Question 1

In a demand-pull system

Accepted Answer

A)  production is triggered by a forecast. 
B)  production is triggered by a customer order. 
C)  production is triggered by a vendor shipment. 
D)  production is triggered by an economic reorder point. 
A)  production is triggered by a forecast. 
B)  production is triggered by a customer order. 
C)  production is triggered by a vendor shipment. 
D)  production is triggered by an economic reorder point. B

Question 2

In value-stream reporting, the income statement reflects the profit/loss by

Accepted Answer

A)  individual product line. 
B)  activity. 
C)  value stream. 
D)  customer. 
A)  individual product line. 
B)  activity. 
C)  value stream. 
D)  customer. C

Question 3

At the end of 2014, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2015, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows:   By how much did profit change as a result of profitability changes in labor?

Accepted Answer

A)  $5,625 increase 
B)  $45,000 increase 
C)  $23,625 increase 
D)  $23,625 decrease 
A)  $5,625 increase 
B)  $45,000 increase 
C)  $23,625 increase 
D)  $23,625 decrease C

Question 4

The measure of input and output used by a financial productivity measure is called:

Accepted Answer

A)  revenues 
B)  dollars 
C)  costs 
D)  physical quantities 
A)  revenues 
B)  dollars 
C)  costs 
D)  physical quantities

Question 5

Which of the following is NOT a disadvantage of partial productivity measures?

Accepted Answer

A)  partial measures used in isolation 
B)  the ability to focus on a particular input 
C)  trade-offs effects among input productivity may be missed 
D)  a decline in the productivity of an input may lead to an overall cost decline 
A)  partial measures used in isolation 
B)  the ability to focus on a particular input 
C)  trade-offs effects among input productivity may be missed 
D)  a decline in the productivity of an input may lead to an overall cost decline

Question 6

Lean manufacturing adds value by reducing labor costs.

Accepted Answer

A) True 
 B)False

Question 7

At the end of 2014, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2015, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows:   What is the partial operational measure for labor for 2015?

Accepted Answer

A)  1.00 
B)  3.20 
C)  2.50 
D)  1.25 
A)  1.00 
B)  3.20 
C)  2.50 
D)  1.25

Question 8

Information about Papanicolou Corporation is as follows:   What is the labor productivity ratio for 2014?

Accepted Answer

A)  22.84 
B)  24.80 
C)  24.00 
D)  30.00 
A)  22.84 
B)  24.80 
C)  24.00 
D)  30.00

Question 9

Information about Bodacious Corporation is as follows:   By how much did profits change as a result of changes in productivity related to labor?

Accepted Answer

A)  $1,237.50 increase 
B)  $1,650.00 increase 
C)  $1,650.00 decrease 
D)  $1,237.50 decrease 
A)  $1,237.50 increase 
B)  $1,650.00 increase 
C)  $1,650.00 decrease 
D)  $1,237.50 decrease

Question 10

Which of the following statements is true about the box scorecard?

Accepted Answer

A)  Operational, non-financial measures are used at the cell level. 
B)  There is a comparison between prior week metrics, current week metrics, and desired future state metrics. 
C)  The expectation to achieve desired future state provides motivation towards constant performance improvement. 
D)  all of the above. 
A)  Operational, non-financial measures are used at the cell level. 
B)  There is a comparison between prior week metrics, current week metrics, and desired future state metrics. 
C)  The expectation to achieve desired future state provides motivation towards constant performance improvement. 
D)  all of the above.

Question 11

Figure 15-2 The following information relates to Cranmore Manufacturing:
To produce a unit of product:
  There is a wait time of 5 minutes before the cutting department begins a batch, 15 minutes between the cutting and welding departments, a move and pre-wait between welding and polishing of 12 minutes, and a move and pre-wait between the polishing and finishing departments of 8 minutes.
Refer to Figure 16-2. What is the production rate?

Accepted Answer

A)  12 units per hour 
B)  20 units per hour 
C)  15 units per hour 
D)  7.5 units per hour 
A)  12 units per hour 
B)  20 units per hour 
C)  15 units per hour 
D)  7.5 units per hour

Question 12

In calculating the profit linkage, PQ represents the productivity-neutral quantity of input. How is PQ calculated?

Accepted Answer

A)  PQ = Current period output / Base period output 
B)  PQ = Current period output / Base period productivity ratio 
C)  PQ = Prior period output / Base period productivity ratio 
D)  PQ = Current period output / Standard quantity output 
A)  PQ = Current period output / Base period output 
B)  PQ = Current period output / Base period productivity ratio 
C)  PQ = Prior period output / Base period productivity ratio 
D)  PQ = Current period output / Standard quantity output

Question 13

A Box Scorecard is used by the lean control system to compare operational, capacity, and financial figures

Accepted Answer

A) True 
 B)False

Question 14

Profit-linked productivity measurement involves the measuring of the amount of profit related to productivity change.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is NOT a characteristic of a lean manufacturing system?

Accepted Answer

A)  delivery of the right product in the right quantity 
B)  zero defect 
C)  delivery of product the exact time a customer needs it 
D)  all of the above 
A)  delivery of the right product in the right quantity 
B)  zero defect 
C)  delivery of product the exact time a customer needs it 
D)  all of the above

Question 16

Information about Remarkable Corporation is as follows:   What is the partial operational productivity measure for labor for 2015?

Accepted Answer

A)  1.67 
B)  5.00 
C)  2.50 
D)  5.25 
A)  1.67 
B)  5.00 
C)  2.50 
D)  5.25

Question 17

The production rate

Accepted Answer

A)  tells how many units of a product can be produced by the manufacturing cell. 
B)  calculates how many minutes it takes an operation to process one unit of product. 
C)  calculates the processing time of the slowest department. 
D)  calculates the wait and move time of a production. 
A)  tells how many units of a product can be produced by the manufacturing cell. 
B)  calculates how many minutes it takes an operation to process one unit of product. 
C)  calculates the processing time of the slowest department. 
D)  calculates the wait and move time of a production.

Question 18

Information about Taekwondo Corporation is as follows:   What is the materials productivity ratio for 2014?

Accepted Answer

A)  8 
B)  12 
C)  10 
D)  13 
A)  8 
B)  12 
C)  10 
D)  13

Question 19

__________ allocation is the only allocation used regularly in a value stream cost assignment.

Accepted Answer

The answer of __________ allocation is the only allocation used...

Question 20

Which of the following is NOT considered a major source of waste?

Accepted Answer

A)  waiting 
B)  joint products 
C)  overproduction of goods not needed 
D)  defective products 
A)  waiting 
B)  joint products 
C)  overproduction of goods not needed 
D)  defective products

In a demand-pull system

In value-stream reporting, the income statement reflects the profit/loss by

The measure of input and output used by a financial productivity measure is called:

Which of the following is NOT a disadvantage of partial productivity measures?

Lean manufacturing adds value by reducing labor costs.

Information about Papanicolou Corporation is as follows: What is the labor productivity ratio for 2014?

Information about Bodacious Corporation is as follows: By how much did profits change as a result of changes in productivity related to labor?

Which of the following statements is true about the box scorecard?

In calculating the profit linkage, PQ represents the productivity-neutral quantity of input. How is PQ calculated?

A Box Scorecard is used by the lean control system to compare operational, capacity, and financial figures

Profit-linked productivity measurement involves the measuring of the amount of profit related to productivity change.

Which of the following is NOT a characteristic of a lean manufacturing system?

Information about Remarkable Corporation is as follows: What is the partial operational productivity measure for labor for 2015?

The production rate

Information about Taekwondo Corporation is as follows: What is the materials productivity ratio for 2014?

__________ allocation is the only allocation used regularly in a value stream cost assignment.

Which of the following is NOT considered a major source of waste?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 15: Lean Accounting and Productivity Measurement

In a demand-pull system

In value-stream reporting, the income statement reflects the profit/loss by

The measure of input and output used by a financial productivity measure is called:

Which of the following is NOT a disadvantage of partial productivity measures?

Lean manufacturing adds value by reducing labor costs.

Information about Papanicolou Corporation is as follows: What is the labor productivity ratio for 2014?

Information about Bodacious Corporation is as follows: By how much did profits change as a result of changes in productivity related to labor?

Which of the following statements is true about the box scorecard?

In calculating the profit linkage, PQ represents the productivity-neutral quantity of input. How is PQ calculated?

A Box Scorecard is used by the lean control system to compare operational, capacity, and financial figures

Profit-linked productivity measurement involves the measuring of the amount of profit related to productivity change.

Which of the following is NOT a characteristic of a lean manufacturing system?

Information about Remarkable Corporation is as follows: What is the partial operational productivity measure for labor for 2015?

The production rate

Information about Taekwondo Corporation is as follows: What is the materials productivity ratio for 2014?

__________ allocation is the only allocation used regularly in a value stream cost assignment.

Which of the following is NOT considered a major source of waste?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters