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Midterm LẦN 2 - Đề giữa kỳ lần 2 thầy Trịnh Hiệp Thiện môn
Kế toán quản trị 2
Managerial Accounting (Trường Đại học Kinh tế Thành phố Hồ Chí Minh)
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The component division (Division C) of a 25
company, CE, widget manufactures,
which it can sell either to Division E,
which uses the components to make
electronic goods, or externally into a
perfectly competitive market. Demand
for the component is such that Division
C is working at fully capacity.
Components sold to external market
require addition packaging at cost of $3
per unit. Production cost per unit before
taking account of the packaging costs
are: prime cost: $4; variable production
cost: $6 and allocated fixed production
overhead: $7. The external market price
for components is $25 per unit. What
price would CE prefer Division C to use
when selling components to Division E?
a.
$18
b.
$22
c.
$15
d.
$25
During September, 40,000 units of
product were produced. The standard
quantity of material allowed per unit was
four pounds at a standard cost of £6.00
per pound. If there was a unfavorable
materials usage variance of £30,000 for
September, the actual quantity of
materials used must be:
165000 POUNDS.
a.
41,250 pounds
b.
38,750 pounds
c.
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155,000 pounds
d.
165,000 pounds
The costs of goods acquired from
suppliers including incoming freight or
transportation costs are___________:
A
a.
Purchasing costs
b.
Ordering costs
c.
Stockout costs
d.
Carrying costs
Budgeted sales of Y for June are 20,000 a
units. At the end of the production
process for Y, 10% of the production
units are scrapped as defective.
Opening inventories of Y for June are
budgeted to be 11,000 units and closing
inventories will be 9,000 units. All
inventories of finished goods must have
successfully passed the quality control
check. What is the production budget for
Y in June?
a.
20,000 units
b.
19,800 units
c.
18,000 units
d.
16,200 units
Ling-Ching is a small Chinese resturant
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in High Street. The resturant provides
both takeaway and dining facilities. It
has received good reviews in blogs and
local newspapers in relation to the
quality and taste of its food. But 80% of
the customers complain about late
deliveries in the case of takeaways and
the long wait times and slow service in
the case of dining.
The manager has set an objective of
reducing lead times from receipt of order
to delivery.
From the options below, choose in
which perspective of the Balanced
Scorecard method would the objective
to reduce lead times from receipt of
order to delivery most likely be
allocated.
a.
Growth and learning perspective
b.
Internal business process perspective
c.
Customer perspective
d.
Financial perspective
To improve customer profitability,
company should:
B
a.
Strictly enforce their policy that orders must be
handled efficiently
b.
Measure and monitor discounts by both
customer and sales person
c.
Be in an industry with high growth potential
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d.
Show that the costs assigned to individual
customers are variable and can be eliminated
short-run
DJ Company has two product lines, D
and J. Line D has sales of $200,000
during March, a segment margin ratio of
28%, and traceable fixed expenses of
$24,000. The company as a whole had
a contribution margin ratio of 46% and
$230,000 in total contribution margin.
Based on this information, total variable
expenses for product J must have been:
A
a.
$150,000
b.
All are incorrect
c.
$80,000
d.
$120,000
Divison A of The Big Company produced the
following results in the last financial year:
●
Profit: €1,000,000
●
Gross capital employment:
€6,000,000
For evaluation purposes all divisional assets
are valued at original cost. A proposed project
will increase the division's profit by €120,000,
but will require gross assets to increase by
€600,000. The Big Company imposes a 15%
capital charge on its divisions.
Will the evaluation criteria of return on
investment (ROI) and residual income (RI)
motivate Division A's managers to accept the
project? (first answer given is for ROI, second
is for RI).
Franklin's cost formula for its supplies cost is
14184
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$1,350 per month plus $18 per frame. For the
month of June, the company planned for
activity of 716 frames, but the actual level of
activity was 713 frames. The actual supplies
cost for the month was $14,820. The supplies
cost in the flexible budget for June would be
closest to:
In which of the following situations
would the use of the imposed budgets
not be appropriate?
