Chapter 15: Lean Accounting and Productivity Measurement
98. The quantitative assessment of productivity changes is called:
a. Productivity measurement
b. Operational productivity measure
c. Technical efficiency
d. Financial productivity measure
99. The process of producing output efficiently, using the least quantity of inputs possible is(are) called:
a. Productivity measurement
b. Partial productivity measures
c. Profile measurement
d. Productivity
100. The ratio that measures productive efficiency for one input is called:
a. Partial productivity measurement
b. Operational productivity measure
c. Financial productivity measure
d. Productivity measurement
101. The productivity ratio used as a partial operational productivity measure is calculated as follows
a. Output/Input.
b. Input/Output.
c. Input/Costs.
d. Input/Sales.
102. The measure of input and output used by a financial productivity measure is called:
a. revenues
b. dollars
c. costs
d. physical quantities
Chapter 15: Lean Accounting and Productivity Measurement
103. The measure of input and output used by an operational productivity measure is called:
a. revenues
b. costs
c. physical quantities
d. dollars
104. The productivity measure(s) in which inputs and outputs are expressed in dollars is(are) called:
a. Productivity measurement
b. Operational productivity measures
c. Partial productivity measurement
d. Financial productivity measures
105. The productivity measure(s) that are expressed in physical terms is(are) called:
a. Financial productivity measures
b. Partial productivity measurement
c. Operational productivity measures
d. Productivity measurement
106. The prior period used to set the benchmark for measuring productivity changes is(are) called:
a. Financial productivity measures
b. Base period
c. Operational productivity measures
d. Target period
107. Which of the following is an advantage of using partial productivity measures?
a. Partial productivity measures keep managers aware of trade-offs in inputs.
b. Partial productivity measures keep top management involved because it is difficult for operating personnel to
understand.
c. Partial productivity measures are easily interpreted.
d. Partial productivity measures provide a system wide focus.
Chapter 15: Lean Accounting and Productivity Measurement
108. Which of the following is NOT a disadvantage of partial productivity measures?
a. partial measures used in isolation
b. the ability to focus on a particular input
c. trade-offs effects among input productivity may be missed
d. a decline in the productivity of an input may lead to an overall cost decline
109. Information about Papanicolou Corporation is as follows:
2016
2017
Output (units)
45,000
47,000
Selling price per unit
$25
$25
Input quantities:
Materials (pounds)
2,500
2,500
Labor (hours)
1,500
1,525
Input prices:
Materials (per pound)
$5.00
$5.50
Labor (per hour)
$7.00
$7.50
What is the materials productivity ratio for 2016?
a. 28
b. 18
c. 25
d. 16
Chapter 15: Lean Accounting and Productivity Measurement
Materials (per pound)
$5.00
$5.50
Labor (per hour)
$7.00
$7.50
110. Information about Papanicolou Corporation is as follows:
2016
2017
Output (units)
45,000
47,000
Selling price per unit
$25
$25
Input quantities:
Materials (pounds)
2,500
2,500
Labor (hours)
1,500
1,525
Input prices:
What is the labor productivity ratio for 2016?
a. 22.84
b. 24.80
c. 24.00
d. 30.00
111. Allocative efficiency can be defined as
a. all non–value activities performed with minimal quantities needed to produce the given outputs.
b. elimination of all non-value–added activities.
c. input prices determining the relative proportions of each input that should be used.
d. input prices determining the relative proportions of each output that should be produced.
112. Which of the following conditions is NOT an example of technical efficiencies?
a. More output; fewer inputs
b. Same output; fewer inputs
c. More output; same inputs
d. Less output; less inputs
Chapter 15: Lean Accounting and Productivity Measurement
113. The Marakesh Company provides the following data:
2016
2017
Output (units)
12,000
13,000
Input quantities:
Materials (pounds)
3,750
4,000
Input prices:
Materials (per pound) $2 $3
What is the partial operational productivity measure for materials for 2016?
a. 3.2000
b. 0.6250
c. 0.3125
d. 3.2500
114. The Marakesh Company provides the following data:
2016
2017
Output (units)
12,000
13,000
Input quantities:
Materials (pounds)
3,750
4,000
Input prices:
Materials (per pound) $2 $3
What is the partial operational productivity measure for materials for 2016?
