Question 1

The Monterrey Company has recorded the following data:
   Required:

Accepted Answer

The answer of The Monterrey Company has recorded the following...

Question 2

The productivity measure of all inputs simultaneously is called total productivity measurement.

Accepted Answer

A) True 
 B)False

Question 3

The process of producing output efficiently using the least amount of inputs is
called __________ .

Accepted Answer

The answer of The process of producing output efficiently using...

Question 4

Serendipity Manufacturing implemented lean manufacturing in its Wheeling plant as a pilot program. During the most recent three weeks, the following data pertaining to a specific product line value stream was collected:

Answer:
Week 1:
Sales = 500 units @ $50 per unit selling price
Beginning inventory = 80 units @ $15 ($5 materials, $10 conversion)
Production = 500 units @ $15 ($5 materials, $10 conversion)

Week 2:
Sales = 675 units at $50 per unit selling price
Beginning inventory = 80 units at $15 ($5 materials, $10 conversion)
Production = 595 units at $15 ($5 materials, $10 conversion)

Week 3:
Sales = 650 units at $50 per unit selling price
Beginning Inventory = 0
Production = 700 units at $15 ($5 materials, $10 conversion)

Required:
1.	Prepare a traditional income statement for each week.
2.	Calculate the average value stream product cost for each week. What does this cost signal, if anything?
3.	Prepare a value stream income statement for each week. Assume that any increase in inventory is valued at average cost. Comment on the financial performance of the value stream and its relationship to traditional income measurement.

Accepted Answer

1.@#IMG-DLM&
2.@#IMG-DLM&
The average cost decreased with a

Question 5

The difference between the total profit change and the profit-linked productivity change is called:

Accepted Answer

A)  Total productivity measurement 
B)  Profile measurement 
C)  Profit-linked productivity measurement 
D)  Price recovery component 
A)  Total productivity measurement 
B)  Profile measurement 
C)  Profit-linked productivity measurement 
D)  Price recovery component

Question 6

The point at which technical and allocative efficiency are achieved is called:

Accepted Answer

A)  Input trade-off efficiency 
B)  Productivity 
C)  Financial productivity efficiency 
D)  Total productive efficiency 
A)  Input trade-off efficiency 
B)  Productivity 
C)  Financial productivity efficiency 
D)  Total productive efficiency

Question 7

Identification of a "value stream," pursuit of perfection, and making value flow without interruption are examples of

Accepted Answer

A)  total quality management. 
B)  activity-based costing. 
C)  principles of lean thinking. 
D)  Kanban processing. 
A)  total quality management. 
B)  activity-based costing. 
C)  principles of lean thinking. 
D)  Kanban processing.

Question 8

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 power?

Accepted Answer

A)  $27,000 decrease 
B)  $10,125 decrease 
C)  $3,375 increase 
D)  $3,375 decrease 
A)  $27,000 decrease 
B)  $10,125 decrease 
C)  $3,375 increase 
D)  $3,375 decrease

Question 9

Lean manufacturing benefits of better quality, reduced lead times, inventory reductions, and reduced setup times result in

Accepted Answer

A)  lower manufacturing costs. 
B)  increased production rates. 
C)  reductions in innovative capabilities. 
D)  both a and b. 
A)  lower manufacturing costs. 
B)  increased production rates. 
C)  reductions in innovative capabilities. 
D)  both a and b.

Question 10

In a lean environment, many overhead costs are assigned to

Accepted Answer

A)  products using driver tracing. 
B)  products as directly traceable costs. 
C)  products using allocation methods. 
D)  costs using plantwide overhead rates. 
A)  products using driver tracing. 
B)  products as directly traceable costs. 
C)  products using allocation methods. 
D)  costs using plantwide overhead rates.

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 15-2. If Cranmore produces in batches of 10 units, how much time would have elapsed by the time the 10th unit is produced under a manufacturing cell environment (assuming the cell is processing continuously)?

Accepted Answer

A)  60 minutes 
B)  65 minutes 
C)  150 minutes 
D)  some other amount 
A)  60 minutes 
B)  65 minutes 
C)  150 minutes 
D)  some other amount

Question 12

Operational partial measures are difficult to interpret by those within an organization.

