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ACC 223A /
Assessment 4 (Week 17) /
Assessment 4

Started on Monday, 21 June 2021, 12:11 PM

State Finished
Completed on Monday, 21 June 2021, 12:52 PM
Time taken 40 mins 52 secs
Marks 59.00/66.00
Grade 89.39 out of 100.00

Question 1 Activity-based management focuses management’s attention on activities resulting in improving customer value and
Correct profits.

Mark 1.00 out of

1.00 Select one:
True 

False

The correct answer is 'True'.

Question 2 Activity-based costing is very concerned with waste issues.

Correct

Mark 1.00 out of Select one:

1.00
True

False 

The correct answer is 'False'.

Question 3 The activity-based management model has two dimensions: a cost dimension and a process dimension.

Correct

Mark 1.00 out of Select one:

1.00
True 

False

The correct answer is 'True'.

Question 4 Process value consists of three elements: .driver analysis, activity analysis, and performance measurement.

Incorrect

Mark 0.00 out of Select one:

1.00
True 

False

The correct answer is 'False'.

Question 5 Driver analysis identifies performance levels.

Correct

Mark 1.00 out of Select one:

1.00
True

False 

The correct answer is 'False'.

Question 6 Performance measurement is concerned with how well activities are performed.

Correct

Mark 1.00 out of Select one:

1.00
True 

False

The correct answer is 'True'.

Question 7 Financial measures of performance focus on the dollar effect of activity performance changes.

Correct

Mark 1.00 out of Select one:

1.00
True 

False

The correct answer is 'True'.

Question 8 Reducing non-value added costs decreases activity deficiency.

Correct

Mark 1.00 out of Select one:

1.00
True

False 

The correct answer is 'False'.

Question 9 Kaizen costing is concerned with reducing the costs by identifying small, continuous improvement for existing products
Correct and processes.

Mark 1.00 out of

1.00 Select one:
True 

False

The correct answer is 'True'.

Question 10 Identifying, defining, and classifying activities require more attention for ABC than ABM.

Correct

Mark 1.00 out of Select one:

1.00
True

False 

The correct answer is 'False'.

Question 11 Rowbee, Inc., sells one of its products for P40 each. Sales volume averages 2,000 units per year. Recently, its main
Correct competitor reduced the price of its product to P28. Metropolitan expects sales to drop dramatically unless it matches the
Mark 2.00 out of competitor's price. In addition, the current profit per unit must be maintained. Information about the product (for
2.00 production of 2,000) is as follows:

                                                           SQ             AQ      Actual Cost

Materials (pounds)                           4,900          5,000      P20,000

Labor (hours)                                    1,200          1,250        10,000

Setups (hours)                                        0              200          6,000

Material handling (moves)                      0             350           2,000

Warranties (number repaired)                 0             250          10,000

Calculate the target cost for maintaining current market share and profitability.

Answer: 12 

The correct answer is: 12

Question 12
Rowbee, Inc., sells one of its products for P40 each. Sales volume averages 2,000 units per year. Recently, its main
Correct
competitor reduced the price of its product to P28. Metropolitan expects sales to drop dramatically unless it matches the
Mark 2.00 out of
competitor's price. In addition, the current profit per unit must be maintained. Information about the product (for
2.00
production of 2,000) is as follows:

                                                           SQ             AQ      Actual Cost

Materials (pounds)                           4,900          5,000      P20,000

Labor (hours)                                    1,200          1,250        10,000

Setups (hours)                                        0              200          6,000

Material handling (moves)                      0             350           2,000

Warranties (number repaired)                 0             250          10,000

Calculate the non-value-added cost per unit.

Answer: 9.40 

The correct answer is: 9.40

Question 13
Rowbee, Inc., sells one of its products for P40 each. Sales volume averages 2,000 units per year. Recently, its main
Correct
competitor reduced the price of its product to P28. Metropolitan expects sales to drop dramatically unless it matches the
Mark 3.00 out of
competitor's price. In addition, the current profit per unit must be maintained. Information about the product (for
3.00
production of 2,000) is as follows:

                                                           SQ             AQ      Actual Cost

Materials (pounds)                           4,900          5,000      P20,000

Labor (hours)                                    1,200          1,250        10,000

Setups (hours)                                        0              200          6,000

Material handling (moves)                      0             350           2,000

Warranties (number repaired)                 0             250          10,000

If non-value-added costs can be reduced to zero, can the target cost be achieved?

Answer: No 

The correct answer is: No

Question 14 Yori Company has developed cost formulas for the drivers of the following production activities:
Correct
Driver                       Activity                        Fixed              Variable

Mark 2.00 out of Labor hours             Materials                      $ 0                  $ 20

2.00
Labor hours             Labor                               0                    10

Machine hours         Maintenance                10,000                8

Machine hours         Machining                    50,000                2

Number of setups    Inspections                   30,000              200

Number of setups    Setups                             0                    300

Number of                Purchasing                   75,000              3

      purchase orders

The budgeted inspection cost for 20 setups is

Answer: 34,000 

The correct answer is: 34,000

Question 15
Yori Company has developed cost formulas for the drivers of the following production activities:
Correct
Driver                       Activity                        Fixed              Variable

Mark 2.00 out of

2.00 Labor hours             Materials                      $ 0                  $ 20

Labor hours             Labor                               0                    10

Machine hours         Maintenance                10,000                8

Machine hours         Machining                    50,000                2

Number of setups    Inspections                   30,000              200

Number of setups    Setups                             0                    300

Number of                Purchasing                   75,000              3

      purchase orders

The activity levels are projected to be as follows:

Labor hours                                                                         1,000

Machine hours                                                                     5,000

Setups                                                                                    100

Purchase orders                                                                       50

What is budgeted for this projected activity level?

