Question 1

Which of the following is not a contemporary management technique used by the management accountant to focus on process improvement?

Accepted Answer

A)  Enterprise risk management 
B)  Lean accounting 
C)  Life cycle costing 
D)  Enterprise sustainability 
A)  Enterprise risk management 
B)  Lean accounting 
C)  Life cycle costing 
D)  Enterprise sustainability

Question 2

The following problems have occurred at your company: management seems to be making decisions based on guesses and intuition, there's a lack of clarity concerning direction and goals, and profitable opportunities are being missed.What is your company suffering from?

Accepted Answer

A) A lack of strategic information; management has not determined its strategic competitive position. 
B) Managers have too much information. 
C) The company is not familiar with business reengineering and value chain analysis. 
D) The company has an inappropriate mission statement. 
A) A lack of strategic information; management has not determined its strategic competitive position. 
B) Managers have too much information. 
C) The company is not familiar with business reengineering and value chain analysis. 
D) The company has an inappropriate mission statement.

Question 3

The strategy map is a tool that is used:

Accepted Answer

A)  as one of the key aspects of the contemporary management environment. 
B)  to enhance the sustainability of the organization. 
C)  to link the perspectives of the balanced scorecard. 
D)  to organize the critical success factors of a company. 
E)  to implement strategy. 
A)  as one of the key aspects of the contemporary management environment. 
B)  to enhance the sustainability of the organization. 
C)  to link the perspectives of the balanced scorecard. 
D)  to organize the critical success factors of a company. 
E)  to implement strategy.

Question 4

Samsung, the large Korean manufacturer of electronics, has just developed a new QLED (Quantum Dot Light Emitting Diodes) TV. The TV retails retail in the range of $6,800 for the 75 inch, curved panel model. Normally, Samsung sells its TVs and other electronics in Big Box retailers such as Best Buy. In this case, Samsung is thinking of choosing a different means to retail the product.
Required:
What retail store or stores, or what method would you suggest Samsung should use in selling its new TV?

Accepted Answer

Since the new TV is clearly a high-end i

Question 5

Cost management has moved from a traditional role of product costing and operational control to a broader strategic focus, which places an emphasis on:

Accepted Answer

A)  Competitive pricing. 
B)  Domestic marketing. 
C)  Short-term thinking. 
D)  Strategic thinking. 
E)  Independent judgment. 
A)  Competitive pricing. 
B)  Domestic marketing. 
C)  Short-term thinking. 
D)  Strategic thinking. 
E)  Independent judgment.

Question 6

In six months you are scheduled to graduate with a degree in business. You have a major in accounting and minors in finance and management information systems. In the first few chapters of your cost management text, there are repeated references to the following two terms: strategic management and the strategic emphasis to cost management.
Required:
Explain these ideas, using as a framework your need to develop a plan for interviewing successfully for a challenging professional opportunity within the next six months.

Accepted Answer

Managers must think competitively, acros

Question 7

Which of the following is the primary user of management accounting information regarding business units?

Accepted Answer

A) Company management. 
B) Investors. 
C) Creditors. 
D) Industry and governmental organizations 
A) Company management. 
B) Investors. 
C) Creditors. 
D) Industry and governmental organizations

Question 8

Many companies in the consumer products and electronics industries such as Walmart and Texas Instruments compete using a strategy of:

Accepted Answer

A) Professionalism. 
B) Growth. 
C) Cost leadership. 
D) ABC costing. 
E) Target costing. 
A) Professionalism. 
B) Growth. 
C) Cost leadership. 
D) ABC costing. 
E) Target costing.

Question 9

Which of the following professional certificates is considered to be the most relevant for dealing with cost management issues?

Accepted Answer

A) The CPA, which is monitored differently for each state in the U.S. 
B) The CMA, which is administered through the Institute of Management Accountants. 
C) The CFA, since its program focuses on the broadest range of topics and responsibilities for financial analysis. 
D) The CPA, CMA, and CFA are viewed as equally relevant, since all three require an exam, as well as specific background and experience requirements. 
A) The CPA, which is monitored differently for each state in the U.S. 
B) The CMA, which is administered through the Institute of Management Accountants. 
C) The CFA, since its program focuses on the broadest range of topics and responsibilities for financial analysis. 
D) The CPA, CMA, and CFA are viewed as equally relevant, since all three require an exam, as well as specific background and experience requirements.

Question 10

The management accountant who planned to improve an organization's operations by developing models of consumer behavior would be using which of the following contemporary management techniques:

Accepted Answer

A) Target costing. 
B) Benchmarking. 
C) Business intelligence. 
D) Lean accounting. 
E) Focus on the customer. 
A) Target costing. 
B) Benchmarking. 
C) Business intelligence. 
D) Lean accounting. 
E) Focus on the customer.

Question 11

Due in part to increased global competitiveness and changes in management techniques and processes, what has changed about the role of the management accountant?

Accepted Answer

A) Management accountants have started to place a greater emphasis on financial information, in order to promote continued growth in earnings. 
B) Rather than to focus on problems within functions (such as a marketing problem or a production problem), management accountants are using a strategic approach to address problems in a cross-functional manner. 
C) Management accountants have developed a variety of new techniques to measure functional area performance. 
D) There has been a renewed emphasis on short-term profitability, since product life cycles have started getting shorter. 
A) Management accountants have started to place a greater emphasis on financial information, in order to promote continued growth in earnings. 
B) Rather than to focus on problems within functions (such as a marketing problem or a production problem), management accountants are using a strategic approach to address problems in a cross-functional manner. 
C) Management accountants have developed a variety of new techniques to measure functional area performance. 
D) There has been a renewed emphasis on short-term profitability, since product life cycles have started getting shorter.

Question 12

The competitive strategy in which the firm succeeds by developing and maintaining a unique value for the product, as perceived by the customer, is termed:

Accepted Answer

A) Differentiation. 
B) Specialization advantage. 
C) Design strategy. 
D) Benchmarking. 
E) Product Specialization. 
A) Differentiation. 
B) Specialization advantage. 
C) Design strategy. 
D) Benchmarking. 
E) Product Specialization.

Question 13

The premier auto manufacturer, BMW, introduced a new compact SUV (the X3) in an effort to grab a greater share of the overall luxury car market. Because its own resources were pretty well tapped out by a large number of new vehicles BMW had already introduced, the automaker decided to have the new SUV built by the parts manufacturer, Magma International, based in Toronto. The vehicles would be manufactured by Magma in an Austrian plant.
Required:
Comment on the strategic issues surrounding BMW's introduction of the X3 and the use of Magma International to produce the vehicle. Do you think the company made the right decisions? Why or why not?

Accepted Answer

The critical question for BMW is how the

Question 14

A local area consulting firm is trying to increase the long-term strategic focus of its company reports.Therefore, the firm has decided to use the balanced scorecard.What type of new information, that the company currently doesn't use in its financial reports, should the company include?

Accepted Answer

A) Non-financial information, including customer satisfaction, innovation, etc. 
B) Additional financial information, such as profitability measures and market value. 
C) Product life cycle information. 
D) Supplemental accounting reports 
E) Continuous improvement 
A) Non-financial information, including customer satisfaction, innovation, etc. 
B) Additional financial information, such as profitability measures and market value. 
C) Product life cycle information. 
D) Supplemental accounting reports 
E) Continuous improvement

Question 15

Which of the following organizations supports the growth and professionalism of management accounting practice?

Accepted Answer

A) CPAAM 
B) CFA 
C) CMAB 
D) FASB 
E) IMA 
A) CPAAM 
B) CFA 
C) CMAB 
D) FASB 
E) IMA

Question 16

Cost management information typically is the responsibility of the:

Accepted Answer

A) Chief Financial Officer. 
B) Controller. 
C) Treasurer. 
D) Chief Information Officer. 
A) Chief Financial Officer. 
B) Controller. 
C) Treasurer. 
D) Chief Information Officer.

Question 17

The manager of a business unit of a large corporation made some projections regarding sales and profits for the upcoming final quarter of the year. The managers' performance evaluation and compensation depended significantly on his ability to meet budget goals. The manager discovered that the final quarter would have to be a particularly good quarter in order to meet these goals. He decided to implement a sales program offering liberal payment terms in order to pull some sales that would normally occur next year into the current year. Customers accepting delivery in the fourth quarter would not have to pay the invoice for 140 days. Also, he sold some equipment that was not being used and realized a significant profit on the sale.
Required:
Are these actions ethical? Why or why not?

