Question
1. Reasons for failure to implement the balanced scorecard effectively include all except which of the following? Multiple Choice Measuring the results incorrectly. Failure to
1. Reasons for failure to implement the balanced scorecard effectively include all except which of the following?
Multiple Choice
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Measuring the results incorrectly.
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Failure to validate the assumptions in the strategy map.
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Setting the wrong performance targets.
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Failure to link nonfinancial measures to strategy.
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Failure to include SEC reporting responsibilities
2.
In a formal management control system, top management sets expectations for desired manager performance. Which of the following is not one of the areas in which a formal individual management control system would be used?
Multiple Choice
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Organizational culture.
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Sales.
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Promotion policies.
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Hiring practices.
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Operations.
3.
The most important objective of a strategic performance measurement system is:
Multiple Choice
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Motivation.
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Variances.
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Authority.
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Pricing.
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Budgeting.
4.
Lens Care Inc. (LCI) manufactures specialized equipment for polishing optical lenses. There are two models - one mainly used for fine eyewear (F-32) and another for lenses used in binoculars, cameras, and similar equipment (B-13). The manufacturing cost of each unit is calculated using activity-based costing, using the following manufacturing cost pools:
Cost Pools | Allocation Base | Costing Rate | ||
Materials handling | Number of parts | $ | 2.40 | per part |
Manufacturing supervision | Hours of machine time | $ | 14.80 | per hour |
Assembly | Number of parts | $ | 3.30 | per part |
Machine setup | Each setup | $ | 56.50 | per setup |
Inspection and testing | Logged hours | $ | 45.50 | per hour |
Packaging | Logged hours | $ | 19.50 | per hour |
LCI currently sells the B-13 model for $1,775 and the F-32 model for $1,220. Manufacturing costs and activity usage for the two products are as follows:
B-13 | F-32 | ||||||
Direct materials | $ | 164.50 | $ | 75.60 | |||
Number of parts | 160 | 120 | |||||
Machine hours | 7.90 | 4.20 | |||||
Inspection time | 1.70 | 0.80 | |||||
Packaging time | 0.90 | 0.50 | |||||
Setups | 3.00 | 2.00 | |||||
The market price for B-13 and F-32 are reduced to $1,695 and $1,095 respectively. To achieve the target cost, Lens Care plans to reduce materials handling costs. How many parts must be removed from F-32 in order to achieve the target cost for F-32 (round up to whole units)?
Multiple Choice
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34
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38
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53
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46
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22
5.
Manders Manufacturing Corporation uses the following model to determine an optimal short-term product mix for its two products, metal (M) and scrap metal (S):
Max Z = $30M + $70S
Where: 3M + 2S 15
2M + 4S 18
The two inequality functions in the above set of items represent:
Multiple Choice
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Resource constraints.
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Objective function coefficients.
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Contribution margin functions.
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Sensitivity functions.
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Shadow points.
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