Question 1

Discuss the three elements of a cost management system.

Accepted Answer

Motivational elements include performance measurements and the reward structure of the organization.Support of the organizational mission and competitive strategy are also considered motivational elements.Informational elements include support of the budgeting process as well as support of cost reduction initiatives.Core competencies assessment and make-or-outsource decision analyses are part of informational elements.Emphasis is placed on product life cycle,and distinctions must be made between value-added and non-value-added activities in the informational elements of a cost management system.Lastly,reporting elements include the preparation of financial statements and provision of details for responsibility accounting systems.

Question 2

A packaged business software system that allows an organization to improve the quality and timeliness of information as well as integrate and standardize information is referred to as a(n)_____________________________________________.
or

Accepted Answer

Enterprise resource planning system ERP system

Question 3

Feedback is another name for an effector.

Accepted Answer

A) True 
 B)False  True

Question 4

Define a cost management system and indicate how it should help managers.

Accepted Answer

A cost management system is a set of for

Question 5

Focus on cost control and assessing core competencies are part of which cost management element?

Accepted Answer

A) motivational 
B) informational 
C) reporting 
D) all of the above 
A) motivational 
B) informational 
C) reporting 
D) all of the above

Question 6

A cost management system should provide information to

Accepted Answer

A) all functional areas of the organization. 
B) only the accounting area of the organization. 
C) only the production area of the organization. 
D) organizational managers,but not to staff personnel. 
A) all functional areas of the organization. 
B) only the accounting area of the organization. 
C) only the production area of the organization. 
D) organizational managers,but not to staff personnel.

Question 7

A measuring device that identifies what is actually happening in the process being controlled is a detector.

Accepted Answer

A) True 
 B)False

Question 8

A cost management system would be an integral part of implementing which of the following?

Accepted Answer

A) no yes yes 
B) no no no 
C) yes no yes 
D) yes yes no 
A) no yes yes 
B) no no no 
C) yes no yes 
D) yes yes no

Question 9

Customer satisfaction is an example of a quantitative performance measure.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following competitive strategies is least profitable?

Accepted Answer

A) differentiation 
B) cost leadership 
C) confrontation 
D) price fixing 
A) differentiation 
B) cost leadership 
C) confrontation 
D) price fixing

Question 11

A cost management system should

Accepted Answer

A) identify and evaluate new activities. 
B) determine whether the organization is effective and efficient. 
C) identify the cost of consumed resources within the organization. 
D) all of the above. 
A) identify and evaluate new activities. 
B) determine whether the organization is effective and efficient. 
C) identify the cost of consumed resources within the organization. 
D) all of the above.

Question 12

The reward system for subunit managers of mature businesses should emphasize

Accepted Answer

A) long-term competitive prospects. 
B) near-term profit and cash flow. 
C) success in product design and development. 
D) exceeding last year's subunit profit. 
A) long-term competitive prospects. 
B) near-term profit and cash flow. 
C) success in product design and development. 
D) exceeding last year's subunit profit.

Question 13

Organizational form directly affects which of the following?

Accepted Answer

A) no yes yes yes 
B) yes yes yes no 
C) no yes no yes 
D) yes yes no no 
A) no yes yes yes 
B) yes yes yes no 
C) no yes no yes 
D) yes yes no no

Question 14

In conjunction with a cost management system,gap analysis refers to comparing

Accepted Answer

A) the information being received by competitors' managers to the information being received by in-house managers. 
B) the information needed to what is available. 
C) current cost information to projected cost information. 
D) budget figures to actual spending. 
A) the information being received by competitors' managers to the information being received by in-house managers. 
B) the information needed to what is available. 
C) current cost information to projected cost information. 
D) budget figures to actual spending.

Question 15

Cost control is an important function of the

Accepted Answer

A) no no yes 
B) yes yes no 
C) no yes yes. 
D) yes yes no. 
A) no no yes 
B) yes yes no 
C) no yes yes. 
D) yes yes no.