A
a.
In decentralized organizations and acting
autonomously
b.
During the period of economic hardship such as
Covid-19
c.
In a very small business
d.
During the crisis period when the organization’s
survival is challenging
Which of the following statements about
transfer pricing is not true?
A
D???
a.
The most efficient transfer price will be the
opportunity cost of the selling division
b.
If the selling division has no spare capacity, the
transfer price should be the marginal cost of
production, plus any lost contribution
c.
If the selling division has spare capacity, the
transfer price should be the marginal cost of
production
d.
The transfer price should match the selling
division’s cost of capital to customer
Which of the following statements is/ are D
true? (1) - Kaizen costing method is
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based around a calculation involving a
desired profit margin and a competitive
market price; (2) - An important
characteristic of total quality
management is a focus primarily on
internal customers and continuous
improvement measures.
a.
Both statements are true
b.
Statement (2) is true and statement (1) is false
c.
Both statements are false
d.
Statement (1) is true and statement (2) is false
A company is striving to move away from a b
traditional,
hierarchical
organizational
structure. The reason for this is that it is trying
to respond to the requirements of a customer
service-focused business environment, where
quality is a key strategic variable.
Which of the following methods is being
deployed in this case?
a.
Kaizen costing
b.
Total Quality Management
c.
Continuous Process Improvement
d.
Business Process Management
e.
Business Process Re-engineering
A mobile producer has implemented a
C
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TQM system to ensure high quality and
consistency across all outlets. As part of
the scheme, the producer offers a free
replacement to any customer not
completely satisfied with their purchase.
Which of the following best describes
the cost of providing replacement
mobiles?
a.
A prevention cost
b.
An appraisal cost
c.
An external failure cost
d.
An internal failure cost
The K operates a standard costing
system at 200,000 units of budgeted
output. The budgeted fixed
manufacturing overhead of $1,000,000
was $300,000 lower than the actual
cost. Total fixed manufacturing overhead
variance was $100,000 unfavorable.
The actual level of production was:
a.
240,000 units
b.
180,000 units
c.
280,000 units
d.
270,000 units
The best description of flexible budget
is:
A
a.
A budget which is designed to change as
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volume of activity changes on the basis of
analyzing the cost behavior patterns
b.
A twelve-month period budget which includes
semi-variable overhead costs only
c.
A rolling budget which is reviewed quarterly, and
updated accordingly
d.
A budget which improved lead time between the
preparation of the master budget and the
commencement of the budget period
The W investment center trades only the C
product M at the selling price of $120
per unit, variable costs of $50 per unit,
total fixed costs of $1,500,000 each
year. Which amount is the revenue of
the W investment centre in order to
achieve its targeted RI of $1,510,000 at
the minimum rate of return of 10% on
total annual operating assets of
$8,400,000?
a.
$5,160,000
b.
$6,600,000
c.
$3,720,000
d.
All are incorrect
JIL Ltd uses cost based transfer pricing.
Division J transfers a component to Division
L. Division J has costs of £300 per unit, and
Division L has divisional costs of £250 per
unit.
What will Division L's total cost per unit be if
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the mark-up rate is 60%?
a.
£700
b.
£880
c.
All are incorrect
d.
£550
e.
£730
Clear my choice
King Ltd. manufactures electronic
C
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appliances. Last month King Ltd.
recorded the following quality costs: (1)
Discarded electronical components due
to defects: $2,000; (2) Managing
customer complaints: $3,000; (3) Quality
training programs for employees:
$5,000; (4) Supplier audit: $6,000; (5)
Process inspection: $4,500; (6) Work-inprocess inspection: $5,000; (7)
Maintaining equipment used to perform
quality tests: $2,500; (8) Costs of hiring
a technician to fix machine break-down:
$3,000; (9) Legal fees paid to a
customer: $6,000. King Ltd.’s total
appraisal costs was:
a.
$5,000
b.
