Harringer Co.has provided the following information for last year: \[\begin{array} { | l | r | l | } \hline \text { Gallons input } & 10,000 & @ \$ 20 \text { gallon } \\ \hline \text { Labor costs } & 5,000 & @ \$ 20 \mathrm { hr } \\ \hline \text { Overhead costs } & ? ? ? & \\ \hline \text { Gallons finished } & 8,000 & \begin{array} { l } @ \text { selling price of } \\ \$ 5 5/\text { gallon } \end{array} \\ \hline \begin{array} { l } \text { Total factor } \\ \text { productivity } \end{array} & 1.0732 & \\ \hline \end{array}\]The total overhead cost (rounded)is:

A) $172,200. B) $109,989. C) $140,000. D) $200,000. A) $172,200. B) $109,989. C) $140,000. D) $200,000.

Magnum Co.has provided the following information for last year: \[\begin{array} { | l | r | l | } \hline \text { Gallons input } & \$ 20,000 & @ \$ 15 \text { gallon } \\ \hline \text { Labor costs } & ? ? ? & \\ \hline \text { Overhead costs } & \$ 250,000 & \\ \hline \text { Gallons finished } & 16,000 & \begin{array} { l } @ \text { selling price of } \\ \$ 55 \text { igallon } \end{array} \\ \hline \begin{array} { l } \text { Total factor } \\ \text { productivity } \end{array} & 1.1733 & \\ \hline \end{array}\]The total labor cost (rounded)is:

A) $293,325. B) $482,500. C) $468,750. D) $200,021. A) $293,325. B) $482,500. C) $468,750. D) $200,021.

Exam 18: Performance Measurement to Support Business Strategy

The Satin Manufacturing Company collected the following information (in days)for July and August. July August Transporting product 2.0 3.0 Processing product 5.0 7.0 Inspecting product 0.5 0.8 Storing product 1.0 3.0 Required: a.Calculate the manufacturing cycle efficiency for July and August.b.Assume September's processing time will be the same as August's.If Satin's target for manufacturing cycle efficiency is 65%,what will be September's target for manufacturing cycle time?

(Essay)

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Question 21

At the middle levels in the organization,control and performance measurement focus on how people carry out the daily activities that create the organization's products.

(True/False)

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Question 22

Which of the following represents value-added time in the manufacturing cycle?

(Multiple Choice)

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Question 23

In the balanced scorecard,the internal business process perspective addresses which of the following questions?

(Multiple Choice)

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Question 24

Why is worker involvement important to an organization's success?

(Essay)

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Question 25

Companies are continuously seeking ways to improve quality of production and reduce costs.One of the areas is to work with suppliers to improve the quality and reliability of parts and products shipped.In an article entitled "In Defense of Activity-Based Cost Management," Robert S.Kaplan says: An ABC model can play a major role in improving supplier relationships as well.These relationships must be a vital part of any quality and cycle-time improvement program.A key insight is to use ABC to distinguish between low-price and low-cost suppliers.Traditional cost accounting,with its emphasis on purchase price variances,encourages purchasing people to continually scan the population of potential suppliers to obtain low price quotations.Most companies have learned,the hard way,that many of their low-price suppliers are actually extremely high-cost suppliers.(Source: Management Accounting: November,1992) Required: (a)Explain what Kaplan means by "many of their low-price suppliers are actually extremely high-cost suppliers." (b)What general prevention and appraisal activities can be used to improve the quality and reliability of parts and products shipped from suppliers?

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Question 26

Harringer Co.has provided the following information for last year: Gallons input 10,000 @\ 20 gallon Labor costs 5,000 @\ 20 Overhead costs ??? Gallons finished 8,000 @ selling price of \ 55/ gallon Total factor productivity 1.0732 The total overhead cost (rounded)is:

(Multiple Choice)

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Question 27

Partial productivity measures are most closely related to what type of variances?

(Multiple Choice)

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Question 28

Magnum Co.has provided the following information for last year: Gallons input \ 20,000 @\ 15 gallon Labor costs ??? Overhead costs \ 250,000 Gallons finished 16,000 @ selling price of \ 55 igallon Total factor productivity 1.1733 The total labor cost (rounded)is:

(Multiple Choice)

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Question 29

The balanced scorecard measures an organization's performance in all of the following areas except:

(Multiple Choice)

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Question 30

If a manager wants to assess performance relative to the industry,it is best to use:

(Multiple Choice)

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Question 31

Michael Corporation's management reports that its average manufacturing cycle time is 6.3 days,its manufacturing cycle efficiency (MCE)is 0.27,its average move time is 0.1 day,and its average storage time is 3.9 days.Required: a.What is the process time? b.What is the inspection time?

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Question 32

At some manufacturing companies,line employees are allowed to stop the line or halt production if they think there is a problem occurring.In other word,if units begin to be processed that are outside of specifications.Required: Discuss the advantages and disadvantage of this employee empowerment policy.

