1.
Introduction: Speed to market determines the amount of time taken by the companies to introduce or launch new products into the market. The highly competitive market requires companies to be proactive in introducing new products into the market.
The action taken by the research and development department to improve the average amount of time taken to develop the product.
2.
Introduction: Elapsed time is the time consumed from the start of an event to the end of the event. Average elapsed time is the average time gap between the airplane landing and unloading the entire luggage from the airplane.
The performance measure taken to reduce the average elapsed time.
3.
Introduction: The shipment of the order will be considered a late shipment if the company is unable to ship the product within the promised date. This would lead to customer dissatisfaction and a bad reputation for the company.
The performance measure to avoid the late shipment of the orders.
4.
Introduction: Revenue per employee is an efficiency ratio that is used to determine the revenue generated per employee. It helps to determine the efficiency of an employee to generate revenue for the company.
The performance measure to increase the revenue per employee.
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MANAGERIAL ACCOUNTING F/MGRS.
- Using the revenue per employee ratio as an indicator for productivity will lead to outsourcing of personnel, even when it increases cost.True or false? And why?arrow_forward#28arrow_forwardWithout proper performance measures, goal congruence is almost impossible to achieve and will likely lead to _______. A. more stable targets B. decreased defects C. lost profits D. employees satisfied with the status quoarrow_forward
- View Policies A Current Attempt in Progress What is "balanced" in the balanced scorecard approach? A O The number of products produced. O The number of defects found on each product. O The amount of costs allocated to products. O The emphasis on financial and non-financial performance measurements. Save for Later Attempts: 0 of 1arrow_forwardOnly typed solutionarrow_forward"In target costing, prices determine costs rather than vice versa." Explain. Question content area bottom Part 1 A. In target costing, managers start with a predatory price. Then they determine how much they can spend in variable and fixed costs to breakeven. Thus, prices essentially determine costs. B. In target costing, managers start with a price that will result in breakeven. They the managers brainstorm to find ways to lower costs without raising the price to earn more profit. Thus, prices essentially determine costs. C. In target costing, managers start with a market price. Then they try to design a product with costs low enough to be profitable at that price. Thus, prices essentially determine costs. D. In target costing, managers start with a cost-plus price. Then they work backwards to determine how much their costs are for production and the markup is on the product. Thus, prices essentially determine costs.arrow_forward
- If a firm's marginal revenue is smaller than its marginal cost, then the firm should collect additional information before taking any action. increase output to increase profit. keep output the same decrease output to increase profit.arrow_forwardA. The trend for cost of goods sold is increasing as a percentage of sales and the trend for total marketing costs as a percentage of sales is decreasing. What does this suggest to the company CEO? a. The CEO would want to analyze whether marketing is pushing production to hard (increasing expenses) to make the marketing effort easier (less expenses). b. That production is spending too much money to produce the product c. The CEO would want to analyze whether production is pushing marketing to hard to make the production effort easier and thus lower marketing expenses d. That the marketing manager is doing a good job because marketing expenses are declining as a percentage of sales B. What does the previous scenario suggest to a company CEO? Sales in units are increasing and the average price is decreasing. Net operating income is decreasing. a. The CEO should wait and hope things get better b. The CEO would want to carefully analyze the…arrow_forward[S1]Two companies with the same margin of safety in dollars will also have the same total contribution margin. [S2] If a company has high operating leverage, then profits will be very sensitive to changes in sales. Only S1 is true. Only S2 is true. Both statements are true. Both statements are false.arrow_forward
- What of the following is NOT a Benefit of Activity Based Management? a.It assists in the budgeting process. b.It aids management in cost cutting and/or cost control and inferentially in product profitability. c.It causes managers to identify non-value added activities and therefore encourages thinking of means of reducing such activities. d.Is more complex than traditional accounting system because it uses multiple cost application rates, one for each activity or cost pool.arrow_forwardS1: A manufacturing cycle efficiency (MCE) ratio of less than 1.00 is desirable since this ratio measures the amount of non-value-added time to throughput time. S2: Only Financial measures are necessary and already sufficient, for they show the problems and enable the decision makers to react to the situation. Only S1 is correct Both statements are correct Both statements are incorrect Only S1 is incorrectarrow_forwardtrue or false The smaller the contribution margin ratio, the larger the amount of sales required to cover a given amount of fixed expenses True False The margin of safety can be defined as the amount by which profit can decrease before losses are incurred by the company True False A big increase in sales will result in a small increase in profit if there is a low degree of operating leverage in a company True Falsearrow_forward
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