Question 1

Discuss the linkage between quality and productivity.

Accepted Answer

Cost, quality, and productivity are all linked. Cost is reduced by using fewer resources, fewer activities, and simpler processes. Productivity is improved by producing the same output with fewer of the above inputs. Quality is improved by eliminating failures through improved processes and activities.

Question 2

Technical efficiency is concerned with a given input using no more than needed output.

Accepted Answer

A) True 
 B)False  False

Question 3

Discuss the advantages and disadvantages of partial productivity measures.

Accepted Answer

Partial measures can be misleading since they do not consider possible trade-offs among inputs. They do, however, allow some assessment of how well individual factors are being used and often serve as input to total measures. Total measures are preferred because they provide a measure of the overall change in productivity and allow managers to assess trade-offs among inputs.

Question 4

The process of producing output efficiently, using the least quantity of inputs possible is(are) called:

Accepted Answer

A)  Productivity measurement 
B)  Partial productivity measures 
C)  Profile measurement 
D)  Productivity 
A)  Productivity measurement 
B)  Partial productivity measures 
C)  Profile measurement 
D)  Productivity

Question 5

Figure 15-2
The following information relates to Cranmore Manufacturing: To produce a unit of product:
Cutting department 5 minutes per unit
Welding department 8 minutes per unit
Polishing department 3 minutes per unit
Finishing department 4 minutes per unit
There is a wait time of 5 minutes before the cutting department begins a batch, 15 minutes between the cutting and welding departments, a move and pre-wait between welding and polishing of 12 minutes, and a move and pre-wait between the polishing and finishing departments of 8 minutes.
-The JIT solution

Accepted Answer

A)  requires carrying materials inventory in order to lower the cost of inventory without production delays. 
B)  requires selection of vendors based on lowest cost alone. 
C)  exploits supplier linkages by negotiating long-term contracts with a few chosen suppliers located closest to the production facility and establishing more supplier involvement. 
D)  requires a solid forecast to push production. 
A)  requires carrying materials inventory in order to lower the cost of inventory without production delays. 
B)  requires selection of vendors based on lowest cost alone. 
C)  exploits supplier linkages by negotiating long-term contracts with a few chosen suppliers located closest to the production facility and establishing more supplier involvement. 
D)  requires a solid forecast to push production.

Question 6

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 7

The production rate

Accepted Answer

A)  tells how many units of a product can be produced by the manufacturing cell. 
B)  calculates how many minutes it takes an operation to process one unit of product. 
C)  calculates the processing time of the slowest department. 
D)  calculates the wait and move time of a production. 
A)  tells how many units of a product can be produced by the manufacturing cell. 
B)  calculates how many minutes it takes an operation to process one unit of product. 
C)  calculates the processing time of the slowest department. 
D)  calculates the wait and move time of a production.

Question 8

Maximizing customer value, on-demand production, and zero setup times are realized in the pursuit of .

Accepted Answer

The answer of Maximizing customer value, on-demand production, and zero...

Question 9

Define what constitutes total productive efficiency, including a definition of technical efficiency and allocative efficiency.

Accepted Answer

Total productive efficiency is the point

Question 10

Information about Papanicolou Corporation is as follows:   What is the materials productivity ratio for 2016?

Accepted Answer

A)  28 
B)  18 
C)  25 
D)  16 
A)  28 
B)  18 
C)  25 
D)  16

Question 11

Information about Haulover Company is as follows:   What is the partial operational productivity measure for materials for 2015?

Accepted Answer

A)  1.50 
B)  2.00 
C)  1.67 
D)  2.50 
A)  1.50 
B)  2.00 
C)  1.67 
D)  2.50

Question 12

Information about Bodacious Corporation is as follows:   Input prices:
    What is the materials productivity ratio for 2015?

Accepted Answer

A)  28 
B)  21 
C)  25 
D)  16 
A)  28 
B)  21 
C)  25 
D)  16

Question 13

The features and characteristics approach

Accepted Answer

A)  focuses only on total quality, zero-defects. 
B)  recognizes the cost of a product is determined by the rate of flow of the product through the value stream. 
C)  recognizes the cost of a product is determined by the amount of labor time required to make the product. 
D)  recognizes the cost of a product is determined by the amount of machine hours required to make the product. 
A)  focuses only on total quality, zero-defects. 
B)  recognizes the cost of a product is determined by the rate of flow of the product through the value stream. 
C)  recognizes the cost of a product is determined by the amount of labor time required to make the product. 
D)  recognizes the cost of a product is determined by the amount of machine hours required to make the product.

