Accounting chapter 11 Test 3

1. pictorial representation of the cause-and-effect relationships embodied in the strategy is called a a. Strategy map. b. Strategy scorecard. c. Strategy dashboard. d. Strategy lead.

A

Which of the following is not one of the four perspectives included in the balanced scorecard? (a) Internal growth (b) Learning and growth (c) Financial (d) Customer

A

1. Leading indicators provide managers with the information they need to a. Prepare direct material and direct labor variances. b. Take timely, corrective action. c. Prepare GAAP- based financial statements. d. All of these answer choices are correct.

B

1. Which of the following is a measure that relates to the learning and growth perspective? a. Earnings per share b. Response time to customer request c. Revenue per employee d. Market share

C

1. Which of the following is an example of an employee-oriented nonfinancial measure? a. Setup efficiency b. Labor productivity c. Accidents per month d. Time to respond to customer problems

C

1. Which of the following is not a measure that relates to the customer perspective? a. Market share b. Product return rate c. Delivery cycle time d. Percentage of revenue from new customers

C

1. Which of the following does benchmarking not focus on? a. Identifying best practices b. Studying best practices c. Analyzing best practices d. Eliminating non-value-added processes

D

1. Before deciding whether a measure is a leading or lagging indicator, a manager should be sure to know a. What event the measure is related to. b. Whether the measure is used by other companies in the industry. c. Both What event the measure is related to and Whether the measure is used by other companies in the industry. d. Neither What event the measure is related to nor Whether the measure is used by other companies in the industry.

A

1. From a customer's perspective, the time lapse between receipt of an order and the point when the product is pulled from inventory for a retailer is referred to as a. Non-value added. b. Wasted time. c. Internal process time. d. None of these answer choices are correct.

A

1. Indicators that measure successful progression toward the organization's goals are referred to as a. Key performance indicators b. Specific indicators c. Lagging indicators d. Dashboard indicators

A

1. The goal of benchmarking is to a. Identify those best practices and improve both quality and productivity. b. Help managers understand the interrelationships between various areas of an organization. c. To make an organization more competitive with other companies within the industry. d. Use qualitative and quantitative measures to evaluate managers of organizational units.

A

1. The practice of using data from other organizations to identify the processes and practices associated with world-class performance is referred to as a. Benchmarking. b. Dashboarding. c. Industry flowcharting. d. Scorecarding.

A

1. The ratio of value-added processing time to total manufacturing cycle time is referred to as a. Manufacturing cycle efficiency. b. Manufacturing cycle ratio. c. Throughput efficiency. d. Delivery cycle ratio.

A

1. The steps involved in building a balanced scorecard are a. Selecting measures, setting targets for measures and adjusting the scorecard as strategies change. b. Selecting measures, setting targets for measures and changing objectives that do not meet scorecard measures. c. Setting targets for measures, adjusting objectives to meet the scorecard, and eliminating processes that do not meet objectives. d. None of these answer choices are correct.

A

1. The time between an order's placement and its shipment is referred to as a. Delivery cycle time. b. Production cycle time. c. Sales order cycle time. d. Throughput time.

A

1. To balance the scorecard, organizations should select all of the following except a. Leading measures. b. Dashboard measures. c. Lagging measures. d. Qualitative measures.

A

1. When using the balanced scorecard to monitor performance, the learning and growth perspective answers which of the following questions? a. Are we developing employees and providing technologies that facilitate change and improvement? b. Are we creating products and hiring employees with skills to create product and deliver them in a timely manner? c. Are we meeting our stakeholders' expectations? d. Are we growing in a manner to be competitive in the industry?

A

1. Which of the following is a measure that relates to the financial perspective? a. Revenue growth b. Market share c. Customer profitability d. Defect rate

A

1. Which of the following is a measure that relates to the internal business processes perspective? a. Delivery cycle time b. Market share c. Training hours per employee d. Cash flow

A

1. Which of the following is an example of a customer-oriented nonfinancial measure? a. Product flexibility b. Product defects c. Production volume d. New product introductions

A

1. Which of the following is not a measure that relates to the internal business processes perspective? a. Return on investment b. Cost per unit c. Rework hours d. Defect rate

A

1. Which of the following is not a measure that relates to the learning and growth perspective? a. Net income per employee b. Revenue per employee c. Training dollars spent per employee d. Suggestions generated by employees

A

1. Which of the following is not a measure that relates to the learning and growth perspective? a. Revenue growth b. Revenue per employee c. Training dollars spent per employee d. Technology spending per employee

A

1. Which of the following strategies relate to the financial perspective? a. Increase profit b. Achieve operational excellence c. Infuse corporate culture of quality throughout workforce d. Retain and grow customer base

A

1. A management tool that integrates performance measures across four different perspectives to guide operations toward achieving an organization's strategy is called a. Performance dashboard. b. Balanced scorecard. c. Key performance measures. d. None of these answer choices are correct.