$9,500
c.
$12,000
d.
$18,000
State whether the statement given below is
TRUE or FALSE by choosing the correct
option from the drop down menu.
S
When the maximum transfer price is greater
than the minimum transfer price then the
internal transfer is more profitable than the
outside supply.
Hãy chọn một:
Đúng
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Sai
A budget should/ can do all of the
following, except:
b?
B
a.
Become the performance standard against
which firms can compare the actual results
b.
Be prepared by managers from different
functional areas working independently of each
other
c.
Be adjusted if new opportunities become
available during the year
d.
Help management allocate limited resources
A company is striving to move away from a
traditional, hierarchical organizational
structure. The reason for this is that it is trying
to respond to the requirements of a customer
service-focused business environment, where
quality is a key strategic variable.
Which of the following methods is being
deployed in this case?
a.
Business Process Re-engineering
b.
Continuous Process Improvement
c.
Business Process Management
d.
Kaizen costing
e.
Total Quality Management
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The A divisionalized company uses
transfer pricing as part of its
management information system. Each
manager is assessed on their divisional
profit. Division A makes a unit for $10
variable cost and $3 of fixed cost is
absorbed. Division B takes these units,
incurs incremental $8 variable cost and
absorb $4. It then sells them for $21.
The transfer price is set at $12. There
are no capacity constraints and all fixed
costs are unavoidable in the short run.
Which of the above statements is true?
a.
From the company’s perspective, production
should not occur
b.
The transfer price goal congruent
c.
The manager of division A does not produce the
units
d.
The manager of division B does not produce the
units
From the options below, select the
statement(s) that is/ are TRUE with
regard to performance measures.
a.
The internal business perspective of the
Balanced Scorecard approach to the provision
of information is concerned only with the
determination of internal transfer prices that will
encourage goal congruent decisions
b.
The residual income will always increase when
investments earning above the cost of capital
are undertaken
c.
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An advantage of the residual income
performance measure is that it facilitates
comparisons between investment centres
d.
If a company uses a balanced scorecard
approach to provide information, it will not use
ROI or Residual Income as divisional
performance measures
Divison A of The Big Company produced A
the following results in the last financial
year:
● Profit: €1,000,000
● Gross capital employment:
€6,000,000
For evaluation purposes all divisional
assets are valued at original cost. A
proposed project will increase the
division's profit by €120,000, but will
require gross assets to increase by
€600,000. The Big Company imposes a
15% capital charge on its divisions.
Will the evaluation criteria of return on
investment (ROI) and residual income
(RI) motivate Division A's managers to
accept the project? (first answer given is
for ROI, second is for RI).
a.
No; Yes
b.
Yes; No
c.
No; No
d.
Yes; Yes
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Which of the following is the advantage
of just-in-time control system?
A
a.
Labour becomes less important
b.
It is easier to switch suppliers
c.
There is a reduced reliance on suppliers
d.
The quality of production improves
From the options below, select the
statement(s) that is/ are TRUE with
regard to performance measures.
a.
The internal business perspective of the
Balanced Scorecard approach to the provision
of information is concerned only with the
determination of internal transfer prices that will
encourage goal congruent decisions
b.
The residual income will always increase when
investments earning above the cost of capital
are undertaken
c.
An advantage of the residual income
performance measure is that it facilitates
comparisons between investment centres
d.
If a company uses a balanced scorecard
approach to provide information, it will not use
ROI or Residual Income as divisional
performance measures
Companies employ the strategy of Just- D
in-Time (JIT) inventory to increase
efficiency and decrease waste by
receiving goods only as they are needed
in the production process, thereby
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reducing inventory costs.
From the options below, select the ONE
cost that a company is likely to reduce
by introducing a JIT system.
a.
Ordering costs
b.
Purchasing costs
c.
Informational system costs
d.
Inventory holding costs
When machine hours are used as cost
allocation base, the item most likely to
contribute to an unfavorable variable
overhead efficiency variance is:
a
a.
