Question 1

Discuss the characteristics of an organization for which a true cost management system would be appropriate.

Accepted Answer

The organization for which a true CMS wo

Question 2

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 3

Performance measurements and a reward system 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 4

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 5

A device for determining what is happening in a process being controlled is referred to as a(n) ____________________.

Accepted Answer

The answer of A device for determining what is happening...

Question 6

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 7

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 8

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 9

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 10

Discuss the three elements of a cost management system.

Accepted Answer

Motivational elements include performanc

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Discuss the four primary components of a control system.

Accepted Answer

The four components include the followin

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

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

Accepted Answer

A) True 
 B)False

Question 15

A short-run challenge for a business is maintaining a competitive position.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

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 19

Name five items that would be considered critical success factors by most world-class companies. Why is each of these factors so important to organizational longevity?

Accepted Answer

The five items most commonly named are t

Question 20

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.

Discuss the characteristics of an organization for which a true cost management system would be appropriate.

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

Performance measurements and a reward system are part of which cost management element?

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

A device for determining what is happening in a process being controlled is referred to as a(n) ____________________.

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

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

The costs generated by the cost management system are used to

A cost management system should provide information to

Discuss the three elements of a cost management system.

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

Discuss the four primary components of a control system.

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

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

A short-run challenge for a business is maintaining a competitive position.

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

Which of the following is a primary element of 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 ______________________________.

Name five items that would be considered critical success factors by most world-class companies. Why is each of these factors so important to organizational longevity?

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

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 characteristics of an organization for which a true cost management system would be appropriate.

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

Performance measurements and a reward system are part of which cost management element?

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

A device for determining what is happening in a process being controlled is referred to as a(n) ____________________.

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

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

The costs generated by the cost management system are used to

A cost management system should provide information to

Discuss the three elements of a cost management system.

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

Discuss the four primary components of a control system.

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

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

A short-run challenge for a business is maintaining a competitive position.

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

Which of the following is a primary element of 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 ______________________________.

Name five items that would be considered critical success factors by most world-class companies. Why is each of these factors so important to organizational longevity?

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

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