B

1. A strategy map a. Is a visual display of the key measures related to an organization's strategies. b. Is a pictorial representation of the cause-and-effect relationships embodied in the strategies. c. Is a visual display of the corporation's strategies. d. Is a pictorial representation of the particular strategies that have been met by the organizational units.

B

1. Benchmarking is not about trying to achieve another company's metrics, but about a. Maintaining internal processes and customer relations to stay competitive with other companies in the industry. b. Replicating the successful practices that lead to their outstanding metrics. c. Trying to outperform the other company in its best practices areas. d. Outdoing the other company in profit and reputation.

B

1. If a public utility company wanted to benchmark ways to protect its underground electrical cables, which of the following companies should they not contact? a. Telephone company. b. Wi-Fi company. c. Another public utility company. d. Cable television company.

B

1. Measures that can be determined only after something is finished are called a. Post-operations indicators b. Lagging indicators c. Input indicators d. Objective indicator

B

1. Qualitative indicators tend to be based on a. Feelings or accounting records. b. Feelings or perceptions. c. Accounting records or perceptions. d. None of these answer choices are correct.

B

1. Residual income is a measurement of a. Inputs. b. Outcomes. c. Quality d. None of these answer choices are correct.

B

1. What length of time does the Balanced Scorecard Institute estimate it takes to create a corporate-level scorecard? a. Two to three weeks b. Two to three months c. Two to three years d. More than five years

B

1. When using the balanced scorecard to monitor performance, the internal business processes perspective answers which of the following questions? a. Are we developing employees and providing technologies that facilitate change and improvement? b. Are we improving our business processes in order to deliver maximum value to our customers? c. Are we meeting our stakeholders' expectations? d. Are we growing in a manner to be competitive in the industry?

B

1. Which of the following does not describe the internal business processes perspective? a. Focus is on creating products and services that customers desire b. This perspective is the foundation for improvement in all other areas c. Focus on delivering products and services in a timely manner d. Measures assist managers in assessing the efficiency and effectiveness of production processes

B

1. Which of the following is a fifth perspective that some organizations add to the balanced scorecard? a. An additional area that the company expects to expand into at a later date. b. An additional area that highlights an areas of strategic importance. c. An additional area in which the company has found problems. d. None of these answer choices are correct, a fifth perspective should not be added.

B

1. Which of the following is a measure that relates to the customer perspective? a. Time to market b. Market share c. Revenue growth d. Defect rate

B

1. Which of the following is an example of an internal operating nonfinancial measure? a. Accidents per month b. Labor productivity c. Market share d. Product flexibility

B

1. Which of the following is not a main barrier to the effective use of nonfinancial performance measures by organizations? a. Skepticism that the measures are directly related to the bottom line b. Lack of management skill needed to implement the measures c. Lack of familiarity with the measures on the part of the board members d. Undeveloped tools for analyzing the measures

B

1. Which of the following is not a measure that relates to the financial perspective? a. Net income b. Percentage of revenue from new customers c. Earnings per share d. Revenue growth

B

1. Which of the following is not a measure that relates to the learning and growth perspective? a. Percentage of vacancies filled with internal candidates b. Product return rate c. Technology spending per employee d. Suggestions generated by employees

B

1. Which of the following is not an example of an employee-oriented nonfinancial measure? a. Absenteeism b. Labor productivity c. Accidents per month d. Employee empowerment

B

1. Which of the following is not one of the four balanced scorecard perspectives? a. Learning and growth b. Production c. Customer d. Financial

B

1. Which of the following strategies relate to the customer perspective? a. Manage customer relationships and develop reputation for quick turnaround b. Retain and grow customer base and develop reputation for quick turnaround c. Manage customer relationships and retain and grow customer base d. Develop reputation for quick turnaround and manage customer relationships

B

1. For managers to adequately monitor the organization's performance, they need to use a. Leading indicators. b. Lagging indicators. c. Both leading indicators and lagging indicators. d. Neither leading indicators nor lagging indicators.

