Questions from Cost Management

Q: What are the relationships between a market size variance, a market

What are the relationships between a market size variance, a market share variance, a sales quantity variance, and a sales volume variance?

Q: “An improvement in earnings growth can be achieved at the expense

“An improvement in earnings growth can be achieved at the expense of market share (i.e., an unfavorable market share variance).” Do you agree, and why or why not?

Q: List benchmarks or criteria often used in assessing productivity, and discuss

List benchmarks or criteria often used in assessing productivity, and discuss their advantages and disadvantages.

Q: What is operational productivity? Financial productivity?

What is operational productivity? Financial productivity?

Q: What is partial productivity? Total productivity?

What is partial productivity? Total productivity?

Q: “A financial productivity measure contains more information than an operational

“A financial productivity measure contains more information than an operational productivity measure does.” Do you agree, and why or why not?

Q: “A total productivity measure encompasses all partial productivity measures.” Do

“A total productivity measure encompasses all partial productivity measures.” Do you agree, and why or why not?

Q: “Partial productivity measures should be calculated only for high-value

“Partial productivity measures should be calculated only for high-value-added activities.” Do you agree, and why or why not?

Q: The market price for a product has been $50 per unit

The market price for a product has been $50 per unit, but competitive pressures have reduced the market price to $45. The firm manufactures 10,000 of these products per year at a manufacturing cost of...

Q: Why do manufacturing personnel prefer operational productivity measures to financial productivity measures

Why do manufacturing personnel prefer operational productivity measures to financial productivity measures?