Question 1

Which of the following nonfinancial measures would not be used to evaluate a middle manager's performance?

Accepted Answer

A)  Frequency of meeting customer delivery requirements. 
B)  Amount of unwanted employee turnover. 
C)  Success in dealing with suppliers. 
D)  Fulfilling responsibilities to company shareholders. 
A)  Frequency of meeting customer delivery requirements. 
B)  Amount of unwanted employee turnover. 
C)  Success in dealing with suppliers. 
D)  Fulfilling responsibilities to company shareholders. D

Question 2

Colbyville Co.has provided the following information for last year:$$\begin{array} { | l | r | l | } 
\hline \text { Pounds of input } & 35,000 & @ \$ 17 \text { pound } \
\hline \text { Labor hours } & 8,000 & @ \$ 26 \text { hour } \
\hline \text { Overhead costs } & \$ 142,000 & \
\hline \begin{array} { l } 
\text { Units of output } \
\text { produced }
\end{array} & 15,000 & \begin{array} { l } 
@ \text { selling price of } \
\$ 56 \text { unit }
\end{array} \
\hline
\end{array}$$
Required:
Calculate the total factor productivity measure.

Accepted Answer

Value of output: 15,000 × $85 = $1,275,000;Value of input: (35,000 × $17)+ (8,000 × $26)+ $142,000 = $945,000;$1,275,000/$945,000 = 1.349

Question 3

Benchmarks are used to evaluate the performance of an activity or operation relative to other organizations or other parts of one's own organization.Which of the following is not a guideline for using benchmarks to evaluate performance?

Accepted Answer

A)  Benchmarks should only be used for nonfinancial measures. 
B)  Do not benchmark everything at the best-in-the-business level. 
C)  Benchmark only best-in-the-business activities that are important. 
D)  Use internal benchmarks for less important activities or operations. 
A)  Benchmarks should only be used for nonfinancial measures. 
B)  Do not benchmark everything at the best-in-the-business level. 
C)  Benchmark only best-in-the-business activities that are important. 
D)  Use internal benchmarks for less important activities or operations. A

Question 4

Which of the following items is not part of the continuous improvement philosophy?

Accepted Answer

A)  Eliminate activities that are nonvalue-added. 
B)  Improve the efficiency of activities that are value-added. 
C)  Use benchmarking to identify activities that need improvement. 
D)  Provide bonus incentives to managers for accurate performance reports. 
A)  Eliminate activities that are nonvalue-added. 
B)  Improve the efficiency of activities that are value-added. 
C)  Use benchmarking to identify activities that need improvement. 
D)  Provide bonus incentives to managers for accurate performance reports.

Question 5

Dr.Hal Trotter is the director of the Wellness House,a residential center for recovering alcoholics.A typical patient spends 3-4 weeks in an intensive program of rehabilitation.The Wellness House has a staff of 45,including 12 certified therapists,to serve an average patient load of 15.Hal Trotter is attempting to develop some productivity measures for the center,but is not aware of the limitations of productivity measurement in not-for-profit organizations.You have been called in as a consultant to help develop appropriate productivity measures.Required:
(a)Identify any major differences/limitations you face in developing performance measures for the Wellness House.(b)Recommend two or three overall measures of productivity that are appropriate for the Wellness House as a not-for-profit organization.

Accepted Answer

(a)Many of the outputs and required task

Question 6

In general,all managers in a given organization are responsible for the same things and should be evaluated using the same financial and nonfinancial measures.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is(are)false? (A)Internal,regional,and local benchmarks should be used for the most important processes and activities in an organization.
(B)In general,the use of multiple measures to evaluate performance is better than the use of a single performance measure.

Accepted Answer

A)  Only A is false. 
B)  Only B is false. 
C)  Both A and B are false. 
D)  Neither A nor B is false. 
A)  Only A is false. 
B)  Only B is false. 
C)  Both A and B are false. 
D)  Neither A nor B is false.

