Question 1

Explain the difference between partial and total measures of productivity.

Accepted Answer

If the productivity ratio (out

Question 2

The accounting approach designed to support and encourage lean manufacturing is called __________ accounting.

Accepted Answer

The answer of The accounting approach designed to support and...

Question 3

The Marakesh Company provides the following data:   What is the partial operational productivity measure for materials for 2014?

Accepted Answer

A)  3.2000 
B)  0.6250 
C)  0.3125 
D)  3.2500 
A)  3.2000 
B)  0.6250 
C)  0.3125 
D)  3.2500

Question 4

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 total change in profits from 2014 to 2015?

Accepted Answer

A)  $319,950 
B)  $270,000 
C)  $90,000 
D)  $49,950 
A)  $319,950 
B)  $270,000 
C)  $90,000 
D)  $49,950

Question 5

Information about DeLorean Corporation is as follows:   What is the price-recovery component?

Accepted Answer

A)  ($962.50) 
B)  $962.50 
C)  $40,012.50 
D)  $47,050.00 
A)  ($962.50) 
B)  $962.50 
C)  $40,012.50 
D)  $47,050.00

Question 6

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. How long would it take to process the first unit of a 20-unit batch under a cellular manufacturing setup?

Accepted Answer

A)  21 minutes 
B)  12 minutes 
C)  19 minutes 
D)  60 minutes 
A)  21 minutes 
B)  12 minutes 
C)  19 minutes 
D)  60 minutes

Question 7

Which is NOT a benefit of lean manufacturing?

Accepted Answer

A)  increased productivity 
B)  reduced lead times 
C)  reduced direct labor costs 
D)  reductions in inventory 
A)  increased productivity 
B)  reduced lead times 
C)  reduced direct labor costs 
D)  reductions in inventory

Question 8

The value stream

Accepted Answer

A)  is made up of all activities, both value-added and non-value-added, required to bring a product group or service from its starting point to a finished product in the hands of the customer. 
B)  is made up value-added activities required to bring a product group or service from its starting point to a finished product in the hands of the customer. 
C)  is where the production stream is triggered by forecast. 
D)  is a series of steps designed to set target costs. 
A)  is made up of all activities, both value-added and non-value-added, required to bring a product group or service from its starting point to a finished product in the hands of the customer. 
B)  is made up value-added activities required to bring a product group or service from its starting point to a finished product in the hands of the customer. 
C)  is where the production stream is triggered by forecast. 
D)  is a series of steps designed to set target costs.

Question 9

In a traditional manufacturing setup

Accepted Answer

A)  there is significant move and wait time. 
B)  organization is by function into departments. 
C)  products are produced in large batches. 
D)  all of the above. 
A)  there is significant move and wait time. 
B)  organization is by function into departments. 
C)  products are produced in large batches. 
D)  all of the above.

Question 10

Partial measures allow managers to focus on the use of the total production and are easily interpreted.

Accepted Answer

A) True 
 B)False

Question 11

Productivity measurement is a quantitative assessment of increases or decreases in productivity.

Accepted Answer

A) True 
 B)False

Question 12

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:

Accepted Answer

The answer of Serendipity Manufacturing implemented lean manufacturing in its...

Question 13

Which of the following is true in regards to a lean accounting system?

Accepted Answer

A)  The cost of people with specialized skills, such as industrial engineers, are allocated to all manufacturing cells based on an activity driver. 
B)  Workers are multiskilled and responsible for setting up equipment, maintaining equipment, and operating equipment. 
C)  Implementing a value stream system will require more workers. 
D)  Workers are highly skilled in one specialized area or activity and are not expected to spend time on other value-added activities. 
A)  The cost of people with specialized skills, such as industrial engineers, are allocated to all manufacturing cells based on an activity driver. 
B)  Workers are multiskilled and responsible for setting up equipment, maintaining equipment, and operating equipment. 
C)  Implementing a value stream system will require more workers. 
D)  Workers are highly skilled in one specialized area or activity and are not expected to spend time on other value-added activities.

Question 14

Explain the difference between technical and input trade-off efficiency.

