Deck 16: Operational Performance Measurement: Further Analysis of Productivity and Sales

Question 1

A selling price variance is:

A)Further divided into separate sales quantity and sales mix variances.
B)Further divided into separate revenue and quantity variances.
C)Not further divided.
D)Further divided into separate flexible budget and sales volume variances.
E)Further divided into separate variable and fixed variances.

Answer 1

C

Question 2

The market size variance arises because of changes:

A)In the total market size of the firm's product.
B)In the firm's proportion in the total market.
C)In the number of firms in the market.
D)In the firm's total sales volume.

Answer 2

A

Question 3

Decreasing selling prices in order to secure higher sales volumes or market shares:

A)Will always generate higher sales volumes and market shares.
B)Can have a negative impact on a firm's profitability.
C)Should not usually affect profitability.
D)Should not usually affect contribution margins.
E)Should not usually affect sales mix.

Answer 3

B

Question 4

Which one of the following does not use the dollar amount of the input in assessing productivity?

A)Financial productivity.
B)Total productivity.
C)Operational productivity.
D)Productivity.
E)Partial financial productivity.

Question 5

Efforts to improve productivity should be focused only on:

A)Quality.
B)Non-value-added activities.
C)Value-added activities.
D)Inputs.
E)Outputs.

Question 6

The sales mix variance for a firm is ultimately expressed in terms of:

A)Units.
B)Ratios.
C)Percentages.
D)Mixes.
E)Dollars.

Question 7

A partial operational productivity measure:

A)Uses physical units in both the numerator and denominator.
B)Is harder to understand than a partial financial productivity measure.
C)Is affected by price changes and other factors.
D)Is a comprehensive productivity measure.
E)Has the advantage of considering the effects of both speed and quantity of a resources input on productivity.

Question 8

The two major contributing factors to a sales volume variance are deviations in:

A)Market size and market share.
B)Market size and sales quantity.
C)Sales mix and selling price.
D)Sales mix and sales quantity.
E)Sales price and sales quantity.

Question 9

A primary objective in measuring productivity is to improve operations either by using fewer inputs to produce the same output, or to produce:

A)More quickly.
B)More effectively.
C)With fewer constraints.
D)More outputs with the same inputs.
E)More outputs with more inputs.

Question 10

An unfavorable sales mix variance arises for a product when the:

A)Actual units sold are greater than the budgeted units to be sold.
B)Actual units sold are less than the budgeted units to be sold.
C)Actual sales mix percentage is less than the budgeted sales mix percentage.
D)Budgeted sales mix percentage is less than the actual sales mix percentage.
E)Total actual sales dollar from the product is less than the budgeted sales dollar for the product.

Question 11

The experience of many firms is that improvements in quality:

A)Decrease productivity.
B)Have no significant effect on productivity.
C)First increase, and then decrease productivity.
D)Increase productivity.
E)Restrict productivity improvements.

Question 12

Which one of the following measures the relationship between the output attained and the total input costs of all the required input resources?

A)Partial financial productivity.
B)Total productivity.
C)Partial operational productivity.
D)Total financial productivity.
E)Partial productivity.

Question 13

When the mix of products sold shifts toward the high contribution margin product, the total:

A)Sales mix variance is favorable.
B)Sales volume variance is favorable.
C)Market mix variance is favorable.
D)Sales mix variance is unfavorable.
E)Sales price variance is favorable.

Question 14

The sales volume variance is:

A)Further divided into separate sales quantity and sales mix variances.
B)Further divided into separate revenue and quantity variances.
C)Not further divided.
D)Further divided into separate flexible budget and sales volume variances.
E)Further divided into separate variable and fixed variances.

Question 15

Productivity can be thought of as:

A)The relationship between what is produced and the capacity to produce.
B)Doing more with less.
C)The ratio of output to input.
D)Throughput margin divided by output.

Question 16

Which one of the following uses the number of units of an input factor in its assessment of productivity?

A)Partial financial productivity.
B)Total productivity.
C)Operational productivity.
D)Partial productivity.

Question 17

One major problem in measuring the productivity of a not-for-profit organization is the absence of:

A)Overhead costs.
B)A common measure for its outputs.
C)Mandatory financial reporting.
D)Materials costs.

Question 18

A measure of productivity can be either:

A)Operational or financial.
B)Total or segmented.
C)Short-term or long-term.
D)Activity-based or TOC based.

Question 19

Which one of the following is a productivity measure that focuses only on the relationship between one of the inputs and the output attained?

A)Financial productivity.
B)Total productivity.
C)Total financial productivity.
D)Productivity.
E)Partial productivity.

Question 20

When the actual sales-mix shifts toward a mix of products with lower contribution margins, there will be negative effects on a firm's:

A)Sales mix and sales quantity variances.
B)Sales quantity and sales volume variances.
C)Sales volume and market mix variances.
D)Market mix and sales mix variance.
E)Sales mix and sales volume variances.

Question 21

Which one of the following is a result of the difference between the actual sales mix and the budgeted sales mix?

A)Sales efficiency variance.
B)Sales quantity variance.
C)Sales price variance.
D)Sales mix variance.
E)Sales volume variance.

Question 22

The partial direct labor operational productivity ratio for 2012 is:

A)262 per unit.
B)169 per unit.
C)428 per unit.
D)300 per unit.
E)333 per unit.

Question 23

The partial operational productivity ratio of DTV-12 in 2012 is:

A)0.63 per unit.
B)0.73 per unit.
C)1.92 per unit.
D)3.00 per unit.
E)3.33 per unit.

Question 24

Sales volume variances can have significant implications for strategic management. An unfavorable sales volume variance may indicate that:

A)The industry is in decline.
B)The company needs a new competitive strategy.
C)Product mix changes are favorable but quantity variances are unfavorable.
D)Labor productivity needs to be addressed

Question 25

(Units sold - budgeted sales units) x (Budgeted contribution margin per unit) equals:

A)Sales-mix variance.
B)Market size variance.
C)Sales quantity variance.
D)Sales volume variance.
E)Flexible budget variance.

Question 26

Weighted-average budgeted contribution margin per unit is:

A)Actual total contribution margin ÷ actual total units.
B)Actual total contribution margin ÷ budgeted total units.
C)Budgeted total contribution margin ÷ actual total units.
D)Budgeted total contribution margin ÷ budgeted total units.
E)Sum of budgeted contribution margin per unit of all products ÷ number of products.

Question 27

The partial financial productivity ratio of DTV-12 in 2012 is:

A)0.33.
B)0.42.
C)2.35.
D)3.66.
E)4.98.

Question 28

The sales quantity variance of a firm arises when the:

A)Mixes of individual products sold differ from the budgeted mixes to be sold.
B)Total units of all products sold differ from the budgeted total units to be sold.
C)Total units of a product sold differ from the budgeted units of the product to be sold.
D)Number of products sold differs from the budgeted number of products to be sold.
E)Actual market size differs from the budgeted market size.

Question 29

Erwin Co. provided the following information for a selected production factor: The actual partial operational productivity ratio of the production factor is (round to two significant digits):

A)0.92 units per gallon.
B)1.00 units per gallon.
C)1.01 units per gallon.
D)1.02 units per gallon.
E)1.11 units per gallon.

Question 30

The effect of changes in the total industry sales of the firm's product is measured by:

A)Market mix variance.
B)Market share variance.
C)Market price variance.
D)Market quantity variance.
E)Market size variance.

Question 31

A firm with a declining market share percentage may still earn a higher operating income if the:

A)Market as a whole is also declining.
B)Market as a whole is stable.
C)Market as a whole is shifting.
D)Market as a whole is growing.
E)Firm reduces operating costs.

Question 32

The partial financial productivity ratio of DTV-12 in 2013 is:

A)0.33.
B)0.42.
C)2.35.
D)3.66.
E)4.98.

Question 33

The market share variance is:

A)(Budgeted contribution margin per unit - actual contribution margin per unit) x (units sold).
B)(Actual market size in units - budgeted market size in units) x (weighted-average budgeted contribution margin per unit).
C)(Actual market size in units - budgeted market size in units) x (weighted-average budgeted contribution margin per unit) x (the budgeted market share).
D)(Actual market share - budgeted market share) x (budgeted total market size) x (weighted average budgeted contribution margin per unit).
E)(Actual market share - budgeted market share) x (actual total market size) x (weighted average budgeted contribution margin per unit).

Question 34

Which one of the following is the result of the [(units sold) x (actual selling price per unit)] - [(units sold) x (budgeted selling price per unit)]:

A)Sales efficiency variance.
B)Sales quantity variance.
C)Selling price variance.
D)Sales mix variance.
E)Sales volume variance.

Question 35

The partial direct labor operational productivity ratio for 2013 is:

A)262 per unit.
B)169 per unit.
C)428 per unit.
D)300 per unit.
E)333 per unit.

Question 36

Darwin, Inc. provided the following information (round calculations to two significant digits): What is the actual partial productivity ratio?

A)0.97 unit per gallon.
B)1.00 units per gallon.
C)1.02 units per gallon.
D)1.06 units per gallon.
E)1.12 units per gallon.

Question 37

The effect of changes in a product's proportion of the total market are measured by:

A)Market mix variance.
B)Market share variance.
C)Market price variance.
D)Market quantity variance.
E)Market size variance.

Question 38

(Budgeted sales mix- actual sales mix) x (total quantity sold) x (budgeted contribution margin per unit of the product) equals:

A)Sales efficiency variance.
B)Sales quantity variance.
C)Sales price variance.
D)Sales mix variance.
E)Sales volume variance.

Question 39

(Budgeted contribution margin per unit) x (units sold - units budgeted to be sold) x (budgeted sales mix of the product) equals:

A)Sales efficiency variance.
B)Sales quantity variance.
C)Sales price variance.
D)Sales mix variance.
E)Sales volume variance.

Question 40

The partial operational productivity ratio of DTV-12 in 2013 is:

A)0.63 per unit.
B)0.73 per unit.
C)1.92 per unit.
D)3.00 per unit.
E)3.33 per unit.

Question 41

The total productivity ratio in 2012 is:

A)0.15.
B)0.21.
C)0.70.
D)1.43.
E)4.83.

Question 42

What is the sales mix variance for Spiders?

A)$1,125 favorable.
B)$1,500 favorable.
C)$1,650 unfavorable.
D)$4,800 favorable.
E)$4,800 unfavorable.

Question 43

In 2012, the partial financial productivity of direct labor is:

A)0.22.
B)0.25.
C)4.00.
D)4.50.
E)5.00.

Question 44

In 2012, the partial financial productivity of Material A is:

A)0.28.
B)0.33.
C)3.00.
D)3.33.
E)3.60.

Question 45

The partial operational productivity of Material H in 2012 is:

A)0.20.
B)0.50.
C)2.00.
D)5.00.
E)6.00.

Question 46

What is the sales volume variance for Spiders?

A)$0.
B)$1,125 favorable.
C)$1,500 favorable.
D)$1,650 unfavorable.
E)$12,375 unfavorablE.= (6,900 - 7,500) x $2.75 = $1,650 unfavorable

Question 47

The partial direct labor financial productivity ratio for 2013 is:

A)0.33.
B)0.42.
C)2.35.
D)3.66.
E)4.98.

Question 48

The contribution margin sales volume variance for Product X is:

A)$26,000 unfavorable.
B)$26,000 favorable.
C)$30,000 unfavorable.
D)$40,000 unfavorable.
E)$65,000 favorablE.Budgeted units: $260,000/$130 = 2,000

Question 49

In 2013, the partial operational productivity of Material H is:

A)0.20.
B)0.55.
C)1.82.
D)3.33.
E)5.00.

Question 50

The total productivity ratio in 2013 is:

A)0.20.
B)0.70.
C)1.00.
D)1.43.
E)5.00.

Question 51

In 2013, the partial direct labor operational productivity is:

A)0.20.
B)0.25.
C)0.40.
D)4.00.
E)5.00.

Question 52

The partial operational productivity of Material A in 2012 is:

A)0.28.
B)0.33.
C)3.00.
D)3.33.
E)3.60.

Question 53

In 2013, the partial financial productivity of Material A is:

A).030.
B).045.
C)2.22.
D)3.33.
E)5.00.

Question 54

The partial direct labor financial productivity ratio for 2012 is:

A)0.33.
B)0.42.
C)2.35.
D)3.66.
E)4.98.

Question 55

What is the sales quantity variance for Spiders?

A)$0
B)$1,500 favorable.
C)$9,843 favorable.
D)$11,250 favorable.
E)$15,468 favorablE.6900 + 3100 = 10,000

Question 56

In 2013, the partial financial productivity of Material H is:

A)0.20.
B)0.55.
C)1.82.
D)3.33.
E)5.00.

Question 57

The partial direct labor operational productivity in 2012 is:

A)0.22.
B)0.25.
C)4.00.
D)4.50.
E)5.00.

Question 58

In 2013, the partial operational productivity of Material A is:

A)0.30.
B)0.45.
C)2.22.
D)3.33.
E)5.00.

Question 59

In 2012, the partial financial productivity of Material H is:

A)0.20.
B)0.50.
C)2.00.
D)5.00.
E)6.00.

Question 60

In 2013, the partial financial productivity of direct labor is:

A)0.20.
B)0.25.
C)0.40.
D)4.00.
E)5.00.

Question 61

What additional information would be needed for Folsom to calculate the dollar impact of changes in market share on November's operating income?

A)Folsom's budgeted market share and the budgeted total market size.
B)Folsom's budgeted market share, the budgeted total market size, and average market selling price.
C)Folsom's budgeted market share and the actual total market size.
D)Folsom's actual market share and the actual total market size.
E)There is no information that would make such a calculation possible.

Question 62

The sales mix variance for Product X is:

A)$22,200 favorable.
B)$43,600 unfavorable.
C)$43,600 favorable.
D)$7,400 unfavorable.
E)$23,200 unfavorablE.Total units: budget = 13,000; actual units = 12,000

Question 63

The selling price variance for Product X is:

A)$0.
B)$30,000 unfavorable.
C)$30,000 favorable.
D)$15,000 favorable.
E)$75,000 unfavorablE.Actual price: $360,000/3,000 = $120

Question 64

The contribution margin sales volume variance for Product Y is:

A)$7,500 favorable
B)$26,000 favorable.
C)$42,500 unfavorable.
D)$52,000 unfavorable.
E)$75,000 favorablE.Budgeted units: $360,000/$60 = 6,000

Question 65

The selling price variance for November is:

A)$15,000 unfavorable.
B)$18,000 unfavorable.
C)$20,000 unfavorable.
D)$30,000 unfavorable.
E)$65,000 unfavorablE.Price = $300,000/6,000 = $50; $235,000/5,000 = $47

Question 66

The weighted-average budgeted contribution margin per unit is:

A)$19.95.
B)$35.50.
C)$30.60.
D)$40.00.
E)$77.50.

Question 67

The effect of the sales volume variance on November's contribution margin is:

A)$15,000 unfavorable.
B)$18,000 unfavorable.
C)$20,000 unfavorable.
D)$30,000 unfavorable.
E)$65,000 unfavorablE.Price = $300,000/6,000 = $50; Variable cost per unit = $180,000/6,000 = $30

Question 68

The selling price variance for Product Y is:

A)$90,000 favorable.
B)$43,200 unfavorable.
C)$90,000 unfavorable.
D)$35,000 favorable.
E)$50,000 unfavorablE.Actual price: $540,000/9,000 = $60

Question 69

The selling price variance for Product X is:

A)$7,500 favorable
B)$26,000 unfavorable.
C)$30,000 unfavorable.
D)$40,000 favorable.
E)$40,000 unfavorablE.Actual price: $202,500/1,500 = $135

Question 70

The contribution margin sales volume variance for Product Y is:

A)$20,500 favorable.
B)$16,000 unfavorable.
C)$30,600 favorable.
D)$40,600 unfavorable.
E)$91,000 unfavorablE.Budgeted units: $520,000/$50 = 10,400

Question 71

The selling price variance for Product Y is:

A)$7,500 favorable.
B)$25,000 unfavorable.
C)$42,500 unfavorable.
D)$52,000 favorable.
E)$75,000 unfavorable.

Question 72

The sales quantity variance for Product X is:

A)$45,350 favorable.
B)$7,400 unfavorable.
C)$6,500 favorable.
D)$23,200 favorable.
E)$43,500 favorablE.Total units: budget = 13,000; actual units = 12,000

Question 73

The firm's market size variance for the period is:

A)$16,000 favorable.
B)$26,000 favorable.
C)$61,200 favorable.
D)$30,600 unfavorable.
E)$91,800 unfavorablE.Budgeted market share = 13,000/130,000 = 10%

Question 74

The firm's market share variance for the period is:

A)$5,670 unfavorable.
B)$30,600 unfavorable.
C)$23,200 favorable.
D)$61,200 favorable.
E)$91,000 favorablE.Market share: budget = 13,00/130,000 = 10%; actual: 12,000/100,000 = 12%

Question 75

The contribution margin sales volume variance for Product X is:

A)$6,600 unfavorable.
B)$8,300 favorable.
C)$12,200 favorable.
D)$12,200 unfavorable.
E)$14,800 favorablE.Budgeted units: $286,000/$110 = 2,600

Question 76

The sales quantity variance for Product X is:

A)$4,000 favorable.
B)$25,000 favorable.
C)$26,000 favorable.
D)$45,000 favorable.
E)$52,000 unfavorablE.Total units: budget = 2,000 + 6,000 = 8,000; actual units = 1,500 + 8,500 = 10,000

Question 77

The sales quantity variance for Product Y is:

A)$4,000 favorable.
B)$25,000 favorable.
C)$26,000 favorable.
D)$45,000 favorable.
E)$52,000 unfavorablE.Total units: budget = 2,000 + 6,000 = 8,000; actual units = 1,500 + 8,500 = 10,000

Question 78

The sales mix variance for Product Y is:

A)$14,400 favorable.
B)$16,250 favorable.
C)$17,400 unfavorable.
D)$18,750 favorable.
E)$33,250 unfavorablE.Total units: budget = 13,000; actual units = 12,000

Question 79

The sales quantity variance for Product Y is:

A)$6,465 favorable.
B)$6,750 favorable.
C)$33,250 favorable.
D)$23,200 unfavorable.
E)$78,000 favorablE.Total units: budget = 13,000; actual units = 12,000

Question 80

The firm's total sales quantity variance for the period is:

A)$16,000 favorable.
B)$34,800 favorable.
C)$24,660 favorable.
D)$30,600 favorable.
E)$66,375 favorablE.$7,400 + $23,200 = $30,600 unfavorable