1. Which of the following is a nonvalue-added activity?

Product design

Customer service

Research and development

Rework of defective items

2. A company's break-even point will not be increased by:

an increase in total fixed costs.

a decrease in the selling price per unit.

an increase in the variable cost per unit.

a decrease in the contribution margin ratio.

an increase in the number of units produced and sold.

3.

Employee involvement is important in an effective performance measurement system because it:

increases the employee's commitment to the organization and its objectives.

decreases the employee's reliance on financial performance measures.

increases the likelihood that goal congruence problems will occur.

decreases the chances of an unfavorable manufacturing cycle time.

4.

Manufacturing cycle efficiency is computed by dividing process time by:

moving time + storage time.

storage time + inspection time.

moving time + storage time + inspection time.

process time + inspection time + moving time.

process time + moving time + storage time + inspection time.