Using more machine hours than budgeted
b.
Workers wastefully using variable overhead
items
c.
More units being produced than planned
d.
Unused capacity
From the options given below, select the D ?
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statement that correctly applies to JIT.
a.
With JIT, there is a risk that inventories could
become obsolete
b.
A narrow geographical spread in a business
makes JIT more difficult to apply
c.
JIT is more difficult to implement when it is not
easy to predict patterns of demand
d.
JIT protects an organisation against risks of
disruption in the supply chain
Drag and drop the appropriate words to
complete the paragraph below.
TQM is the process of embracing a blank
conscious blank or culture, as well as
adopting quality blank and procedures
within an organization, aiming towards
blank and blank improvement.
quality philosophy standards perfection
continuous profit cost
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The A Company prepares a cash budget D
for the year 20x2. The balance in trades
receivable on 1/1/20x2 is $460,000. The
budgeted sales for the year 20x2 is
$5,400,000, evenly estimated each
month of the year. Sales at A company
are normally collected as follows: 20%
in the month of sale; 80% in the month
following the sale. Total cash receipts in
the year 20x2 are expected to be:
a.
$5,410,000
b.
$5,890,000
c.
$5,040,000
d.
$5,500,000
Quality control costs can be categorised
into internal failure costs, external failure
costs, appraisal costs and prevention
costs.
From the drop down boxes, select the
category of quality costs under which
the following costs fall.
The cost of a customer
service team
Answer 1
Chọn...appraisa
l costsexternal
failure
costsinternal
failure
costsprevention
costs
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The cost of equipment
maintenance
Answer 2
Chọn...appraisa
l costsexternal
failure
costsinternal
failure
costsprevention
costs
The cost of operating test
equipment
Answer 3
Chọn...appraisa
l costsexternal
failure
costsinternal
failure
costsprevention
costs
Drag and drop the appropriate words to
complete the paragraph below.
Drag and drop the appropriate words to
complete the paragraph below.
TQM is the process of embracing a
philosophy conscious standards or culture,
as well as adopting quality continuous and
procedures within an organization, aiming
towards quality and profit improvement.?
O Engineering Ltd has 2 divisions, B
and D. B makes a component which it
can sell only to D. It has no external
market. Current information for the
divisions is as follows:
- Incremental cost for Division B is £20
- Incremental cost for Division D is £40
- Transfer price for the component is
£32 (the transfer price is based on a
60% mark up on incremental costs).
- The selling price of the final product is
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£500
Another manufacturer PP & Co. has
offered to sell to Division D the same
component it currently gets from
Division B for £25 per unit.
If O Engineering accepts PP & Co's
offer, O Engineering will be:
a.
£5 per unit better off
b.
£7 per unit better off
c.
£5 per unit worse off
d.
£7 per unit worse off
D
The K operates a standard costing
system at 200,000 units of budgeted
output. The budgeted fixed
manufacturing overhead of $1,000,000
was $300,000 lower than the actual
cost. Total fixed manufacturing overhead
variance was $100,000 unfavorable.
The actual level of production was:
a.
180,000 units
b.
270,000 units
c.
280,000 units
d.
240,000 units
JIL Ltd uses cost based transfer pricing.
Division J transfers a component to
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Division L. Division J has costs of £300
per unit, and Division L has divisional
costs of £250 per unit.
What will Division L's total cost per unit
be if the mark-up rate is 60%?
a.
All are incorrect
b.
£730
c.
£700
d.
£880
e.
£550
Division Z manufactures chemicals. It
sells chemicals to the external market at
a price of $22 per litre. This provides a
contribution/sales ratio of 40%. Division
X (a separate part of the same group
company) requires a regular supply of
chemicals in order to manufacture their
own products.
A
For external sales, variable cost
includes $1.20 per litre for extra courier
charges. These are not applicable to
internal sales. Z has sufficient capacity
to meet all internal and external
demand.
Which price range would maximise profit
from the company's perspective?
a.
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$12-$22
b.
$1.20-$22
c.
$13.20-$22
d.
$22-$23.20
e.
All are incorrect
Division A sells its products internally to
Division B, which in turn, produces B’s
products that sell for $10 per unit.
Division A incurs costs of $1.25 per unit
while Division B incurs additional costs
of $5.00 per unit. Assuming the transfer
price of A’s production to Division B is
set at $2.00 per unit, what amount
correctly reflects the company's
operating income per unit?
A
a.
$3.75
b.
$2.50
c.
$1.25
d.
$0.75
Which of the following is the best
description of an investment centre?
D
a.
A centre in which managers has control over
only for costs
b.
A centre in which managers has control over
only for financial outputs in form of generating
sales revenue
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c.
A centre in which managers has control over for
profit
d.
A centre in which managers has control over for
costs, revenues and current as well non-current
operating assets
From the options below, select the
statement(s) that is/ are TRUE with
regard to performance measures.
a.
The internal business perspective of the
Balanced Scorecard approach to the provision
of information is concerned only with the
determination of internal transfer prices that will
encourage goal congruent decisions
b.
The residual income will always increase when
investments earning above the cost of capital
are undertaken
c.
An advantage of the residual income
performance measure is that it facilitates
comparisons between investment centres
d.
If a company uses a balanced scorecard
approach to provide information, it will not use
ROI or Residual Income as divisional
performance measures
The A company’s costs for January were A
budgeted at $16,300. For February they
were budgeted at $14,100. Budgeted
output for January was 4,800 units and
for February 4,200 units. Any output
level over 4,500 units requires an extra
$200 spending on maintenance of the
equipment. Budgeted output for March
was 4,600 units whilst actual output was
4,700 units. Which of the following is the
nearest to the flexed budget cost for
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March?
a.
$15,700
b.
$17,400
c.
$16,000
d.
$15,800
Divison A of The Big Company produced
the following results in the last financial
year:
● Profit: €1,000,000
● Gross capital employment:
€6,000,000
For evaluation purposes all divisional
assets are valued at original cost. A
proposed project will increase the
division's profit by €120,000, but will
require gross assets to increase by
€600,000. The Big Company imposes a
15% capital charge on its divisions.
Will the evaluation criteria of return on
investment (ROI) and residual income
(RI) motivate Division A's managers to
accept the project? (first answer given is
for ROI, second is for RI).
a.
No; Yes
b.
No; No
c.
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Yes; No
d.
Yes; Yes
What is the purpose of a flexible
budget?
D
a.
To eliminate cyclical fluctuations in production
reports by ignoring variable costs
b.
To allow management some latitude in meeting
goals
c.
To reduce the total time in preparing the annual
budget
d.
To compare actual and budgeted results at
virtually any level of production
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Which action(s) the A manufacturer
might take to improve its customer
response time?
You opt many answers if possible.
(chọn nhiều)
a.
Manufacturing should only source suppliers who
can supply materials with minimum delay.
b.
Manufacturing needs to assess production
capacity constraints and identify if outsourcing
need to be used in times of full capacity and/or if
capacity need to be increased.
c.
Completed orders need to be delivered
immediately to customers and not stockpiled in
the warehouse.
d.
Customer surveys relating to various features of
the product that represent value to the customer.
e.
Sales orders should be forwarded to the
manufacturing department immediately they are
received.
f.
Measures include ability of supplier to supply at
the contract price, material quality, delivery
performance, quality of relationships between
employees, union and management.
The P Ltd manufactures timber
bookcases in two production processes:
D
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cutting and assembly. The company has
adopted an activity-based costing
system and has identified the following
activities: (1) moving timber to
production: $10,000; (2) storing timber:
$15,000; (3) disposing of planks that are
too short: $20,000; (4) setting up circular
saw: $12,000; (5) painting bookcase:
$34,000. Total costs of non-value added
activities is:
a.
$91,000
b.
$45,000
c.
$57,000
d.