C

1. Which of the following strategies relate to the learning and growth perspective? a. Develop trained workforce and develop reputation for quick turnaround b. Develop trained workforce and infuse corporate culture of quality throughout workforce c. Develop trained workforce and achieve operational excellence d. Develop trained workforce and retain and grow customer base

B

Which of the following is a leading indicator of customer satisfaction? (a) Customer satisfaction score (b) On-time delivery (c) Customer profitability (d) All are leading indicators of customer satisfaction

B

Which of the following is not included in delivery cycle time? (a) Time spent waiting between production processes (b) Delivery time from the warehouse to the customer (c) Time between order receipt and order shipment (d) Packaging time once the product has been pulled from inventor

B

1. A difference in quantitative indicators and qualitative indicators is a. Quantitative indicators are the same regardless of who is doing the measuring whereas qualitative indicators will differ among individual since each one has a unique perspective. b. Qualitative indicators are subjective and quantitative indicators are objective. c. Both Quantitative indicators are the same regardless of who is doing the measuring whereas qualitative indicators will differ among individual since each one has a unique perspective and Qualitative indicators are subjective and quantitative indicators are objective. d. Neither Quantitative indicators are the same regardless of who is doing the measuring whereas qualitative indicators will differ among individual since each one has a unique perspective nor Qualitative indicators are subjective and quantitative indicators are objective.

C

1. After selecting the appropriate measures, managers should a. Set a limit on the measure. b. Select a committee to enforce the use of the measures. c. Set a target for each measure. d. Select a manager to evaluate each measure.

C

1. Approximately what percentage of global business executives use a balanced scorecard to monitor performance? a. 16% b. 41% c. 66% d. 91%

C

1. Before a balanced scorecard can be developed, managers must a. Be clear about the strategy they are trying to achieve. b. Understand the cause-and-effect relationship between various measures. c. Both Be clear about the strategy they are trying to achieve and Understand the cause-and-effect relationship between various measures. d. Neither Be clear about the strategy they are trying to achieve nor Understand the cause-and-effect relationship between various measures.

C

1. Benchmarking does not require an organization to share a. Processes. b. Process matrics. c. Proprietary information. d. None of these answer choices are correct.

C

1. In selecting the measures for the balanced scorecard, managers should choose between four and seven measures for each perspective to avoid a. Strategy overload b. Measurement overload c. Information overload d. Scorecard overload

C

1. Measures that help predict a future result are referred to as a. Lagging indicators b. Earnings per share c. Leading indicators d. EVA

C

1. When customers consider making purchases, which of the following is not an expectation they have? a. Price b. Delivery speed c. High profit margin for supplier d. Quality

C

1. When using the balanced scorecard to monitor performance, the customer perspective answers which of the following questions? a. Are we developing employees and providing technologies that facilitate change and improvement? b. Are we creating products and hiring employees with skills to create product and deliver them in a timely manner? c. Are we meeting our customers' expectations? d. Are we growing in a manner to be competitive in the industry?

C

1. When using the balanced scorecard to monitor performance, the financial perspective answers which of the following questions? a. Are we developing employees and providing technologies that facilitate change and improvement? b. Are we creating products and hiring employees with skills to create product and deliver them in a timely manner? c. How do investors see us? d. Are we growing in a manner to be competitive in the industry?

C

1. When using the balanced scorecard to monitor performance, the financial perspective answers which of the following questions? a. How do investors see us? b. Are we reaching our financial goals? c. Both how do investors see us? and Are we reaching our financial goals? d. Neither How do investors see us? nor Are we reaching our financial goals?

C

1. When using the balanced scorecard to monitor performance, which of the following perspectives is the foundation for improvement in all other areas? a. Internal business processes b. Financial c. Learning and growth d. Customer

C

1. Which of the following does benchmarking focus on? a. Identifying best matrics. b. Analyzing best matrics. c. Studying best processes. d. Exceeding best processes.

C

1. Which of the following is not a measure that relates to the financial perspective? a. EVA b. Return on investment c. Cost per unit d. Profit margin

C

1. Which of the following is not an example of a lagging indicator? a. Earnings per share b. Grade point average c. Number of customer complaints d. All of these answer choices are lagging indicators

C

1. Which of the following is not an example of an internal operating nonfinancial measure? a. Labor productivity b. Product defects c. Product flexibility d. Setup efficiency

C

1. Which of the following is not one of the four balanced scorecard perspectives? a. Internal business processes b. Customer c. Industry d. Financial

C

1. Which of the following statements is correct regarding benchmarking? a. Benchmarking is the practice of using a company's own data to identify the processes and practices in which it outperforms its competitors. b. Benchmarking involves selecting measures, setting targets for measures and adjusting the benchmark as strategies change. c. Benchmarking participants should adhere to the Benchmarking Code of Conduct which provides general principles to follow during the benchmarking process. d. All of these answer choices are correct regarding benchmarking.

C

1. Which of the following strategies relate to the internal business processes a. Infuse corporate culture of quality throughout workforce and develop reputation for quick turnaround b. Achieve operational excellence and infuse corporate culture of quality throughout workforce c. Manage customer relationships and achieve operational excellence d. Develop reputation for quick turnaround and manage customer relationships

C

If a company wants to benchmark, which partners would provide the best result? (a) Those with best practices in quality (b) Those with best practices in productivity (c) Those with best practices in quality and productivity (d) Those that have completed a benchmarking study in the past

C

Which of the following statements about key performance indicators is not true? (a) They help managers to focus on the measures that are most relevant to company success. (b) They are useful only if the cause-and-effect relationships between the measures and the organization's performance are known. (c) They are best suited to for-profit organizations, since nonprofit organizations have no financial goals. (d) They are a mixture of financial and nonfinancial, leading and lagging indicators.

C

1. A balanced scorecard a. Integrates performance measures across four different perspectives. b. Assists in communicating the corporate strategy throughout the organization. c. Helps managers understand the interrelationships between various areas of an organization. d. All of these answer choices are correct.

D

1. A balanced scorecard does not a. Integrate performance measures across four different perspectives. b. Provide a visual display of the key measures related to an organization's operational goals and strategies. c. Help managers understand the interrelationships between various areas of an organization. d. A balanced scorecard does all of the following

D

1. A measure that provides managers with information they need to take timely, corrective action are referred to as a. Budget indicators. b. Variance indicators. c. Cycle indicators. d. Leading indicators.

D

1. Benchmarking means trying to match another company's a. Matrics. b. Performance. c. Profits. d. Processes

D

1. Building a balanced scorecard involves a. Clarifying strategies. b. Translating strategies into operational objectives. c. Selecting measures that provide evidence of objectives achievements. d. All of these answer choices are correct.

D

1. Delivery cycle time is the difference between a. The start of production of a product and its delivery. b. The start of production of a product and its shipment. c. An order's placement and its delivery. d. An order's placement and its shipment.

D

1. Lagging indicators can be used to a. Measure past performance. b. Predict future results. c. Provide evidence that a certain result has been obtained. d. All of these answer choices are correct.

D

1. Qualitative indicators a. Tend to be based on feelings. b. Tend to be based on perceptions. c. Do not rely on accounting records. d. All of these answer choices are correct.

D

1. The time from the start of a production to the shipment of the product to the customer is referred to as a. Manufacturing cycle time. b. Throughput time. c. Delivery cycle time. d. Either Manufacturing cycle time or Throughput time, but not delivery cycle time.

D

1. To balance the scorecard, organizations should also select a. Leading measures. b. Qualitative measures. c. Quantitative measures. d. All of these answer choices are correct.

D

1. Which of the following does not describe the learning and growth perspective? a. Hiring the right people b. Training employees effectively c. Giving employees the technologies they need to develop and produce the products and services that customers desire. d. Choosing customers the company wants to serve

D

1. Which of the following is an example of a fifth perspective that some organizations may want to add to their balanced scorecard? a. Supplier relations b. Community involvement c. Environment impart d. Any of these answer choices are correct

D

1. Which of the following is not a measure that relates to the customer perspective? a. Customer satisfaction b. Customer loyalty index c. Customer profitability d. Response time to customer request

D

1. Which of the following is not a measure that relates to the financial perspective? a. Residual income b. Earnings per share c. Revenue growth d. Training dollars spent on employee training

D

1. Which of the following is not a measure that relates to the internal business processes perspective? a. Percentage of on-time deliveries b. Response time to customer request c. Delivery cycle time d. Product return rate

D

1. Which of the following is not a reason companies use key performance indicators? a. Align business activity with corporate strategy b. Improve company performance c. Improve timeliness of business decisions d. All of these answer choices are reasons companies use key performance indicators

D

1. Which of the following is not a reason companies use key performance indicators? a. Mandate to report company performance to stakeholders b. Increase accuracy of business decisions c. Improve company performance d. All of these answer choices are reasons companies use key performance indicators

D

1. Which of the following is not an example of a customer-oriented nonfinancial measure? a. Market share b. Delivery performance c. Product flexibility d. Product defects

D

1. Which of the following is not one of the four balanced scorecard perspectives? a. Customer b. Financial c. Learning and growing d. All of these answer choices are balanced scorecard perspectives

D

1. Which of the following kinds of companies would a bass boat manufacturing company not want to benchmark? a. Another bass boat manufacturer with a best practice in quality control b. A manufacturer of ladies dresses with a best practice in inventory management c. A retail store that has a best practice in employee safety d. A bass boat manufacturer might want to benchmark with all the above companies.

D

1. hich of the following organizations would not benefit from benchmarking? a. Equipment manufacturer. b. Law firm. c. Community college. d. All of these answer choices are correct.

D

Which of the following measures would not be relevant to the learning and growth perspective? (a) Employee turnover (b) Training hours per employee (c) Technology investment per quarter (d) Training hours per customer

D