Question 1

Substantial reductions in product cost can be obtained by

Accepted Answer

A) decreasing capacity utilization. 
B) using focused factory arrangements. 
C) using tried and true manufacturing techniques. 
D) using product life cycle accounting. 
A) decreasing capacity utilization. 
B) using focused factory arrangements. 
C) using tried and true manufacturing techniques. 
D) using product life cycle accounting.

Question 2

A structure of interrelated elements that enables management to plan,control,and evaluate performance is referred to as a _____________________________________________.

Accepted Answer

management

Question 3

The costs generated by the cost management system are used to

Accepted Answer

A) assess product/service profitability. 
B) establish prices for products with significant competition. 
C) determine underlying reasons for variations from standards. 
D) all of the above. 
A) assess product/service profitability. 
B) establish prices for products with significant competition. 
C) determine underlying reasons for variations from standards. 
D) all of the above.

Question 4

An operation whose exact nature cannot be observed is referred to as a(n)_________________________.

Accepted Answer

The answer of An operation whose exact nature cannot be...

Question 5

Feedback is reflected in which component of a management control system?

Accepted Answer

A) sensor 
B) assessor 
C) effector 
D) detector 
A) sensor 
B) assessor 
C) effector 
D) detector

Question 6

Relating resource consumption and cost to alternative product and process designs can be achieved through

Accepted Answer

A) kaizen costing. 
B) reverse engineering. 
C) computer simulation. 
D) all of the above. 
A) kaizen costing. 
B) reverse engineering. 
C) computer simulation. 
D) all of the above.

Question 7

Discuss from where an organization receives information and what happens to information within an organization.

Accepted Answer

An organization receives information fro

Question 8

A cost management system should use cost driver information to trace costs to products and services.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following groups are external users of data gathered by a management information system?

Accepted Answer

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

Question 10

The performance measurement system should encourage each manager to act in a manner that

Accepted Answer

A) makes the manager's units profits as high as possible. 
B) most positively supports the organization's mission and competitive strategies. 
C) increases his/her performance reward in the form of profit sharing. 
D) reduces the need for informational elements in support of the manager's planning function. 
A) makes the manager's units profits as high as possible. 
B) most positively supports the organization's mission and competitive strategies. 
C) increases his/her performance reward in the form of profit sharing. 
D) reduces the need for informational elements in support of the manager's planning function.

Question 11

It is not necessary to be familiar with an organization's mission when designing a cost management system.

Accepted Answer

A) True 
 B)False

Question 12

The underlying set of assumptions about an organization and the goals,processes,and values that its members share is referred to as ______________________________.

Accepted Answer

organizati

Question 13

Customer satisfaction is an example of a qualitative performance measure.

Accepted Answer

A) True 
 B)False

Question 14

Performance measures must be quantitative to be useful.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a primary element of a cost management system?

Accepted Answer

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

Question 16

Performance reports are useful only to the extent that performance is measured against

Accepted Answer

A) a meaningful benchmark. 
B) the performance of all other units or managers. 
C) the budget as adopted for the period. 
D) competitors' achievements. 
A) a meaningful benchmark. 
B) the performance of all other units or managers. 
C) the budget as adopted for the period. 
D) competitors' achievements.

Question 17

An enterprise resource planning system is composed of numerous software modules.

Accepted Answer

A) True 
 B)False

Question 18

What are the six primary goals of a cost management system? Illustrate how a CMS achieves each of these goals.

Accepted Answer

The six goals of a cost management syste

Question 19

What are five ways that an organization could reduce product costs? Provide an example of how each method would cause cost reduction.

Accepted Answer

The answer could include any of the foll

Question 20

Cost structure is related to an organization's proportions of fixed and variable costs.

Accepted Answer

A) True 
 B)False

Substantial reductions in product cost can be obtained by

A structure of interrelated elements that enables management to plan,control,and evaluate performance is referred to as a _____________________________________________.

The costs generated by the cost management system are used to

An operation whose exact nature cannot be observed is referred to as a(n)_________________________.

Feedback is reflected in which component of a management control system?

Relating resource consumption and cost to alternative product and process designs can be achieved through

Discuss from where an organization receives information and what happens to information within an organization.

A cost management system should use cost driver information to trace costs to products and services.

Which of the following groups are external users of data gathered by a management information system?

The performance measurement system should encourage each manager to act in a manner that

It is not necessary to be familiar with an organization's mission when designing a cost management system.

The underlying set of assumptions about an organization and the goals,processes,and values that its members share is referred to as ______________________________.

Customer satisfaction is an example of a qualitative performance measure.

Performance measures must be quantitative to be useful.

Which of the following is a primary element of a cost management system?

Performance reports are useful only to the extent that performance is measured against

An enterprise resource planning system is composed of numerous software modules.

What are the six primary goals of a cost management system? Illustrate how a CMS achieves each of these goals.

What are five ways that an organization could reduce product costs? Provide an example of how each method would cause cost reduction.

Cost structure is related to an organization's proportions of fixed and variable costs.

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

Substantial reductions in product cost can be obtained by

A structure of interrelated elements that enables management to plan,control,and evaluate performance is referred to as a _____________________________________________.

The costs generated by the cost management system are used to

An operation whose exact nature cannot be observed is referred to as a(n)_________________________.

Feedback is reflected in which component of a management control system?

Relating resource consumption and cost to alternative product and process designs can be achieved through

Discuss from where an organization receives information and what happens to information within an organization.

A cost management system should use cost driver information to trace costs to products and services.

Which of the following groups are external users of data gathered by a management information system?

The performance measurement system should encourage each manager to act in a manner that

It is not necessary to be familiar with an organization's mission when designing a cost management system.

The underlying set of assumptions about an organization and the goals,processes,and values that its members share is referred to as ______________________________.

Customer satisfaction is an example of a qualitative performance measure.

Performance measures must be quantitative to be useful.

Which of the following is a primary element of a cost management system?

Performance reports are useful only to the extent that performance is measured against

An enterprise resource planning system is composed of numerous software modules.

What are the six primary goals of a cost management system? Illustrate how a CMS achieves each of these goals.

What are five ways that an organization could reduce product costs? Provide an example of how each method would cause cost reduction.

Cost structure is related to an organization's proportions of fixed and variable costs.

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