change attributed solely to an increase in the quantity of units sold 
A) calculations are similar to the sales-volume variance calculations 
B) compares the change in output price with the changes in input prices 
C) will report a large positive amount when a company has successfully pursued the cost leadership strategy 
D) isolates the change attributed solely to an increase in the quantity of units sold

Question 20

Which of the following statements is true of successfully implementing a balanced scorecard?

Accepted Answer

A) External auditors should design and implement the balanced scorecard. 
B) Balanced scorecard should never be communicated to all employees. 
C) Balanced scorecard should be formed exclusively by top management. 
D) Management accountants should determine the balanced scorecard measures. 
A) External auditors should design and implement the balanced scorecard. 
B) Balanced scorecard should never be communicated to all employees. 
C) Balanced scorecard should be formed exclusively by top management. 
D) Management accountants should determine the balanced scorecard measures.

The time taken to fulfill clients' requests is an example of the ________ measure of a balanced-scorecard.

Which of the following statements is true of strategic analysis of operating income?

Which of the following statements is a disadvantage of balanced scorecards?

Which of the following could be a measure of the balanced scorecard's financial perspective?

Discretionary costs are not easily controllable compared to engineered costs.

Total factor productivity will increase if ________.

Autocratic Company provided the following information: What is the partial productivity ratio?

Which of the following statements is true of a balanced scorecard?

The partial productivity of overhead resources can be measured by considering the cost driver as ________.

In general,profit potential of an organization decreases with ________.

Davis Company produced 159,000 sport jackets during 2015 and 530,000 direct manufacturing labor-hours were used at $3 per hour.The conversion costs were $1.20 per jackets produced. What is the total factor productivity for Davis Company?

Discretionary costs arise from periodic (usually annual)decisions and have a measurable cause-and-effect relationship between output and resources used.

Which of the following statements best define strategy?

Which of the following statements is true of the internal-business-process perspective of a balanced scorecard?

When analyzing the change in operating income,the strategy component of productivity ________.

Which of the following statements is true of successfully implementing a balanced scorecard?

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

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

Balanced Scorecard: Quality and Time

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 12: Strategy,balanced Scorecard,and Strategic Profitability Analysis

The time taken to fulfill clients' requests is an example of the ________ measure of a balanced-scorecard.

Which of the following statements is true of strategic analysis of operating income?

Which of the following statements is a disadvantage of balanced scorecards?

Which of the following could be a measure of the balanced scorecard's financial perspective?

Discretionary costs are not easily controllable compared to engineered costs.

Total factor productivity will increase if ________.

Autocratic Company provided the following information: What is the partial productivity ratio?

Which of the following statements is true of a balanced scorecard?

The partial productivity of overhead resources can be measured by considering the cost driver as ________.

In general,profit potential of an organization decreases with ________.

Davis Company produced 159,000 sport jackets during 2015 and 530,000 direct manufacturing labor-hours were used at $3 per hour.The conversion costs were $1.20 per jackets produced. What is the total factor productivity for Davis Company?

Discretionary costs arise from periodic (usually annual)decisions and have a measurable cause-and-effect relationship between output and resources used.

Which of the following statements best define strategy?

Which of the following statements is true of the internal-business-process perspective of a balanced scorecard?

When analyzing the change in operating income,the strategy component of productivity ________.

Which of the following statements is true of successfully implementing a balanced scorecard?

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

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

Balanced Scorecard: Quality and Time

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