$37,000
State whether the statement given
below is TRUE or FALSE by choosing
the correct option from the drop down
menu.
SAI
When the maximum transfer price is
greater than the minimum transfer price
then the internal transfer is more
profitable than the outside supply.
Hãy chọn một:
Đúng
Sai
A company is striving to move away
from a traditional
C
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, hierarchical organizational structure.
The reason for this is that it is trying to
respond to the requirements of a
customer service-focused business
environment, where quality is a key
strategic variable.
Which of the following methods is being
deployed in this case?
a.
Business Process Re-engineering
b.
Continuous Process Improvement
c.
Business Process Management
d.
Kaizen costing
e.
Total Quality Management
Which of the following statements abo
d
ut transfer pricing is not true?
a.
If the selling division has no spare capacity, the
transfer price should be the marginal cost of
production, plus any lost contribution
b.
If the selling division has spare capacity, the
transfer price should be the marginal cost of
production
c.
The most efficient transfer price will be the
opportunity cost of the selling division
d.
The transfer price should match the selling
division’s cost of capital to customer
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A company is striving to move away
from a traditional, hierarchical
organizational structure. The reason for
this is that it is trying to respond to the
requirements of a customer servicefocused business environment, where
quality is a key strategic variable.
B
Which of the following methods is being
deployed in this case?
a.
Business Process Re-engineering
b.
Kaizen costing
c.
Total Quality Management
d.
Business Process Management
e.
Continuous Process Improvement
O Engineering Ltd has 2 divisions, B and D. B
makes a component which it can sell only to
D. It has no external market. Current
information for the divisions is as follows:
CHỊU
- Incremental cost for Division B is £20
- Incremental cost for Division D is £40
- Transfer price for the component is £32 (the
transfer price is based on a 60% mark up on
incremental costs).
- The selling price of the final product is £500
Another manufacturer PP & Co. has offered to
sell to Division D the same component it
currently gets from Division B for £25 per unit.
If O Engineering accepts PP & Co's offer, O
Engineering will be:
Companies employ the strategy of Justin-Time (JIT) inventory to increase
efficiency and decrease waste by
B
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receiving goods only as they are needed
in the production process, thereby
reducing inventory costs.
From the options below, select the ONE
cost that a company is likely to reduce
by introducing a JIT system.
a.
Informational system costs
b.
Inventory holding costs
c.
Ordering costs
d.
Purchasing costs
From the options below, select the ONE
which would NOT be an example of an
internal failure cost for an organisation.
a.
Failure analysis and correction of defects found
in production
b.
Scrap of materials and work-in-progress
c.
Training staff to reduce defects during the
production process
d.
Re-inspection of goods after defects have been
found in production
Which of the following is the best
description of an investment centre?
c
a.
A centre in which managers has control over for
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profit
b.
A centre in which managers has control over
only for financial outputs in form of generating
sales revenue
c.
A centre in which managers has control over for
costs, revenues and current as well non-current
operating assets
d.
A centre in which managers has control over
only for costs
Division Z manufactures chemicals. It
sells chemicals to the external market at
a price of $22 per litre. This provides a
contribution/sales ratio of 40%. Division
X (a separate part of the same group
company) requires a regular supply of
chemicals in order to manufacture their
own products.
For external sales, variable cost
includes $1.20 per litre for extra courier
charges. These are not applicable to
internal sales. Z has sufficient capacity
to meet all internal and external
demand.
Which price range would maximise profit
from the company's perspective?
a.
$22-$23.20
b.
$13.20-$22
c.
$12-$22
d.
$1.20-$22
e.
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All are incorrect
The divisional performance appraisal
measures RI and ROI both have
advantages and disadvantages.
Match the advantages and
disadvantages listed below to the
appraisal measures they describe.
