Question 1

With the enactment of the Sarbanes-Oxley Act of 2002, all public companies are now required by the SEC to disclose whether or not the company has:

Accepted Answer

A) An audit committee. 
B) Human resources guidelines. 
C) A code of ethics. 
D) A management compensation plan. 
E) None of the above. 
A) An audit committee. 
B) Human resources guidelines. 
C) A code of ethics. 
D) A management compensation plan. 
E) None of the above.

Question 2

If a company is working on strategic positioning, what aspect of the firm is being developed?

Accepted Answer

A) How the firm is perceived by its external environment, its competitors, and customers. 
B) Where the firm's physical plants, buildings, and warehouses will be located. 
C) The firm's position on important issues, such as the environment and government regulations. 
D) Which competitive strategy the firm will use to achieve a sustainable competitive advantage. 
A) How the firm is perceived by its external environment, its competitors, and customers. 
B) Where the firm's physical plants, buildings, and warehouses will be located. 
C) The firm's position on important issues, such as the environment and government regulations. 
D) Which competitive strategy the firm will use to achieve a sustainable competitive advantage.

Question 3

Which of the following is not a benefit of using a lean manufacturing system?

Accepted Answer

A) Lead times are reduced. 
B) Average inventory is decreased. 
C) Productivity is improved. 
D) Production operations are linked in a smooth, uninterrupted flow. 
E) Products, on average, have less variety. 
A) Lead times are reduced. 
B) Average inventory is decreased. 
C) Productivity is improved. 
D) Production operations are linked in a smooth, uninterrupted flow. 
E) Products, on average, have less variety.

Question 4

JCH Company conducts business in the lumber and building products industry.Last week, JCH purchased 50 railcars of lumber from a mill in Oregon and sold all 50 to a Home Depot store in North Carolina.In this instance, JCH Company would most likely be classified as a:

Accepted Answer

A) Manufacturer. 
B) Retailer. 
C) Warehouse. 
D) Wholesaler. 
A) Manufacturer. 
B) Retailer. 
C) Warehouse. 
D) Wholesaler.

Question 5

Which of the following does not represent a main focus of cost management information?

Accepted Answer

A)  Strategic management. 
B)  Performance measurement. 
C)  Planning and decision making. 
D)  Preparation of financial statements. 
E)  Internal audit and control. 
A)  Strategic management. 
B)  Performance measurement. 
C)  Planning and decision making. 
D)  Preparation of financial statements. 
E)  Internal audit and control.

Question 6

The competitive strategy in which the firm succeeds by producing at the lowest cost in the industry is termed:

Accepted Answer

A) Differentiation. 
B) Cost advantage. 
C) Price strategy. 
D) Cost leadership. 
E) Resource-based strategy. 
A) Differentiation. 
B) Cost advantage. 
C) Price strategy. 
D) Cost leadership. 
E) Resource-based strategy.

Question 7

All of the following actions enhance the new focus on making management accounting information more relevant in helping a firm achieve strategic goals, except:

Accepted Answer

A) Increasing emphasis on the management accountant as a partner in management decision making. 
B) Increasing emphasis on external financial reporting. 
C) Decreasing emphasis on financial statement analysis. 
D) Increasing emphasis on the use of cost information for competitive advantage. 
A) Increasing emphasis on the management accountant as a partner in management decision making. 
B) Increasing emphasis on external financial reporting. 
C) Decreasing emphasis on financial statement analysis. 
D) Increasing emphasis on the use of cost information for competitive advantage.

Question 8

Under the Sarbanes-Oxley Act of 2002, the Public Company Accounting Oversight Board (PCAOB) established rules relating to which of the following areas?

Accepted Answer

A) Financial reporting. 
B) Production quality control. 
C) Executive compensation. 
D) Hiring and firing practices. 
E) Audit quality, ethics, and independence. 
A) Financial reporting. 
B) Production quality control. 
C) Executive compensation. 
D) Hiring and firing practices. 
E) Audit quality, ethics, and independence.

Question 9

Which of the following most accurately describes what is included in cost management information?

Accepted Answer

A) Only the most up-to-date, accurate financial information available on a firm. 
B) All the non-financial information about a firm researched and analyzed for a minimum of 2 years. 
C) A combination of financial information and relevant non-financial information. 
D) A detailed report outlining how management currently handles all of a company's costs, and the changes it intends to make in the future. 
A) Only the most up-to-date, accurate financial information available on a firm. 
B) All the non-financial information about a firm researched and analyzed for a minimum of 2 years. 
C) A combination of financial information and relevant non-financial information. 
D) A detailed report outlining how management currently handles all of a company's costs, and the changes it intends to make in the future.