Answer: 295,150 
 The correct answer is: 295,150

Question 16
Yori Company has developed cost formulas for the drivers of the following production activities:
Correct
Driver                       Activity                        Fixed              Variable

Mark 3.00 out of

3.00 Labor hours             Materials                      $ 0                  $ 20

Labor hours             Labor                               0                    10

Machine hours         Maintenance                10,000                8

Machine hours         Machining                    50,000                2

Number of setups    Inspections                   30,000              200

Number of setups    Setups                             0                    300

Number of                Purchasing                   75,000              3

      purchase orders

If the actual activity was 20 setups and the actual fixed cost for inspections was P28,000 and the variable cost for
inspections was P5,000, the total variance for inspections is

Answer: 1,000 favorable 

The correct answer is: 1,000 favorable

Question 17 Setup time for a product is 12 hours. A firm that uses JIT and produces the same product has reduced setup time to
Correct 1 hour. Setup labor is P6 per hour. The non-value-added costs are
Mark 2.00 out of
2.00
Answer: 66 

The correct answer is: 66

Question 18 A company has 5 days of finished goods inventory on hand to avoid stockouts. The carrying costs of the inventory
Correct average P5,000 per day. The value-added costs are

Mark 2.00 out of

2.00
Answer: 0 

The correct answer is: 0

Question 19 Each unit of product requires 16 kgs of material. Due to scrap and rework, each unit has been averaging 18 kgs of
Correct material. The material costs P4 per kg. The value-added costs are

Mark 2.00 out of

2.00
Answer: 64 

The correct answer is: 64

Question 20 A firm's warranty costs are P375,000 per year. A competitor's warranty costs are P175,000 per year. The value-added costs
Correct are

Mark 2.00 out of

2.00
Answer: 0 

The correct answer is: 0

Question 21 The most common form of strategic-based responsibility accounting system is the worksheet.

Correct

Mark 1.00 out of Select one:

1.00
True

False 

The correct answer is 'False'.

Question 22 In a strategic-based responsibility accounting system, stretch targets are established for individual performance measures.

Correct

Mark 1.00 out of Select one:

1.00
True 

False

The correct answer is 'True'.

Question 23 The balanced scorecard is a strategic-based performance management system that identifies four perspectives.

Correct

Mark 1.00 out of Select one:

1.00
True 

False

The correct answer is 'True'.

Question 24 Strategy translation means specifying objectives and percentage of revenues from sale of products.

Correct

Mark 1.00 out of Select one:

1.00
True

False 

The correct answer is 'False'.

Question 25 Customer value is the sum of realization and sacrifice what the customer gives up and receives.

Correct

Mark 1.00 out of Select one:

1.00
True

False 

The correct answer is 'False'.

Question 26 Strategic information availability include processes with real-time feedback.

Correct

Mark 1.00 out of Select one:

1.00
True 

False
 The correct answer is 'True'.

Question 27 The strategy map connects the balanced scorecard strategy with an organization's administration.

Correct

Mark 1.00 out of Select one:

1.00
True

False 

The correct answer is 'False'.

Question 28 In order for the balanced scorecard to succeed, the entire organization must be behind it.

Correct

Mark 1.00 out of Select one:

1.00
True 

False

The correct answer is 'True'.

Question 29 Performance expectations must be established once objectives and measures have been executed and advertised.

Correct

Mark 1.00 out of Select one:

1.00
True

False 

The correct answer is 'False'.

Question 30 Incentives must be structured and resources allocated to support the strategy chosen.

Correct

Mark 1.00 out of Select one:

1.00
True 

False

The correct answer is 'True'.

Question 31 White Industries has the theoretical capability to produce 120,000 units per month but currently produces 90,000 units.
Correct The conversion cost for the month is P2,550,000. There are 7,500 production hours available per month. In addition to
Mark 2.00 out of processing time, it takes 14 minutes of move time and 8 minutes of wait time to produce a unit.

2.00
Compute the theoretical  velocity per hour.

Answer: 16 

The correct answer is: 16

Question 32
White Industries has the theoretical capability to produce 120,000 units per month but currently produces 90,000 units.
Correct
The conversion cost for the month is P2,550,000. There are 7,500 production hours available per month. In addition to
Mark 2.00 out of
processing time, it takes 14 minutes of move time and 8 minutes of wait time to produce a unit.

