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SCM Chapter 11 & 12 - BOOK Ni NICA

strat cost

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867 views14 pages

SCM Chapter 11 & 12 - BOOK Ni NICA

strat cost

Uploaded by

frenzuaavellanoza1222
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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G1OAL, Yoonne MOnigue P.* (Bsa 2~l) | {UE OR FALSE STATEMENTS. vn “True” if the statement is true and write “False” if the statement is false. WUE. With the emergence of the information era, companies need to create value from their intangible assets as well as their physical and financial assets. paenicberaeh FALSE The primary purpose of the Balanced Scorecard is to obtain increased operating pro! the current year. ae eateal #3. To achieve success, it is important to set nonfinancial objectives as well as jectives, 18. Drheent value propositions lead to different Balanced Scorecards. ._ A properly constructed Balanced Scorecard tells the story of a business unit's strategy. "TPule_ Strategy is about selecting the set of activities in which the organization will excel to create a | sustainable difference in the marketplace. TA The vision and mission statement set the general direction for the ‘organization. FALSE: To create the Balanced Scorecard, first measures are identified and then translated into reue objectives: : e ¥% One valuable measure for the customer perspective of the Balanced Scorecard is market YAUGE, The learning and fak® the strategy. 11. Employee satisfaction is a measure of the intemal business perspective of the Balanced Scorecard. ‘Who, Success in the customer perspective ofthe Balanced Scovecara should lead to improvement inthe financial perspective, FAINS. Key performance indicator scorecards that don’t reflect a company’s strategy can be just as effective as the Balanced Scorecard, Ae, Rey, Performance indicator cards will lead to local but not to global of strategic { aise improvements, 35. Nonprofit and government organizations cannot use the Balanced Scorecard since financial | ‘THO performance is not their primary measurement, \ 16 Mission, rather than the financial perspective, drives the strategy of nonprofit and ii government organizations. y Balanced Scorecard measurements create focus for the future, - CEOs and senior leadership can effectively implement strategy by themselves, | alge: Poor scorecard design, rather than a poor organizational process, is the biggest threat 7a successful Balanced Scorecard implementation. ay : | If Balanced Scorecard implementation team is really committed, init i daar Scr they can initially develop growth perspective of the Balanced Scorecard evaluates the profitability of TL MULTIPLE CHOICE QUESTIONS Encircle the letter that corresponds to the best following'statements. tose 1. Moving from the industrial age to the information age, companies need to: focus on the management of financial assets and liabilities make prudent investment in physical assets a b. t ©) create value from their intangible assets as well as their Physical and financial assets d. present an expanded section of intangible assets on their balance sheets Li >S1BAL, Yvonne wonlous P- (P6421) ‘ s1BAL, vow pc? sd 2 ae uc gua acts se do not appear on tt et since it is difficult to place a reliable f, value on them Pn alae cong tect “0 should be evaluated with ROI and other performance measures b_ Ithel © canbe measured and managed with current financial control systems © kid d. are unimportant because they have no physical substance i a. it us 3, Intangible assets that are currently reported on the balance sheet include: perf ‘a. loyaland profitable customer relations b. innovative products and services 30. Which ofthef employee skills and motivation a Dif the cost of a patent giving exclusive rights to a process be > Su m4 4 Thesayng “what gts ened ls done” refers to measuring performance: © so that appropriate disciplinary actions can be taken’ ™ b toercure that employees perform equally in all dimensions of their obs a a © so that essential tasks get accomplished { _ toensure that the ethical code of conduct is also being enforced M1. A strategy n fi 5. The use of multiple-performance measures would be expected to lead to all ofthe following ite b> : ‘ ie) ‘more extensive use of financial measures such as cost and profit ® ‘ . employees recognizing the various dimensions of theit work ‘ ¢ the use of new performance measures such as customer satisfaction and 2 Ade employee morale score 4. group-level performance measures a 6. Balanced Scorecard objectives are in balance when: (v) debits equal credits 0 financial performance measurements are less than the majority of measurements ¢.> the measurements are fair d. _ themeasurements reflect an improvement over the previous year a 7. The Balanced Scorecard is said to be “balanced” because it measures: a.» short-term and long-term objectives b. financial and nonfinancial objectives & internal and external objectives Allof the above are correct. 8... translate(6) an organization's mission, vision, and strategy into a comprehensive set of performance measures that provide the framework for implementing its strategy. M4 if a. Critical success factors P b. — Thevalue proposition cc. Objectives ® The Balanced Scorecard.Eee a edges tushy Toh oe le K- i the following statements is NOT tru gyn of 1¢ of a good Balanced Scorecard? % = Ittells the story of a cot a ral cate io mpany’s strategy by articulating a sequence of cause-and- b Ithelps to communicate corporate strategy to all members: rganizat © * identifies all measures, whether significant or emall, icicle to erent strategy. a Jt uses nonfinancial measures to serve as leading indicators of future financial performance. 