EBK CORNERSTONES OF COST MANAGEMENT
3rd Edition
ISBN: 8220100474972
Author: MOWEN
Publisher: CENGAGE L
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Textbook Question
Chapter 15, Problem 21E
The following information is given for a manufacturing firm:
Which of the following correctly describes the change in productive efficiency from Year 1 to Year 2?
- a. Material and labor productivity both increased.
- b. Material and labor productivity both decreased.
- c. Material productivity decreased and labor productivity increased.
- d. Material productivity increased and labor productivity decreased.
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Productivity is best described as
a.
The output produced by the average worker in an hour
b.
The number of hours the average worker spends at the job
c.
The percentage of the population that is working
d.
GDP per capita
The marginal product of labour is defined as the ____.
a) Average output per worker
b) Cost of one worker
c ) Change in output from using one more unit of labour
d) Change in revenue from using one more unit of labour
An examination of the accounting records a company disclosed a high contribution margin ratio and production at a level below maximum capacity. Based on this information, suggest a likely means of improving income from operations. Discuss.
Chapter 15 Solutions
EBK CORNERSTONES OF COST MANAGEMENT
Ch. 15 - Prob. 1DQCh. 15 - What are the five principles of lean thinking?Ch. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Explain how lean manufacturing is able to produce...Ch. 15 - What role does a demand-pull system have on lean...Ch. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - What is the purpose of assigning facility costs to...Ch. 15 - Why are units shipped used to calculate the...
Ch. 15 - When will the average unit cost be useful for...Ch. 15 - Explain why changes in value-stream profitability...Ch. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - What is productivity measurement?Ch. 15 - Prob. 16DQCh. 15 - Prob. 17DQCh. 15 - Discuss the advantages and disadvantages of...Ch. 15 - Prob. 19DQCh. 15 - Prob. 20DQCh. 15 - What is profit-linked productivity measurement and...Ch. 15 - Prob. 22DQCh. 15 - What is the price-recovery component?Ch. 15 - Anderson Company has the following departmental...Ch. 15 - During the week of June 12, Harrison Manufacturing...Ch. 15 - Prob. 3CECh. 15 - Prob. 4CECh. 15 - Prob. 5ECh. 15 - Bienestar Inc., has the following departmental...Ch. 15 - Bienestar, Inc., implemented cellular...Ch. 15 - Henderson, Inc., has just created five order...Ch. 15 - Prob. 9ECh. 15 - Shorts Manufacturing, Inc., has implemented lean...Ch. 15 - Prob. 11ECh. 15 - Prob. 12ECh. 15 - Carsen Company produces handcrafted pottery that...Ch. 15 - Prob. 14ECh. 15 - Prob. 15ECh. 15 - Prob. 16ECh. 15 - Lean manufacturing is characterized by all but one...Ch. 15 - Lean manufacturing uses value streams to produce a...Ch. 15 - A manufacturing cell within a value stream is...Ch. 15 - Total productive efficiency is achieved when both...Ch. 15 - The following information is given for a...Ch. 15 - Sixty employees (all CPAs) of a local public...Ch. 15 - Sixty employees (all CPAs) of a local public...Ch. 15 - Prob. 24PCh. 15 - Continuous improvement is the governing principle...Ch. 15 - Prob. 26PCh. 15 - Prob. 27PCh. 15 - Prob. 28P
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- To determine the effect of different levels of production on the company’s income, move to cell B7 (Actual production). Change the number in B7 to the different production levels given in the table below. The first level, 100,000, is the current level. What happens to the operating income on both statements as production levels change? Enter the operating incomes in the following table. Does the level of production affect income under either costing method? Explain your findings.arrow_forwardBelow is a list of various metrics used to measure performance. For each metric, identify the correct balanced scorecard perspective with which the metric is associated. Metric Balanced Scorecard Perspective Average stock price Economic value added Employee turnover rates Manufacturing cycle time Market share Number of days from product launch to shelf Number of defects Number of new patent applications Percentage of repeat customers Percentage decrease in operating costs Percentage of sales generated by new products Research and development spending as a percentage of net revenues options: Customer Financial Internal Business Learning and Growtharrow_forwardWhich of the following is not an example of a cost that varies in total as the number of units produced changes? a.electricity per KWH to operate factory equipment b.straight-line depreciation on factory equipment c.wages of assembly worker d.direct materials costarrow_forward
- what of the costs is an example of a cost that remains the same in total as the number of units produced changes a. salary of a factory supervisor b. direct materials c. direct labor d. units-of-production depreciation on factory equipmentarrow_forwardHow would a knowledge of cost behavior patterns such as those above be of help to a manager in analyzing the cost structure of his or her company?arrow_forwardWhich of the following is not one of the indicators of adoption of Activity Based Costing for a business? A. product diversity increases • B. the proportion of manufacturing overhead costs not related directly to production volume increases • C. the proportion of manufacturing overhead costs decreases • D. the proportion of direct labour costs decreasesarrow_forward
- When closing overapplied manufacturing overhead to Cost of Goods Sold, which of the following would be true? Net income will decrease. Cost of Goods Sold will increase. Gross profit will increase. O Work in Process will decrease.arrow_forwardWhich of the following correctly describes the term cost driver? a. The inflation rate which causes costs to rise b. The primary factor which is correlated with the amount of cost incurred to produce a product c. The initial purchase price of direct materials d. The total material, labor, and overhead cost of a completed jobarrow_forwardWe have seen how cost and volume assumptions affect net income. A common application of CVP analysis is a tool to forecast sales, costs, and income. Assume that you are actively searching for a job. Identify and discuss three assumptions relating to your expected revenue (salary), and three assumptions related to your expected costs (expenses) for the first year on the job.arrow_forward
- We have seen how cost and volume assumptions affect net income. A common application of CVP analysis is a tool to forecast sales, costs, and income. Assume that you are actively searching for a job. Identify and discuss three assumptions relating to your expected revenue (salary), and three assumptions related to your expected costs (expenses) for the first year of your new job.arrow_forwardDescribes how a typical cost will react or respond 10 changes in The level of business activity?arrow_forwardDescribing the balanced scorecard and identifying key performance indicators for each perspective Consider the following key performance indicators, and classify each according to the balanced scorecard perspective it addresses. Choose from financial perspective, customer perspective, internal business perspective, or learning and growth perspective. a. Number of employee suggestions implemented b. Revenue growth c. Number of on-time deliveries d. Percentage of sales force with access to real-time inventory levels e. Customer satisfaction ratings f. Number of defects found during manufacturing g. Number of warranty claims h. Return on investment i. Variable cost per unit j. Percentage of market share k. Number of hours of employee training l. Number of new products developed m. Yield rate (number of units produced per hour) n. Average repair time o. Employee satisfaction p. Number of repeat customersarrow_forward
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