Question 1

The difference between the total profit change and the profit-linked productivity change is called:

Accepted Answer

A)  Total productivity measurement 
B)  Profile measurement 
C)  Profit-linked productivity measurement 
D)  Price recovery component 
A)  Total productivity measurement 
B)  Profile measurement 
C)  Profit-linked productivity measurement 
D)  Price recovery component

Question 2

Partial measures allow managers to focus on the use of the total production and are easily interpreted.

Accepted Answer

A) True 
 B)False

Question 3

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)  3.69 
B)  1.00 
C)  1.15 
D)  4.00 
A)  3.69 
B)  1.00 
C)  1.15 
D)  4.00

Question 4

Which of the following is NOT considered a major source of waste?

Accepted Answer

A)  costs spent on defect detection 
B)  unnecessary movement of goods 
C)  unnecessary transport of goods 
D)  design of goods and services that don't meet the needs of the customer 
A)  costs spent on defect detection 
B)  unnecessary movement of goods 
C)  unnecessary transport of goods 
D)  design of goods and services that don't meet the needs of the customer

Question 5

Figure 15-4
      
-Refer to Figure 15-4. Under the features and characteristics costing method, which product would have more overhead costs allocated?

Accepted Answer

A)  Product A because it has the highest total cycle time 
B)  Product B because it has the highest individual cycle time in molding, the bottleneck department 
C)  Product A because the first two cycles are bottlenecks 
D)  Unable to determine from information given 
A)  Product A because it has the highest total cycle time 
B)  Product B because it has the highest individual cycle time in molding, the bottleneck department 
C)  Product A because the first two cycles are bottlenecks 
D)  Unable to determine from information given

Question 6

Information about Papanicolou Corporation is as follows:   Input quantities:
  Input prices:
    What is the labor productivity ratio for 2016?

Accepted Answer

A)  22.84 
B)  24.80 
C)  24.00 
D)  30.00 
A)  22.84 
B)  24.80 
C)  24.00 
D)  30.00

Question 7

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.
-Refer to Figure 15-2. What is the cycle time of operation?
a. 60 minutes
b. 20 minutes
c. 35 minutes
d. 16 minutes

Accepted Answer

The answer of Figure 15-2
The following information relates to Cranmore...

Question 8

Explain the difference between technical and input trade-off efficiency.

Accepted Answer

Technical efficiency means tha

Question 9

At the end of 2014, San Leandro 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:
   
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?

Accepted Answer

a. Partial measures:
2014 2015
 @#IMG-DLM& Profile

Question 10

Reducing the time it takes to configure equipment to produce a different product is an example of

Accepted Answer

A)  cellular manufacturing. 
B)  batch processing. 
C)  reduced setup/changeover times. 
D)  value flow stream. 
A)  cellular manufacturing. 
B)  batch processing. 
C)  reduced setup/changeover times. 
D)  value flow stream.

Question 11

What approach is normally used to calculate product costs when products in a value stream are heterogeneous?

Accepted Answer

A)  variable costing 
B)  features and characteristics costing 
C)  absorption costing 
D)  functional costing 
A)  variable costing 
B)  features and characteristics costing 
C)  absorption costing 
D)  functional costing

Question 12

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)  $540,000 
B)  $319,950 
C)  $220,050 
D)  $270,000 
A)  $540,000 
B)  $319,950 
C)  $220,050 
D)  $270,000

Question 13

Employee empowerment is a major difference between traditional and lean environments.

Accepted Answer

A) True 
 B)False

Question 14

Allocative efficiency can be defined as

Accepted Answer

A)  all non-value activities performed with minimal quantities needed to produce the given outputs. 
B)  elimination of all non-value-added activities. 
C)  input prices determining the relative proportions of each input that should be used. 
D)  input prices determining the relative proportions of each output that should be produced. 
A)  all non-value activities performed with minimal quantities needed to produce the given outputs. 
B)  elimination of all non-value-added activities. 
C)  input prices determining the relative proportions of each input that should be used. 
D)  input prices determining the relative proportions of each output that should be produced.

Question 15

Profit-linked productivity measurement involves the measuring of the amount of profit related to productivity change.

Accepted Answer

A) True 
 B)False

Question 16

Explain the difference between partial and total measures of productivity.

Accepted Answer

a.
 @#IMG-DLM& @#IMG-DLM& Materials productivity r

Question 17

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)  1.00 
B)  1.60 
C)  3.69 
D)  4.00 
A)  1.00 
B)  1.60 
C)  3.69 
D)  4.00

Question 18

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

Accepted Answer

A)  $550.00 decrease 
B)  $550.00 increase 
C)  $412.50 increase 
D)  $412.50 decrease 
A)  $550.00 decrease 
B)  $550.00 increase 
C)  $412.50 increase 
D)  $412.50 decrease

Question 19

The departments or cells that contain all the related operations needed to produce a family of products are called
__________ .

Accepted Answer

The answer of The departments or cells that contain all...

Question 20

The prior period used to set the benchmark for measuring productivity changes is(are) called:

Accepted Answer

A)  Financial productivity measures 
B)  Base period 
C)  Operational productivity measures 
D)  Target period 
A)  Financial productivity measures 
B)  Base period 
C)  Operational productivity measures 
D)  Target period

The difference between the total profit change and the profit-linked productivity change is called:

Partial measures allow managers to focus on the use of the total production and are easily interpreted.

Which of the following is NOT considered a major source of waste?

Figure 15-4 -Refer to Figure 15-4. Under the features and characteristics costing method, which product would have more overhead costs allocated?

Information about Papanicolou Corporation is as follows: Input quantities: Input prices: What is the labor productivity ratio for 2016?

Explain the difference between technical and input trade-off efficiency.

Reducing the time it takes to configure equipment to produce a different product is an example of

What approach is normally used to calculate product costs when products in a value stream are heterogeneous?

Employee empowerment is a major difference between traditional and lean environments.

Allocative efficiency can be defined as

Profit-linked productivity measurement involves the measuring of the amount of profit related to productivity change.

Explain the difference between partial and total measures of productivity.

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

The departments or cells that contain all the related operations needed to produce a family of products are called __________ .

The prior period used to set the benchmark for measuring productivity changes is(are) 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

The difference between the total profit change and the profit-linked productivity change is called:

Partial measures allow managers to focus on the use of the total production and are easily interpreted.

Which of the following is NOT considered a major source of waste?

Figure 15-4 -Refer to Figure 15-4. Under the features and characteristics costing method, which product would have more overhead costs allocated?

Information about Papanicolou Corporation is as follows: Input quantities: Input prices: What is the labor productivity ratio for 2016?

Explain the difference between technical and input trade-off efficiency.

Reducing the time it takes to configure equipment to produce a different product is an example of

What approach is normally used to calculate product costs when products in a value stream are heterogeneous?

Employee empowerment is a major difference between traditional and lean environments.

Allocative efficiency can be defined as

Profit-linked productivity measurement involves the measuring of the amount of profit related to productivity change.

Explain the difference between partial and total measures of productivity.

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

The departments or cells that contain all the related operations needed to produce a family of products are called __________ .

The prior period used to set the benchmark for measuring productivity changes is(are) 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