Question 8

Employees empowered with real decision-making authority are more likely to be more responsive to customer concerns.

Accepted Answer

A) True 
 B)False

Question 9

The Majors Company collected the following information (in days): 
$$\begin{array} { | l | r | } 
\hline \text { Inspecting product } & 4 \
\hline \text { Transporting product } & 6 \
\hline \text { Storing product } & 15 \
\hline \text { Manutacturing product } & 40 \
\hline
\end{array}$$What is the manufacturing cycle time?

Accepted Answer

A)  61.5%. 
B)  72.7%. 
C)  87.0%. 
D)  27.3%. 
A)  61.5%. 
B)  72.7%. 
C)  87.0%. 
D)  27.3%.

Question 10

Tungsten Forging Co.has provided the following information for last year: 
$$\begin{array} { | l | r | l | } 
\hline \text { Tons of metal input } & 10,000 & @ \$ 10 \text { ton } \
\hline \text { Labor hours } & 5,000 & @ \$ 30 \text { hour } \
\hline \text { Overhead costs } & \$ 125,000 & \
\hline \begin{array} { l } 
\text { Tons of forging } \
\text { produced }
\end{array} & 8,000 & \begin{array} { l } 
@ \text { selling price of } \
\$ 60 \text { thon }
\end{array} \
\hline
\end{array}$$The total factor productivity measure is:

Accepted Answer

A)  $480,000. 
B)  $375,000. 
C)  1.28. 
D)  0.78. 
A)  $480,000. 
B)  $375,000. 
C)  1.28. 
D)  0.78.

Question 11

Which of the following is typically not considered an objective of quality control?

Accepted Answer

A)  Reduce costs associated with customer complaints. 
B)  Reduce costs of honoring product or service warranty. 
C)  Increase customer satisfaction with product or service. 
D)  Increase the number of deliveries made when promiseD.
Quality control is normally addressing product quality rather than delivery quality. 
A)  Reduce costs associated with customer complaints. 
B)  Reduce costs of honoring product or service warranty. 
C)  Increase customer satisfaction with product or service. 
D)  Increase the number of deliveries made when promiseD.
Quality control is normally addressing product quality rather than delivery quality.

Question 12

Walters Co.has provided the following information for last year: 
$$\begin{array} { | l | r | l | } 
\hline \text { Gallons input } & ? ? ? & \
\hline \text { Labor costs } & 10,000 & @ \$ 20 \mathrm { hr } \
\hline \text { Overhead costs } & \$ 250,000 & \
\hline \text { Gallons finished } & 16,000 & \begin{array} { l } 
@ \text { selling price of } \
\$ 55 \text { gallon }
\end{array} \
\hline \begin{array} { l } 
\text { Total factor } \
\text { productivity }
\end{array} & 1.1733 & \
\hline
\end{array}$$The total material cost (rounded)is:

Accepted Answer

A)  $293,325. 
B)  $582,500. 
C)  $300,021. 
D)  $200,000. 
A)  $293,325. 
B)  $582,500. 
C)  $300,021. 
D)  $200,000.

Question 13

The Gantry Company collected the following information (in days)for October,November,and December:$$\begin{array} { | l | r r | r | } 
\hline & \text { October } & \text { Norember } & \text { December } \
\hline \text { Transporting product } & 1.0 & 2.0 & 3.0 \
\hline \text { Processing product } & 6.0 & 6.0 & 7.0 \
\hline \text { Inspecting product } & 2.0 & 1.0 & 0.8 \
\hline \text { Storing product } & 4.0 & 2.0 & 3.0 \
\hline
\end{array}$$ 
Required:
a.Calculate the manufacturing cycle efficiency for October,November,and December.b.Assume January's processing time will be the same as December's.If Gantry's target for manufacturing cycle efficiency is 60%,what will be January's target for non-processing times?

Accepted Answer

a.October: [6.0/(1.0 + 6.0 + 2

Question 14

The Gantry Company collected the following information (in days)for November and December.$$\begin{array} { | l | r | r | } 
\hline & \text { Nowember } & \text { December } \
\hline \text { Transporting product } & 2.0 & 3.0 \
\hline \text { Processing product } & 15.0 & 18.0 \
\hline \text { Inspecting product } & 1.0 & 1.2 \
\hline \text { Storing product } & 8.0 & 7.0 \
\hline
\end{array}$$ Required:
a.Calculate the manufacturing cycle efficiency for November and December.b.Assume January's processing time will be the same as December's.If Gantry's target for manufacturing cycle efficiency is 65%,what will be January's target for non-processing times?

Accepted Answer

a.November: [15.0/(2.0 + 15.0

Question 15

A business model attempts to minimize problems associated with:

Accepted Answer

A)  decentralization. 
B)  divisional autonomy. 
C)  goal congruence. 
D)  maximizing profits. 
A)  decentralization. 
B)  divisional autonomy. 
C)  goal congruence. 
D)  maximizing profits.

Question 16

___________ is a firm's ability to generate products or services that are perceived by its customers as being superior and unique as opposed to those offered by its competitors.

Accepted Answer

A)  Strategy 
B)  Product differentiation 
C)  Cost leadership 
D)  The balanced scorecard 
A)  Strategy 
B)  Product differentiation 
C)  Cost leadership 
D)  The balanced scorecard

Question 17

Continuous improvement involves the search for and implementation of the best way to do something as practiced by other organizations or in other parts of one's own organization.

Accepted Answer

A) True 
 B)False

Question 18

The Trundle Pass Mining Co.has the following information for last year:
$$\begin{array} { | l | r | } 
\hline \text { Labor hours } & 112,000 \
\hline \text { Tons of output produced } & 1,575,000 \
\hline
\end{array}$$ The partial productivity for labor is:

Accepted Answer

A)  1.120. 
B)  0.071. 
C)  14.06. 
D)  112.00. 
A)  1.120. 
B)  0.071. 
C)  14.06. 
D)  112.00.

Question 19

The Fort Smith Co.has the following information for last year: 
$$\begin{array} { | l | r | } 
\hline \text { Material input } & 4,396,000 \
\hline \text { Labor hours } & 112,000 \
\hline \text { Yards of output produced } & 1,155,000 \
\hline
\end{array}$$The partial productivity for labor is:

Accepted Answer

A)  0.097. 
B)  0.256. 
C)  3.906. 
D)  10.313. 
A)  0.097. 
B)  0.256. 
C)  3.906. 
D)  10.313.

Question 20

A description of an organization's values,definition of its responsibilities to stakeholders,and identification of its major strategies is called its:

Accepted Answer

A)  business-level strategy. 
B)  mission statement. 
C)  performance objectives. 
D)  master budget. 
A)  business-level strategy. 
B)  mission statement. 
C)  performance objectives. 
D)  master budget.

Which of the following nonfinancial measures would not be used to evaluate a middle manager's performance?

Colbyville Co.has provided the following information for last year: Pounds of input 35,000 @\ 17 pound Labor hours 8,000 @\ 26 hour Overhead costs \ 142,000 Units of output produced 15,000 @ selling price of \ 56 unit Required: Calculate the total factor productivity measure.

Benchmarks are used to evaluate the performance of an activity or operation relative to other organizations or other parts of one's own organization.Which of the following is not a guideline for using benchmarks to evaluate performance?

Which of the following items is not part of the continuous improvement philosophy?

In general,all managers in a given organization are responsible for the same things and should be evaluated using the same financial and nonfinancial measures.

Which of the following statements is(are)false? (A)Internal,regional,and local benchmarks should be used for the most important processes and activities in an organization. (B)In general,the use of multiple measures to evaluate performance is better than the use of a single performance measure.

Employees empowered with real decision-making authority are more likely to be more responsive to customer concerns.

