Question 1

Emphasis on departmental efficiency

Accepted Answer

A)  causes bottleneck departments to over-produce and build work-in-process inventories. 
B)  causes stock outs related to demand-pull systems. 
C)  is a critical component of a lean accounting system. 
D)  none of the above. 
A)  causes bottleneck departments to over-produce and build work-in-process inventories. 
B)  causes stock outs related to demand-pull systems. 
C)  is a critical component of a lean accounting system. 
D)  none of the above.

Question 2

Which of the following is NOT a characteristic of a lean manufacturing system?

Accepted Answer

A)  delivery of the right product in the right quantity 
B)  zero defect 
C)  delivery of product the exact time a customer needs it 
D)  all of the above 
A)  delivery of the right product in the right quantity 
B)  zero defect 
C)  delivery of product the exact time a customer needs it 
D)  all of the above

Question 3

The profit linkage rate

Accepted Answer

A)  calculates the cost of the inputs that would have been used in absence of any productivity change and compares it to the cost of the inputs actually used for the current period. 
B)  calculates the cost of the inputs that would have been used in absence of any productivity change and compares it to the cost of the inputs actually used for the prior period. 
C)  calculates the cost of the inputs that would have been used, plus any productivity changes and compares it to the cost of the inputs actually used for the current period. 
D)  calculates the cost of the outputs that would have been produced and compares it to the cost of outputs produced for the current period. 
A)  calculates the cost of the inputs that would have been used in absence of any productivity change and compares it to the cost of the inputs actually used for the current period. 
B)  calculates the cost of the inputs that would have been used in absence of any productivity change and compares it to the cost of the inputs actually used for the prior period. 
C)  calculates the cost of the inputs that would have been used, plus any productivity changes and compares it to the cost of the inputs actually used for the current period. 
D)  calculates the cost of the outputs that would have been produced and compares it to the cost of outputs produced for the current period.

Question 4

An assessment of productive efficiency for all inputs combined is called measurement.

Accepted Answer

The answer of An assessment of productive efficiency for all...

Question 5

The value stream

Accepted Answer

A)  is made up of all activities, both value-added and non-value-added, required to bring a product group or service from its starting point to a finished product in the hands of the customer. 
B)  is made up value-added activities required to bring a product group or service from its starting point to a finished product in the hands of the customer. 
C)  is where the production stream is triggered by forecast. 
D)  is a series of steps designed to set target costs. 
A)  is made up of all activities, both value-added and non-value-added, required to bring a product group or service from its starting point to a finished product in the hands of the customer. 
B)  is made up value-added activities required to bring a product group or service from its starting point to a finished product in the hands of the customer. 
C)  is where the production stream is triggered by forecast. 
D)  is a series of steps designed to set target costs.

Question 6

The worth of one or more features of a product for which customers are willing to pay is called __________ .

Accepted Answer

The answer of The worth of one or more features...

Question 7

The Kristofferson Company provides the following information:
   Input prices:
     Required: 
a. Calculate the materials and labor productivity ratios for 2014 and 2015.
b. Did materials productivity improve?
c. Did labor productivity improve?
d. By how much did profits change as a result of changes in productivity?

Accepted Answer

a. 2014 2015
Materials product

Question 8

The disadvantage of using partial measures in isolation is that it can be misleading.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)  $100 decrease 
B)  $100 increase 
C)  $600 increase 
D)  $600 decrease 
A)  $100 decrease 
B)  $100 increase 
C)  $600 increase 
D)  $600 decrease

Question 10

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

Accepted Answer

A)  $550.00 decrease 
B)  $312.50 decrease 
C)  $550.00 increase 
D)  $312.50 increase 
A)  $550.00 decrease 
B)  $312.50 decrease 
C)  $550.00 increase 
D)  $312.50 increase

Question 11

In value-stream reporting, the income statement reflects the profit/loss by

Accepted Answer

A)  individual product line. 
B)  activity. 
C)  value stream. 
D)  customer. 
A)  individual product line. 
B)  activity. 
C)  value stream. 
D)  customer.

Question 12

Figure 15-4
      
-Refer to Figure 15-4. Under traditional costing methods, which product would have more overhead costs allocated?

Accepted Answer

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

Question 13

A Box Scorecard is used by the lean control system to compare operational, capacity, and financial figures

Accepted Answer

A) True 
 B)False

Question 14

The accounting approach designed to support and encourage lean manufacturing is called accounting.

Accepted Answer

The answer of The accounting approach designed to support and...

Question 15

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)  2.50 
B)  3.20 
C)  1.00 
D)  1.25 
A)  2.50 
B)  3.20 
C)  1.00 
D)  1.25

Question 16

Which is NOT a benefit of lean manufacturing?

Accepted Answer

A)  increased productivity 
B)  reduced lead times 
C)  reduced direct labor costs 
D)  reductions in inventory 
A)  increased productivity 
B)  reduced lead times 
C)  reduced direct labor costs 
D)  reductions in inventory

Question 17

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. If Cranmore produces in batches of 10 units, how much time would have elapsed by the time the 10th unit is produced under a manufacturing cell environment (assuming the cell is processing continuously)?

Accepted Answer

A)  60 minutes 
B)  65 minutes 
C)  150 minutes 
D)  some other amount 
A)  60 minutes 
B)  65 minutes 
C)  150 minutes 
D)  some other amount

Question 18

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)  $27,000 decrease 
B)  $10,125 decrease 
C)  $3,375 increase 
D)  $3,375 decrease 
A)  $27,000 decrease 
B)  $10,125 decrease 
C)  $3,375 increase 
D)  $3,375 decrease

Question 19

The productivity measure of all inputs simultaneously is called total productivity measurement.

Accepted Answer

A) True 
 B)False

Question 20

Information about Haulover Company is as follows:   What is the partial operational productivity measure for materials for 2016?

Accepted Answer

A)  2.22 
B)  1.60 
C)  1.80 
D)  1.42 
A)  2.22 
B)  1.60 
C)  1.80 
D)  1.42

Emphasis on departmental efficiency

Which of the following is NOT a characteristic of a lean manufacturing system?

The profit linkage rate

An assessment of productive efficiency for all inputs combined is called measurement.

The value stream

The worth of one or more features of a product for which customers are willing to pay is called __________ .

The disadvantage of using partial measures in isolation is that it can be misleading.

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

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

In value-stream reporting, the income statement reflects the profit/loss by

Figure 15-4 -Refer to Figure 15-4. Under traditional costing methods, which product would have more overhead costs allocated?

A Box Scorecard is used by the lean control system to compare operational, capacity, and financial figures

The accounting approach designed to support and encourage lean manufacturing is called accounting.

Which is NOT a benefit of lean manufacturing?

The productivity measure of all inputs simultaneously is called total productivity measurement.

Information about Haulover Company is as follows: What is the partial operational productivity measure for materials for 2016?

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

Emphasis on departmental efficiency

Which of the following is NOT a characteristic of a lean manufacturing system?

The profit linkage rate

An assessment of productive efficiency for all inputs combined is called measurement.

The value stream

The worth of one or more features of a product for which customers are willing to pay is called __________ .

The disadvantage of using partial measures in isolation is that it can be misleading.

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

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

In value-stream reporting, the income statement reflects the profit/loss by

Figure 15-4 -Refer to Figure 15-4. Under traditional costing methods, which product would have more overhead costs allocated?

A Box Scorecard is used by the lean control system to compare operational, capacity, and financial figures

The accounting approach designed to support and encourage lean manufacturing is called accounting.

Which is NOT a benefit of lean manufacturing?

The productivity measure of all inputs simultaneously is called total productivity measurement.

Information about Haulover Company is as follows: What is the partial operational productivity measure for materials for 2016?

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