Question 1

A product can have an initial life-cycle cost that is relatively high,but a manufacturing cost that is relatively low.

Accepted Answer

A) True 
 B)False

Question 2

Total-life-cycle costing manages costs along the entire value chain.

Accepted Answer

A) True 
 B)False

Question 3

Breakeven time brings together the two elements of R&D and profitability.

Accepted Answer

A) True 
 B)False

Question 4

What is benchmarking and why is it used?

Accepted Answer

Benchmarking is a process in w

Question 5

Target costing is a comprehensive approach to profit planning and cost management.

Accepted Answer

A) True 
 B)False

Question 6

An understanding of total-life-cycle costs can lead to:

Accepted Answer

A) additional costs during the manufacturing cycle. 
B) less need for the evaluation of opportunity costs. 
C) cost effective product designs that are easier to service. 
D) mutually beneficial relationships between buyers and sellers. 
A) additional costs during the manufacturing cycle. 
B) less need for the evaluation of opportunity costs. 
C) cost effective product designs that are easier to service. 
D) mutually beneficial relationships between buyers and sellers.

Question 7

Which of the following could be used to measure the objective of reducing product development cycle time?

Accepted Answer

A) potential value of projects in the project pipeline 
B) number of new projects launched based on customer input 
C) number of projects delivered on time 
D) number of failures or returns of new products from customers 
A) potential value of projects in the project pipeline 
B) number of new projects launched based on customer input 
C) number of projects delivered on time 
D) number of failures or returns of new products from customers

Question 8

Target costing uses the total-life-cycle concept by making it a key goal to minimize the cost of ownership of a product over its useful life.

Accepted Answer

A) True 
 B)False

Question 9

Compare target costing and Kaizen costing.

Accepted Answer

Target costing focuses on redu

Question 10

The characteristic of a management accounting and control system that means the language used and the technical methods of producing management accounting information not conflict within various parts of the organization is referred to as being:

Accepted Answer

A) in control. 
B) accurate. 
C) consistent. 
D) Kaizen. 
A) in control. 
B) accurate. 
C) consistent. 
D) Kaizen.

Question 11

Target costing starts by estimating expected product costs.

Accepted Answer

A) True 
 B)False

Question 12

One goal of ________ is to design costs out of products in the research,development,and engineering stage.

Accepted Answer

A) cost-plus pricing 
B) target costing 
C) Kaizen costing 
D) traditional costing 
A) cost-plus pricing 
B) target costing 
C) Kaizen costing 
D) traditional costing

Question 13

After conducting a market research study, Stewart Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $120. The annual target sales volume for interior doors is 20,000. Stewart has a 20% expected return on sales target.
-What are target sales revenues?

Accepted Answer

A) $1,920,000 
B) $4,000,000 
C) $2,400,000 
D) None of the above is correct. 
A) $1,920,000 
B) $4,000,000 
C) $2,400,000 
D) None of the above is correct.

Question 14

After conducting a market research study, Stewart Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $120. The annual target sales volume for interior doors is 20,000. Stewart has a 20% expected return on sales target.
-What is the target cost for each interior door?

Accepted Answer

A) $96 
B) $116 
C) $120 
D) $90 
A) $96 
B) $116 
C) $120 
D) $90

Question 15

Deciding how to allocate resources over a product's life cycle usually is:

Accepted Answer

A) decided once at the beginning of the product design phase. 
B) not known until the beginning of the manufacturing cycle. 
C) part of product development. 
D) an iterative process over the life of the product. 
A) decided once at the beginning of the product design phase. 
B) not known until the beginning of the manufacturing cycle. 
C) part of product development. 
D) an iterative process over the life of the product.

Question 16

Explain why buy-in by employees is critical to benchmarking.

Accepted Answer

In the final stage of benchmarking an or

Question 17

The stage of the research development and engineering cycle in which the technical aspects of products and services are developed is the:

Accepted Answer

A) service phase. 
B) market research stage. 
C) product development stage. 
D) product design stage. 
A) service phase. 
B) market research stage. 
C) product development stage. 
D) product design stage.

