Question 1

In calculating product costs for a value stream with multiple products, average product costs are a good estimate of individual product costs if

Accepted Answer

A)  the products are similar and consume resources in approximately the same proportion. 
B)  the product mix is relatively stable. 
C)  the products are homogenous. 
D)  all of these. 
A)  the products are similar and consume resources in approximately the same proportion. 
B)  the product mix is relatively stable. 
C)  the products are homogenous. 
D)  all of these.

Question 2

Information about Blum Company is as follows:   
-What is the partial operational productivity measure for labor for 2011?

Accepted Answer

A)  2.4 
B)  2.5 
C)  0.4 
D)  2.8 
A)  2.4 
B)  2.5 
C)  0.4 
D)  2.8

Question 3

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 these. 
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 these.

Question 4

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

Question 5

The two approaches for measuring total productivity are

Accepted Answer

A)  profile measurement and profit-linked productivity measurement. 
B)  partial productivity measures and relative proportions. 
C)  allocative efficiency and technical efficiency. 
D)  ABC and ABM. 
A)  profile measurement and profit-linked productivity measurement. 
B)  partial productivity measures and relative proportions. 
C)  allocative efficiency and technical efficiency. 
D)  ABC and ABM.

Question 6

Information about Jones Corporation is as follows:  
- What is the partial operational productivity measure for materials for 2011?

Accepted Answer

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

Question 7

The following Box Scorecard template was prepared for a value stream at Coston 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 8

Why might labor costs be reduced in a value stream system?

Accepted Answer

A)  The elimination of the need for any specialized skilled employees such as industrial engineers or production schedulers. 
B)  The labor costs of industrial engineers and production schedulers can be pooled and allocated to the value streams. 
C)  Some of the workers can be cross-trained to perform value-added activities within the value stream. 
D)  None of these. 
A)  The elimination of the need for any specialized skilled employees such as industrial engineers or production schedulers. 
B)  The labor costs of industrial engineers and production schedulers can be pooled and allocated to the value streams. 
C)  Some of the workers can be cross-trained to perform value-added activities within the value stream. 
D)  None of these.

Question 9

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

Question 10

At the end of 2011, Wilson Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase.Now, at the end of 2012, 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:
   Required:

Accepted Answer

@#IMG-DLM&_TB2043_00

Question 11

At the end of 2011, Gilley Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase.Now, at the end of 2012, 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:  
- How much profit was generated in 2011?

Accepted Answer

A)  $300,000 
B)  $180,000 
C)  $120,000 
D)  $213,300 
A)  $300,000 
B)  $180,000 
C)  $120,000 
D)  $213,300

Question 12

Information about Blair Company is as follows:  
- What is the partial operational productivity measure for materials for 2012?

Accepted Answer

A)  3.2000 
B)  3.2500 
C)  0.3077 
D)  0.3125 
A)  3.2000 
B)  3.2500 
C)  0.3077 
D)  0.3125

Question 13

Reducing the time it takes to configure equipment to produce a different product is an example of

Accepted Answer

A)  cellular manufacturing. 
B)  batch processing. 
C)  reduced setup/changeover times. 
D)  value flow stream. 
A)  cellular manufacturing. 
B)  batch processing. 
C)  reduced setup/changeover times. 
D)  value flow stream.

Question 14

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 15

Information about Glenn Company is as follows:
   Required:

Accepted Answer

@#IMG-DLM&_TB2043_00

Question 16

Which of the following is a reason traditional costing approaches may NOT work in a lean manufacturing environment?

Accepted Answer

A)  Standard costing variances encourage overproduction. 
B)  Distorted product costs may conceal the outcome of success of a lean system. 
C)  Traditional operational controls work against demand-pull systems. 
D)  All of these. 
A)  Standard costing variances encourage overproduction. 
B)  Distorted product costs may conceal the outcome of success of a lean system. 
C)  Traditional operational controls work against demand-pull systems. 
D)  All of these.

Question 17

Information about Gausen Company is as follows:  
- What is the partial operational productivity measure for materials for 2011?

Accepted Answer

A)  1.42 
B)  1.60 
C)  1.80 
D)  2.22 
A)  1.42 
B)  1.60 
C)  1.80 
D)  2.22

Question 18

Information about Hinze Corporation is as follows:  
- What is the labor productivity ratio for 2011?

Accepted Answer

A)  25.00 
B)  24.80 
C)  24.00 
D)  22.84 
A)  25.00 
B)  24.80 
C)  24.00 
D)  22.84

Question 19

On a box scorecard, capacity can be labeled as

Accepted Answer

A)  productive, non-productive, and excess. 
B)  available, excess, and budgeted. 
C)  productive, non-productive, and available. 
D)  valued, excess, and wasted. 
A)  productive, non-productive, and excess. 
B)  available, excess, and budgeted. 
C)  productive, non-productive, and available. 
D)  valued, excess, and wasted.

Question 20

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 these. 
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 these.

In calculating product costs for a value stream with multiple products, average product costs are a good estimate of individual product costs if

Information about Blum Company is as follows: -What is the partial operational productivity measure for labor for 2011?

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

The two approaches for measuring total productivity are

Information about Jones Corporation is as follows: - What is the partial operational productivity measure for materials for 2011?

Why might labor costs be reduced in a value stream system?

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

Information about Blair Company is as follows: - What is the partial operational productivity measure for materials for 2012?

Reducing the time it takes to configure equipment to produce a different product is an example of

Which is NOT a benefit of lean manufacturing?

Information about Glenn Company is as follows: Required:

Which of the following is a reason traditional costing approaches may NOT work in a lean manufacturing environment?

Information about Gausen Company is as follows: - What is the partial operational productivity measure for materials for 2011?

Information about Hinze Corporation is as follows: - What is the labor productivity ratio for 2011?

On a box scorecard, capacity can be labeled as

In a traditional manufacturing setup

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

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 calculating product costs for a value stream with multiple products, average product costs are a good estimate of individual product costs if

Information about Blum Company is as follows: -What is the partial operational productivity measure for labor for 2011?

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

The two approaches for measuring total productivity are

Information about Jones Corporation is as follows: - What is the partial operational productivity measure for materials for 2011?

Why might labor costs be reduced in a value stream system?

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

Information about Blair Company is as follows: - What is the partial operational productivity measure for materials for 2012?

Reducing the time it takes to configure equipment to produce a different product is an example of

Which is NOT a benefit of lean manufacturing?

Information about Glenn Company is as follows: Required:

Which of the following is a reason traditional costing approaches may NOT work in a lean manufacturing environment?

Information about Gausen Company is as follows: - What is the partial operational productivity measure for materials for 2011?

Information about Hinze Corporation is as follows: - What is the labor productivity ratio for 2011?

On a box scorecard, capacity can be labeled as

In a traditional manufacturing setup

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

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