Question 1

Manufacturing cycle efficiency is computed by dividing process time by:

Accepted Answer

A)  moving time + storage time. 
B)  storage time + inspection time. 
C)  moving time + storage time + inspection time. 
D)  process time + moving time + storage time + inspection time. 
A)  moving time + storage time. 
B)  storage time + inspection time. 
C)  moving time + storage time + inspection time. 
D)  process time + moving time + storage time + inspection time.

Question 2

The Altoona Manufacturing Company collected the following information (in days)for July,August,and September: $$\begin{array} { | l | r | r | r | } 
\hline & \text { July } & \text { August } & \text { September } \
\hline \text { Transporting product } & 2.0 & 3.0 & 2.0 \
\hline \text { Processing product } & 5.0 & 7.0 & 7.0 \
\hline \text { Inspecting product } & 0.5 & 0.8 & 1.0 \
\hline \text { Storing product } & 1.0 & 3.0 & 4.0 \
\hline
\end{array}$$
Required:
a.Calculate the manufacturing cycle efficiency for July,August,and September.b.Assume October's processing time will be the same as September's.If Altoona's target for manufacturing cycle efficiency is 65%,what will be October's target for manufacturing cycle time?

Accepted Answer

a.July: [5.0/(2.0 + 5.0 + .5 +

Question 3

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 material is:

Accepted Answer

A)  1.136. 
B)  0.288. 
C)  0.263. 
D)  3.802. 
A)  1.136. 
B)  0.288. 
C)  0.263. 
D)  3.802.

Question 4

Which of the following is not one of the four areas of strategic action on a balanced scorecard?

Accepted Answer

A)  Business and production process performance. 
B)  Customer satisfaction measurement. 
C)  Financial performance. 
D)  Customer performance. 
A)  Business and production process performance. 
B)  Customer satisfaction measurement. 
C)  Financial performance. 
D)  Customer performance.

Question 5

Steinwand Corporation keeps careful track of the time required to fill orders.Data concerning a particular order appear below: 
$$\begin{array} { | l | c | } 
\hline & \text { Hours } \
\hline \text { Processing Time } & 1.9 \
\hline \text { Inspection Time } & 0.2 \
\hline \text { Moving Time } & 2.8 \
\hline \text { Storing Time } & 7.2 \
\hline
\end{array}$$The Manufacturing Cycle time was:

Accepted Answer

A)  20.3 hours. 
B)  25.2 hours. 
C)  4.9 hours. 
D)  12.1 hours. 
A)  20.3 hours. 
B)  25.2 hours. 
C)  4.9 hours. 
D)  12.1 hours.

Question 6

For each of the following jobs,identify a possible nonfinancial performance measure.
(a)Computer help desk worker at your university.
(b)Dental hygienist
(c)Airline gate agent
(d)City bus driver

Accepted Answer

While student answers may vary,below are

Question 7

Melbourne Inc. ,has provided the following information for last year:$$\begin{array} { | l | r | l | } 
\hline \text { Pounds of input } & 42,000 & @ \$ 18 \text { pound } \
\hline \text { Labor hours } & 11,000 & @ \$ 24 \text { hour } \
\hline \text { Overhead costs } & \$ 187,000 & \
\hline \begin{array} { l } 
\text { Units of output } \
\text { produced }
\end{array} & 33,000 & \begin{array} { l } 
@ \text { selling price of } \
\$ 60 \text { unit }
\end{array} \
\hline
\end{array}$$ 
Required:
Calculate the total factor productivity measure.

Accepted Answer

Value of output: 33,000 × $60

Question 8

The Ramos Company collected the following information (in days):
$$\begin{array} { | l | r | } 
\hline \text { Transporting product } & 4.0 \
\hline \text { Manufacturing product } & 28.0 \
\hline \text { Inspecting product } & 1.5 \
\hline \text { Storing product } & 6.0 \
\hline
\end{array}$$ What is the manufacturing cycle efficiency?

Accepted Answer

A)  87.5%. 
B)  82.4%. 
C)  70.9%. 
D)  17.6%. 
A)  87.5%. 
B)  82.4%. 
C)  70.9%. 
D)  17.6%.

Question 9

The Everton Manufacturing Company collected the following information (in days):$$\begin{array} { | l | r | r | r | } 
\hline & \text { April } & \text { May } & \text { June } \
\hline \text { Transporting product } & 2.0 & 3.0 & 2.0 \
\hline \text { Processing product } & 5.0 & 7.0 & 7.0 \
\hline \text { Inspecting product } & 0.5 & 0.8 & 1.0 \
\hline \text { Storing product } & 2.0 & 3.0 & 4.0 \
\hline
\end{array}$$ 
Required:
a.Calculate the manufacturing cycle efficiency for April,May,and June.b.Calculate the processing time required for June so that the manufacturing cycle efficiency is equal to the most efficient of the previous two months.

