Question 1

In calculating the profit linkage, PQ represents the productivity-neutral quantity of input. How is PQ calculated?

Accepted Answer

A)  PQ = Current period output / Base period output 
B)  PQ = Current period output / Base period productivity ratio 
C)  PQ = Prior period output / Base period productivity ratio 
D)  PQ = Current period output / Standard quantity output 
A)  PQ = Current period output / Base period output 
B)  PQ = Current period output / Base period productivity ratio 
C)  PQ = Prior period output / Base period productivity ratio 
D)  PQ = Current period output / Standard quantity output

Question 2

Using average product cost for a value stream means that individual product costs are not known. This is adequate mainly because

Accepted Answer

A)  waste can be eliminated at the activity and process level without knowing product costs. 
B)  a fully accurate product cost is not needed for many decisions. 
C)  standard costing variances may actually impede improvement decisions. 
D)  all of the above. 
A)  waste can be eliminated at the activity and process level without knowing product costs. 
B)  a fully accurate product cost is not needed for many decisions. 
C)  standard costing variances may actually impede improvement decisions. 
D)  all of the above.

Question 3

Which of the following is a reason traditional costing approaches may NOT work in a lean manufacturing environment?

Accepted Answer

A)  Standard costing variances encourage overproduction. 
B)  Distorted product costs may conceal the outcome of success of a lean system. 
C)  Traditional operational controls work against demand-pull systems. 
D)  all of the above. 
A)  Standard costing variances encourage overproduction. 
B)  Distorted product costs may conceal the outcome of success of a lean system. 
C)  Traditional operational controls work against demand-pull systems. 
D)  all of the above.

Question 4

Under features and characteristics costing, conversion costs are normally assigned

Accepted Answer

A)  using a predetermined overhead rate. 
B)  using a labor rate. 
C)  based on proportion of production. 
D)  using a conversion ratio that considers different features. 
A)  using a predetermined overhead rate. 
B)  using a labor rate. 
C)  based on proportion of production. 
D)  using a conversion ratio that considers different features.

Question 5

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 would it take to process the first unit of a 20-unit batch under a cellular manufacturing setup?

Accepted Answer

A)  21 minutes 
B)  12 minutes 
C)  19 minutes 
D)  60 minutes 
A)  21 minutes 
B)  12 minutes 
C)  19 minutes 
D)  60 minutes

Question 6

The quantitative assessment of productivity changes is called:

Accepted Answer

A)  Productivity measurement 
B)  Operational productivity measure 
C)  Technical efficiency 
D)  Financial productivity measure 
A)  Productivity measurement 
B)  Operational productivity measure 
C)  Technical efficiency 
D)  Financial productivity measure

Question 7

If a facility has costs of $100,000 per year and 20,000 square feet, and if 19,000 square feet are absorbed by the value streams, what happens to the unabsorbed cost of the remaining 1,000 feet?

Accepted Answer

A)  allocated to all the value streams based on proportionate square foot usage 
B)  assigned to all value streams equally 
C)  absorbed by the largest value stream 
D)  deducted from revenue as a separate item 
A)  allocated to all the value streams based on proportionate square foot usage 
B)  assigned to all value streams equally 
C)  absorbed by the largest value stream 
D)  deducted from revenue as a separate item

Question 8

Which of the following is an example of an operational performance measure on a box scorecard?

Accepted Answer

A)  dock-to-dock days 
B)  on-time delivery 
C)  first time through 
D)  all of the above 
A)  dock-to-dock days 
B)  on-time delivery 
C)  first time through 
D)  all of the above

Question 9

Information about Haulover Company is as follows:   What is the partial operational productivity measure for labor for 2014?

Accepted Answer

A)  1.42 
B)  2.22 
C)  4.00 
D)  4.25 
A)  1.42 
B)  2.22 
C)  4.00 
D)  4.25

Question 10

The productivity measure(s) in which inputs and outputs are expressed in dollars is(are) called:

Accepted Answer

A)  Productivity measurement 
B)  Operational productivity measures 
C)  Partial productivity measurement 
D)  Financial productivity measures 
A)  Productivity measurement 
B)  Operational productivity measures 
C)  Partial productivity measurement 
D)  Financial productivity measures

Question 11

In a lean environment, many overhead costs are assigned to

Accepted Answer

A)  products using driver tracing. 
B)  products as directly traceable costs. 
C)  products using allocation methods. 
D)  costs using plantwide overhead rates. 
A)  products using driver tracing. 
B)  products as directly traceable costs. 
C)  products using allocation methods. 
D)  costs using plantwide overhead rates.

Question 12

Allocating efficiency chooses the least costly, technically efficient combination of inputs.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT a limitation of a value stream cost assignment?

Accepted Answer

A)  Initially, it may not be possible to allocate all the people needed in a value stream to that stream exclusively. 
B)  There will always be some individuals whose related costs will remain outside of any particular value stream. 
C)  A value stream is usually organized around a family of products. 
D)  Having a value stream for each product is not practical. 
A)  Initially, it may not be possible to allocate all the people needed in a value stream to that stream exclusively. 
B)  There will always be some individuals whose related costs will remain outside of any particular value stream. 
C)  A value stream is usually organized around a family of products. 
D)  Having a value stream for each product is not practical.

Question 14

The value stream focuses on just value-added activities.

Accepted Answer

A) True 
 B)False

Question 15

What is the financial impact of becoming lean?

Accepted Answer

1. Seven nonfinancia

Question 16

In the calculation of product costs for value streams with multiple products, units shipped instead of units produced is used as the denominator because

Accepted Answer

A)  it reduces conversion costs assigned to the value stream. 
B)  it motivates managers to reduce inventories. 
C)  units shipped are always greater than units produced. 
D)  units shipped is not used. 
A)  it reduces conversion costs assigned to the value stream. 
B)  it motivates managers to reduce inventories. 
C)  units shipped are always greater than units produced. 
D)  units shipped is not used.

Question 17

There are two basic types of non-value added activities. They are

Accepted Answer

A)  activities avoidable in the long run and activities unavoidable in the short run due to current technology or production methods. 
B)  activities avoidable in the short run and activities unavoidable in the long run due to current technology or production methods. 
C)  activities unavoidable in the short run due to current technology and activities avoidable due to production methods. 
D)  activities avoidable in the short run and activities unavoidable in the short run due to current technology or production methods. 
A)  activities avoidable in the long run and activities unavoidable in the short run due to current technology or production methods. 
B)  activities avoidable in the short run and activities unavoidable in the long run due to current technology or production methods. 
C)  activities unavoidable in the short run due to current technology and activities avoidable due to production methods. 
D)  activities avoidable in the short run and activities unavoidable in the short run due to current technology or production methods.

Question 18

The ratio that measures productive efficiency for one input is called:

Accepted Answer

A)  Partial productivity measurement 
B)  Operational productivity measure 
C)  Financial productivity measure 
D)  Productivity measurement 
A)  Partial productivity measurement 
B)  Operational productivity measure 
C)  Financial productivity measure 
D)  Productivity measurement

Question 19

The measure of input and output used by an operational productivity measure is called:

Accepted Answer

A)  revenues 
B)  costs 
C)  physical quantities 
D)  dollars 
A)  revenues 
B)  costs 
C)  physical quantities 
D)  dollars

Question 20

At the end of 2014, Diatomic Company 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:

Accepted Answer

A)  $5,625 increase 
B)  $45,000 increase 
C)  $23,625 increase 
D)  $23,625 decrease 
A)  $5,625 increase 
B)  $45,000 increase 
C)  $23,625 increase 
D)  $23,625 decrease

In calculating the profit linkage, PQ represents the productivity-neutral quantity of input. How is PQ calculated?

Using average product cost for a value stream means that individual product costs are not known. This is adequate mainly because

Which of the following is a reason traditional costing approaches may NOT work in a lean manufacturing environment?

Under features and characteristics costing, conversion costs are normally assigned

The quantitative assessment of productivity changes is called:

If a facility has costs of $100,000 per year and 20,000 square feet, and if 19,000 square feet are absorbed by the value streams, what happens to the unabsorbed cost of the remaining 1,000 feet?

Which of the following is an example of an operational performance measure on a box scorecard?

Information about Haulover Company is as follows: What is the partial operational productivity measure for labor for 2014?

The productivity measure(s) in which inputs and outputs are expressed in dollars is(are) called:

In a lean environment, many overhead costs are assigned to

Allocating efficiency chooses the least costly, technically efficient combination of inputs.

Which of the following is NOT a limitation of a value stream cost assignment?

The value stream focuses on just value-added activities.

What is the financial impact of becoming lean?

In the calculation of product costs for value streams with multiple products, units shipped instead of units produced is used as the denominator because

There are two basic types of non-value added activities. They are

The ratio that measures productive efficiency for one input is called:

The measure of input and output used by an operational productivity measure is called:

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

In calculating the profit linkage, PQ represents the productivity-neutral quantity of input. How is PQ calculated?

Using average product cost for a value stream means that individual product costs are not known. This is adequate mainly because

Which of the following is a reason traditional costing approaches may NOT work in a lean manufacturing environment?

Under features and characteristics costing, conversion costs are normally assigned

The quantitative assessment of productivity changes is called:

If a facility has costs of $100,000 per year and 20,000 square feet, and if 19,000 square feet are absorbed by the value streams, what happens to the unabsorbed cost of the remaining 1,000 feet?

Which of the following is an example of an operational performance measure on a box scorecard?

Information about Haulover Company is as follows: What is the partial operational productivity measure for labor for 2014?

The productivity measure(s) in which inputs and outputs are expressed in dollars is(are) called:

In a lean environment, many overhead costs are assigned to

Allocating efficiency chooses the least costly, technically efficient combination of inputs.

Which of the following is NOT a limitation of a value stream cost assignment?

The value stream focuses on just value-added activities.

What is the financial impact of becoming lean?

In the calculation of product costs for value streams with multiple products, units shipped instead of units produced is used as the denominator because

There are two basic types of non-value added activities. They are

The ratio that measures productive efficiency for one input is called:

The measure of input and output used by an operational productivity measure is called:

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