Managerial Accounting Exam 4 –
Miller – questions and Answers
The four performance measures are: Financial, Customer, Internal Business
Process, and Learning & Growth. Which process is the most important? - -
Learning and Growth
- Learning and Growth is the most important performance measure because
- -The development of employees improves business processes, which
results in added value provided to customers which then results in higher
financial performance
- Costs that are incurred to prevent defects in products are called - -Quality
Costs
- Support activities whose purpose is to reduce defects is called - -
Prevention Costs
- The costs that are incurred during quality control process (inspection) to
make sure that the product conforms to company standards are called - -
Appraisal Costs "Inspection Costs"
- The cost of identifying a defect in a product before it is shipped is called - -
Internal Failure Cost
- The cost of identifying a defect in a certain product after it has been given
to a customer is called - -External Failure Cost
- Scrap, spoilage, and rework are examples of - -Internal Failure Cost
- Warranty Costs, Lost Sales, and Field Service are examples of - -External
Failure Costs
- Inspection & Testing of products and depreciation of testing equipment are
examples of - -Appraisal Costs
- Quality Training, Quality Circles, and Process Control Activities are
examples of - -Prevention Costs
- Why is quality cost information important? - -It helps managers see the
financial impact of defective products, and it also helps managers determine
if their quality costs are properly distributed.
, - What is the most important quality cost that is not included in reports? - -
Lost Sales
- The amount of time that work is actually done on the product is called - -
Process Time
- The amount of time spent on making sure the product has no defects is
called - -Inspection Time
- The amount of time it takes to move the product from one workstation to
another is called - -Move Time
- The amount of time it takes for the product to actually start being worked
on is called - -Queue Time (Wait Time)
- Process Time + Inspection Time + Move Time + Queue Time = .... - -
Throughput Time (Manufacturing Cycle Time)
- Wait Time + Throughput Time = ..... - -Delivery Cycle Time
- The formula for Manufacturing Cycle Efficiency is - -Process
Time/Throughput Time (Or also called value-add time/throughput time)
- The formula for Overall Equipment Effectiveness (OEE) is - -Utilization Rate
* Efficiency Rate * Quality Rate
- The formula for Utilization Rate is - -Actual Runtime/Machine Time
Available
- The formula for Efficiency Rate is - -Actual Run Rate/Ideal Run Rate
- The formula for Quality Rate is - -Defect-Free Output/Total Output
- Corporate Social Responsibility - -a business's concern for society's
welfare
- Global Reporting Initiative (GRI) - -Sustainability reporting framework
developed among stakeholders
- The first step in decision-making is - -define the alternatives
- The second step in decision-making is - -identify the criteria (figure out
relevant and irrelevant costs)
- A future cost that differs between two alternatives is known as - -
differential cost
Miller – questions and Answers
The four performance measures are: Financial, Customer, Internal Business
Process, and Learning & Growth. Which process is the most important? - -
Learning and Growth
- Learning and Growth is the most important performance measure because
- -The development of employees improves business processes, which
results in added value provided to customers which then results in higher
financial performance
- Costs that are incurred to prevent defects in products are called - -Quality
Costs
- Support activities whose purpose is to reduce defects is called - -
Prevention Costs
- The costs that are incurred during quality control process (inspection) to
make sure that the product conforms to company standards are called - -
Appraisal Costs "Inspection Costs"
- The cost of identifying a defect in a product before it is shipped is called - -
Internal Failure Cost
- The cost of identifying a defect in a certain product after it has been given
to a customer is called - -External Failure Cost
- Scrap, spoilage, and rework are examples of - -Internal Failure Cost
- Warranty Costs, Lost Sales, and Field Service are examples of - -External
Failure Costs
- Inspection & Testing of products and depreciation of testing equipment are
examples of - -Appraisal Costs
- Quality Training, Quality Circles, and Process Control Activities are
examples of - -Prevention Costs
- Why is quality cost information important? - -It helps managers see the
financial impact of defective products, and it also helps managers determine
if their quality costs are properly distributed.
, - What is the most important quality cost that is not included in reports? - -
Lost Sales
- The amount of time that work is actually done on the product is called - -
Process Time
- The amount of time spent on making sure the product has no defects is
called - -Inspection Time
- The amount of time it takes to move the product from one workstation to
another is called - -Move Time
- The amount of time it takes for the product to actually start being worked
on is called - -Queue Time (Wait Time)
- Process Time + Inspection Time + Move Time + Queue Time = .... - -
Throughput Time (Manufacturing Cycle Time)
- Wait Time + Throughput Time = ..... - -Delivery Cycle Time
- The formula for Manufacturing Cycle Efficiency is - -Process
Time/Throughput Time (Or also called value-add time/throughput time)
- The formula for Overall Equipment Effectiveness (OEE) is - -Utilization Rate
* Efficiency Rate * Quality Rate
- The formula for Utilization Rate is - -Actual Runtime/Machine Time
Available
- The formula for Efficiency Rate is - -Actual Run Rate/Ideal Run Rate
- The formula for Quality Rate is - -Defect-Free Output/Total Output
- Corporate Social Responsibility - -a business's concern for society's
welfare
- Global Reporting Initiative (GRI) - -Sustainability reporting framework
developed among stakeholders
- The first step in decision-making is - -define the alternatives
- The second step in decision-making is - -identify the criteria (figure out
relevant and irrelevant costs)
- A future cost that differs between two alternatives is known as - -
differential cost
