Question 1

Which of the following is not a major change in the business environment that has affected the way many companies think about conducting business?

Accepted Answer

A) An increased focus on the customer,especially their opinions about functionality and quality. 
B) A growing emphasis on globalization - new markets for products and new competitors. 
C) A larger number of companies are starting to use advanced information technologies,such as business intelligence. 
D) The development of improved cost management methods. 
A) An increased focus on the customer,especially their opinions about functionality and quality. 
B) A growing emphasis on globalization - new markets for products and new competitors. 
C) A larger number of companies are starting to use advanced information technologies,such as business intelligence. 
D) The development of improved cost management methods. D

Question 2

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. B

Question 3

A potential weakness of the cost leadership strategy is:

Accepted Answer

A) Cutting costs in a way that causes the firm to grow too fast. 
B) Deleting key features of products or services. 
C) Lowering productivity to ensure lower costs. 
D) Increasing life cycle costs. 
E) Increasing prices temporarily to undermine competition. 
A) Cutting costs in a way that causes the firm to grow too fast. 
B) Deleting key features of products or services. 
C) Lowering productivity to ensure lower costs. 
D) Increasing life cycle costs. 
E) Increasing prices temporarily to undermine competition. B

Question 4

Which area(s)of a business can be improved by using a just-in-time (JIT)system?

Accepted Answer

A) Production,purchasing,and delivery. 
B) Production only. 
C) Purchasing only. 
D) Production and purchasing only. 
E) A just-in-time system can be used to improve any area of a business. 
A) Production,purchasing,and delivery. 
B) Production only. 
C) Purchasing only. 
D) Production and purchasing only. 
E) A just-in-time system can be used to improve any area of a business.

Question 5

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 6

Which of the following aspect of a contemporary management technique is a framework and process that organizations use to manage the occurrence of possible events that could negatively or positively affect the company's competitiveness and success?

Accepted Answer

A) Total quality management 
B) Lean accounting 
C) The theory of constraints 
D) Enterprise sustainability 
E) Enterprise risk management 
A) Total quality management 
B) Lean accounting 
C) The theory of constraints 
D) Enterprise sustainability 
E) Enterprise risk management

Question 7

Which of following statements is/are true concerning strategy?

Accepted Answer

A) Once a firm has chosen a strategy,it is unwise to change it,even though the company or business environment might change. 
B) If a firm does decide to compete on more than one strategy,it must carefully execute both strategies to be successful. 
C) Since the business environment is always changing,rather than stick constantly with one strategy,firms should pay close attention during times of change,and adjust their strategies accordingly. 
D) Commodity type products are usually produced by differentiated firms. 
A) Once a firm has chosen a strategy,it is unwise to change it,even though the company or business environment might change. 
B) If a firm does decide to compete on more than one strategy,it must carefully execute both strategies to be successful. 
C) Since the business environment is always changing,rather than stick constantly with one strategy,firms should pay close attention during times of change,and adjust their strategies accordingly. 
D) Commodity type products are usually produced by differentiated firms.

Question 8

Corporate management is required to identify and solve problems from a cross-functional view.Instead of viewing a problem as related to a specific business function,management solves these problems by combining skills from different functions simultaneously.This approach is called:

Accepted Answer

A) Inclusive approach. 
B) Integrative approach. 
C) Intra-function approach. 
D) Multilateral approach. 
A) Inclusive approach. 
B) Integrative approach. 
C) Intra-function approach. 
D) Multilateral approach.

Question 9

When managers produce value for the customer,their orientation consists of all the following except:

Accepted Answer

A) Quality and Service. 
B) Timeliness of delivery. 
C) The ability to respond to the customer's desire for specific features. 
D) State of the art manufacturing facilities. 
A) Quality and Service. 
B) Timeliness of delivery. 
C) The ability to respond to the customer's desire for specific features. 
D) State of the art manufacturing facilities.

Question 10

Which of the following aspects of a company would not be considered a critical success factor,for a company that competes on differentiation?

Accepted Answer

A) Cutting edge research and development. 
B) Excellent customer service. 
C) Award-winning product quality. 
D) Continually beating competitors to the market with new,innovative products. 
E) High level of production efficiency. 
A) Cutting edge research and development. 
B) Excellent customer service. 
C) Award-winning product quality. 
D) Continually beating competitors to the market with new,innovative products. 
E) High level of production efficiency.