Accepted Answer

Each of the manager's actions needs to b

Question 18

The competitive strategy of differentiation is implemented by a firm's targeted, careful attention to a(n):

Accepted Answer

A) Specific feature of the product or service. 
B) High efficiency level of production. 
C) Broad possible market. 
D) Aggressive competitive pricing plan. 
A) Specific feature of the product or service. 
B) High efficiency level of production. 
C) Broad possible market. 
D) Aggressive competitive pricing plan.

Question 19

A company's management accountant is trying to improve the way costs are allocated within the company. Currently, several corporate expenses are grouped together and labeled "overhead." If the accountant wanted to use activity-based costing (ABC) to help solve the problem, what should she do?

Accepted Answer

A)  She should try to trace the departments' costs to their cost objects, and then charge each department based on those cost relationships. 
B)  She should research how the company's competitors are allocating their costs, and then implement one of those strategies. 
C)  She should look for bottlenecks within the production process, and try to eliminate them, thus reducing costs. 
D)  She should examine the firm's value chain and apply target costing before adopting ABC. 
A)  She should try to trace the departments' costs to their cost objects, and then charge each department based on those cost relationships. 
B)  She should research how the company's competitors are allocating their costs, and then implement one of those strategies. 
C)  She should look for bottlenecks within the production process, and try to eliminate them, thus reducing costs. 
D)  She should examine the firm's value chain and apply target costing before adopting ABC.

Which of the following is not a contemporary management technique used by the management accountant to focus on process improvement?

The following problems have occurred at your company: management seems to be making decisions based on guesses and intuition, there's a lack of clarity concerning direction and goals, and profitable opportunities are being missed.What is your company suffering from?

The strategy map is a tool that is used:

Cost management has moved from a traditional role of product costing and operational control to a broader strategic focus, which places an emphasis on:

Which of the following is the primary user of management accounting information regarding business units?

Many companies in the consumer products and electronics industries such as Walmart and Texas Instruments compete using a strategy of:

Which of the following professional certificates is considered to be the most relevant for dealing with cost management issues?

The management accountant who planned to improve an organization's operations by developing models of consumer behavior would be using which of the following contemporary management techniques:

Due in part to increased global competitiveness and changes in management techniques and processes, what has changed about the role of the management accountant?

The competitive strategy in which the firm succeeds by developing and maintaining a unique value for the product, as perceived by the customer, is termed:

A local area consulting firm is trying to increase the long-term strategic focus of its company reports.Therefore, the firm has decided to use the balanced scorecard.What type of new information, that the company currently doesn't use in its financial reports, should the company include?

Which of the following organizations supports the growth and professionalism of management accounting practice?

Cost management information typically is the responsibility of the:

The competitive strategy of differentiation is implemented by a firm's targeted, careful attention to a(n):

A company's management accountant is trying to improve the way costs are allocated within the company. Currently, several corporate expenses are grouped together and labeled "overhead." If the accountant wanted to use activity-based costing (ABC) to help solve the problem, what should she do?

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

Which of the following is not a contemporary management technique used by the management accountant to focus on process improvement?

The following problems have occurred at your company: management seems to be making decisions based on guesses and intuition, there's a lack of clarity concerning direction and goals, and profitable opportunities are being missed.What is your company suffering from?

The strategy map is a tool that is used:

Cost management has moved from a traditional role of product costing and operational control to a broader strategic focus, which places an emphasis on:

Which of the following is the primary user of management accounting information regarding business units?

Many companies in the consumer products and electronics industries such as Walmart and Texas Instruments compete using a strategy of:

Which of the following professional certificates is considered to be the most relevant for dealing with cost management issues?

The management accountant who planned to improve an organization's operations by developing models of consumer behavior would be using which of the following contemporary management techniques:

Due in part to increased global competitiveness and changes in management techniques and processes, what has changed about the role of the management accountant?

The competitive strategy in which the firm succeeds by developing and maintaining a unique value for the product, as perceived by the customer, is termed:

A local area consulting firm is trying to increase the long-term strategic focus of its company reports.Therefore, the firm has decided to use the balanced scorecard.What type of new information, that the company currently doesn't use in its financial reports, should the company include?

Which of the following organizations supports the growth and professionalism of management accounting practice?

Cost management information typically is the responsibility of the:

The competitive strategy of differentiation is implemented by a firm's targeted, careful attention to a(n):

A company's management accountant is trying to improve the way costs are allocated within the company. Currently, several corporate expenses are grouped together and labeled "overhead." If the accountant wanted to use activity-based costing (ABC) to help solve the problem, what should she do?

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