Test I. Match the following critical success factors with the appropriate perspective of the balanced scorecard.

Use the following key: F = Financial, C = Customer, IB = Internal business, and LG = Learning and
growth.

a. the efficient and effective use of employees

b. increasing the quality of products and services
c. increasing the number of new products
d. improving quality throughout the production process
e. increasing information systems capabilities
f. increasing ROI
g. reducing delivery time
h. increasing customer satisfaction

ANS:

a. LG
b. C
c. LG
d. IB
e. LG
f. F
g. C
h. C

Test II. Sanford Products Inc. produces a variety of plastic products which it sells to retail stores throughout the
country. The following data is available for the year for one of the products:

Units started into production 600,000

Total good units completed 680,000
Total hours of value-added production time 250,000
Total production hours 400,000

Required:

A. Compute the manufacturing cycle efficiency (MCE).

B. What is the total throughput per hour? Round your answer to two decimal places.

ANS:

A. MCE = Value-added time  Manufacturing cycle time

MCE = 250,000  400,000

MCE = 62.5%

B. Throughput = Good units completed  Total production hours

Throughput = 680,000  400,000

Throughput = 1.70 units per hour
1. a
2. d
3. c
4. b
5. c
6. d
7. a
8. b
9. a (CMA Adapted)

Operating income $25,000 Less required return: Total assets $500,000 x .06 = $30,000
Residual income ($ 5,000)
10. d
11. b
12. b
13. c
14. d
15. a