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Question 33

Jackie Horner started Glad Rags to combine fashion and sustainability.The original production of sandals made from recycled plastic has expanded to a complete line of casual footwear.Current sales total over $2 million.Jackie hired the firm's first controller early this year,and has asked him to detail suggestions for ways to increase profits.Thomas Roberts,the new controller,has compiled a list of recommended changes that focus on quality improvements.Glad Rags' customers expect high quality at a low price,a "value" product.So the company must simultaneously watch costs and quality.After receiving his list of suggestions,Jackie calls Thomas to her office and says,"I don't see how improving quality can increase productivity.In fact,it seems to me that efforts to improve quality will slow down production and decrease productivity." Required: Using specific examples,help Thomas explain to Jackie why efforts to improve quality can also boost productivity.How does productivity play a role in the firm's strategy and competitive environment?

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Question 34

One advantage of nonfinancial measures is that managers directly involved in operations are likely to understand them.

(True/False)

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Question 35

The primary objective of benchmarking is to evaluate performance of an activity,operation,or organization relative to the performance by other companies.

(True/False)

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Question 36

Which of the following is not a mistake often made when measuring nonfinancial performance?

(Multiple Choice)

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Question 37

The Miller Manufacturing Company collected the following information (in days)for April and May. April May Transporting product 2.0 3.0 Processing product 5.0 7.0 Inspecting product 0.5 0.8 Storing product 2.0 3.0 Required: a.Calculate the manufacturing cycle efficiency for April and May.b.Calculate the processing time required for May so that May's manufacturing cycle efficiency is equal to April's manufacturing cycle efficiency.

(Essay)

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Question 38

In the balanced scorecard,the customer perspective addresses which of the following questions?

(Multiple Choice)

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Question 39

Which of the following best describes the customer performance area of the balanced scorecard?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 148

At the middle levels in the organization,control and performance measurement focus on how people carry out the daily activities that create the organization's products.

Which of the following represents value-added time in the manufacturing cycle?

In the balanced scorecard,the internal business process perspective addresses which of the following questions?

Why is worker involvement important to an organization's success?

Harringer Co.has provided the following information for last year: Gallons input 10,000 @\ 20 gallon Labor costs 5,000 @\ 20 Overhead costs ??? Gallons finished 8,000 @ selling price of \ 55/ gallon Total factor productivity 1.0732 The total overhead cost (rounded)is:

Partial productivity measures are most closely related to what type of variances?

Magnum Co.has provided the following information for last year: Gallons input \ 20,000 @\ 15 gallon Labor costs ??? Overhead costs \ 250,000 Gallons finished 16,000 @ selling price of \ 55 igallon Total factor productivity 1.1733 The total labor cost (rounded)is:

The balanced scorecard measures an organization's performance in all of the following areas except:

If a manager wants to assess performance relative to the industry,it is best to use:

Michael Corporation's management reports that its average manufacturing cycle time is 6.3 days,its manufacturing cycle efficiency (MCE)is 0.27,its average move time is 0.1 day,and its average storage time is 3.9 days.Required: a.What is the process time? b.What is the inspection time?

One advantage of nonfinancial measures is that managers directly involved in operations are likely to understand them.

The primary objective of benchmarking is to evaluate performance of an activity,operation,or organization relative to the performance by other companies.

Which of the following is not a mistake often made when measuring nonfinancial performance?

In the balanced scorecard,the customer perspective addresses which of the following questions?

Which of the following best describes the customer performance area of the balanced scorecard?

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

Exam 18: Performance Measurement to Support Business Strategy

At the middle levels in the organization,control and performance mea­surement focus on how people carry out the daily activities that create the organiza­tion's products.

Which of the following represents value-added time in the manufacturing cycle?

In the balanced scorecard,the internal business process perspective addresses which of the following questions?

Why is worker involvement important to an organization's success?

Harringer Co.has provided the following information for last year: Gallons input 10,000 @\ 20 gallon Labor costs 5,000 @\ 20 Overhead costs ??? Gallons finished 8,000 @ selling price of \ 55/ gallon Total factor productivity 1.0732 The total overhead cost (rounded)is:

Partial productivity measures are most closely related to what type of variances?

Magnum Co.has provided the following information for last year: Gallons input \ 20,000 @\ 15 gallon Labor costs ??? Overhead costs \ 250,000 Gallons finished 16,000 @ selling price of \ 55 igallon Total factor productivity 1.1733 The total labor cost (rounded)is:

The balanced scorecard measures an organization's performance in all of the following areas except:

If a manager wants to assess performance relative to the industry,it is best to use:

Michael Corporation's management reports that its average manufacturing cycle time is 6.3 days,its manufacturing cycle efficiency (MCE)is 0.27,its average move time is 0.1 day,and its average storage time is 3.9 days.Required: a.What is the process time? b.What is the inspection time?

One advantage of nonfinancial measures is that managers directly involved in operations are likely to understand them.

The primary objective of benchmarking is to evaluate performance of an activity,operation,or organization relative to the performance by other companies.

Which of the following is not a mistake often made when measuring nonfinancial performance?

In the balanced scorecard,the customer perspective addresses which of the following questions?

Which of the following best describes the customer performance area of the balanced scorecard?

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

At the middle levels in the organization,control and performance measurement focus on how people carry out the daily activities that create the organization's products.