Question 1

A business model is a description of how different levels and employees in the organization must perform for the organization to achieve its goals and objectives.This is the definition of a business model.

Accepted Answer

A) True 
 B)False  True

Question 2

The Albertville Co.has the following information for last year:  The partial productivity for labor is:

Accepted Answer

A)  0.097.
B)  0.256.
C)  3.906.
D)  10.313. D

Question 3

In the balanced scorecard,the customer perspective addresses which of the following questions?

Accepted Answer

A)  "To achieve our mission,how will we sustain our ability to change and improve?"
B)  "To succeed financially,how should we appear to our shareholders?"
C)  "To satisfy our shareholders and customers,in what business process must we excel?"
D)  "To achieve our mission,how should we appear to our customers?" D

Question 4

Which of the following balanced scorecard perspectives focuses on shareholder's interests?

Accepted Answer

A)  Financial.
B)  Customer.
C)  Internal Business Process.
D)  Learning and growth.

Question 5

A description of an organization's values,definition of its responsibilities to stakeholders,and identification of its major strategies is called its:

Accepted Answer

A)  business-level strategy.
B)  mission statement.
C)  performance objectives.
D)  master budget.

Question 6

The Albertville Co.has the following information for last year:  The partial productivity for material is:

Accepted Answer

A)  1.136.
B)  0.288.
C)  0.263.
D)  3.802.

Question 7

Which of the following items is not part of the continuous improvement philosophy?

Accepted Answer

A)  Eliminate activities that are nonvalue-added.
B)  Improve the efficiency of activities that are value-added.
C)  Use benchmarking to identify activities that need improvement.
D)  Provide bonus incentives to managers for accurate performance reports.

Question 8

Which of the following represents value-added time in the manufacturing cycle?

Accepted Answer

A)  Inspection time.
B)  Queue time.
C)  Move time.
D)  Process time.

Question 9

One question that an organization's mission statement should answer is how the organization will evaluate its performance relative to its competitors.A mission statement describes internal values and responsibilities.

Accepted Answer

A) True 
 B)False

Question 10

One disadvantage of using nonfinancial measures to evaluate performance is that they are only available on a monthly,quarterly,or annual basis.They are available in shorter time periods or in real-time.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following balanced scorecard perspectives focuses on customer service issues?

Accepted Answer

A)  Financial.
B)  Customer.
C)  Internal Business Process.
D)  Learning and growth.

Question 12

The Pepin Company collected the following information (in days):  What is the manufacturing cycle efficiency?

Accepted Answer

A)  28.6%.
B)  64.5%.
C)  71.4%.
D)  90.9%.

Question 13

The Alma Company collected the following information (in days):  What is the manufacturing cycle time?

Accepted Answer

A)  21 days.
B)  65 days.
C)  55 days.
D)  46 days.

Question 14

Continuous improvement involves the search for and implementation of the best way to do something as practiced by other organizations or in other parts of one's own organization.This is benchmarking.

Accepted Answer

A) True 
 B)False

Question 15

Paro Products Co.has provided the following information for last year:  The total factor productivity measure is:

Accepted Answer

A)  $150,000.
B)  $312,000.
C)  1.154.
D)  0.832.

Question 16

In general,all managers in a given organization are responsible for the same things and should be evaluated using the same financial and nonfinancial measures.Managers are responsible for diverse operations and need specialized measures.

Accepted Answer

A) True 
 B)False

Question 17

In the balanced scorecard,the financial perspective addresses which of the following questions?

Accepted Answer

A)  "To achieve our mission,how will we sustain our ability to change and improve?"
B)  "To succeed financially,how should we appear to our shareholders?"
C)  "To satisfy our shareholders and customers,in what business process must we excel?"
D)  "To achieve our mission,how should we appear to our customers?"

Question 18

A balanced scorecard shows measures of performance as they related to areas of performance.Which of the following is a measure of performance of customer value?

Accepted Answer

A)  Gross margin ratio.
B)  Retention of existing customers.
C)  Hours of job related training.
D)  Process cycle time.

Question 19

The Cascade Machining Co.has the following information for last year:  The partial productivity for labor is:

Accepted Answer

A)  12.500.
B)  2.000.
C)  0.500.
D)  0.120.

Question 20

Manufacturing cycle time is the total time involved in processing,moving,storing,and inspecting a good or providing a service.This is the definition of manufacturing cycle time.

Accepted Answer

A) True 
 B)False

Exam 18: Performance Measurement to Support Business Strategy

A business model is a description of how different levels and employees in the organization must perform for the organization to achieve its goals and objectives.This is the definition of a business model.

The Albertville Co.has the following information for last year: The partial productivity for labor is:

In the balanced scorecard,the customer perspective addresses which of the following questions?

Which of the following balanced scorecard perspectives focuses on shareholder's interests?

A description of an organization's values,definition of its responsibilities to stakeholders,and identification of its major strategies is called its:

The Albertville Co.has the following information for last year: The partial productivity for material is:

Which of the following items is not part of the continuous improvement philosophy?

Which of the following represents value-added time in the manufacturing cycle?

One question that an organization's mission statement should answer is how the organization will evaluate its performance relative to its competitors.A mission statement describes internal values and responsibilities.

One disadvantage of using nonfinancial measures to evaluate performance is that they are only available on a monthly,quarterly,or annual basis.They are available in shorter time periods or in real-time.

Which of the following balanced scorecard perspectives focuses on customer service issues?

The Pepin Company collected the following information (in days) : What is the manufacturing cycle efficiency?

The Alma Company collected the following information (in days) : What is the manufacturing cycle time?

Continuous improvement involves the search for and implementation of the best way to do something as practiced by other organizations or in other parts of one's own organization.This is benchmarking.

Paro Products Co.has provided the following information for last year: The total factor productivity measure is:

In general,all managers in a given organization are responsible for the same things and should be evaluated using the same financial and nonfinancial measures.Managers are responsible for diverse operations and need specialized measures.

In the balanced scorecard,the financial perspective addresses which of the following questions?

A balanced scorecard shows measures of performance as they related to areas of performance.Which of the following is a measure of performance of customer value?

The Cascade Machining Co.has the following information for last year: The partial productivity for labor is:

Manufacturing cycle time is the total time involved in processing,moving,storing,and inspecting a good or providing a service.This is the definition of manufacturing cycle time.