Cost Test Three
The return-on-investment ratio is an example of a Balanced Scorecard's measure of the: A. Internal perspective B. Customer perspective C. Learning and growth perspective D. Financial perspective
D
A trigger point refers to the inventory level at which a reorder is generated.
False
To create the Balanced Scorecard, first measures are identified and then translated into objectives.
False
Shortening delivery times is a minor part of the quality improvement process.
False (very important)
A properly constructed Balanced Scorecard tells the story of a business unit's strategy.
True
An example of a non-financial measure of customer satisfaction would be the percentage of products that fail soon after delivery.
True
Backflush costing is a costing system that omits recording some or all of the journal entries relating to the stages from purchase of direct materials to the sales of finished goods.
True
Conformance quality is the performance of a product or service retaliative to its design and product specifications.
True
Cost of quality (COQ) reports usually do NOT consider opportunity costs.
True
Important measures in the customer perspective usually include the percentage of repeat customers and growth in sales to existing customers.
True
Once the company selects and defines its objectives for the four BSC perspectives, it can select measures for each objective.
True
Quality is defined as the total features and characteristics of a product or a service made or performed according to specifications to satisfy customers at the time of purchase and during.
True
Strategy creates a competitive advantage by positioning the company in its external environment where its internal resources and capabilities deliver something to its customers better than or different from its competitors.
True
The focus of the learning and growth perspective of the Balanced Scorecard includes employee capabilities that continually improve customer relationships.
True
The learning and growth perspective addresses what employee capabilities, information systems, and organizational capabilities we need to continually improve.
True
An important financial metric in the Balanced Scorecard is return on investment.
True (anything measured in dollars)
Defect rates for products and yield percentages in manufacturing are measures of quality included in the _________ perspective of the Balanced scorecard. A. Financial B. Production C. Process D. Internal
C
If a performance measure in the customer perspective of the Balanced Scorecard was customer loyalty, then a driver from the process perspective would MOST likely be: A. Implementing cutting-edge technology B. Repeat sales C. High-quality production processes D. Increased profits
C
Measures of the Balanced Scorecard's financial perspective include: A. Information system availability B. Number of new patents C. Revenue growth D. Defect rates
C
The _________ perspective of the Balanced Scorecard asks, "How is success measured by our shareholders?" A. Learning and Growth B. Customer C. Financial D. Shareholder
C
Which of the following is NOT true of a good balanced scorecard? A. Tells the story of a company's strategy by articulating a sequence of cause-and-effect relationships. B. It helps to communicate corporate strategy to all members of the organization. C. It identifies all measures, whether significant or small, that help to implement strategy. D. It uses non-financial measures to serve as leading indicators of future financial performance.
C
Design quality refers to the performance of a product or service relative to its design and product specification.
False
Managers for the learning and growth perspective of the Balanced Scorecard must invest in all of the following EXCEPT: A. Improve asset utilization B. Improving the skills of their employees C. Enhancing information technology and systems D. Aligning employees to the company's objectives
A
Manufacturing cycle efficiency is an example of a Balanced Scorecard's measure of the: A. Process perspective B. Customer Perspective C. Learning and growth perspective D. Financial perspective
A
Measures of the balanced scorecard's customer perspective include: A. Market share B. Number of on-time deliveries C. Number of process improvements D. Revenue growth
A
The FIRST step in developing strategic objectives for the Balanced Scorecard is: A. defining the long-run financial objectives B. Identifying the target customer C. Articulating the organization's vision D. Select objectives for the customer value proposition
A
The use of multiple-performance measures in the Balanced Scorecard would be expected to lead to all of the following EXCEPT: A. More extensive use of financial measures such as cost and profit B. Employees recognizing the various dimensions of work C. The use of new performance measures such as customer satisfaction and employee morale D. Group-level performance measures
A
Which of the following statements is true? A. Vision and mission statements set the general direction for the organization B. Strategy is concise, internally-focused statement of how the organization expects to compete and deliver value to customers C. Mission is a concise, externally-focused statement that expresses how the organization wants to be perceived by the external world D. Vision is about selecting the set of activities to create a sustainable difference in the marketplace.
A
______________ describe(s) specifically how success in achieving objectives in a Balanced Scorecard is determined. A. Measures B. The value proposition C. Targets D. The Balanced Scorecard
A
A chain of cause-and-effect relationships that appropriately link the four balanced scorecard perspectives is: A. A high return on investment causes customer loyalty that results in skilled production workers that improve process quality B. Skilled production workers help to produce process quality that results in customer loyalty that helps to increase return on investment C. Customer loyalty results in high return on investment that results in the ability to attract skilled production workers that improve process quality D. Improved process quality results in high return on investment that causes customer loyalty that results in the ability to attract skilled production workers.
B
All of the following questions relate to the Balanced Scorecard's learning and growth perspective EXCEPT: A. How do we achieve greater employee satisfaction? B. How do we increase profits and return on capital? C. How do we provide information systems with updated technology? D. How will we sustain our ability to change and improve?
B
If process perspective measure from the Balanced Scorecard was shorter cycle times, then a driver from the learning and growth perspective would MOST likely be to: A. Lower cost of acquiring materials B. Achieve just-in-time supplier capability C. Offer a complete production line D. Expand product offereings
B
Measures of the balanced scorecard's financial perspective include all of the following EXCEPT: A. Operating income B. Customer satisfaction C. Gross profit percentage D. Cost reductions
B
___________ are the basic, day-to-day processes that produce products and services and deliver them to customers. A. Measures B. The value proposition C. Operations management processes D. Th balanced Scorecard
C
Maloney Corporation manufactures plastic water bottles. It plans to grow by producing high-quality water bottles at a low cost that are delivered in a timely manner. There are a number of other manufacturers who produce similar water bottles. Maloney believes that continuously improving its manufacturing process and having satisfied employees are critical to implementing its strategy. Is Maloney's strategy one of product differentation or cost leadership?
Cost leadership
The Balanced Scorecard is said to be "balanced" because it measures: A. Short-term and long-term objectives B. Financial and non-financial objectives C. Internal and external objectives D. All of the above are correct
D
Identify the BEST description of the Balanced Scorecard's customer perspective. To achieve our firm's vision and strategy: A. How do we lower costs? B. How do we motivate employees? C. How can we obtain greater profits? D. How does the company intend to attract, retain, and deepen relationships with targeted customers by differentiating itself from competitors?
D
Identify the BEST description of the Balanced Scorecard's learning and growth perspective. To achieve our firm's vision and strategy: A. How do we obtain a greater market share? B. What do our non-customers consider to be most important? C. What new processes do our customers value? D. How do we identify the objectives for the people, information technology, and organizational alignment that will drive improvement in the various process objectives?
D
Measures of employees' skills and capabilities are included in the ____________ perspective of the Balanced Scorecard A. Financial B. Internal C. Customer D. Learning and Growth perspective
D
The _________ perspective of the Balanced Scorecard focuses on creating value for customers. A. Value B. Financial C. Stakeholder D. Customer
D
The purpose of the Balanced Scorecard is BEST described as helping an organization: A. develop customer relations B. Mobilize employee skills for continuous improvements in processing capabilities, quality, and response times C. Introduce innovative products and services desired by target customers D. Translate an organization's mission, vision, and strategy into a set of performance measures that hep to implement the strategy
D
_________ translate(s) an organization's mission, vision, and strategy into a comprehensive set of performance measures that provide the framework for implementing its strategy. A. Critical success factors B. the value proposition C. Objectives D. The Balanced Scorecard
D
___________ establish the level of performance or rate of improvement required for a measure in the Balanced Scorecard. A. Critical success factors B. The value proposition C. The Balanced Scorecard D. Targets
D
the "flush" in backflush refers to the fact that there are no variances in a backflush costing system using standard costs.
False
When considering customer needs and wants, only financial measures can be used, since they are easily measured.
False (BOTH financial and non-financial measures are used)
The customer perspective of the Balanced Scorecard focuses on excellence in processes which satisfy customers.
False (Internal process perspective)
The financial perspective addresses which processes must we excel at to meet our customer and shareholder expectations.
False (Learning and Growth)
The Balance Scorecard measures organizational performance across five different but linked perspectives.
False (Original contains only four perspectives)
Employee satisfaction is a measure of the internal business perspective of the balanced scorecard.
False (anything that has to do with employees is learning and growth)
A measurement of market share is considered a financial measure of customer satisfaction.
False (considered non-financial)
Internal failure costs are costs incurred on defective products after they have been shipped to customers.
False (external failure costs)
Warranty costs are an example of internal failure costs.
False (external failure costs)
In the banking industry, depositing a customer's check into the wrong bank account is an example of quality design failure.
False (it is conformance quality failure)
In for-profit companies, the primary goal of the balanced scorecard is to sustain short-run financial performance.
False (its primary goal is the long-run financial performance and focuses on non-financial as well)
Appraisal costs are costs incurred to preclude (prevent) the production of products that do NOT conform to specifications.
False (prevention costs prevent bad things from happening)
Non-financial measures of quality are often difficult to quantify and easy to understand.
False (they are easy to quantify and easy to understand)
A strategy map is a diagram that describes how an organization creates value by connecting strategic objectives in explicit cause-and-effect relationships with each other in financial, customer, internal business process, and learning and growth perspectives.
True