Question 10

Which of the following is a contemporary management technique used by the management accountant to identify and monitor the costs of a product throughout all steps from product design to the finished product?

Accepted Answer

A) Enterprise risk management. 
B) Target costing. 
C) Life cycle costing. 
D) Enterprise sustainability. 
A) Enterprise risk management. 
B) Target costing. 
C) Life cycle costing. 
D) Enterprise sustainability.

Question 11

All of the following are examples of total quality management practices except:

Accepted Answer

A)  Redesign of a product to reduce its parts by 50 percent. 
B)  Reduction in the movement required in a manufacturing job. 
C)  Separating the sales and services functions. 
D)  Raising raw material quality standards. 
E)  Cross-training assembly line workers to cover sick leave absences. 
A)  Redesign of a product to reduce its parts by 50 percent. 
B)  Reduction in the movement required in a manufacturing job. 
C)  Separating the sales and services functions. 
D)  Raising raw material quality standards. 
E)  Cross-training assembly line workers to cover sick leave absences.

Question 12

One of the many changes in the business environment in recent years that has had significant impact on cost management practices is a focus on the customer. You are part of the management team in a medium-size computer service company. The company is just three years old and is growing fast, doubling its customer base every six months.
Required: 
(a) Describe your typical customer's needs and service expectations.
(b) How has the doubling of your firm's customer base every six months affected its ability to maintain this focus on the customer? If this dramatic growth continues, what are some specific actions your firm can take to retain its goal of "focus on the customer"?

Accepted Answer

(a) A customer for a computer services c

Question 13

Which of the following is not a consequence of lack of strategic information?

Accepted Answer

A) Inability to effectively benchmark competitors. 
B) Failure to identify most profitable products. 
C) Inability to trace costs to individual products. 
D) Incorrect investment decisions. 
A) Inability to effectively benchmark competitors. 
B) Failure to identify most profitable products. 
C) Inability to trace costs to individual products. 
D) Incorrect investment decisions.

Question 14

A large company has recently been experiencing larger than normal inventory levels.Management would like to implement a theory of constraints system to help control the company's inventories.Which of the following is not a benefit associated with the theory of constraints?

Accepted Answer

A) Speed of product development. 
B) Existing problems such as bottlenecks are highlighted. 
C) Reduced cycle time. 
D) Prompt delivery. 
E) Better product design. 
A) Speed of product development. 
B) Existing problems such as bottlenecks are highlighted. 
C) Reduced cycle time. 
D) Prompt delivery. 
E) Better product design.

Question 15

Which of the following contemporary management techniques requires a balancing of multiple goals?

Accepted Answer

A) Target costing. 
B) The theory of constraints. 
C) Benchmarking. 
D) Business process improvement. 
E) Enterprise sustainability. 
A) Target costing. 
B) The theory of constraints. 
C) Benchmarking. 
D) Business process improvement. 
E) Enterprise sustainability.

Question 16

Important changes in the contemporary business environments include all of the following except:

Accepted Answer

A) Management organizations. 
B) Climate change. 
C) Information technology. 
D) Customer expectations. 
E) Global competition. 
A) Management organizations. 
B) Climate change. 
C) Information technology. 
D) Customer expectations. 
E) Global competition.

Question 17

Which of the following formulas best reflects target costing?

Accepted Answer

A) Target cost = Firm-determined price less desired profit. 
B) Target cost = Market-determined price less desired profit. 
C) Target cost = Firm-determined price less desired revenue. 
D) Target cost = Market-determined price less desired revenue. 
E) Target cost = Firm-determined price less market-determined price. 
A) Target cost = Firm-determined price less desired profit. 
B) Target cost = Market-determined price less desired profit. 
C) Target cost = Firm-determined price less desired revenue. 
D) Target cost = Market-determined price less desired revenue. 
E) Target cost = Firm-determined price less market-determined price.

Question 18

The competitive strategy of differentiation requires that a product or service must be:

Accepted Answer

A) Always readily available. 
B) Price competitive. 
C) Produced at the lowest possible cost. 
D) Unique in some important way, in terms of features, innovation, service or quality. 
E) Marketed in different ways to different groups. 
A) Always readily available. 
B) Price competitive. 
C) Produced at the lowest possible cost. 
D) Unique in some important way, in terms of features, innovation, service or quality. 
E) Marketed in different ways to different groups.

