Question 1

Information about Cabot Corporation is as follows: $\begin{array}{lrr}
&\text {20X1}&\text {20X2}\
\text { Output (units) } & 14,000 & 15,000 \
\text { Selling price per unit } & \$8 & \$ 8\
\
\text { Change in profits}&\$5,687.50\ 
\text { Profit-linked measurements:}\
\text { Materials}&\$(50.00)\
\text { Iahour }&(87.50)
\end{array}$ What is the price-recovery component?

Accepted Answer

A) $137.50 
B) $5,550.00 
C) $5,687.50 
D) $5,825.00

Question 2

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

Accepted Answer

A) current period output/base period output 
B) current period output/base period productivity ratio 
C) prior period output/base period productivity ratio 
D) current period output/standard quantity output

Question 3

Describe the objectives and characteristics of a lean manufacturing system.

Accepted Answer

The answer of Describe the objectives and characteristics of a...

Question 4

What is the focus of the order fulfillment value stream?

Accepted Answer

A) developing new products for new customers 
B) providing current products to current customers 
C) providing current products to new customers and new products to new customers 
D) the production,sale,and delivery of products

Question 5

What is the value stream?

Accepted Answer

A) all activities required to bring a product group or service from its starting point to a finished product in the hands of the customer 
B) 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) where the production stream is triggered by forecast 
D) a series of steps designed to set target costs

Question 6

What shares many of the same methodologies as lean manufacturing?

Accepted Answer

A) activity-based management 
B) JIT manufacturing 
C) process costing 
D) responsibility management

Question 7

Which is a benefit of lean manufacturing?

Accepted Answer

A) decreased productivity 
B) reduced lead times 
C) reduced direct labour costs 
D) increased inventory

Question 8

Information about Jones Corporation is as follows:
$\begin{array}{llr}
&20 \times 1 & 20 \times 2\
  \text { Output (units) } &120,000&130,000\
 \text {  Input quantities:} &\
 \text { Materials \( (\mathrm{kg}) $ } &37,500&40,000\
 \text {Input prices:  } &\
 \text {Materials (per $ \mathrm{kg} $ )  } &\$4&\$6\

\end{array}\)

-Refer to the figure.What is the partial operational productivity measure for labour for 20X2?

Accepted Answer

A) 1.67 
B) 2.50 
C) 5.00 
D) 5.25

Question 9

What is the term for the process of producing output efficiently,using the least quantity of inputs possible?

Accepted Answer

A) productivity measurement 
B) productivity 
C) profile measurement 
D) partial productivity measure

Question 10

The following information relates to Markely Manufacturing:
$$\begin{array} { l l } 
\text { Mixing Department } & 2 \text { minutes per unit } \
\text { Moulding Department } & 4 \text { minutes per unit } \
\text { Casting Department } & 6 \text { minutes per unit } \
\text { Finishing Department } & 3 \text { minutes per unit }
\end{array}$$
There is a wait time of 8 minutes before the Mixing Department begins a batch, 5 minutes between the Mixing and Moulding departments, a move and pre-wait between Moulding and Casting of 10 minutes, and a move and pre-wait between the Casting and Finishing departments of 12 minutes.
-Refer to the figure.What is the production rate?

Accepted Answer

A) 4 units per hour 
B) 10 units per hour 
C) 15 units per hour 
D) 30 units per hour

Question 11

Information about Kreis Company is as follows:
 $$\begin{array} { l r r } 
&20 \times 1&20 \times 2\
\text { Output (units) } & 25,000 & 27,000 \
\text { Selling price per unit } & \$ 25 & \$ 25 \
\text { Input quantities: } & & \
\text { Materials (kg) } & 8,000 & 7,500 \
\text { Labour (hours) } & 5,500 & 7,000 \
\text { Input prices: } & & \
\text { Materials (per kg) } & \$ 4.00 & \$ 5.00 \
\text { Labou (per hour) } & \$ 9.00 & \$ 10.00
\end{array}$$ 
a.Calculate the materials and labour productivity ratios for 20X1 and 20X2.
b.Did materials productivity improve?
c.Did labour productivity improve?
d.By how much did profits change as a result of changes in productivity?

