Cost Accounting - Final Exam

The balanced scorecard measures an organization's performance from all of the following perspectives EXCEPT

• financial

• government

• customer

• learning and growth

The first step to successful balanced implementation is clarify the:

• organization's vision and strategy

• elements that pertain to value-added aspects of the business

• owner's expectations about return on investment

• objectives of all four balanced scorecard measurement perspectuves

Measures of the balanced scorecard's customer perspective include all of the following EXCEPT

• market share

• customer satisfaction

• number of new customers

• customer training on new products

Measures of the balanced scorecard's learning-and-growth perspective include

• employee satisfaction ratings

• economic value added

• time taken to deliver product to customers

• customer-retention percentage

Stewart Corporation plans to grow by offering a sound system, the SS3000, that is superior and
unique from the competition. Stewart believes that putting additional resources into R&D and
staying ahead of the competition with technological innovations is critical to implementing its
strategy.
To further company's strategy, measures on the balanced scorecard would most likely include

• number of process improvements

• manufacturing quality

• an increase in operating income form productivity gain

• yield

Which of the following is not a feature of what makes a good balanced scorecard?

• communication of strategy at every level

• using all measures at limited times

• improvements not only to non-financial areas

• link to strategy implementation

Meale Company makes a household appliance with model number X500. The goal for 2018 is to
reduce direct materials usage per unit. No defective units are currently produced. Manufacturing
conversion costs depend on production capacity defined in terms of X500 units that can be
produced. The industry market size for appliances increased 10% from 2017 to 2018. The
following additional data are available for 2017 and 2018
Which strategy is Meale's Corporation pursuing?

• Product differentiation, because the units produced and sold increased

• Product differentiation, because total conversion costs decreased

• Cost leadership, because direct material costs per square foot increased

• Cost leadership, because the selling price decreased

The purpose of the balanced scorecard is best described as helping an organization:

• develop customer relations

• mobilize employee skills for continuous improvements in processing capabilities, quality, and
  response times

• introduce innovative products and services desired by target customers

• translate an organization's mission and strategy into a set of performance measures that help
  to implement the strategy

Which of the following FAIL to satisfy conformance quality?

• machines that fail to meet the needs of customers

• machines that break down

• depositing a customer's check into the correct account

• All of these answers are correct.

Costs incurred in detecting which of the individual units of products do NOT conform to specifications are:

• prevention costs

• appraisal costs

• internal failure costs

• external failure costs