Question 19

Which of the following is not among the management accounting profession's response to changes in the contemporary business environment?

Accepted Answer

A) Introduction of the balanced scorecard. 
B) Value chain analysis. 
C) Advances in costing, including activity-based costing. 
D) The introduction of business process improvement. 
E) New forms of management organization. 
A) Introduction of the balanced scorecard. 
B) Value chain analysis. 
C) Advances in costing, including activity-based costing. 
D) The introduction of business process improvement. 
E) New forms of management organization.

Question 20

Strategic management can be defined as the development of a sustainable:

Accepted Answer

A)  Chain of command. 
B)  Competitive position. 
C)  Cash flow. 
D)  Business entity. 
E)  Company image. 
A)  Chain of command. 
B)  Competitive position. 
C)  Cash flow. 
D)  Business entity. 
E)  Company image.

With the enactment of the Sarbanes-Oxley Act of 2002, all public companies are now required by the SEC to disclose whether or not the company has:

If a company is working on strategic positioning, what aspect of the firm is being developed?

Which of the following is not a benefit of using a lean manufacturing system?

JCH Company conducts business in the lumber and building products industry.Last week, JCH purchased 50 railcars of lumber from a mill in Oregon and sold all 50 to a Home Depot store in North Carolina.In this instance, JCH Company would most likely be classified as a:

Which of the following does not represent a main focus of cost management information?

The competitive strategy in which the firm succeeds by producing at the lowest cost in the industry is termed:

All of the following actions enhance the new focus on making management accounting information more relevant in helping a firm achieve strategic goals, except:

Under the Sarbanes-Oxley Act of 2002, the Public Company Accounting Oversight Board (PCAOB) established rules relating to which of the following areas?

Which of the following most accurately describes what is included in cost management information?

Which of the following is a contemporary management technique used by the management accountant to identify and monitor the costs of a product throughout all steps from product design to the finished product?

All of the following are examples of total quality management practices except:

Which of the following is not a consequence of lack of strategic information?

A large company has recently been experiencing larger than normal inventory levels.Management would like to implement a theory of constraints system to help control the company's inventories.Which of the following is not a benefit associated with the theory of constraints?

Which of the following contemporary management techniques requires a balancing of multiple goals?

Important changes in the contemporary business environments include all of the following except:

Which of the following formulas best reflects target costing?

The competitive strategy of differentiation requires that a product or service must be:

Which of the following is not among the management accounting profession's response to changes in the contemporary business environment?

Strategic management can be defined as the development of a sustainable:

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters

Exam 1: Cost Management and Strategy

With the enactment of the Sarbanes-Oxley Act of 2002, all public companies are now required by the SEC to disclose whether or not the company has:

If a company is working on strategic positioning, what aspect of the firm is being developed?

Which of the following is not a benefit of using a lean manufacturing system?

JCH Company conducts business in the lumber and building products industry.Last week, JCH purchased 50 railcars of lumber from a mill in Oregon and sold all 50 to a Home Depot store in North Carolina.In this instance, JCH Company would most likely be classified as a:

Which of the following does not represent a main focus of cost management information?

The competitive strategy in which the firm succeeds by producing at the lowest cost in the industry is termed:

All of the following actions enhance the new focus on making management accounting information more relevant in helping a firm achieve strategic goals, except:

Under the Sarbanes-Oxley Act of 2002, the Public Company Accounting Oversight Board (PCAOB) established rules relating to which of the following areas?

Which of the following most accurately describes what is included in cost management information?

Which of the following is a contemporary management technique used by the management accountant to identify and monitor the costs of a product throughout all steps from product design to the finished product?

All of the following are examples of total quality management practices except:

Which of the following is not a consequence of lack of strategic information?

A large company has recently been experiencing larger than normal inventory levels.Management would like to implement a theory of constraints system to help control the company's inventories.Which of the following is not a benefit associated with the theory of constraints?

Which of the following contemporary management techniques requires a balancing of multiple goals?

Important changes in the contemporary business environments include all of the following except:

Which of the following formulas best reflects target costing?

The competitive strategy of differentiation requires that a product or service must be:

Which of the following is not among the management accounting profession's response to changes in the contemporary business environment?

Strategic management can be defined as the development of a sustainable:

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters