Question 1

Germaine Company provided the following information.  What is the partial productivity ratio?

Accepted Answer

To calculate the partial productivity ratio, we divide the total output (3000 units) by the total input (2800 litres). This gives us a ratio of 1.07 units per litre, which rounds to 1.06 units per litre. Therefore, the best choice is C.

Question 2

Which of the following is a major advantage of total factor productivity?

Accepted Answer

Total factor productivity measures the combined productivity of all inputs, including labor, capital, and materials. This allows for a more comprehensive understanding of overall productivity and can help identify areas for improvement. Control over inputs or outputs, marketing mix, or ease of understanding for operations personnel are not inherent advantages of total factor productivity.

Question 3

Justine Ltd. provided the following information.  What is the partial productivity ratio?

Accepted Answer

The answer of Justine Ltd. provided the following information. ...

Question 4

________ is the ratio of the quantity of output produced to the costs of all inputs used, where the inputs are combined on the basis of current period prices.

Accepted Answer

The answer of ________ is the ratio of the quantity...

Question 5

Total factor productivity (TFP) is easy to compute for a single-product company. When dealing with a multiproduct company, one of two adjustments must be made. What are these potential adjustments?

Accepted Answer

The answer of Total factor productivity (TFP) is easy to...

Question 6

Frazier Company provided the following information:  What is the partial productivity ratio?

Accepted Answer

The answer of Frazier Company provided the following information: ...

Question 7

A disadvantage of total factor productivity over partial productivity is that

Accepted Answer

The answer of A disadvantage of total factor productivity over...

Question 8

Grader Company manufactures road graders. Because its managers all have engineering backgrounds, it prefers nonfinancial information for its decision-making models. Therefore, it requires that the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a mobile paver.
  Required:
a. What is the partial productivity for direct materials for each year?
b. What is the partial productivity for direct manufacturing labour for each year?
c. What is the total factor productivity for each year?

Accepted Answer

The answer of Grader Company manufactures road graders. Because its...

Question 9

Lake Company manufactures small boats. Because its managers all have engineering backgrounds, they prefer nonfinancial information for their decision-making models. Therefore, they require the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a small boat.
  Required:
a. What is the partial productivity for direct materials for each year?
b. What is the partial productivity for direct manufacturing labour for each year?
c. What is the total factor productivity for each year?

Accepted Answer

The answer of Lake Company manufactures small boats. Because its...

Question 10

Which of the following statements about productivity measures is true?

Accepted Answer

Using productivity measures as a starting point for analysis is important because it helps identify areas for improvement and guides decision-making.

Question 11

The average number of student credit hours taught per faculty member is an example of

Accepted Answer

The answer of The average number of student credit hours...

Question 12

Power Company has been unhappy with the financial accounting variances that its cost accounting system has been producing, because its managers believe that there is more to evaluating an operation than just examining accounting numbers. Therefore, it has started gathering data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of remote control units for televisions, radios, and stereo components.
  Required:
a. What is the partial productivity of direct materials for each year?
b. What is the partial productivity of direct manufacturing labour for each year?
c. Did each area improve between year 1 and year 2? Explain.
d. What will be the projected direct material and labour needs for year 3 if remote control units increase by 6,000 units, assuming Power Company applies the constant returns to scale technology?

Accepted Answer

The answer of Power Company has been unhappy with the...

Question 13

Ranger Electronics Ltd. manufactures a variety of high quality electronic components. Data from the last three months are presented below:
  You are the new assistant controller for Ranger and the controller has asked you to review the performance over the last 3 months and write a summary analysis with your recommendations for follow up or further monitoring. In addition, the controller notes that the company, although it has many detailed performance measures, is considering implementing a balanced scorecard and asks you to identify the measures you think would be most appropriate to include in the balanced scorecard.
Required:
Evaluate the performance of Ranger Electronics over the 3 month period.

Accepted Answer

The answer of Ranger Electronics Ltd. manufactures a variety of...

Question 14

Define engineered and discretionary costs and give two examples of each.

Accepted Answer

The answer of Define engineered and discretionary costs and give...

Question 15

Can a company identify unused capacity and, if so, how can unused capacity be managed?

Accepted Answer

The answer of Can a company identify unused capacity and,...

Question 16

Which of the following would result in an increase in total factor productivity, assuming all other variables are held constant?

Accepted Answer

The answer of Which of the following would result in...

Question 17

Ralph Company has been very aggressive in developing various types of financial and nonfinancial measurement schemes to help with the evaluation of its manufacturing processes. It appears that some of the managers are suboptimizing in that their decision processes are geared solely for their department's benefit, sometimes to the detriment of the organization as a whole.
Required:
What changes in the evaluation system could the company implement to help minimize the suboptimization of the managers' decision-making process?

Accepted Answer

The answer of Ralph Company has been very aggressive in...

Question 18

Fairytale Weddings manufactures wedding dresses. The following information relates to the manufacture of gowns in its Perth plant:
  Required:
Prepare an analysis of change in annual costs from year 1 to year 2 including direct materials, direct manufacturing labour, and total inputs.

Accepted Answer

The answer of Fairytale Weddings manufactures wedding dresses. The following...

Question 19

Vinetta Ltd. provided the following information:  What is the partial productivity ratio?

Accepted Answer

There is no clear indication of what the given information represents, but assuming it is related to production and consumption of a certain input, the partial productivity ratio can be calculated by dividing the total output by the total input. As there is no information on the total output, the partial productivity ratio cannot be calculated. Therefore, the answer cannot be A, C, D or E. The best option is to omit the question or request more information.

Question 20

Electronics Inc. has been unhappy with the financial accounting variances that its cost accounting system has been producing, because its managers believe that there is more to evaluating an operation than just examining accounting numbers. Therefore, it has started gathering data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacturing of remote control units for televisions, radios, and stereo components.
  Required:
a. What is the partial productivity of direct materials for each year?
b. What is the partial productivity of direct manufacturing labour for each year?
c. Did each area improve between year 1 and year 2? Explain.
d. What will be the projected direct material and labour needs for year 3 if remote control units increase by 3,000 units, assuming Electronics, Inc. applies the constant returns to scale technology?

Accepted Answer

The answer of Electronics Inc. has been unhappy with the...

Quiz 13: Strategy, Balanced Scorecard, and Profitability Analysis

Germaine Company provided the following information. What is the partial productivity ratio?

Which of the following is a major advantage of total factor productivity?

Justine Ltd. provided the following information. What is the partial productivity ratio?