The Majors Company collected the following information (in days): Inspecting product 4 Transporting product 6 Storing product 15 Manutacturing product 40 What is the manufacturing cycle time?

Tungsten Forging Co.has provided the following information for last year: Tons of metal input 10,000 @\ 10 ton Labor hours 5,000 @\ 30 hour Overhead costs \ 125,000 Tons of forging produced 8,000 @ selling price of \ 60 thon The total factor productivity measure is:

Which of the following is typically not considered an objective of quality control?

Walters Co.has provided the following information for last year: Gallons input ??? Labor costs 10,000 @\ 20 Overhead costs \ 250,000 Gallons finished 16,000 @ selling price of \ 55 gallon Total factor productivity 1.1733 The total material cost (rounded)is:

A business model attempts to minimize problems associated with:

___________ is a firm's ability to generate products or services that are perceived by its customers as being superior and unique as opposed to those offered by its competitors.

Continuous improvement involves the search for and implementation of the best way to do something as practiced by other organizations or in other parts of one's own organization.

The Trundle Pass Mining Co.has the following information for last year: Labor hours 112,000 Tons of output produced 1,575,000 The partial productivity for labor is:

The Fort Smith Co.has the following information for last year: Material input 4,396,000 Labor hours 112,000 Yards of output produced 1,155,000 The partial productivity for labor is:

A description of an organization's values,definition of its responsibilities to stakeholders,and identification of its major strategies is called its:

Cost Accounting: Information for Decision Making

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

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Exam 18: Performance Measurement to Support Business Strategy

Which of the following nonfinancial measures would not be used to evaluate a middle manager's performance?

Colbyville Co.has provided the following information for last year: Pounds of input 35,000 @\ 17 pound Labor hours 8,000 @\ 26 hour Overhead costs \ 142,000 Units of output produced 15,000 @ selling price of \ 56 unit Required: Calculate the total factor productivity measure.

Benchmarks are used to evaluate the performance of an activity or operation relative to other organizations or other parts of one's own organization.Which of the following is not a guideline for using benchmarks to evaluate performance?

Which of the following items is not part of the continuous improvement philosophy?

In general,all managers in a given organization are responsible for the same things and should be evaluated using the same financial and nonfinancial measures.

Which of the following statements is(are)false? (A)Internal,regional,and local benchmarks should be used for the most important processes and activities in an organization. (B)In general,the use of multiple measures to evaluate performance is better than the use of a single performance measure.

Employees empowered with real decision-making authority are more likely to be more responsive to customer concerns.

The Majors Company collected the following information (in days): Inspecting product 4 Transporting product 6 Storing product 15 Manutacturing product 40 What is the manufacturing cycle time?

Tungsten Forging Co.has provided the following information for last year: Tons of metal input 10,000 @\ 10 ton Labor hours 5,000 @\ 30 hour Overhead costs \ 125,000 Tons of forging produced 8,000 @ selling price of \ 60 thon The total factor productivity measure is:

Which of the following is typically not considered an objective of quality control?

Walters Co.has provided the following information for last year: Gallons input ??? Labor costs 10,000 @\ 20 Overhead costs \ 250,000 Gallons finished 16,000 @ selling price of \ 55 gallon Total factor productivity 1.1733 The total material cost (rounded)is:

A business model attempts to minimize problems associated with:

___________ is a firm's ability to generate products or services that are perceived by its customers as being superior and unique as opposed to those offered by its competitors.

Continuous improvement involves the search for and implementation of the best way to do something as practiced by other organizations or in other parts of one's own organization.

The Trundle Pass Mining Co.has the following information for last year: Labor hours 112,000 Tons of output produced 1,575,000 The partial productivity for labor is:

The Fort Smith Co.has the following information for last year: Material input 4,396,000 Labor hours 112,000 Yards of output produced 1,155,000 The partial productivity for labor is:

A description of an organization's values,definition of its responsibilities to stakeholders,and identification of its major strategies is called its:

Cost Accounting: Information for Decision Making

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Filters