40. Which of the following statements is NOT true ofithe Balanced Scorecard? a Different strategies call for different scorecards. be Successful: implementation’ requires commitment and leadership from top management. © Only. objective financial measures should be used, and subjective nonfinancial measures should be avoided. d —Cause-and-effect linkages may not be precise and should evolve over time. 11. A strategy map provides direct cause-and-effect linkages between the: ‘a. financial perspective and the learning and growth perspective b,. +» financial perspective and the internal perspective © customer perspective and the internal perspective ..eustomer perspective and the Jearning and growth perspective 12. A chain of cause-and-effect relationships-that: appropriately link the four balanced scorecard perspectives is: a a high return ‘on investment cavisés, customer “loyalty: that results in’ skilled =. production workers that improve process quality. Milled production workers help to-produce process quality that results in customer loyalty that helps to increase return or’investment G ) labor charge per hour. (charges for a particular job: 12. The first step in the absorption cost approach is to compute the a. desired ROI per unit. get ; b. markup percentage..._ target selling price. ® unit manufacturing cost. 13, The markup percentage in the absorption cost approach is computed by divig: the desired ROI per unit and Viding the a. fixed costs per unit by manufacturing cost per unit. gy b. fixed costs per unit by variable costs per unit. Qe selling and administrative expenses per unit by manufacturing cog d._ selling and administrative expenses per unit by variable costs per ur er ape i, 14. In the absorption cost approach, the markup percentage covers the a._ desired ROI only. @® desired ROI and selling and administrative expenses. desired ROI and fixed costs. d._ selling and administrative expenses only. 15. The absorption cost approach is used by most companies for all of the followin except that Oe 2 Feng a. absorption cost information is readily provided by a company’s cost system. ms b. absorption cost provides the most defensible bases for justifying prices to interese parties. «._ basing prices on only variable costs could encourage managers to set too low apg to boost sales. (@ihis approach is more consistent with cost-volume-profit analysis. IM.. MULTIPLE CHOICE PROBLEMS Encircle the letter that corresponds to the best answer of the following problems. 1. The following per unit information is available for a new product of Blue Ribbon Company: Desired ROI P48 Fixed cost 80 Variable cost 120 Total cost 200 Selling price 248 Blue Ribbon Company's markup percentage would be a, 19% - Ch) 24% - © 40% d. 60% 2.. Bryson Company has just developed a new product. The following data is available for this product: Desired ROI per unit P36 Fixed cost per unit 60Cc Yoni WONIAUE CBSA: a) soso ae Variable cost per unit 0 Total cost per unit 00 ‘The target selling price for this product is P1867 b. P150 c. P126 d. P96 Use the following information for questions 3 to 4. Red Grass Company produces high definition television sets. The following information is available for this product: Fixed cost per unit P00. Variable cost per unit 300 Total cost per unit 400 Desired ROI per unit 120 43, Red Grass Company's markup percentage would be a. 120% b. 60% 40% 30% = 4. The target selling price for this television is a. b. P400 420 520 ~ Use the following information for questions 5 to7. te towing data is available for Wheels'N Spikes Repair Shop for 2018: Repair technician's wages PIB00N Fringe benefits 40,000 Overhead —30,000 Total re esired profit margin is B20 pet labor hour. The material loading charge is 40% Of invoice cost Its estimated that Fh00 labor hours will be worked in 2018, Wheels ‘N Spikes’ labor charge in 2018 would be Om- c. Poe d. P70 6. seit 8, wc Spikes ope eee a wo mE pading charge on this repair would Be P64 P160. Its material ‘pb. PISIPAL YVONNE MONIRVE (Bsa24) |” it sie ae d. P224 7. In March 2018 Wheels ’N Spikes repairs a bicycle that takes two hours uses parts of P120. The bill for this repair would be & a a, P260 : P280~ cc. P296 d. P308 8. Cuff budgets sales of its truck tires at P160 per tire and estimates that 10,000 be sold during the coming year. Variable costs per tire are P50 and can a Profit of P30 per tire. The target cost per tire is a P160 P130~ © P80 d. P50 A 9. Heny Company has developed a new product, egg crates that prevent breakage, Thy cost per crate is P50 and the company expects to sell 1,000 crates per year. Hen Company has invested P1,000,000 in equipment to produce the crates and desires, 10% return on investment. What is Heny Company’s desired markup Percentage? a. 10% b. 20% c. 100% @® 200% — 10. Heny Company has developed a new product, egg crates that preverit breakage. The cost per crate is P50 and the company expects to sell 1,000 crates per Year. Heny Company has invested P1,000,000 in equipment to, produce. the crates and desires) 10% return on investment, What is Heny Company's selling price for one egg crate? a. P110 ® Piso - . P100 4. P250 11. Cartridge Co. has produced a product with a total unit cost of P60 and a desired ROL Per unit of P20.’ If Cartridge 'Co.’s target selling price is P80, what is its percentage markup on cost? 5 a. 125% b. 100% c. 50% 33.3% 12, Maggie Co. has variable manufacturing costs per unit of 220, and fixed manufacturing cost per unit is P15. Variable selling and administrative costs per unit are P4, bare fixed selling and administrative costs per unit are P6. Maggie desires an ROI ee Per unit. If Maggie Co. uses the absorption cost approach, what is its markuP percentage? -igh YVONNE Wonlov’, PSA 21) : eee a. 833% 50% 16.67% d. 25% “el 15. XG Company has the following information: ‘Volume of production 10,000 units Capital employed P60,000 Cost to produce and sell 5.00 per unit ‘The unit selling price that will yield a 20% return on investment is a. P5.10 (8 P6207 P70 d. P7.10 ‘The following numbers will be based on the following information: ‘Manufacturing costs: Selling and other costs Direct materials P1.00 Variable PLS50 Direct labor 120 Fixed 0.90 Variable indirect cost 0.80 ty Fixed indirect costs _0.50 +5 ; Use the following independent assumptions to answer the following numbers, the selling price would be: 1A: Planning to set up a selling price with a markup of 50% based on conversion costs. a. P590 b. P5.25 \ P690 P715 — 415; Planning to set up a selling price with a markup of 40% based on full production costs: a P7.10« @ P730- cc. P8.26 d. P735 oe c. P8.56 d. P748 16, Planning to set up a selling price with a markup of 45% based on variable production ‘costs: 17, Planning to set up a selling price with a markup of 30% based on full (total) costs: a. P6.95 be P50 © Per a. P65SIPAL,YVONNE MONIBVE (BSA 2-1)

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