Exam 15: Lean Accounting and Productivity Measurement

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: -What is the partial operational measure for labor for 2011?

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

The JIT solution

The processing department can produce one unit every 5 minutes and is the last department before the finishing department.Under traditional manufacturing where a batch equals 10 units, how long will it be before the first unit in the batch can move from the processing department to the finishing department?

Figure 15-1 The following information relates to Markely 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.What is the production rate?

Emphasis on departmental efficiency

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

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

At the end of 2011, Cabot 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:

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

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

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

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

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: - By how much did profit change as a result of profitability changes in power?

Productivity is concerned with producing

_______________ contain all the operations in close proximity that are needed to produce a family of products.

A financial productivity measure uses _______________ to measure input and output.

Figure 15 - 3 Based on the following information: -Refer to Figure 15-3.What is the product cost based on total average cost? (Round to nearest cent.)

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

_______________ is an assessment of the amount of profit change-from the base period to the current period-attributable to productivity changes.