Question 16

Most managers evaluate decision alternatives based on how

Accepted Answer

A) much the decision will increase or decrease organizational profits. 
B) the outcomes may affect selected performance measurement and reward criteria. 
C) much the outcome will reduce the organization's cost of capital. 
D) easily the decision impacts can be quantified in the organization's cost management system. 
A) much the decision will increase or decrease organizational profits. 
B) the outcomes may affect selected performance measurement and reward criteria. 
C) much the outcome will reduce the organization's cost of capital. 
D) easily the decision impacts can be quantified in the organization's cost management system.

Question 17

Motivational elements may be quantitative or non-quantitative in nature.

Accepted Answer

A) True 
 B)False

Question 18

Reducing the time-to-market for a new product

Accepted Answer

A) is only possible if a company has formed strategic alliances with its suppliers. 
B) generally increases long-run product costs because of the need to develop new production processes. 
C) results in the ability of a firm to pursue a cost leadership competitive strategy. 
D) may result in design flaws,a need for engineering change orders,and customer "bad will." 
A) is only possible if a company has formed strategic alliances with its suppliers. 
B) generally increases long-run product costs because of the need to develop new production processes. 
C) results in the ability of a firm to pursue a cost leadership competitive strategy. 
D) may result in design flaws,a need for engineering change orders,and customer "bad will."

Question 19

As part of its control function,a cost management system is useful for

Accepted Answer

A) yes yes yes 
B) no yes yes 
C) yes no no 
D) yes yes no 
A) yes yes yes 
B) no yes yes 
C) yes no no 
D) yes yes no

Question 20

A cost management system

Accepted Answer

A) is finalized when the information currently being produced is the same as the information currently desired. 
B) can be generically designed to fit the information needs of the majority of domestic (but not global)organizations. 
C) must be continuously improved to adapt to changes in an organization's internal and external environment. 
D) that has been appropriately designed from gap analysis,does not need to be changed unless there is a change in organizational management or culture. 
A) is finalized when the information currently being produced is the same as the information currently desired. 
B) can be generically designed to fit the information needs of the majority of domestic (but not global)organizations. 
C) must be continuously improved to adapt to changes in an organization's internal and external environment. 
D) that has been appropriately designed from gap analysis,does not need to be changed unless there is a change in organizational management or culture.

Discuss the three elements of a cost management system.

A packaged business software system that allows an organization to improve the quality and timeliness of information as well as integrate and standardize information is referred to as a(n)_____________________________________________. or

Feedback is another name for an effector.

Define a cost management system and indicate how it should help managers.

Focus on cost control and assessing core competencies are part of which cost management element?

A cost management system should provide information to

A measuring device that identifies what is actually happening in the process being controlled is a detector.

A cost management system would be an integral part of implementing which of the following?

Customer satisfaction is an example of a quantitative performance measure.

Which of the following competitive strategies is least profitable?

A cost management system should

The reward system for subunit managers of mature businesses should emphasize

Organizational form directly affects which of the following?

In conjunction with a cost management system,gap analysis refers to comparing

Cost control is an important function of the

Most managers evaluate decision alternatives based on how

Motivational elements may be quantitative or non-quantitative in nature.

Reducing the time-to-market for a new product

As part of its control function,a cost management system is useful for

A cost management system

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Exam 12: Introduction to Cost Management Systems

Discuss the three elements of a cost management system.

A packaged business software system that allows an organization to improve the quality and timeliness of information as well as integrate and standardize information is referred to as a(n)_____________________________________________. or

Feedback is another name for an effector.

Define a cost management system and indicate how it should help managers.

Focus on cost control and assessing core competencies are part of which cost management element?

A cost management system should provide information to

A measuring device that identifies what is actually happening in the process being controlled is a detector.

A cost management system would be an integral part of implementing which of the following?

Customer satisfaction is an example of a quantitative performance measure.

Which of the following competitive strategies is least profitable?

A cost management system should

The reward system for subunit managers of mature businesses should emphasize

Organizational form directly affects which of the following?

In conjunction with a cost management system,gap analysis refers to comparing

Cost control is an important function of the

Most managers evaluate decision alternatives based on how

Motivational elements may be quantitative or non-quantitative in nature.

Reducing the time-to-market for a new product

As part of its control function,a cost management system is useful for

A cost management system

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters