Question 1

The effect of changes in a product's proportion of the total market is measured by:

Accepted Answer

A) Market mix variance. 
B) Market share variance. 
C) Market price variance. 
D) Market quantity variance. 
E) Market size variance.

Question 2

Duo,Inc.carries two products and has the following year-end income statement (000s omitted): 
The net effect of ZR-7's selling price variance on profit is:

Accepted Answer

A) $240 favorable. 
B) $400 unfavorable. 
C) $420 unfavorable. 
D) $560 favorable. 
E) $800 unfavorable.

Question 3

Wheat Inc.has an exclusive contract with an exporter.Two brands of wheat are imported,labeled AB and CD.The following data are provided for the current fiscal year: 
The total market was estimated to 40,000 bushels at the time of budget.The actual total market for the year is 32,000 bushels.
What is CD's contribution margin sales volume variance?

Accepted Answer

A) $500 favorable. 
B) $2,500 favorable. 
C) $5,500 favorable. 
D) $12,500 favorable. 
E) $25,000 favorable.

Question 4

Which one of the following measures the relationship between the output attained and the total input costs of all the required input resources?

Accepted Answer

A) Financial partial productivity. 
B) Total productivity. 
C) Operational partial productivity. 
D) Total financial productivity. 
E) Partial productivity.

Question 5

Nap Co.has two products named X and Y.The firm had the following master budget for the year just completed: 
The following operating results were reported after the year was over: 
The contribution margin sales volume variance for Product Y is:

Accepted Answer

A) $0 
B) $16,000 favorable. 
C) $30,000 unfavorable. 
D) $10,000 unfavorable. 
E) $5,000 favorable.

Question 6

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters.Two brands of gourmet coffee are imported,Morning Thunder (MT)and Evening Tender (ET).The following data are provided for the current fiscal year: 
The total market was estimated to be 80,000 pounds at the time of budget.The actual total market for the year is 75,000 pounds.
What is ET's contribution margin sales volume variance?

Accepted Answer

A) $15,360 favorable. 
B) $15,360 unfavorable. 
C) $24,960 favorable. 
D) $32,000 unfavorable. 
E) $16,640 unfavorable.

Question 7

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters.Two brands of gourmet coffee are imported,Morning Thunder (MT)and Evening Tender (ET).The following data are provided for the current fiscal year: 
The total market was estimated to be 80,000 pounds at the time of budget.The actual total market for the year is 75,000 pounds.
What is MT's sales quantity variance?

Accepted Answer

A) $800 unfavorable. 
B) $8,800 favorable. 
C) $10,000 favorable. 
D) $11,440 favorable. 
E) $13,600 favorable.

Question 8

Winston Co.had two products code named X and Y.The firm had the following budget for August: 
On September 1,the following operating results for August were reported: 
Industry volume was estimated to be 120,000 units at the time of the budget.Actual industry volume for the period was 125,000 units.
The firm's market share variance for the period is:

Accepted Answer

A) $5,670 unfavorable. 
B) $80,000 favorable. 
C) $100,000 favorable. 
D) $104,000 favorable. 
E) $124,000 favorable.

Question 9

A primary objective in measuring productivity is to improve operations either by using fewer inputs to produce the same output,or to produce:

Accepted Answer

A) More quickly. 
B) More effectively. 
C) With fewer constraints. 
D) More outputs with the same inputs. 
E) More outputs with more inputs.

Question 10

(Budgeted sales mix - actual sales mix)x (total quantity sold)x (budgeted contribution margin per unit of the product)equals:

Accepted Answer

A) Sales efficiency variance. 
B) Sales quantity variance. 
C) Sales price variance. 
D) Sales mix variance. 
E) Sales volume variance.

Question 11

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters.Two brands of gourmet coffee are imported,Morning Thunder (MT)and Evening Tender (ET).The following data are provided for the current fiscal year: 
The total market was estimated to be 80,000 pounds at the time of budget.The actual total market for the year is 75,000 pounds.
What is the firm's market share variance?

Accepted Answer

A) $30,600 favorable. 
B) $31,500 favorable. 
C) $32,640 favorable. 
D) $33,000 favorable. 
E) $35,200 favorable.

Question 12

The effect of changes in the total industry sales of the firm's product is measured by:

Accepted Answer

A) Market mix variance. 
B) Market share variance. 
C) Market price variance. 
D) Market quantity variance. 
E) Market size variance.