Accepted Answer

a.April: [5.0/(2.0 + 5.0 + .5

Question 10

The Malcom Company collected the following information (in days): 
$$\begin{array} { | l | r | } 
\hline \text { Manufacturing product } & 20.0 \
\hline \text { Storing product } & 8.0 \
\hline \text { Transporting product } & 2.0 \
\hline \text { Inspecting product } & 1.0 \
\hline
\end{array}$$What is the manufacturing cycle time?

Accepted Answer

A)  10 days. 
B)  31 days. 
C)  28 days. 
D)  22 days. 
A)  10 days. 
B)  31 days. 
C)  28 days. 
D)  22 days.

Question 11

The Otero Manufacturing Company collected the following information (in days): 
$$\begin{array} { | l | r | } 
\hline & \text { April } \
\hline \text { Transporting product } & 2.0 \
\hline \text { Processing product } & 14.0 \
\hline \text { Inspecting product } & 0.5 \
\hline \text { Storing product } & 6.0 \
\hline
\end{array}$$What is the manufacturing cycle efficiency?

Accepted Answer

A)  87.5%. 
B)  63.6%. 
C)  62.2%. 
D)  42.9%. 
A)  87.5%. 
B)  63.6%. 
C)  62.2%. 
D)  42.9%.

Question 12

In general,the use of multiple measures to evaluate performance is better than the use of a single performance measure.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  "To achieve our mission,how will we sustain our ability to change and improve?" 
B)  "To succeed financially,how should we appear to our shareholders?" 
C)  "To satisfy our shareholders and customers,in what business process must we excel?" 
D)  "To achieve our mission,how should we appear to our customers?" 
A)  "To achieve our mission,how will we sustain our ability to change and improve?" 
B)  "To succeed financially,how should we appear to our shareholders?" 
C)  "To satisfy our shareholders and customers,in what business process must we excel?" 
D)  "To achieve our mission,how should we appear to our customers?"

Question 14

An objective performance measure is one where:

Accepted Answer

A)  different people will agree as to the appropriateness of a measure. 
B)  different people will agree as to the method to calculate the measure. 
C)  different managers will calculate a measure differently. 
D)  different managers will view the facts and come to different conclusion. 
A)  different people will agree as to the appropriateness of a measure. 
B)  different people will agree as to the method to calculate the measure. 
C)  different managers will calculate a measure differently. 
D)  different managers will view the facts and come to different conclusion.

Question 15

In general,performance measures-financial and nonfinancial-should relate to what managers at different levels control.

Accepted Answer

A) True 
 B)False

Question 16

Cavanaugh Co.has provided the following information for last year:
$$\begin{array} { | l | r | l | } 
\hline \text { Gallons input } & ? ? ? & @ \$ 20 \text { gallon } \
\hline \text { Labor costs } & 5,000 & @ \$ 20 \text { hr } \
\hline \text { Overhead costs } & \$ 110,000 & \
\hline \text { Gallons finished } & 8,000 & \begin{array} { l } 
@ \text { selling price of } \
\$ 55/ \text { gallon }
\end{array} \
\hline \begin{array} { l } 
\text { Total factor } \
\text { productivity }
\end{array} & 1.0732 & \
\hline
\end{array}$$ The total number of gallons input (rounded)is:

Accepted Answer

A)  10,000 gallons. 
B)  8,600 gallons. 
C)  7,450 gallons. 
D)  200,000 gallons. 
A)  10,000 gallons. 
B)  8,600 gallons. 
C)  7,450 gallons. 
D)  200,000 gallons.

Question 17

Partial productivity is the ratio of the value of output to the value of all key inputs.

Accepted Answer

A) True 
 B)False

Question 18

Cummings Co.has provided the following information for last year:$$\begin{array} { | l | r | l | } 
\hline \text { Material costs } & \$ 225,000 & \
\hline \text { Labor costs } & \$ 70,000 & \
\hline \text { Overhead costs } & \$ 175,000 & \
\hline \text { Product produced } & 9,000 & @ \text { selling price of } \$ 60 \text { each } \
\hline
\end{array}$$
Required:
Calculate the total factor productivity measure.

Accepted Answer

Value of output: 9,000 × $60 =

Question 19

Manufacturing Cycle Efficiency (MCE)is computed as:

Accepted Answer

A)  Processing Time × Manufacturing Cycle Time. 
B)  Processing Time ÷ Inspection Time. 
C)  Processing Time ÷ Manufacturing Cycle Time. 
D)  Moving Time ÷ Storage Time. 
A)  Processing Time × Manufacturing Cycle Time. 
B)  Processing Time ÷ Inspection Time. 
C)  Processing Time ÷ Manufacturing Cycle Time. 
D)  Moving Time ÷ Storage Time.

Question 20

The California Machining Co.has the following information for last year: T
$$\begin{array} { | l | r | } 
\hline \text { Feet of metal input } & 150,000 \
\hline \text { Labor hours } & 12,000 \
\hline \text { Tons of output produced } & 6,000 \
\hline
\end{array}$$he partial productivity for metal is:

Accepted Answer

A)  0.040. 
B)  0.080. 
C)  12.500. 
D)  25.000. 
A)  0.040. 
B)  0.080. 
C)  12.500. 
D)  25.000.

