Which of the following statements is true with respect to the performance metrics useful for productivity improvement? A)Cost of quality can be a useful measure for improvements conducted in one department of a company (INCORRECT) B)When the number of the indirect labor increases in relation to the direct labor, the productivity increases C)When the lead time to work content in a process is nearly equal, the process is likely to have very little waste D)When the First Pass Yield is more, we have greater opportunity to detect defects in the process when it is executed

Which of the following statements is true with respect to the performance metrics useful for productivity improvement? A)Cost of quality can be a useful measure for improvements conducted in one department of a company (INCORRECT) B)When the number of the indirect labor increases in relation to the direct labor, the productivity increases C)When the lead time to work content in a process is nearly equal, the process is likely to have very little waste D)When the First Pass Yield is more, we have greater opportunity to detect defects in the process when it is executed

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter15: Lean Accounting And Productivity Measurement

Section: Chapter Questions

Problem 20E: Total productive efficiency is achieved when both technical efficiency and allocative efficiency are...

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Total productive efficiency is achieved when both technical efficiency and allocative efficiency are achieved. For a given mix of inputs that produce a given output, which of the following is consistent with improving technical efficiency (using the given input-output mix as the benchmark)? a. More output is produced using more inputs. b. More output is produced with the same inputs. c. More inputs are used to produce the same output. d. The least costly technically efficient input combination is chosen.
What is downsizing? A. An integrated approach configuring processes, products, and people to match costs to the activities that need to be performed for operating effectively and efficiently in the present and future. B. A comparison of the quantity of output produced with the quantity of an individual input used. C. The amount of productive capacity available over and above the productive capacity employed to meet customer demand in the current period. D. An organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.
In a manufacturing setting, "the best short-term profit maximization approach is to maximize contribution unit times the number of units sold." Discuss the truthfulness of the statement and show by way of examples how you would set about demonstrating the accuracy of such a statement.
Describe how total variable costs and unit variable costs behave with changes in the level of activity. Describe the behavior of (a) total fixed costs and (b) unit fixed costs as the level of activity increases. In applying the high-low method of cost estimation, how is the total fixed cost estimated? An examination of the accounting records of Larredo Company disclosed a high contribution margin ratio and production at a level below maximum capacity. Based on this information, suggest a likely means of improving operating income. If the unit cost of direct materials is decreased, what effect will this change have on the break-even point? What does operating leverage measure, and how is it computed?
The production manager wants to achieve real and permanently decrease in the unit cost of the product. As you are the cost accountant of the company, which of the following concepts explains about real and permeant decrease in the unit cost of the product? a. Cost estimation b. Cost analysis c. Cost control d. Cost reductio
Using the revenue per employee ratio as an indicator for productivity will lead to outsourcing of personnel, even when it increases cost.True or false? And why?
When comparing absorption costing with variable costing, which of the following statements is not true? A. Absorption costing enables managers to increase operating profits in the short runby increasing inventories.B. When sales volume is more than production volume, variable costing will result inhigher operating profit.C. A manager who is evaluated based on variable costing operating profit would betempted to increase production at the end of a period in order to get a more favorablereview.D. Under absorption costing, operating profit is a function of both sales volume andproduction volume.
The contribution margin approach helps managers in short-term decision making because it A. reports costs and revenues at present value B. reports only mixed costs C. treats fixed manufacturing overhead as product costs D. isolates costs by behavior
In detail discuss what are the advantages and disadvantages of using FIFO for process costing. In periods when costs are increasing how will FIFO affect reported net income? What about in periods of declining costs? Explain.
Which of the following decreases the non-value added time of producing a product and in turn increases the quality of the product?a. Redesigning products b. Increasing movements of subassemblies c. Adding processes in production d. Increasing time spent on delivery of products
PLEASE ANSWER ALL. Write “True” if the statement is true and write “False” if the statement is false A fixed cost is constant per unit of product. Cost accumulation, cost allocation, and cost objects are interrelated. A variable cost remains constant per unit, though in total increases as activity levels increase.
Which of the following defines variable cost behavior?a. Total cost reaction to increase in activity (Remain Constant); Cost per unit reaction toincrease in activity (Remains Constant)b. Total cost reaction to increase in activity (Remain Constant); Cost per unit reaction toincrease in activity (Increases)c. Total cost reaction to increase in activity (Increases); Cost per unit reaction to increasein activity (Increases)d. Total cost reaction to increase in activity (Increases); Cost per unit reaction to increasein activity (Remains Constant)