Question 1

Performance measures must be quantitative to be useful.

Accepted Answer

A) True 
 B)False

Question 2

Automated technology makes cost control less difficult for a firm.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

A responsibility accounting system provides information to top management about the

Accepted Answer

A)  organizational responsibilities of each subunit manager. 
B)  performance of each organizational subunit and its manager. 
C)  ability of each subunit manager to ensure a satisfactory cost to revenue relationship. 
D)  all of the above. 
A)  organizational responsibilities of each subunit manager. 
B)  performance of each organizational subunit and its manager. 
C)  ability of each subunit manager to ensure a satisfactory cost to revenue relationship. 
D)  all of the above.

Question 5

As an organization moves to decentralize its operations, an effective reporting system will have ____ when the organization was centralized.

Accepted Answer

A)  about the same importance as 
B)  less importance than 
C)  more importance than 
D)  a level of importance that depends on organizational size as compared to 
A)  about the same importance as 
B)  less importance than 
C)  more importance than 
D)  a level of importance that depends on organizational size as compared to

Question 6

Customer satisfaction is an example of a quantitative performance measure.

Accepted Answer

A) True 
 B)False

Question 7

Gap analysis is a beneficial tool in implementing a cost management system.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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

Accepted Answer

An organization receives information fro

Question 10

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 11

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 12

Which of the following should be considered in a cost management system design?

Accepted Answer

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

Question 13

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

Accepted Answer

A) True 
 B)False

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

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 16

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 17

A device that alters behavior if the control system indicates a need to do so is referred to as ____________________.

Accepted Answer

The answer of A device that alters behavior if the...

Question 18

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 19

A cost leadership strategy emphasizes

Accepted Answer

A)  product features. 
B)  low prices. 
C)  just-in-time production capabilities. 
D)  short-run opportunities for cost minimization. 
A)  product features. 
B)  low prices. 
C)  just-in-time production capabilities. 
D)  short-run opportunities for cost minimization.

Question 20

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.

Performance measures must be quantitative to be useful.

Automated technology makes cost control less difficult for a firm.

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

A responsibility accounting system provides information to top management about the

As an organization moves to decentralize its operations, an effective reporting system will have ____ when the organization was centralized.

Customer satisfaction is an example of a quantitative performance measure.

Gap analysis is a beneficial tool in implementing a cost management system.

The life cycles of many products are becoming shorter

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

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

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

Which of the following should be considered in a cost management system design?

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

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

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

A management information system should do which of the following?

A device that alters behavior if the control system indicates a need to do so is referred to as ____________________.

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

A cost leadership strategy emphasizes

A cost management system should

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

Performance measures must be quantitative to be useful.

Automated technology makes cost control less difficult for a firm.

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

A responsibility accounting system provides information to top management about the

As an organization moves to decentralize its operations, an effective reporting system will have ____ when the organization was centralized.

Customer satisfaction is an example of a quantitative performance measure.

Gap analysis is a beneficial tool in implementing a cost management system.

The life cycles of many products are becoming shorter

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

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

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

Which of the following should be considered in a cost management system design?

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

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

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

A management information system should do which of the following?

A device that alters behavior if the control system indicates a need to do so is referred to as ____________________.

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

A cost leadership strategy emphasizes

A cost management system should

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