Questions from Cost Accounting

Q: Distinguish between customer-response time and manufacturing cycle time.

Distinguish between customer-response time and manufacturing cycle time.

Q: What are three important pitfalls to avoid when implementing a balanced scorecard

What are three important pitfalls to avoid when implementing a balanced scorecard?

Q: “There is no tradeoff between customer-response time and on

“There is no tradeoff between customer-response time and on-time performance.” Do you agree? Explain.

Q: Give two reasons why delays occur.

Give two reasons why delays occur.

Q: “Companies should always make and sell all products whose selling prices

“Companies should always make and sell all products whose selling prices exceed variable costs.” Assuming fixed costs are irrelevant, do you agree? Explain.

Q: “When evaluating a company’s performance on the time dimension, managers

“When evaluating a company’s performance on the time dimension, managers should only consider financial measures.” Do you agree? Explain.

Q: Distinguish between internal failure costs and external failure costs.

Distinguish between internal failure costs and external failure costs.

Q: Describe three methods that companies use to identify quality problems.

Describe three methods that companies use to identify quality problems.

Q: “Companies should focus on financial measures of quality because these are

“Companies should focus on financial measures of quality because these are the only measures of quality that can be linked to bottom-line performance.” Do you agree? Explain.

Q: Give two examples of nonfinancial measures of customer satisfaction relating to quality

Give two examples of nonfinancial measures of customer satisfaction relating to quality.