Question 13

Jackson,Inc manufactures two products that it sells to the same market.Excerpted below are its budgeted and actual operating results for the year just completed: 
Industry volume was estimated to be 1,875,000 units at the time the budget was prepared.Actual industry volume for the period was 2,440,000 units.Jackson measures variances using contribution margin.
The total contribution margin sales volume variance of the period is:

Accepted Answer

A) $5,800 favorable. 
B) $36,400 unfavorable. 
C) $48,000 unfavorable. 
D) $63,950 unfavorable. 
E) $107,920 favorable.

Question 14

Creepers,Inc.manufactures stuffed spiders and mummies.During September the following information was gathered: 
What is the sales mix variance for Spiders?

Accepted Answer

A) $1,125 favorable. 
B) $1,500 favorable. 
C) $1,650 unfavorable. 
D) $4,800 favorable. 
E) $4,800 unfavorable.

Question 15

A measure of productivity can be either:

Accepted Answer

A) Operational or financial. 
B) Total or segmented. 
C) Short-term or long-term. 
D) Activity-based or TOC based.

Question 16

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters.Two brands of gourmet coffee are imported,Morning Thunder (MT)and Evening Tender (ET).The following data are provided for the current fiscal year: 
The total market was estimated to be 80,000 pounds at the time of budget.The actual total market for the year is 75,000 pounds.
What is ET's sales mix variance?

Accepted Answer

A) $7,680 favorable. 
B) $8,640 favorable. 
C) $11,520 favorable. 
D) $12,960 favorable. 
E) $24,960 favorable.

Question 17

Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters.Two brands of gourmet coffee are imported,Morning Thunder (MT)and Evening Tender (ET).The following data are provided for the current fiscal year: 
The total market was estimated to be 80,000 pounds at the time of budget.The actual total market for the year is 75,000 pounds.
What is the firm's total sales quantity variance?

Accepted Answer

A) $7,200 favorable. 
B) $17,760 favorable. 
C) $22,000 favorable. 
D) $24,840 favorable. 
E) $38,560 favorable.

Question 18

The following information is for the Wetherby Company.

Accepted Answer

The answer of The following information is for the Wetherby...

Question 19

Gutsen Communications Inc.manufactures a scrambling device for cellular phones.The main component of the scrambling device is a very delicate part - DTV-12.DTV-12 requires careful handling during manufacturing.Once damaged,the part must be discarded.Only skilled laborers are hired to manufacture and install DTV-12.Damages still occur,however.The following are the operating data of Gutsen Communications Inc.for 2010 and 2011 relative to the insertion of DTV-12.Round calculations to two significant digits. 
The partial direct labor operational productivity ratio for 2010 is:

Accepted Answer

A) 262 per unit. 
B) 169 per unit. 
C) 428 per unit. 
D) 300 per unit. 
E) 333 per unit.

Question 20

Dr.Howard Abelson is the director of the Wellness House,a residential center for recovering alcoholics.A typical patient spends 3-4 weeks in an intensive program of rehabilitation.The Wellness House has a staff of 45,including 12 certified therapists,to serve an average patient load of 15.Howard Abelson is attempting to develop some productivity measures for the center,but is not aware of the limitations of productivity measurement in not-for-profit organizations.You have been called in as a consultant to help develop appropriate productivity measures.
Required: (a)Identify any major differences/limitations you face in developing performance measures for the Wellness House.(b)Recommend two or three overall measures of productivity that are appropriate for the Wellness House as a not-for-profit organization.

Accepted Answer

The answer of Dr.Howard Abelson is the director of the...

Exam 16: Operational Performance Measurement: Further Analysis of Productivity and Sales

The effect of changes in a product's proportion of the total market is measured by:

Duo,Inc.carries two products and has the following year-end income statement (000s omitted) : The net effect of ZR-7's selling price variance on profit is:

Which one of the following measures the relationship between the output attained and the total input costs of all the required input resources?

Nap Co.has two products named X and Y.The firm had the following master budget for the year just completed: The following operating results were reported after the year was over: The contribution margin sales volume variance for Product Y is:

A primary objective in measuring productivity is to improve operations either by using fewer inputs to produce the same output,or to produce:

(Budgeted sales mix - actual sales mix) x (total quantity sold) x (budgeted contribution margin per unit of the product) equals:

The effect of changes in the total industry sales of the firm's product is measured by:

Creepers,Inc.manufactures stuffed spiders and mummies.During September the following information was gathered: What is the sales mix variance for Spiders?

A measure of productivity can be either:

The following information is for the Wetherby Company.