Chapter 16 Handout Problems

Chapter 16 Handout Problems - financial objectives. To...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: financial objectives. To provide the framework needed for this perspective. a process value chain is defined. The process value chain is made up of three processes: the innovation process. the operations process. and the postsalcs service process. 'Some measures of process pei§p_cctive: Cycle time is the length of time it takes to produce a unit of output from the time materials are received (starting, point ofthe cycle) until the good is delivered to finished goods inventory (finishing point of the cycle). Or maybe called Dock-to-Dock time. Velocity is the number ofunits ol'output that can be produced in a given period oftime. Manufacturing Cycle Efficiency (MCE) measures the proportion of value adding time out oftotal time (both useful and wasteful). ll'there is no waste time, MCE=l. Cycle timc:Time/Llnits produced .- t“ L. ,v I _, l Velocity : units produced/time MC E= processing time /(processing time+ move timc+ inspection tinie+ waiting time) Or = theoretical conversion cycle time/actual cycle time D. Learning am! Growth Perspective The learning and growth perspective is the source ol‘thc capabilities that enable the accomplishment ot‘the other three perspectives' objectives. This perspective has three major objectives: increase employee capabilities; increase motivation. empowerment, and alignment; and increase information systems capabilities. Practice I. An accounting system designed For a lean production environment would be more likely to inciude which ofthe ibllowing? a) An inventory driven focus b) A unit responsibility focus c) A volume focus A value-chain focus 3. A manufacturing cell has the theoretical cycle time capability of producing 40.000 microchips per quarter. The conversion cost per quarter is $25000. There are 4.000 production hours available within the cell per quarter. The theoretical velocity per hour is a. 25.00 units. i, its}, b, l6.00 units, I i L. 1c." [0.00 units. 1‘ ‘ I Y ' , in) d. 2.34 units. " ’ . i _ I \|\l I t \, 4. McDougail Company charges cost plus 25%. It‘the price ot'an item is $80. what is the item‘s cost? a) $80 b) $100 c) $62.50 d) $64 LET $60 5. Falkner Company is designing a portable DVD player aimed at families traveling with young children. The company believes that the product can be sold for $140; and it requires a 20% profit on new products. What is the target cost ofthe portable DVD player? a. $l40 b. $28 c $175 (343 $112 e. $168 6. Brad Company developed the following budgeted life-cycle income statement for two proposed products. Each product's life cycle is expected to be two years. Product A Product B M Sales $200300 $200,000 $400,000 Cost ofgoods sold [20 000 I30 000 250,000 Cums profit £80309 3; 7_QLQ_0_0 $150,000 Period expenses: Research and development (70.000) Marketing (50000) Life-cycle income $7 304009 A I0 percent return on sales is required for new products. Because the proposed products did not have a 10 percent return on sales. the products were going to be dropped. Relative to Product B, Product A requires tnore research and development costs but fewer resources to market the product. Sixty percent ofthe research and development costs are traceable to Product Al and 30 percent ofthe marketing costs are traceable to Product A. lfrcsearch and development costs and marketing costs are traced to each product. life-cycle income for Product A would be a. s3 8.000. b. 027.000. (’c.‘ $23000. ‘d. $15000. 103' c. 7“ ...
View Full Document

Page1 / 2

Chapter 16 Handout Problems - financial objectives. To...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online