Question 14

Value-stream costing reports the actual revenues and actual costs on a weekly basis for each value stream.

Accepted Answer

A) True 
 B)False

Question 15

Productivity is concerned with producing

Accepted Answer

A)  output rapidly. 
B)  output efficiently. 
C)  the maximum quantity of output possible. 
D)  output effectively. 
A)  output rapidly. 
B)  output efficiently. 
C)  the maximum quantity of output possible. 
D)  output effectively.

Question 16

allocation is the only allocation used regularly in a value stream cost assignment.

Accepted Answer

The answer of allocation is the only allocation used regularly...

Question 17

The point at which technical and allocative efficiency are achieved is called efficiency.

Accepted Answer

The answer of The point at which technical and allocative...

Question 18

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 19

Listed below are several possible combinations for producing 10,000 units of a product:
     Required: 
a. Identify the technically efficient input combinations. Explain your choices.
b. Which of the technically efficient input combinations should be used? Explain.

Accepted Answer

a. Combinations B and C are technically

Question 20

Productivity measurement is a quantitative assessment of increases or decreases in productivity.

Accepted Answer

A) True 
 B)False

Discuss the linkage between quality and productivity.

Technical efficiency is concerned with a given input using no more than needed output.

Discuss the advantages and disadvantages of partial productivity measures.

The process of producing output efficiently, using the least quantity of inputs possible is(are) called:

The two approaches for measuring total productivity are

The production rate

Maximizing customer value, on-demand production, and zero setup times are realized in the pursuit of .

Define what constitutes total productive efficiency, including a definition of technical efficiency and allocative efficiency.

Information about Papanicolou Corporation is as follows: What is the materials productivity ratio for 2016?

Information about Haulover Company is as follows: What is the partial operational productivity measure for materials for 2015?

Information about Bodacious Corporation is as follows: Input prices: What is the materials productivity ratio for 2015?

The features and characteristics approach

Value-stream costing reports the actual revenues and actual costs on a weekly basis for each value stream.

Productivity is concerned with producing

allocation is the only allocation used regularly in a value stream cost assignment.

The point at which technical and allocative efficiency are achieved is called efficiency.

On a box scorecard, capacity can be labeled as

Listed below are several possible combinations for producing 10,000 units of a product: Required: a. Identify the technically efficient input combinations. Explain your choices. b. Which of the technically efficient input combinations should be used? Explain.

Productivity measurement is a quantitative assessment of increases or decreases in productivity.

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

Discuss the linkage between quality and productivity.

Technical efficiency is concerned with a given input using no more than needed output.

Discuss the advantages and disadvantages of partial productivity measures.

The process of producing output efficiently, using the least quantity of inputs possible is(are) called:

The two approaches for measuring total productivity are

The production rate

Maximizing customer value, on-demand production, and zero setup times are realized in the pursuit of .

Define what constitutes total productive efficiency, including a definition of technical efficiency and allocative efficiency.

Information about Papanicolou Corporation is as follows: What is the materials productivity ratio for 2016?

Information about Haulover Company is as follows: What is the partial operational productivity measure for materials for 2015?

Information about Bodacious Corporation is as follows: Input prices: What is the materials productivity ratio for 2015?

The features and characteristics approach

Value-stream costing reports the actual revenues and actual costs on a weekly basis for each value stream.

Productivity is concerned with producing

allocation is the only allocation used regularly in a value stream cost assignment.

The point at which technical and allocative efficiency are achieved is called efficiency.

On a box scorecard, capacity can be labeled as

Listed below are several possible combinations for producing 10,000 units of a product: Required: a. Identify the technically efficient input combinations. Explain your choices. b. Which of the technically efficient input combinations should be used? Explain.

Productivity measurement is a quantitative assessment of increases or decreases in productivity.

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