The Management Accountant Must Design Performance Measures to Evaluate and Control

question 18

Multiple Choice

The management accountant must design performance measures to evaluate and control JIT production.One of the dominant sources of information that the management accountant might use for this would be the personal observations of production line workers and team leaders.Another dominant source of information would be

• A)inventory turnover ratio.
• B)nonfinancial measures of time, inventory and quality.
• C)material cost variances.
• D)number of units sent to scrap/total scrap costs.
• E)total setup time for machines/total number of units started and completed.

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Definitions:

Problem Seeker

An individual or tool that identifies issues or challenges in a given context, often the first step in problem-solving processes.

Anticipates

The act of expecting or predicting future events or needs before they actually occur, often allowing for proactive measures to be taken.

Retail Chain

A series of stores or outlets owned and operated by the same company, selling similar or identical merchandise to consumers.

Systematic Thinking

An approach to problem-solving that involves understanding and analyzing the relationships between parts of a system.