Question 1

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 2

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 3

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 4

A cost management system should provide the means to develop

Accepted Answer

A)  the most accurate product or service costs. 
B)  a reasonably accurate product or service cost given cost-benefit analysis. 
C)  a product or service cost that does not include any non-value-added overhead. 
D)  a costing system that traces all costs directly to individual products or services. 
A)  the most accurate product or service costs. 
B)  a reasonably accurate product or service cost given cost-benefit analysis. 
C)  a product or service cost that does not include any non-value-added overhead. 
D)  a costing system that traces all costs directly to individual products or services.

Question 5

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 6

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

Question 7

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 8

In a decentralized organization,

Accepted Answer

A)  all functions are delegated to subunit managers who are closest to the information. 
B)  subunits under the control of a single manager are normally grouped by organizational structure. 
C)  it would be difficult to group geographically related subunits pursuing different missions under the same manager. 
D)  functions such as financing and product/service pricing are typically retained by top management. 
A)  all functions are delegated to subunit managers who are closest to the information. 
B)  subunits under the control of a single manager are normally grouped by organizational structure. 
C)  it would be difficult to group geographically related subunits pursuing different missions under the same manager. 
D)  functions such as financing and product/service pricing are typically retained by top management.

Question 9

A profit sharing plan is an example of a motivational element.

Accepted Answer

A) True 
 B)False

Question 10

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 11

A commonly recognized critical success factor for most organizations is

Accepted Answer

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

Question 12

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 13

Most smaller businesses are organized as corporations.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 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

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 18

Which of the following indicates the mission being pursued by a subunit that is

Accepted Answer

A)  save harvest 
B)  build save 
C)  harvest build 
D)  build harvest 
A)  save harvest 
B)  build save 
C)  harvest build 
D)  build harvest

Question 19

In the future competitive environment, companies will emphasize

Accepted Answer

A)  achievement of financial results. 
B)  development of strategic alliances. 
C)  development of annual plans. 
D)  conformity to project expectations. 
A)  achievement of financial results. 
B)  development of strategic alliances. 
C)  development of annual plans. 
D)  conformity to project expectations.

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.

Profit sharing is a method of employee compensation that

Substantial reductions in product cost can be obtained by

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

A cost management system should provide the means to develop

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

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

The reward system for subunit managers of mature businesses should emphasize

In a decentralized organization,

A profit sharing plan is an example of a motivational element.

Cost control is an important function of the

A commonly recognized critical success factor for most organizations is

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

Most smaller businesses are organized as corporations.

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

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

Most managers evaluate decision alternatives based on how

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

Which of the following indicates the mission being pursued by a subunit that is

In the future competitive environment, companies will emphasize

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

Profit sharing is a method of employee compensation that

Substantial reductions in product cost can be obtained by

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

A cost management system should provide the means to develop

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

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

The reward system for subunit managers of mature businesses should emphasize

In a decentralized organization,

A profit sharing plan is an example of a motivational element.

Cost control is an important function of the

A commonly recognized critical success factor for most organizations is

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

Most smaller businesses are organized as corporations.

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

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

Most managers evaluate decision alternatives based on how

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

Which of the following indicates the mission being pursued by a subunit that is

In the future competitive environment, companies will emphasize

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