a. 3.2000
b. 0.3125
c. 0.3077
d. 3.2500
Chapter 15: Lean Accounting and Productivity Measurement
115. Information about Haulover Company is as follows:
2016
2017
Output (units)
200,000
200,000
Input quantities:
Materials (pounds)
90,000
80,000
Labor (hours)
50,000
40,000
Input prices:
Materials (per pound)
$5
$6
Labor (per hour)
$8
$9
What is the partial operational productivity measure for materials for 2016?
a. 2.22
b. 1.60
c. 1.80
d. 1.42
116. Information about Haulover Company is as follows:
2014
2015
Output (units)
200,000
200,000
Input quantities:
Materials (pounds)
90,000
80,000
Labor (hours)
50,000
40,000
Input prices:
Materials (per pound)
$5
$6
Labor (per hour)
$8
$9
What is the partial operational productivity measure for materials for 2015?
a. 1.50
b. 2.00
c. 1.67
d. 2.50
Chapter 15: Lean Accounting and Productivity Measurement
117. Information about Haulover Company is as follows:
2014
2015
Output (units)
200,000
200,000
Input quantities:
Materials (pounds)
90,000
80,000
Labor (hours)
50,000
40,000
Input prices:
Materials (per pound)
$5
$6
Labor (per hour)
$8
$9
What is the partial operational productivity measure for labor for 2014?
a. 1.42
b. 2.22
c. 4.00
d. 4.25
118. Information about Haulover Company is as follows:
2014
2015
Output (units)
200,000
200,000
Input quantities:
Materials (pounds)
90,000
80,000
Labor (hours)
50,000
40,000
Input prices:
Materials (per pound)
$5
$6
Labor (per hour)
$8
$9
What is the partial operational productivity measure for labor for 2015?
a. 1.67
b. 5.00
c. 5.25
d. 2.50
Chapter 15: Lean Accounting and Productivity Measurement
119. The following data is recorded by the Antonio Company:
2014
2015
Output (units)
10,000
9,300
Input quantities:
Labor (hours)
4,000
3,875
Input prices:
Labor (per hour) $7 $8
What is the partial operational productivity measure for labor for 2014?
a. 2.4
b. 2.8
c. 0.4
d. 2.5
120. The following data is recorded by the Antonio Company:
2014
2015
Output (units)
10,000
9,300
Input quantities:
Labor (hours)
4,000
3,875
Input prices:
Labor (per hour) $7 $8
What is the partial operational productivity measure for labor for 2015?
a. 3.300
b. 2.500
c. 2.400
d. 2.325
Chapter 15: Lean Accounting and Productivity Measurement
121. Information about Remarkable Corporation is as follows:
2014
2015
Output (units)
50,000
50,000
Input quantities:
Materials (pounds)
22,500
20,000
Labor (hours)
12,500
10,000
Input prices:
Materials (per pound)
$6
$7
Labor (per hour)
$9
$10
What is the partial operational productivity measure for materials for 2014?
a. 1.42
b. 2.22
c. 1.80
d. 1.60
122. Information about Remarkable Corporation is as follows:
2014
2015
Output (units)
50,000
50,000
Input quantities:
Materials (pounds)
22,500
20,000
Labor (hours)
12,500
10,000
Input prices:
Materials (per pound)
$6
$7
Labor (per hour)
$9
$10
What is the partial operational productivity measure for labor for 2015?
a. 1.67
b. 5.00
c. 2.50
d. 5.25
Chapter 15: Lean Accounting and Productivity Measurement
123. At the end of 2014, Diatomic Company implemented a new labor process and redesigned its product with
the expectation that input usage efficiency would increase. Now, at the end of 2015, the president of the
company wants an assessment of the changes on the company’s productivity. The data needed for the
assessment are as follows:
2014
2015
Output
45,000
54,000
Output prices
$10
$10
Materials (lbs.)
22,500
22,950
Materials unit price
$3
$4
Labor (hrs.)
18,000
16,875
Labor rate per hour
$5
$5
Power (kwh)
11,250
14,625
Price per kwh
$2
$3
What is the partial operational measure for materials for 2014?
a. 2.35
b. 1.00
c. 2.00
d. 1.25
124. At the end of 2014, Diatomic Company implemented a new labor process and redesigned its product with
the expectation that input usage efficiency would increase. Now, at the end of 2015, the president of the
company wants an assessment of the changes on the company’s productivity. The data needed for the
assessment are as follows:
2014
2015
Output
45,000
54,000
Output prices
$10
$10
Materials (lbs.)
22,500
22,950
Materials unit price
$3
$4
Labor (hrs.)
18,000
16,875
Labor rate per hour
$5
$5
Power (kwh)
11,250
14,625
Price per kwh
$2
$3
What is the partial operational measure for labor for 2014?
a. 2.50
b. 3.20
c. 1.00
d. 1.25
Chapter 15: Lean Accounting and Productivity Measurement
125. At the end of 2014, Diatomic Company implemented a new labor process and redesigned its product with
the expectation that input usage efficiency would increase. Now, at the end of 2015, the president of the
company wants an assessment of the changes on the company’s productivity. The data needed for the
assessment are as follows:
2014
2015
Output
45,000
54,000
Output prices
$10
$10
Materials (lbs.)
22,500
22,950
Materials unit price
$3
$4
Labor (hrs.)
18,000
16,875
Labor rate per hour
$5
$5
Power (kwh)
11,250
14,625
Price per kwh
$2
$3
What is the partial operational measure for labor for 2015?
a. 1.00
b. 3.20
c. 2.50
d. 1.25
126. At the end of 2014, Diatomic Company implemented a new labor process and redesigned its product with
the expectation that input usage efficiency would increase. Now, at the end of 2015, the president of the
company wants an assessment of the changes on the company’s productivity. The data needed for the
assessment are as follows:
2014
2015
Output
45,000
54,000
Output prices
$10
$10
Materials (lbs.)
22,500
22,950
Materials unit price
$3
$4
Labor (hrs.)
18,000
16,875
Labor rate per hour
$5
$5
Power (kwh)
11,250
14,625
Price per kwh
$2
$3
What is the partial operational measure for power for 2014?
a. 1.00
b. 1.60
c. 3.69
d. 4.00
Chapter 15: Lean Accounting and Productivity Measurement
127. At the end of 2014, Diatomic Company implemented a new labor process and redesigned its product with
the expectation that input usage efficiency would increase. Now, at the end of 2015, the president of the
company wants an assessment of the changes on the company’s productivity. The data needed for the
assessment are as follows:
2014
2015
Output
45,000
54,000
Output prices
$10
$10
Materials (lbs.)
22,500
22,950
Materials unit price
$3
$4
Labor (hrs.)
18,000
16,875
Labor rate per hour
$5
$5
Power (kwh)
11,250
14,625
Price per kwh
$2
$3
What is the partial operational measure for power for 2015?
a. 3.69
b. 1.00
c. 1.15
d. 4.00
128. The following information is supplied by the Mountain State Company:
2014
2015
Output (units)
120,000
130,000
Input quantities:
Materials (pounds)
37,500
40,000
Input prices:
Materials (per pound) $4 $6
What is the partial operational productivity measure for materials for 2014?
a. 0.3125
b. 3.2000
c. 0.6250
d. 3.2500
Chapter 15: Lean Accounting and Productivity Measurement
129. The following information is supplied by the Mountain State Company:
2014
2015
Output (units)
120,000
130,000
Input quantities:
Materials (pounds)
37,500
40,000
Input prices:
Materials (per pound) $4 $6
What is the partial operational productivity measure for materials for 2015?
a. 3.2500
b. 3.2000
c. 0.3077
d. 0.3125
130. The two approaches for measuring total productivity are
a. profile measurement and profit–linked productivity measurement.
b. partial productivity measures and relative proportions.
c. allocative efficiency and technical efficiency.
d. ABC and ABM.
131. The component which provides a series or vector of separate and distinct partial operational measures is
called:
a. Price recovery component
b. Profit–linked productivity measurement
c. Profile measurement
d. Total productivity measurement
Chapter 15: Lean Accounting and Productivity Measurement
132. Information about Taekwondo Corporation is as follows:
2014
2015
Output (units)
14,000
15,000
Selling price per unit
$16
$16
Input quantities:
Materials (pounds)
1,750
1,900
Labor (hours)
1,400
1,525
Input prices:
Materials (per pound)
$3
$4
Labor (per hour)
$6
$7
What is the materials productivity ratio for 2014?
a. 8
b. 12
c. 10
d. 13
Chapter 15: Lean Accounting and Productivity Measurement
133. Information about Taekwondo Corporation is as follows:
2014
2015
Output (units)
14,000
15,000
Selling price per unit
$16
$16
Input quantities:
Materials (pounds)
1,750
1,900
Labor (hours)
1,400
1,525
Input prices:
Materials (per pound)
$3
$4
Labor (per hour)
$6
$7
What is the labor productivity ratio for 2014?
a. 12.5
b. 8.0
c. 10.0
d. 6.0
Chapter 15: Lean Accounting and Productivity Measurement
134. Information about Taekwondo Corporation is as follows:
2014
2015
Output (units)
14,000
15,000
Selling price per unit
$16
$16
Input quantities:
Materials (pounds)
1,750
1,900
Labor (hours)
1,400
1,525
Input prices:
Materials (per pound)
$3
$4
Labor (per hour)
$6
$7
By how much did profits change as a result of changes in productivity related to materials?
a. $100 decrease
b. $100 increase
c. $600 increase
d. $600 decrease
Chapter 15: Lean Accounting and Productivity Measurement
135. Information about Taekwondo Corporation is as follows:
2014
2015
Output (units)
14,000
15,000
Selling price per unit
$16
$16
Input quantities:
Materials (pounds)
1,750
1,900
Labor (hours)
1,400
1,525
Input prices:
Materials (per pound)
$3
$4
Labor (per hour)
$6
$7
By how much did profits change as a result of changes in productivity related to labor?
a. $175 increase
b. $175 decrease
c. $100 decrease
d. $100 increase
136. The assessment of productive efficiency for all inputs combined is called:
a. Price recovery component
b. Total productivity measurement
c. Profit-linked productivity measurement
d. Profile measurement
137. The assessment of the amount of profit change—from the base period to the current period—attributable to
productivity changes is called:
a. Profit-linked productivity measurement
b. Profile measurement
c. Price recovery component
d. Total productivity measurement
Chapter 15: Lean Accounting and Productivity Measurement
Materials (per pound)
$5.00
$5.50
Labor (per hour)
$7.00
$7.50
138. Information about Harlequin Corporation is as follows:
2014
2015
Output (units)
40,000
42,000
Selling price per unit
$25
$25
Input quantities:
Materials (pounds)
2,000
2,000
Labor (hours)
1,600
1,625
Input prices:
By how much did profits change as a result of changes in productivity related to materials?
a. $550.00 decrease
b. $312.50 decrease
c. $550.00 increase
d. $312.50 increase
Chapter 15: Lean Accounting and Productivity Measurement
Materials (per pound)
$5.00
$5.50
Labor (per hour)
$7.00
$7.50
139. Information about Harlequin Corporation is as follows:
2014
2015
Output (units)
40,000
42,000
Selling price per unit
$25
$25
Input quantities:
Materials (pounds)
2,000
2,000
Labor (hours)
1,600
1,625
Input prices:
By how much did profits change as a result of changes in productivity related to labor?
a. $550.00 decrease
b. $550.00 increase
c. $412.50 increase
d. $412.50 decrease
Chapter 15: Lean Accounting and Productivity Measurement
Materials (per pound)
$5.00
$5.50
Labor (per hour)
$7.00
$7.50
Materials (per pound)
$5.00
$5.50
Labor (per hour)
$7.00
$7.50
140. Information about Bodacious Corporation is as follows:
2014
2015
Output (units)
120,000
126,000
Selling price per unit
$25
$25
Input quantities:
Materials (pounds)
6,000
6,000
Labor (hours)
4,800
4,825
Input prices:
What is the materials productivity ratio for 2015?
a. 28
b. 21
c. 25
d. 16
141. Information about Bodacious Corporation is as follows:
2014
2015
Output (units)
120,000
126,000
Selling price per unit
$25
$25
Input quantities:
Materials (pounds)
6,000
6,000
Labor (hours)
4,800
4,825
Input prices:
What is the labor productivity ratio for 2014?
a. 22.84
b. 24.80
c. 24.00
d. 25.00