Question 1

Which of the following statements is true?

Accepted Answer

A)  A good cost management system is a key consideration in determining an organization's mission. 
B)  The organization's mission is a critical success factor in assessing how to react to competition. 
C)  Knowledge of an organization's critical success factors help to clarify organizational mission and develop a cost management system. 
D)  An organization must establish a position of cost leadership to compete in a global business environment. 
A)  A good cost management system is a key consideration in determining an organization's mission. 
B)  The organization's mission is a critical success factor in assessing how to react to competition. 
C)  Knowledge of an organization's critical success factors help to clarify organizational mission and develop a cost management system. 
D)  An organization must establish a position of cost leadership to compete in a global business environment.

Question 2

A short-run challenge for a business is achieving profitability.

Accepted Answer

A) True 
 B)False

Question 3

A long-run challenge for a business is achieving profitability.

Accepted Answer

A) True 
 B)False

Question 4

Define a cost management system and indicate how it should help managers.

Accepted Answer

A cost management system is a set of for

Question 5

A management information system is a part of a management control system.

Accepted Answer

A) True 
 B)False

Question 6

An important function of a cost management system is to relate resource consumption and cost to alternative product and process design.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is considered a "feeder" system to the cost management system?

Accepted Answer

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

Question 8

A cost management system would be an integral part of implementing which of the following?

Accepted Answer

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

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The operation of a management control system is readily observable.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Distinguishing a product by adding additional features or value is part of which of the following competitive strategies?

Accepted Answer

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

Question 13

Reactions to information provided by the management control system are

Accepted Answer

A)  formulated in the organization's strategic plan. 
B)  judgmental, and are based on interpretations and circumstances. 
C)  assessed by the communications network of the MCS. 
D)  determined as those activities that will be most efficient and effective given the organization's available technology. 
A)  formulated in the organization's strategic plan. 
B)  judgmental, and are based on interpretations and circumstances. 
C)  assessed by the communications network of the MCS. 
D)  determined as those activities that will be most efficient and effective given the organization's available technology.

Question 14

An increase in the use of technology has caused

Accepted Answer

A)  fewer costs to be susceptible to short-run control. 
B)  companies to be more flexible in responding to changing short-term conditions. 
C)  managers to be less concerned about capacity utilization because of the increased ability to produce in large quantities. 
D)  a decline in the amount of fixed costs in an organization. 
A)  fewer costs to be susceptible to short-run control. 
B)  companies to be more flexible in responding to changing short-term conditions. 
C)  managers to be less concerned about capacity utilization because of the increased ability to produce in large quantities. 
D)  a decline in the amount of fixed costs in an organization.

Question 15

Reducing the time-to-market for a new product

Accepted Answer

A)  is only possible if a company has formed strategic alliances with its suppliers. 
B)  generally increases long-run product costs because of the need to develop new production processes. 
C)  results in the ability of a firm to pursue a cost leadership competitive strategy. 
D)  may result in design flaws, a need for engineering change orders, and customer "bad will." 
A)  is only possible if a company has formed strategic alliances with its suppliers. 
B)  generally increases long-run product costs because of the need to develop new production processes. 
C)  results in the ability of a firm to pursue a cost leadership competitive strategy. 
D)  may result in design flaws, a need for engineering change orders, and customer "bad will."

Question 16

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 17

Organizational form directly affects which of the following?

Accepted Answer

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

Question 18

Feedback is another name for an effector.

Accepted Answer

A) True 
 B)False

Question 19

____ refers to avoiding competition in making a product distinct from that of competitors by adding value or features for which consumers are willing to pay more.

Accepted Answer

A)  Kaizen 
B)  Differentiation 
C)  Confrontation 
D)  Cost leadership 
A)  Kaizen 
B)  Differentiation 
C)  Confrontation 
D)  Cost leadership

Question 20

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

Accepted Answer

management

Which of the following statements is true?

A short-run challenge for a business is achieving profitability.

A long-run challenge for a business is achieving profitability.

Define a cost management system and indicate how it should help managers.

A management information system is a part of a management control system.

An important function of a cost management system is to relate resource consumption and cost to alternative product and process design.

Which of the following is considered a "feeder" system to the cost management system?

A cost management system would be an integral part of implementing which of the following?

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

The operation of a management control system is readily observable.

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

Distinguishing a product by adding additional features or value is part of which of the following competitive strategies?

Reactions to information provided by the management control system are

An increase in the use of technology has caused

Reducing the time-to-market for a new product

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

Organizational form directly affects which of the following?

Feedback is another name for an effector.

____ refers to avoiding competition in making a product distinct from that of competitors by adding value or features for which consumers are willing to pay more.

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

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

Which of the following statements is true?

A short-run challenge for a business is achieving profitability.

A long-run challenge for a business is achieving profitability.

Define a cost management system and indicate how it should help managers.

A management information system is a part of a management control system.

An important function of a cost management system is to relate resource consumption and cost to alternative product and process design.

Which of the following is considered a "feeder" system to the cost management system?

A cost management system would be an integral part of implementing which of the following?

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

The operation of a management control system is readily observable.

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

Distinguishing a product by adding additional features or value is part of which of the following competitive strategies?

Reactions to information provided by the management control system are

An increase in the use of technology has caused

Reducing the time-to-market for a new product

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

Organizational form directly affects which of the following?

Feedback is another name for an effector.

____ refers to avoiding competition in making a product distinct from that of competitors by adding value or features for which consumers are willing to pay more.

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

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