2.00
Compute the actual  velocity per hour.

Answer: 12 

The correct answer is: 12

Question 33
White Industries has the theoretical capability to produce 120,000 units per month but currently produces 90,000 units.
Correct
The conversion cost for the month is P2,550,000. There are 7,500 production hours available per month. In addition to
Mark 2.00 out of
processing time, it takes 14 minutes of move time and 8 minutes of wait time to produce a unit.

2.00
Compute the theoretical cycle times (minutes per unit produced). (Round answer to two decimal places.)

Answer: 3.75 

The correct answer is: 3.75

Question 34
White Industries has the theoretical capability to produce 120,000 units per month but currently produces 90,000 units.
Incorrect
The conversion cost for the month is P2,550,000. There are 7,500 production hours available per month. In addition to
Mark 0.00 out of
processing time, it takes 14 minutes of move time and 8 minutes of wait time to produce a unit.

2.00
Compute the actual cycle times (minutes per unit produced). (Round answer to two decimal places.)

Answer: 5.00 

The correct answer is: 5

Question 35
White Industries has the theoretical capability to produce 120,000 units per month but currently produces 90,000 units.
Correct
The conversion cost for the month is P2,550,000. There are 7,500 production hours available per month. In addition to
Mark 2.00 out of
processing time, it takes 14 minutes of move time and 8 minutes of wait time to produce a unit.

2.00
Compute the current manufacturing cycle efficiency (MCE). (Round answer to two decimal places.)

Answer: 0.19 

The correct answer is: 0.19

Question 36 Lionheart Manufacturing has a theoretical capability to produce 20,250 printers per quarter but currently produces 10,125
Correct printers. The conversion cost per quarter is P4,860,000. There are 6,750 production hours available within the plant per
Mark 2.00 out of quarter. In addition to the processing minutes per unit used, the production of printers uses 12 minutes of move time, 8
2.00 minutes of wait time, and 10 minutes of rework time. (All work is done by cell workers.)

Compute the theoretical velocity per hour.

Answer: 3 

The correct answer is: 3

Question 37
Lionheart Manufacturing has a theoretical capability to produce 20,250 printers per quarter but currently produces 10,125
Incorrect
printers. The conversion cost per quarter is P4,860,000. There are 6,750 production hours available within the plant per
Mark 0.00 out of quarter. In addition to the processing minutes per unit used, the production of printers uses 12 minutes of move time, 8
2.00
minutes of wait time, and 10 minutes of rework time. (All work is done by cell workers.)

Compute the actual velocity per hour.

Answer: 1.50 

The correct answer is: 1.5

Question 38
Lionheart Manufacturing has a theoretical capability to produce 20,250 printers per quarter but currently produces 10,125
Correct
printers. The conversion cost per quarter is P4,860,000. There are 6,750 production hours available within the plant per
Mark 2.00 out of
quarter. In addition to the processing minutes per unit used, the production of printers uses 12 minutes of move time, 8
2.00
minutes of wait time, and 10 minutes of rework time. (All work is done by cell workers.)

Compute the theoretical cycle times (minutes per unit produced).

Answer: 20 

The correct answer is: 20

Question 39
Lionheart Manufacturing has a theoretical capability to produce 20,250 printers per quarter but currently produces 10,125
Correct
printers. The conversion cost per quarter is P4,860,000. There are 6,750 production hours available within the plant per
Mark 2.00 out of
quarter. In addition to the processing minutes per unit used, the production of printers uses 12 minutes of move time, 8
2.00
minutes of wait time, and 10 minutes of rework time. (All work is done by cell workers.)

Compute the actual cycle times (minutes per unit produced).

Answer: 40 

The correct answer is: 40

Question 40
Lionheart Manufacturing has a theoretical capability to produce 20,250 printers per quarter but currently produces 10,125
Correct
printers. The conversion cost per quarter is P4,860,000. There are 6,750 production hours available within the plant per
Mark 2.00 out of
quarter. In addition to the processing minutes per unit used, the production of printers uses 12 minutes of move time, 8
2.00
minutes of wait time, and 10 minutes of rework time. (All work is done by cell workers.)

Compute the ideal amount of conversion cost assigned to each printer.

Answer: 240 

The correct answer is: 240

Question 41
Lionheart Manufacturing has a theoretical capability to produce 20,250 printers per quarter but currently produces 10,125
Correct
printers. The conversion cost per quarter is P4,860,000. There are 6,750 production hours available within the plant per
Mark 2.00 out of
quarter. In addition to the processing minutes per unit used, the production of printers uses 12 minutes of move time, 8
2.00
minutes of wait time, and 10 minutes of rework time. (All work is done by cell workers.)

Compute the actual amount of conversion cost assigned to each printer.

Answer: 480 

The correct answer is: 480

Question 42
Lionheart Manufacturing has a theoretical capability to produce 20,250 printers per quarter but currently produces 10,125
Incorrect
printers. The conversion cost per quarter is P4,860,000. There are 6,750 production hours available within the plant per
Mark 0.00 out of
quarter. In addition to the processing minutes per unit used, the production of printers uses 12 minutes of move time, 8
2.00
minutes of wait time, and 10 minutes of rework time. (All work is done by cell workers.)

Calculate the current MCE.

Answer: 0.57 

The correct answer is: 0.571

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