Accepted Answer

Technical efficiency means tha

Question 15

The following Box Scorecard template was prepared for a value stream at Compton Company:
   Operational
Units per Person
On-Time Delivery
Dock-to-Dock Days
First-time Through
Average Product Cost
Capacity
Productive
Non-Productive
Available
Financial
Weekly Sales
Weekly Material Cost
Weekly Conversion Cost
Weekly Value-Stream Profit
ROS
Required:

Accepted Answer

The answer of The following Box Scorecard template was prepared...

Question 16

The __________ is used by the lean control system to compare operational, capacity, and financial metrics.

Accepted Answer

The answer of The __________ is used by the lean...

Question 17

If a facility has costs of $100,000 per year and 20,000 square feet, and if 19,000 square feet are absorbed by the value streams, what happens to the unabsorbed cost of the remaining 1,000 feet?

Accepted Answer

A)  allocated to all the value streams based on proportionate square foot usage 
B)  assigned to all value streams equally 
C)  absorbed by the largest value stream 
D)  deducted from revenue as a separate item 
A)  allocated to all the value streams based on proportionate square foot usage 
B)  assigned to all value streams equally 
C)  absorbed by the largest value stream 
D)  deducted from revenue as a separate item

Question 18

With multiple products in a value stream, unit cost will increase if

Accepted Answer

A)  more units are shipped than produced. 
B)  more units are produced than shipped. 
C)  average conversion cost is used instead of total average cost. 
D)  none of the above. 
A)  more units are shipped than produced. 
B)  more units are produced than shipped. 
C)  average conversion cost is used instead of total average cost. 
D)  none of the above.

Question 19

In the calculation of product costs for value streams with multiple products, units shipped instead of units produced is used as the denominator because

Accepted Answer

A)  it reduces conversion costs assigned to the value stream. 
B)  it motivates managers to reduce inventories. 
C)  units shipped are always greater than units produced. 
D)  units shipped is not used. 
A)  it reduces conversion costs assigned to the value stream. 
B)  it motivates managers to reduce inventories. 
C)  units shipped are always greater than units produced. 
D)  units shipped is not used.

Question 20

The achievement of __________ efficiency and __________ efficiency is the point of total productive efficiency.

Accepted Answer

technical;

Explain the difference between partial and total measures of productivity.

The accounting approach designed to support and encourage lean manufacturing is called __________ accounting.

The Marakesh Company provides the following data: What is the partial operational productivity measure for materials for 2014?

Information about DeLorean Corporation is as follows: What is the price-recovery component?

Which is NOT a benefit of lean manufacturing?

The value stream

In a traditional manufacturing setup

Partial measures allow managers to focus on the use of the total production and are easily interpreted.

Productivity measurement is a quantitative assessment of increases or decreases in productivity.

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:

Which of the following is true in regards to a lean accounting system?

Explain the difference between technical and input trade-off efficiency.

The __________ is used by the lean control system to compare operational, capacity, and financial metrics.

If a facility has costs of $100,000 per year and 20,000 square feet, and if 19,000 square feet are absorbed by the value streams, what happens to the unabsorbed cost of the remaining 1,000 feet?

With multiple products in a value stream, unit cost will increase if

In the calculation of product costs for value streams with multiple products, units shipped instead of units produced is used as the denominator because

The achievement of efficiency and efficiency is the point of total productive efficiency.

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

Explain the difference between partial and total measures of productivity.

The accounting approach designed to support and encourage lean manufacturing is called __________ accounting.

The Marakesh Company provides the following data: What is the partial operational productivity measure for materials for 2014?

Information about DeLorean Corporation is as follows: What is the price-recovery component?

Which is NOT a benefit of lean manufacturing?

The value stream

In a traditional manufacturing setup

Partial measures allow managers to focus on the use of the total production and are easily interpreted.

Productivity measurement is a quantitative assessment of increases or decreases in productivity.

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:

Which of the following is true in regards to a lean accounting system?

Explain the difference between technical and input trade-off efficiency.

The __________ is used by the lean control system to compare operational, capacity, and financial metrics.

If a facility has costs of $100,000 per year and 20,000 square feet, and if 19,000 square feet are absorbed by the value streams, what happens to the unabsorbed cost of the remaining 1,000 feet?

With multiple products in a value stream, unit cost will increase if

In the calculation of product costs for value streams with multiple products, units shipped instead of units produced is used as the denominator because

The achievement of __________ efficiency and __________ efficiency is the point of total productive efficiency.

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

The achievement of efficiency and efficiency is the point of total productive efficiency.