1. (UNi) Which of the following best defines manufacturing cycle efficiency (MCE)?

The process of eliminating non-value-added activities.

The process of identifying, describing, and evaluating the activities an organization
performs.
The number of units that can be produced in a given period of time.
The ratio of units that can be produced in a given period of time.
The set of activities to efficiently design, develop, produce, market, and service a
product.

2. (HG) Successful reengineering involves:

Cutting across functional lines to focus on the entire business process
Redefining the roles and responsibilities of employees
Using information technology
All of the above

3. Statement 1: Top Managers who translate strategy into performance measures that
employees and understand and influence are following a balanced scorecard approach.
Statement 2: Mission in a concise, internally focused statement of how the organization
expects to complete and deliver value to customers.
Statement 1 is false, while Statement 2 is true.
Statement 1 is true, while Statement 2 is false.
Both statements are false.
Both statements are true.

4. (UNi) Which one of the following is not an accurate attribute of an organization’s

strategic vision?
A clearly articulated view of “where we are going”
Outlining how the company intends to implement and execute its business model
Describing the company’s future product-customer-market-technology focus
Providing managers with a reference point for making strategic decisions
Pointing an organization in a particular direction an charting a strategic path for it to
follow

5. Statement 1: The customer value perspective of the balanced scorecard addresses

stakeholder concerns about profitability and organizational growth.
Statement 2: The partial productivity ratio measures the number of output produced per
multiple input.
Statement 1 is false, while Statement 2 is true.
Statement 1 is true, while Statement 2 is false.
Both statements are false.
Both statements are true.

6. Statement 1: An 85% learning curve means that the direct labour time per unit
decreases 85% each time the production volume doubles.
 Statement 2: Traditional measures of financial performance tend to focus on non-
financial rather than financial measures of performance.
Statement 1 is false, while Statement 2 is true.
Statement 1 is true, while Statement 2 is false.
Both statements are false.
Both statements are true.

7. (UNi) Considering two fiscal years 2013 and 2014, if selling price in 2013 and 2014 is
P55 and P60 per unit respectively and actual units sold in 2013 and 2014 are 25,000
and 30,000 units, then revenue effect of price recovery will be:
P275,000
P150,000
P125,000
P300,000
Some other answers

8. Statement 1: The balanced scorecard approach looks at performance from the following
perspectives: financial, customer, internal business, and learning and growth.
Statement 2: Learning curves are most easily developed for one-of-a-kind orders.
Statement 1 is false, while Statement 2 is true.
Statement 1 is true, while Statement 2 is false.
Both statements are false.
Both statements are true.

9. (BD) The product cell for Crane Company had budgeted conversion costs of P420,000
for the year. The cell is planned to be available 2,100 hours for production. Each unit
requires P12.50 of materials costs. The cell started and completed 700 units. The cell
process time for the product is 15 minutes per unit.
P35,000
P38,750
P40,000
P43,750
Some other amount

10. Statement 1: For production of high-volume products, use of the learning curve will result
in an increase in the number of workers needed because the processing time per unit
decreases.
Statement 2: Traditional measures of financial performance are often superior to
measuring a company’s performance than the balanced scorecard approach.
Statement 1 is false, while Statement 2 is true.
Statement 1 is true, while Statement 2 is false.
Both statements are false.
Both statements are true.
11. Statement 1: Reengineering benefits are most significant when they focus on one
business function rather than crossing functional lines of the business process.
Statement 2: The customer value oriented viewpoint is concerned with what the
customer receives and what the customer gives up.
Statement 1 is false, while Statement 2 is true.
Statement 1 is true, while Statement 2 is false.
Both statements are false.
Both statements are true.