Manufacturing cycle efficiency is computed by dividing process time by:

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 material is:

Which of the following is not one of the four areas of strategic action on a balanced scorecard?

Steinwand Corporation keeps careful track of the time required to fill orders.Data concerning a particular order appear below: Hours Processing Time 1.9 Inspection Time 0.2 Moving Time 2.8 Storing Time 7.2 The Manufacturing Cycle time was:

For each of the following jobs,identify a possible nonfinancial performance measure. (a)Computer help desk worker at your university. (b)Dental hygienist (c)Airline gate agent (d)City bus driver

Melbourne Inc. ,has provided the following information for last year: Pounds of input 42,000 @\ 18 pound Labor hours 11,000 @\ 24 hour Overhead costs \ 187,000 Units of output produced 33,000 @ selling price of \ 60 unit Required: Calculate the total factor productivity measure.

The Ramos Company collected the following information (in days): Transporting product 4.0 Manufacturing product 28.0 Inspecting product 1.5 Storing product 6.0 What is the manufacturing cycle efficiency?

The Malcom Company collected the following information (in days): Manufacturing product 20.0 Storing product 8.0 Transporting product 2.0 Inspecting product 1.0 What is the manufacturing cycle time?

The Otero Manufacturing Company collected the following information (in days): April Transporting product 2.0 Processing product 14.0 Inspecting product 0.5 Storing product 6.0 What is the manufacturing cycle efficiency?

In general,the use of multiple measures to evaluate performance is better than the use of a single performance measure.

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

An objective performance measure is one where:

In general,performance measures-financial and nonfinancial-should relate to what managers at different levels control.

Cavanaugh Co.has provided the following information for last year: Gallons input ??? @\ 20 gallon Labor costs 5,000 @\ 20 hr Overhead costs \ 110,000 Gallons finished 8,000 @ selling price of \ 55/ gallon Total factor productivity 1.0732 The total number of gallons input (rounded)is:

Partial productivity is the ratio of the value of output to the value of all key inputs.

Cummings Co.has provided the following information for last year: Material costs \ 225,000 Labor costs \ 70,000 Overhead costs \ 175,000 Product produced 9,000 @ selling price of \ 60 each Required: Calculate the total factor productivity measure.

Manufacturing Cycle Efficiency (MCE)is computed as:

The California Machining Co.has the following information for last year: T Feet of metal input 150,000 Labor hours 12,000 Tons of output produced 6,000 he partial productivity for metal is:

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

Manufacturing cycle efficiency is computed by dividing process time by:

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 material is:

Which of the following is not one of the four areas of strategic action on a balanced scorecard?

Steinwand Corporation keeps careful track of the time required to fill orders.Data concerning a particular order appear below: Hours Processing Time 1.9 Inspection Time 0.2 Moving Time 2.8 Storing Time 7.2 The Manufacturing Cycle time was:

For each of the following jobs,identify a possible nonfinancial performance measure. (a)Computer help desk worker at your university. (b)Dental hygienist (c)Airline gate agent (d)City bus driver

Melbourne Inc. ,has provided the following information for last year: Pounds of input 42,000 @\ 18 pound Labor hours 11,000 @\ 24 hour Overhead costs \ 187,000 Units of output produced 33,000 @ selling price of \ 60 unit Required: Calculate the total factor productivity measure.

The Ramos Company collected the following information (in days): Transporting product 4.0 Manufacturing product 28.0 Inspecting product 1.5 Storing product 6.0 What is the manufacturing cycle efficiency?

The Malcom Company collected the following information (in days): Manufacturing product 20.0 Storing product 8.0 Transporting product 2.0 Inspecting product 1.0 What is the manufacturing cycle time?

The Otero Manufacturing Company collected the following information (in days): April Transporting product 2.0 Processing product 14.0 Inspecting product 0.5 Storing product 6.0 What is the manufacturing cycle efficiency?

In general,the use of multiple measures to evaluate performance is better than the use of a single performance measure.

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

An objective performance measure is one where:

In general,performance measures-financial and nonfinancial-should relate to what managers at different levels control.

Cavanaugh Co.has provided the following information for last year: Gallons input ??? @\ 20 gallon Labor costs 5,000 @\ 20 hr Overhead costs \ 110,000 Gallons finished 8,000 @ selling price of \ 55/ gallon Total factor productivity 1.0732 The total number of gallons input (rounded)is:

Partial productivity is the ratio of the value of output to the value of all key inputs.

Cummings Co.has provided the following information for last year: Material costs \ 225,000 Labor costs \ 70,000 Overhead costs \ 175,000 Product produced 9,000 @ selling price of \ 60 each Required: Calculate the total factor productivity measure.

Manufacturing Cycle Efficiency (MCE)is computed as:

The California Machining Co.has the following information for last year: T Feet of metal input 150,000 Labor hours 12,000 Tons of output produced 6,000 he partial productivity for metal is:

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