Question 18

After conducting a market research study, Stewart Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $120. The annual target sales volume for interior doors is 20,000. Stewart has a 20% expected return on sales target.
-What is the target cost?

Accepted Answer

A) $1,800,000 
B) $1,920,000 
C) $2,520,000 
D) $2,016,000 
A) $1,800,000 
B) $1,920,000 
C) $2,520,000 
D) $2,016,000

Question 19

Supply chain management may result in buyers and suppliers sharing information about each other's companies.

Accepted Answer

A) True 
 B)False

Question 20

Environmental costing and ABC:
Abbot Corporation produces 200,000,000 units of product X and 80,000,000 of product Y with the following costs and machine hours.
   
a. Determine total product cost per unit for each product using a traditional costing system with machine hours as the cost driver.
b. Determine total product cost per unit for each product using an activity based costing system.Use the number of units as the cost driver for each activity.

Accepted Answer

a. Applied support per machine

A product can have an initial life-cycle cost that is relatively high,but a manufacturing cost that is relatively low.

Total-life-cycle costing manages costs along the entire value chain.

Breakeven time brings together the two elements of R&D and profitability.

What is benchmarking and why is it used?

Target costing is a comprehensive approach to profit planning and cost management.

An understanding of total-life-cycle costs can lead to:

Which of the following could be used to measure the objective of reducing product development cycle time?

Target costing uses the total-life-cycle concept by making it a key goal to minimize the cost of ownership of a product over its useful life.

Compare target costing and Kaizen costing.

The characteristic of a management accounting and control system that means the language used and the technical methods of producing management accounting information not conflict within various parts of the organization is referred to as being:

Target costing starts by estimating expected product costs.

One goal of ________ is to design costs out of products in the research,development,and engineering stage.

Deciding how to allocate resources over a product's life cycle usually is:

Explain why buy-in by employees is critical to benchmarking.

The stage of the research development and engineering cycle in which the technical aspects of products and services are developed is the:

Supply chain management may result in buyers and suppliers sharing information about each other's companies.

How Management Accounting Information Supports Decision Making

The Balanced Scorecard and Strategy Map

Using Costs in Decision Making

Accumulating and Assigning Costs to Products

Activity-Based Cost Systems

Measuring and Managing Customer Relationships

Measuring and Managing Process Performance

Behavioral and Organizational Issues in Management Accounting and Control Systems

Using Budgets for Planning and Coordination

Financial Control

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Exam 8: Measuring and Managing Life-Cycle Costs

A product can have an initial life-cycle cost that is relatively high,but a manufacturing cost that is relatively low.

Total-life-cycle costing manages costs along the entire value chain.

Breakeven time brings together the two elements of R&D and profitability.

What is benchmarking and why is it used?

Target costing is a comprehensive approach to profit planning and cost management.

An understanding of total-life-cycle costs can lead to:

Which of the following could be used to measure the objective of reducing product development cycle time?

Target costing uses the total-life-cycle concept by making it a key goal to minimize the cost of ownership of a product over its useful life.

Compare target costing and Kaizen costing.

The characteristic of a management accounting and control system that means the language used and the technical methods of producing management accounting information not conflict within various parts of the organization is referred to as being:

Target costing starts by estimating expected product costs.

One goal of ________ is to design costs out of products in the research,development,and engineering stage.

Deciding how to allocate resources over a product's life cycle usually is:

Explain why buy-in by employees is critical to benchmarking.

The stage of the research development and engineering cycle in which the technical aspects of products and services are developed is the:

Supply chain management may result in buyers and suppliers sharing information about each other's companies.

How Management Accounting Information Supports Decision Making

The Balanced Scorecard and Strategy Map

Using Costs in Decision Making

Accumulating and Assigning Costs to Products

Activity-Based Cost Systems

Measuring and Managing Customer Relationships

Measuring and Managing Process Performance

Behavioral and Organizational Issues in Management Accounting and Control Systems

Using Budgets for Planning and Coordination

Financial Control

Filters