Posted: May 3rd, 2016

By how much did profits change as a result of changes in productivity related to materials?

20. _______________ is a predetermined amount of defective product that a company permits to be sold.
a. Acceptable quality level
b. Taguchi quality loss function
c. Zero defects
d. Kaizen

21. 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

22. _______________ is an assessment of productive efficiency for all inputs combined.
a. Price recovery component
b. Profile measurement
c. Profit-linked productivity measurement
d. Total productivity measurement

Information about Jones Corporation is as follows:
2009 2010
Output (units) 120,000 130,000

Input quantities:
Materials (pounds) 37,500 40,000

Input prices:
Materials (per pound) $4 $6

23. What is the partial operational productivity measure for materials for 2009?
a. 0.3125
b. 0.6250
c. 3.2000
d. 3.2500

24. What is the partial operational productivity measure for materials for 2010?
a. 3.2000
b. 3.2500
c. 0.3077
d. 0.3125

Information about Cheng Corporation is as follows:
2009 2010
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

25. By how much did profits change as a result of changes in productivity related to materials?
a. $600 decrease
b. $600 increase
c. $100 decrease
d. $100 increase