Question 11

The competitive strategy of cost leadership allows a firm to outperform competitors by producing products or services:

Accepted Answer

A) With lowered quality standards,thus reducing overall costs. 
B) In smaller operational units. 
C) At lower cost achieved by increased productivity. 
D) With attractive added features making the product more expensive,or "the cost leader". 
E) That are heavily promoted and heavily warranted. 
A) With lowered quality standards,thus reducing overall costs. 
B) In smaller operational units. 
C) At lower cost achieved by increased productivity. 
D) With attractive added features making the product more expensive,or "the cost leader". 
E) That are heavily promoted and heavily warranted.

Question 12

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 13

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 14

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,across

Question 15

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 16

Which of the following is not a contemporary management technique used by the management accountant to respond to the changing business environment?

Accepted Answer

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

Question 17

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

Question 18

In the late 1990s,management at General Motors decided to improve the competitiveness of its products by stressing product quality,style,and innovation.The objective was to improve the image of GM vehicles and thus improve sales and brand loyalty.Managers decided to push this strategy in both the manufacturing and marketing divisions of the firm.One of the key moves to implement this strategy was to insist that GM dealers stop price-cutting and push brand value and image instead.GM exerted some control over dealers' pricing/selling strategy in part by reducing the money it set aside for dealers to use in local ads.
Required: Was General Motors following a strategy of cost leadership or differentiation at this time? Comment on how effective you think the new strategy in dealer relations is likely to be.

Accepted Answer

The strategy adopted by GM is consistent

Question 19

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 20

According to the IMA Code of Ethics,what should a management accountant do if a significant ethical situation can't be resolved?

Accepted Answer

A) The accountant should confront the guilty party and demand the unethical action be stopped. 
B) The accountant should try to rationalize and understand the position of the other party. 
C) The accountant should say nothing about the matter until he or she has retired. 
D) The accountant should first discuss the matter with the immediate supervisor. 
A) The accountant should confront the guilty party and demand the unethical action be stopped. 
B) The accountant should try to rationalize and understand the position of the other party. 
C) The accountant should say nothing about the matter until he or she has retired. 
D) The accountant should first discuss the matter with the immediate supervisor.

Which of the following is not a major change in the business environment that has affected the way many companies think about conducting business?

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

A potential weakness of the cost leadership strategy is:

Which area(s)of a business can be improved by using a just-in-time (JIT)system?

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

Which of the following aspect of a contemporary management technique is a framework and process that organizations use to manage the occurrence of possible events that could negatively or positively affect the company's competitiveness and success?

Which of following statements is/are true concerning strategy?

Corporate management is required to identify and solve problems from a cross-functional view.Instead of viewing a problem as related to a specific business function,management solves these problems by combining skills from different functions simultaneously.This approach is called:

When managers produce value for the customer,their orientation consists of all the following except:

Which of the following aspects of a company would not be considered a critical success factor,for a company that competes on differentiation?

The competitive strategy of cost leadership allows a firm to outperform competitors by producing products or services:

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

Cost management information typically is the responsibility of the:

The strategy map is a tool that is used

Which of the following is not a contemporary management technique used by the management accountant to respond to the changing business environment?

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

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

According to the IMA Code of Ethics,what should a management accountant do if a significant ethical situation can't be resolved?

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

Profit Planning: Cost-Volume-Profit 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 and 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

Management Compensation, Business Analysis, and Business Valuation

Filters

Exam 1: Cost Management and Strategy

Which of the following is not a major change in the business environment that has affected the way many companies think about conducting business?

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

A potential weakness of the cost leadership strategy is:

Which area(s)of a business can be improved by using a just-in-time (JIT)system?

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

Which of the following aspect of a contemporary management technique is a framework and process that organizations use to manage the occurrence of possible events that could negatively or positively affect the company's competitiveness and success?

Which of following statements is/are true concerning strategy?

Corporate management is required to identify and solve problems from a cross-functional view.Instead of viewing a problem as related to a specific business function,management solves these problems by combining skills from different functions simultaneously.This approach is called:

When managers produce value for the customer,their orientation consists of all the following except:

Which of the following aspects of a company would not be considered a critical success factor,for a company that competes on differentiation?

The competitive strategy of cost leadership allows a firm to outperform competitors by producing products or services:

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

Cost management information typically is the responsibility of the:

The strategy map is a tool that is used

Which of the following is not a contemporary management technique used by the management accountant to respond to the changing business environment?

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

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

According to the IMA Code of Ethics,what should a management accountant do if a significant ethical situation can't be resolved?

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

Profit Planning: Cost-Volume-Profit 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 and 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

Management Compensation, Business Analysis, and Business Valuation

Filters