Does not take account of the
relationship between the size of the
division's assets and the profit it can
generate
Answ
Encourage managers to think about
the costs of financing investment
Answ
er 1
Chọ
n...R
OIRI
er 2
Chọ
n...R
OIRI
Facilitates comparisons between
divisions
Answ
er 3
Chọ
n...R
OIRI
Widely used
Answ
er 4
Chọ
n...R
OIRI
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Reduce the risks of dysfunctional
decision making
Answ
er 5
Chọ
n...R
OIRI
Allows for more detailed analysis in
form of secondary ratios
Answ
er 6
The divisional performance appraisal
measures RI and ROI both have
advantages and disadvantages.
Match the advantages and
disadvantages listed below to the
appraisal measures they describe.
Encourage managers to think about
the costs of financing investment
Ans
wer
1
Chọ
n...R
IROI
Widely used
Ans
wer
2
Chọ
n...R
IROI
Allows for more detailed analysis in
form of secondary ratios
Ans
wer
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3
Chọ
n...R
IROI
Reduce the risks of dysfunctional
decision making
Ans
wer
4
Chọ
n...R
IROI
Does not take account of the
relationship between the size of the
division's assets and the profit it can
generate
Ans
wer
5
Chọ
n...R
IROI
Facilitates comparisons between
divisions
Which action(s) the A manufacturer
might take to improve its customer
response time?
You opt many answers if possible.
a.
Manufacturing should only source suppliers who
can supply materials with minimum delay.
b.
Measures include ability of supplier to supply at
the contract price, material quality, delivery
performance, quality of relationships between
employees, union and management.
c.
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Customer surveys relating to various features of
the product that represent value to the customer.
d.
Completed orders need to be delivered
immediately to customers and not stockpiled in
the warehouse.
e.
Sales orders should be forwarded to the
manufacturing department immediately they are
received.
f.
Manufacturing needs to assess production
capacity constraints and identify if outsourcing
need to be used in times of full capacity and/or if
capacity need to be increased.
JIL Ltd uses cost based transfer pricing.
Division J transfers a component to
Division L. Division J has costs of £300
per unit, and Division L has divisional
costs of £250 per unit.
What will Division L's total cost per unit
be if the mark-up rate is 60%?
a.
£700
b.
£880
c.
All are incorrect
d.
£550
e.
£730
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Ling-Ching is a small Chinese resturant
in High Street. The resturant provides
both takeaway and dining facilities. It
has received good reviews in blogs and
local newspapers in relation to the
quality and taste of its food. But 80% of
the customers complain about late
deliveries in the case of takeaways and
the long wait times and slow service in
the case of dining.
The manager has set an objective of
reducing lead times from receipt of order
to delivery.
From the options below, choose in
which perspective of the Balanced
Scorecard method would the objective
to reduce lead times from receipt of
order to delivery most likely be
allocated.
a.
Financial perspective
b.
Internal business process perspective
c.
Growth and learning perspective
d.
Customer perspective
Divison A of The Big Company produced
the following results in the last financial
year:
● Profit: €1,000,000
● Gross capital employment:
€6,000,000
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For evaluation purposes all divisional
assets are valued at original cost. A
proposed project will increase the
division's profit by €120,000, but will
require gross assets to increase by
€600,000. The Big Company imposes a
15% capital charge on its divisions.
Will the evaluation criteria of return on
investment (ROI) and residual income
(RI) motivate Division A's managers to
accept the project? (first answer given is
for ROI, second is for RI).
a.
Yes; No
b.
No; Yes
c.
No; No
d.
Yes; Yes
Companies employ the strategy of Just- a?
in-Time (JIT) inventory to increase
efficiency and decrease waste by
receiving goods only as they are needed
in the production process, thereby
reducing inventory costs.
From the options below, select the ONE
cost that a company is likely to reduce
by introducing a JIT system.
a.
Purchasing costs
b.
Informational system costs
c.
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Inventory holding costs
d.
Ordering costs
When machine hours are used as cost
allocation base, the item most likely to
contribute to an unsuitable variable
overhead efficiency variance is:
a.
Unused capacity
b.
Workers wastefully using variable overhead
items
c.
More units being produced than planned
d.
Using more machine hours than budgeted
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