Accepted Answer

A) True 
 B)False

Question 13

Figure 15-1 The following information relates to Lancashire Manufacturing:
To produce a unit of product:
  There is a wait time of 8 minutes before the mixing department begins a batch, 5 minutes between the mixing and molding departments, a move and pre-wait between molding and casting of 10 minutes, and a move and pre-wait between the casting and finishing departments of 12 minutes.
Refer to Figure 15-1. Which area represents the bottleneck operation?

Accepted Answer

A)  finishing 
B)  casting 
C)  molding 
D)  mixing 
A)  finishing 
B)  casting 
C)  molding 
D)  mixing

Question 14

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

Accepted Answer

A)  $1,650.00 increase 
B)  $1,650.00 decrease 
C)  $937.50 decrease 
D)  $937.50 increase 
A)  $1,650.00 increase 
B)  $1,650.00 decrease 
C)  $937.50 decrease 
D)  $937.50 increase

Question 15

Describe the objectives and characteristics of a Lean Manufacturing system.

Accepted Answer

The competitive environment demands that

Question 16

The quantitative assessment of productivity changes is called __________ measurement.

Accepted Answer

The answer of The quantitative assessment of productivity changes is...

Question 17

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

Accepted Answer

A)  $175 increase 
B)  $175 decrease 
C)  $100 decrease 
D)  $100 increase 
A)  $175 increase 
B)  $175 decrease 
C)  $100 decrease 
D)  $100 increase

Question 18

Information about Haulover Company is as follows:   What is the partial operational productivity measure for labor for 2014?

Accepted Answer

A)  1.42 
B)  2.22 
C)  4.00 
D)  4.25 
A)  1.42 
B)  2.22 
C)  4.00 
D)  4.25

Question 19

The only allocation used regularly in a value stream cost assignment is

Accepted Answer

A)  facilities. 
B)  depreciation. 
C)  maintenance. 
D)  setup costs. 
A)  facilities. 
B)  depreciation. 
C)  maintenance. 
D)  setup costs.

Question 20

Productivity is concerned with the efficiency of input usage in producing output.

Accepted Answer

A) True 
 B)False

The Monterrey Company has recorded the following data: Required:

The productivity measure of all inputs simultaneously is called total productivity measurement.

The process of producing output efficiently using the least amount of inputs is called __________ .

The difference between the total profit change and the profit-linked productivity change is called:

The point at which technical and allocative efficiency are achieved is called:

Identification of a "value stream," pursuit of perfection, and making value flow without interruption are examples of

Lean manufacturing benefits of better quality, reduced lead times, inventory reductions, and reduced setup times result in

In a lean environment, many overhead costs are assigned to

Operational partial measures are difficult to interpret by those within an organization.

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

Describe the objectives and characteristics of a Lean Manufacturing system.

The quantitative assessment of productivity changes is called __________ measurement.

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

Information about Haulover Company is as follows: What is the partial operational productivity measure for labor for 2014?

The only allocation used regularly in a value stream cost assignment is

Productivity is concerned with the efficiency of input usage in producing output.

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

The Monterrey Company has recorded the following data: Required:

The productivity measure of all inputs simultaneously is called total productivity measurement.

The process of producing output efficiently using the least amount of inputs is called __________ .

The difference between the total profit change and the profit-linked productivity change is called:

The point at which technical and allocative efficiency are achieved is called:

Identification of a "value stream," pursuit of perfection, and making value flow without interruption are examples of

Lean manufacturing benefits of better quality, reduced lead times, inventory reductions, and reduced setup times result in

In a lean environment, many overhead costs are assigned to

Operational partial measures are difficult to interpret by those within an organization.

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

Describe the objectives and characteristics of a Lean Manufacturing system.

The quantitative assessment of productivity changes is called __________ measurement.

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

Information about Haulover Company is as follows: What is the partial operational productivity measure for labor for 2014?

The only allocation used regularly in a value stream cost assignment is

Productivity is concerned with the efficiency of input usage in producing output.

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