16) The partial productivity of overhead resources can be measured by considering the cost driver as ________.
A) budgeted input
B) the denominator
C) the fixed input
D) the numerator
17) Which of the following statements is true of productivity measures?
A) Partial productivity and total factor productivity measures never work best together.
B) Partial productivity explicitly considers gains from using fewer physical inputs as well as substitution among inputs.
C) All productivity measures are physical measures lacking financial content.
D) Total factor productivity considers the trade-offs across various inputs based on current input prices.
18) ________ is an example of a total factor productivity measure.
A) The number of units produced per month
B) The number of units produced per machine hour
C) The number of units produced per labor hour
D) The number of units produced per dollar of input cost
19) Total factor productivity explicitly considers gains from using fewer physical inputs as well as substitution among inputs.
20) Partial productivity and total factor productivity measures work best together because both measures have the same kind of strengths and weaknesses.
21) One problem with total factor productivity revolves around the measurement of combined productivity of all inputs.
22) Productivity describes the relationship between different quantities of inputs consumed and the quantities of output produced.
23) Power Company has been unhappy with the financial accounting variances that its cost accounting system has been producing, because its managers believe that there is more to evaluating an operation than just examining accounting numbers. Therefore, it has started gathering data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of remote control units for televisions, radios, and stereo components:
20112012
Remote control units produced and sold80,000100,000
Direct manufacture labor-hours12,00013,200
Direct materials used (sets)80,600100,500
Direct manufacture cost per hour$18$20
Direct materials cost per set$31$32
Required:
a.What is the partial productivity of direct materials for each year?
b.What is the partial productivity of direct manufacturing labor for each year?
c.Did each area improve between 2011 and 2012? Explain.
d.What will be the projected direct material and labor needs for 2013 if remote control units increase by 12,000 units, assuming Power Company applies the constant returns to scale technology?
24) Grader Company manufactures road graders. Because its managers all have engineering backgrounds, they prefer nonfinancial information for their decision-making models. Therefore, they require the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a paver:
20112012
Units produced and sold6,8005,600
Direct manufacture labor-hours136,000115,200
Direct materials used (tons)29,00024,400
Direct manufacture cost per hour$21$22
Direct materials cost per ton$431$443
Required:
a.What is the partial productivity for direct materials for each year?
b.What is the partial productivity for direct manufacturing labor for each year?
c.What is the total factor productivity for each year?