Accepted Answer

The answer of Information about Kreis Company is as follows:
...

Question 12

Information about Cheng Corporation is as follows:
$\begin{array}{lrr}
&20 \times 1 & 20 \times 2\
\text { Output (units) } & 14,000 & 15,000 \
\text { Selling price per unit } & \$ 16 & \$ 16 \
\text { Input quantities: } & & \
\quad \text { Materials (kg) } & 1,750 & 1,900 \
\text { Labour (hours) } & 1,400 & 1,525 \
\text { Input prices: } & & \
\quad \text { Materials (per kg) } & \$ 3 & \$ 4 \
\quad \text { Labour (per hour) } & \$ 6 & \$ 7
\end{array}$
-Refer to the figure.What is the materials productivity ratio for 20X1?

Accepted Answer

A) 13 
B) 12 
C) 10 
D) 8

Question 13

Information about Nixon Corporation is as follows: $\begin{array}{lrr}
&\text {20X1}&\text {20X2}\
\text { Output (units) } & 10,000 & 12,000 \
\text { Selling price per unit } & \$ 25 & \$ 25\
\
\text { Change in profits}&\$96,025\ 
\text { Profit-linked measurements:}\
\text { Materials}&\$1,100\
\text { Iahour }&825
\end{array}$ What is the price-recovery component?

Accepted Answer

A) $96,025 
B) $94,100 
C) $1,925 
D) ($96,025)

Question 14

What are the two basic types of non-value-added activities?

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

Question 15

Information about Cheng Corporation is as follows:
$\begin{array}{lrr}
&20 \times 1 & 20 \times 2\
\text { Output (units) } & 14,000 & 15,000 \
\text { Selling price per unit } & \$ 16 & \$ 16 \
\text { Input quantities: } & & \
\quad \text { Materials (kg) } & 1,750 & 1,900 \
\text { Labour (hours) } & 1,400 & 1,525 \
\text { Input prices: } & & \
\quad \text { Materials (per kg) } & \$ 3 & \$ 4 \
\quad \text { Labour (per hour) } & \$ 6 & \$ 7
\end{array}$
-Refer to the figure.What is the partial operational measure for labour for 20X2?

Accepted Answer

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

Question 16

Information about Cheng Corporation is as follows:
$\begin{array}{lrr}
&20 \times 1 & 20 \times 2\
\text { Output (units) } & 14,000 & 15,000 \
\text { Selling price per unit } & \$ 16 & \$ 16 \
\text { Input quantities: } & & \
\quad \text { Materials (kg) } & 1,750 & 1,900 \
\text { Labour (hours) } & 1,400 & 1,525 \
\text { Input prices: } & & \
\quad \text { Materials (per kg) } & \$ 3 & \$ 4 \
\quad \text { Labour (per hour) } & \$ 6 & \$ 7
\end{array}$
-Refer to the figure.What is the partial operational measure for power for 20X1?

Accepted Answer

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

Question 17

What measurement is concerned with the relationship between inputs and outputs??

Accepted Answer

A) activity-based measurement 
B) just in time measurement 
C) lean measurement 
D) productivity measurements

Question 18

What is reducing the time it takes to configure equipment to produce a different product an example of?

Accepted Answer

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

Question 19

Which of the following is an advantage 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 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 20

Information about Blair Company is as follows:
$\begin{array}{lcr}
&20 \times 1 & 20 \times 2\
\text { Output (units) } & 12,000 & 13,000 \
\text { Input quantities: } &\
\text { Materials (kg) } & 3,750 & 4,000  \
\text { Input prices: } &\
\text { Materials (per kg) }& \$ 2 & \$ 3
\end{array}$
-Refer to the figure.What is the partial operational productivity measure for materials for 20X2?

Accepted Answer

A) 0.3077 
B) 0.3125 
C) 3.2000 
D) 3.2500

Exam 17: Lean Accounting and Productivity Measurement