Exam 15: Lean Accounting and Productivity Measurement

The point at which for any mix of inputs that will produce a given output, no more of any one input is used than is absolutely necessary is called:

Figure 15-4 -Refer to Figure 15-4. If the materials costs for both products are $75 per unit produced, and conversion costs are $120 per hour, what is the unit cost of Product B under the features and approach costing method?

The departments or cells which contain all the operations in close proximity that are needed to produce a family of products.

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

Productivity is concerned with the efficiency of input usage in producing output.

Profile measurement provides a series of profiles for all operational measures.

Information about Bodacious Corporation is as follows: Input prices: By how much did profits change as a result of changes in productivity related to materials?

With multiple products in a value stream, unit cost will increase if

Information about Remarkable Corporation is as follows: What is the partial operational productivity measure for labor for 2015?

Lean manufacturing shares many of the same methodologies as

At the end of 2014, Immaculate Productions implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2015, 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: a. Compute the partial operational measures for each input for both 2014 and 2015. What can be said about productivity improvement? b. Prepare an income statement for each year and calculate the total change in profits. c. Calculate the profit-linked productivity measure for 2015. What can be said about the productivity program? d. Calculate the price-recovery component. What does this tell you?

Figure 15-1 The following information relates to Lancashire Manufacturing: To produce a unit of product: Mixing department 3 minutes per unit Molding department 5 minutes per unit Casting department 7 minutes per unit Finishing department 4 minutes per unit 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. Which area represents the bottleneck operation?

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

Which of the following is an advantage of using partial productivity measures?

Information about Taekwondo Corporation is as follows: What is the materials productivity ratio for 2014?

Which of the following conditions is NOT an example of technical efficiencies?

Customer value is the difference between what a customer receives and what they give up.

Figure 15-1 The following information relates to Lancashire Manufacturing: To produce a unit of product: Mixing department 3 minutes per unit Molding department 5 minutes per unit Casting department 7 minutes per unit Finishing department 4 minutes per unit 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. How long does it take to produce a batch of 20 units under a traditional manufacturing approach?

Holstein Company produces pants that use two inputs-materials and labor. During the past quarter, 1,000 units were produced, requiring 2,000 pounds of material and 1,000 hours of labor. An engineering efficiency study commissioned by the local university revealed that Holstein Company can produce the same output of 1,000 units using either of the following two combinations of inputs: Materials Labor Combination A 1,750 875 Combination B 2,000 750 The cost of materials is $2.50 per pound; the cost of labor is $5 per hour. Required: a. Compute the productivity ratio for each input of Combination A. b. Does this represent a productivity improvement over the current use of inputs? c. What is the total dollar value of the combination A improvement? Classify this as a technical or input trade-off efficiency improvement.

The worth of one or more features of a product for which the customer is willing to pay is defined as: