BALANCED SCORECARD & GLOBAL CONTEMPORARY/EMERGING ISSUES IN MANAGEMENT ACCOUNTING Flashcards
1
Q
- The balanced scorecard has been adopted by many corporations. Which best describes the balanced scorecard?
a. A strategy that meets management’s objectives.
b. A diagram illustrating cause and effect relationships
c. A table of key actions to achieve strategic objectives
d. A strategic performance measurement and management framework
A
d. A strategic performance measurement and management framework
2
Q
- A balanced scorecard is primarily concerned with
a. Staff
b. Strategy
c. Systems
d. Structure
A
3
Q
- It is an operational factor that directly affects the economic viability of the organization.
a. Key success factor
b. Continuous improvement
c. Customer focus
d. Supply chain
A
a. Key success factor
4
Q
- Strategy should focus PRIMARILY on the organization’s
a. Products
b. Customers
c. Employees
d. Shareholders
A
b. Customers
5
Q
- To be successful, a company needs to be:
a. Employee driven
b. Customer driven
c. Management driven
d. “Driven” by the board of directors
A
b. Customer driven
6
Q
- Which of the following is NOT a way for a company to improve customer response time?
a. Use faster delivery procedures
b. Produce the product more quickly
c. Purchase material in larger quantities
d. Increase capacity of bottleneck operations
A
c. Purchase material in larger quantities
7
Q
- Which balanced scorecard performance measure is part of those used for internal business processes perspective?
a. Cycle time
b. Employee satisfaction {Learning & Growth}
c. Customer retention {Customers}
d. Return on investment {Financial}
A
8
Q
- Which of the following is NOT an appropriate measure of internal business process performance?
a. Quality costs
b. Delivery cycle time
c. Manufacturing cycle efficiency
d. Number of customer complaints {Customers}
A
d. Number of customer complaints {Customers}
9
Q
- Moscow Manufacturing Corporation has the following information:
Moving time 8 days
Processing time 10 days
Inspection time 2 days Storage time 30 days
What is the manufacturing cycle efficiency (MCE)?
a. 20%
b. 25%
c. 60%
d. 80%
A
a. 20%
Solution: MCE: value-added time ÷ throughput time (manufacturing cycle) = 10 ÷ (8+2+10+30)
10
Q
- Productivity is measured by the
a. Total quantity of input used to generate total quantity of output for a period
b. Total quantity of output generated from a limited amount of input during a period
c. Quantity of good output generated from a specific amount of input during a period
d. Quantity of good output generated from the quantity of good input used during a period
A
c. Quantity of good output generated from a specific amount of input during a period
11
Q
11.The approaches and activities of managers in short-run and long-run planning and control decisions that increase value
for customers and lower costs of products and services are known as
a. Cost management
b. Value chain management
c. Enterprise resource planning
d. Customer value management
A
a. Cost management
12
Q
- An Enterprise Resource Planning (ERP) system can best be described as:
a. a collection of programs that use a variety of unconnected databases
b. a sophisticated means of linking two or more companies to facilitate their planning processes
c. a database that is primarily used by a purchasing department to determine the correct amount of a particular supply item to purchase
d. a single database that collects data and feeds it into applications that support each of the company’s business activities, such as purchases, production, distribution, and sales
A
d. a single database that collects data and feeds it into applications that support each of the company’s business activities, such as purchases, production, distribution, and sales
13
Q
- It is an approach to continuous improvement that focuses on serving customers and uses front-line workers to identify and solve problems systematically.
a. ABC system
b. Just-in-time (JIT) system
c. Total quality management (TQM)
d. Process value analysis
A
c. Total quality management (TQM)
14
Q
- Total Quality Management (TQM) should be viewed as
a. Goal centered and standard driven
b. Policy centered and procedure driven
c. Customer centered and employee driven
d. Management centered and technology driven
A
c. Customer centered and employee driven
15
Q
- Which of the following quality tools is another term for gradual yet continuous improvement?
a. Theory of constraints
b. Kaizen
c. Business process reengineering
d. Kanban system
A
16
Q
- Business Process Reengineering (BPR) is a more radical approach to improvement than TQM since BPR
a. Requires a change in the company’s products
b. Involves completely redesigning business processes by outside consultants
c. Involves redesigning business processes and eliminating value-added activities
d. Empowers front-line workers to solve problems and it focuses on attention on solving problems rather
than on finger-pointing
A
17
Q
- Under Theory of Constraints (ToC), improvement efforts should be focused
a. Work center that is a constraint
b. Work center that has no constraint
c. Cost center that incurs the highest costs
d. Cost center that has least number of constraints
A
a. Work center that is a constraint
18
Q
- A company that wants to be known as a world-class manufacturer of quality products shall spend more heavily on
this type of quality costs.
a. Appraisal costs
b. Prevention costs
c. Internal failure costs
d. External failure costs
A
19
Q
- Which of the four quality costs would be the MOST damaging to a company’s ability to build a reputation as a world-class manufacturer of quality products?
a. Appraisal costs
b. Prevention costs
c. Internal failure costs
d. External failure costs
A
d. External failure costs
20
Q
- Following are items included in the quality cost report prepared for the last month:
Employee training costs P 50,000
Product testing P 20,000
Equipment maintenance P 80,000
Rework upon inspection P 25,000
a. Appraisal cost is P 25,000
b. Prevention cost is P 130,000
c. External failure cost is P 20,000
d. Internal failure cost is P 105,000
A
