Deck 19: The Balanced Scorecard and Strategy Maps

Question 1

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
What is the cost per factory hour

A)£4.0
B)£2.5
C)£5.0
D)£40.0

Answer 1

£4.0

Question 2

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
The theory of constraints has its own special definitions

A)Net profit = throughput - operational expense
B)Net profit = throughput + operational expense
C)Net profit = throughput - operational expense - fixed overheads
D)Net profit = throughput - operational expense - variable overheads

Answer 2

Net profit = throughput - operational expense

Question 3

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
TQM/BPR are management accounting techniques with the following important supply chain implications

A)Re-engineering/quality affect supplies e.g.JIT systems
B)External sourcing influenced by cost and design specifications set by the market
C)Sharing of cost and output data enables benefits of partnership sourcing
D)Competition between supply chains rather than individual firms

Answer 3

Re-engineering/quality affect supplies e.g.JIT systems

Question 4

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
What is the contribution per hour for product B?

A)£2.50
B)£3.67
C)£5.0
D)£2.83

Question 5

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
What is the TA ratio for product C

A)£0.625
B)£0.917
C)£1.250
D)£0.708

Question 6

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


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__________________ involves identifying all the possible combinations of two products

A)Objective function
B)Supply chain management
C)Feasible region
D)Throughput accounting

Question 7

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
What is the contribution per hour for product D

A)£2.50
B)£3.67
C)£5.0
D)£2.83

Question 8

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
__________________ is defined as anything that prevents an organization from getting more of what it wants

A)Kaizen costing
B)A constraint
C)Feasible region
D)Corner point

Question 9

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
What is the contribution per hour for product C

A)£2.50
B)£3.67
C)£5.0
D)£2.83

Question 10

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
Real-time IT systems (EDI, ERP and Internet) have the following important supply chain implications

A)Recognition that the cost of acquiring goods and services includes more than just quoted piece price
B)Locked in cost issues may affect suppliers
C)Sharing of cost and output data enables benefits of partnership sourcing.
D)Synchronisation of production plans

Question 11

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
_________________ is defined as a potential solution to a linear programming model
1-1

A)Kaizen costing
B)A constraint
C)Feasible region
D)Corner point

Question 12

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
What is the TA ratio for product A

A)£0.625
B)£0.917
C)£1.250
D)£0.708

Question 13

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
Life cycle costing is a management accounting technique with the following important supply chain implications:

A)Recognition that the cost of acquiring goods and services includes more than just quoted piece price.
B)Locked in cost issues may affect suppliers.
C)Sharing of cost and output data enables benefits of partnership sourcing.
D)Synchronisation of production plans.

Question 14

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
What is the TA ratio for product B?

A)£0.625
B)£0.917
C)£1.250
D)£0.708

Question 15

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
Strategic cost management is a management accounting technique with the following important supply chain implications

A)Progressive cost cuts are required from suppliers
B)Enables JIT supply and purchasing based on knowledge of suppliers
C)Sharing of cost and output data enables benefits of partnership sourcing
D)Competition between supply chains rather than individual firms

Question 16

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
__________________ involves identifying the increase in value that would be created by having one additional unit of a limiting resource.

A)Kaizen costing
B)Supply chain management
C)Feasible region
D)Shadow prices

Question 17

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
__________________ involves planning for continuous cost during the manufacturing cycle

A)Kaizen costing
B)Supply chain management
C)Feasible region
D)Shadow prices

Question 18

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
Target costing is a management accounting technique with the following important supply chain implications:

A)Progressive cost cuts are required from suppliers
B)External sourcing influenced by cost and design specifications set by the market
C)Sharing of cost and output data enables benefits of partnership sourcing
D)Competition between supply chains rather than individual firms

Question 19

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
Total cost of ownership is a management accounting technique with the following important supply chain implications:

A)Recognition that the cost of acquiring goods and services includes more than just quoted piece price.
B)Locked in cost issues may affect suppliers.
C)Sharing of cost and output data enables benefits of partnership sourcing.
D)Synchronisation of production plans.

Question 20

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
__________________ involves planning for incremental improvements in efficiency and reductions in cost

A)Kaizen costing
B)Kaizen budgeting
C)Feasible region
D)Shadow prices

Question 21

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
The theory of constraints has its own special definitions

A)Inventory = stock - machines and buildings
B)Inventory = stock
C)Inventory = stock + WIP
D)Inventory = stock + machines and buildings

Question 22

In the long run constraints can be anticipated through the design of products and processes

Question 23

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
__________________ is a technique for guiding product design through the analysis of the ratio of functionality to cost.

A)Vertical integration
B)Value engineering/value analysis
C)Throughput accounting
D)Throughput accounting ratio

Question 24

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
The theory of constraints has its own special definitions

A)Operating expense = non-material conversion costs excluding labour costs
B)Operating expense = labour costs
C)Operating expense = material conversion costs and labour costs
D)Operating expense = non-material conversion costs especially labour costs

Question 25

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
What is the contribution per hour for product A

A)£2.50
B)£3.67
C)£5.0
D)£2.83

Question 26

SSCs aren't aimed at one of the following

A)delighting service customers
B)slimmed down management
C)enhancing shareholder value
D)promote efficiency

Question 27

Working overtime is not an effective way of increasing the capacity of a bottleneck

Question 28

In linear programming opportunity costs are known as shadow prices

Question 29

In the short-run organisations do not have resource constraints

Question 30

A constraint is anything that prevents you getting more of what you want

Question 31

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
Kaizen costing is a management accounting technique with the following important supply chain implications:

A)Progressive cost cuts are required from suppliers.
B)External sourcing influenced by cost and design specifications set by the market.
C)Sharing of cost and output data enables benefits of partnership sourcing.
D)Competition between supply chains rather than individual firms.

Question 32

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
What is the TA ratio for product D

A)£0.625
B)£0.917
C)£1.250
D)£0.708

Question 33

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
__________________ involves calculating the effect of other possibilities

A)Kaizen costing
B)Sensitivity analysis
C)Feasible region
D)Shadow price

Question 34

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
The theory of constraints has its own special definitions

A)Throughput = sales + material and purchased services
B)Throughput = sales - purchased services
C)Throughput = sales - material and purchased services
D)Throughput = material and purchased services

Question 35

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$


-
Open-book accounting is a management accounting technique with the following important supply chain implications

A)Progressive cost cuts are required from suppliers
B)Enables JIT supply and purchasing based on knowledge of suppliers
C)Sharing of cost and output data enables benefits of partnership sourcing
D)Synchronisation of production plans

Question 36

Target costing may not be implemented if it is thought to be too time-consuming

Question 37

Traditional costing seems to focus too much on costs as they are incurred

Question 38

Typically only a small percentage of costs are committed at the pre-production stages

Question 39

Benchmarking is a management accounting technique with the following important supply chain implications

A)Progressive cost cuts are required from suppliers
B)Enables JIT supply and purchasing based on knowledge of suppliers
C)Sharing of cost and output data enables benefits of partnership sourcing
D)Synchronisation of production plans

Question 40

SSCs aren't aimed at one of the following

A)cost savings
B)open minded competition externally
C)open minded competition internally
D)increasing research

Question 41

Fixed costs should never be reapportioned to departments when considering SSCs.

Question 42

Explain carefully the advantages of creating a shared service centre (SSC) and the implications for both the supplier and the implications for both the supplier's and customer's business organisations and relationships.

Question 43

Describe 'An Assembler's Chain Management Philosophy'and its importance in the forging of a strategic alliance between and assembler and a supplier

Question 44

Firms may outsource but not for one of the following reasons

A)as a response to constraints.
B)to cut costs.
C)to free up staff.
D)to get closer to the customer.

Question 45

Outsourcing part of your business is something that will always lead to success

Question 46

Discuss the problems caused by variable costs when taking a shared service centre decision.

Question 47

SSCs may sometimes be treated as profit centres.

Question 48

When allocating lump sum costs to departments when considering SSCs; the actual allocation should vary from period to period.

Question 49

Discuss the problems caused by fixed costs when taking a shared service centre decision.

Question 50

Firms may outsource but not for one of the following reasons

A)access specialist expertise
B)to seek the ideal situation
C)to speed up set up
D)to concentrate on core operations

Question 51

Explain the difference between shared service centres and the outsourcing of services.

Question 52

Discuss the impact of Life Cycle and Target Costing on the whole process of costing. Where d you see the advantages and disadvantages of the two processes.

Question 53

Outsourcing the finance function is a thing that many firms have tried to do

Question 54

Describe a 'Draft Alliance'agreement