Question 1

The life-cycle stage of a business is an important determinant of an organization's activities.

Accepted Answer

A) True 
 B)False

Question 2

An effective reporting system is increasingly important in a decentralized organization.

Accepted Answer

A) True 
 B)False

Question 3

Increasing automation generally results in cost management becoming more long-term in nature.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following should be able to provide the financial information needed for budget preparation?

Accepted Answer

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

Question 5

A set of formal methods used to plan and control the cost-generating activities of an organization is referred to as a(n)________________________________________.

Accepted Answer

cost manag

Question 6

Automated technology makes cost control less difficult for a firm.

Accepted Answer

A) True 
 B)False

Question 7

A measuring device that identifies what is actually happening in the process being controlled is an assessor.

Accepted Answer

A) True 
 B)False

Question 8

The accounting function in an organization is expected to support managers in which of the following functions?

Accepted Answer

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

Question 9

Information about the life-cycle performance of a product or service should be provided in the

Accepted Answer

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

Question 10

How costs change relative to changes in production or sales volume is referred to as ______________________________.

Accepted Answer

The answer of How costs change relative to changes in...

Question 11

Which of the following statements is false concerning a management control system?

Accepted Answer

A) A management control system may be referred to as a black box. 
B) A management control system should serve as a guide to organizations. 
C) A management control system should help implement strategies. 
D) A management control system is separate from a cost management system. 
A) A management control system may be referred to as a black box. 
B) A management control system should serve as a guide to organizations. 
C) A management control system should help implement strategies. 
D) A management control system is separate from a cost management system.

Question 12

Profit sharing is a method of employee compensation that

Accepted Answer

A) allocates an equal amount of profit reward to each manager in the organization. 
B) allows organizational profits to be divided among employees in a non-taxable status. 
C) is contingent based on the level of subunit profit generated. 
D) is used in many foreign companies but is virtually nonexistent in most U.S.organizations. 
A) allocates an equal amount of profit reward to each manager in the organization. 
B) allows organizational profits to be divided among employees in a non-taxable status. 
C) is contingent based on the level of subunit profit generated. 
D) is used in many foreign companies but is virtually nonexistent in most U.S.organizations.

Question 13

In order for cost information to be effective,a meaningful baseline performance measure should be available for comparison.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not a primary goal of a cost management system?

Accepted Answer

A) use cost drivers to develop product costs 
B) improve understanding of activities 
C) develop organizational strategies 
D) measure performance 
A) use cost drivers to develop product costs 
B) improve understanding of activities 
C) develop organizational strategies 
D) measure performance

Question 15

List and discuss the four stages in the design of a cost management system.

Accepted Answer

The four stages in designing a cost mana

Question 16

The life cycles of many products are becoming shorter

Accepted Answer

A) causing companies to recognize that it may be more advantageous to confront,rather than compete with,the competition. 
B) making products in the maturity stage of their life cycle the basis on which firms expect growth to be generated. 
C) so companies spend less and less on product design and development because products will not last as long as previously. 
D) meaning that tools such as benchmarking and target costing become less important in adapting to the competitive environment. 
A) causing companies to recognize that it may be more advantageous to confront,rather than compete with,the competition. 
B) making products in the maturity stage of their life cycle the basis on which firms expect growth to be generated. 
C) so companies spend less and less on product design and development because products will not last as long as previously. 
D) meaning that tools such as benchmarking and target costing become less important in adapting to the competitive environment.

Question 17

A management information system should do which of the following?

Accepted Answer

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

Question 18

Define confrontation strategy and indicate why many companies may believe it is the only way to face competitors.

Accepted Answer

Confrontation strategy means that a comp

Question 19

The operation of a management control system is readily observable.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following limits an organization's ability to minimize the "gaps" found when a gap analysis has been performed?

Accepted Answer

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

The life-cycle stage of a business is an important determinant of an organization's activities.

An effective reporting system is increasingly important in a decentralized organization.

Increasing automation generally results in cost management becoming more long-term in nature.

Which of the following should be able to provide the financial information needed for budget preparation?

A set of formal methods used to plan and control the cost-generating activities of an organization is referred to as a(n)________________________________________.

Automated technology makes cost control less difficult for a firm.

A measuring device that identifies what is actually happening in the process being controlled is an assessor.

The accounting function in an organization is expected to support managers in which of the following functions?

Information about the life-cycle performance of a product or service should be provided in the

How costs change relative to changes in production or sales volume is referred to as ______________________________.

Which of the following statements is false concerning a management control system?

Profit sharing is a method of employee compensation that

In order for cost information to be effective,a meaningful baseline performance measure should be available for comparison.

Which of the following is not a primary goal of a cost management system?

List and discuss the four stages in the design of a cost management system.

The life cycles of many products are becoming shorter

A management information system should do which of the following?

Define confrontation strategy and indicate why many companies may believe it is the only way to face competitors.

The operation of a management control system is readily observable.

Which of the following limits an organization's ability to minimize the "gaps" found when a gap analysis has been performed?

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

The life-cycle stage of a business is an important determinant of an organization's activities.

An effective reporting system is increasingly important in a decentralized organization.

Increasing automation generally results in cost management becoming more long-term in nature.

Which of the following should be able to provide the financial information needed for budget preparation?

A set of formal methods used to plan and control the cost-generating activities of an organization is referred to as a(n)________________________________________.

Automated technology makes cost control less difficult for a firm.

A measuring device that identifies what is actually happening in the process being controlled is an assessor.

The accounting function in an organization is expected to support managers in which of the following functions?

Information about the life-cycle performance of a product or service should be provided in the

How costs change relative to changes in production or sales volume is referred to as ______________________________.

Which of the following statements is false concerning a management control system?

Profit sharing is a method of employee compensation that

In order for cost information to be effective,a meaningful baseline performance measure should be available for comparison.

Which of the following is not a primary goal of a cost management system?

List and discuss the four stages in the design of a cost management system.

The life cycles of many products are becoming shorter

A management information system should do which of the following?

Define confrontation strategy and indicate why many companies may believe it is the only way to face competitors.

The operation of a management control system is readily observable.

Which of the following limits an organization's ability to minimize the "gaps" found when a gap analysis has been performed?

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