Question 1

Which of the following is a financial measure of activity efficiency?

Accepted Answer

A)  activity flexible budgeting 
B)  trends in activity costs 
C)  benchmarking 
D)  all of these 
A)  activity flexible budgeting 
B)  trends in activity costs 
C)  benchmarking 
D)  all of these D

Question 2

Mattison Company has developed cost formulas for the drivers of the following production activities:   The budgeted inspection cost for 20 setups is

Accepted Answer

A)  $34,000. 
B)  $40,000. 
C)  $175,860. 
D)  $30,000. 
A)  $34,000. 
B)  $40,000. 
C)  $175,860. 
D)  $30,000. A

Question 3

The effort to reduce costs of existing products and processes is named:

Accepted Answer

A)  Activity reduction 
B)  Activity elimination 
C)  Activity selection 
D)  Kaizen costing 
A)  Activity reduction 
B)  Activity elimination 
C)  Activity selection 
D)  Kaizen costing D

Question 4

Which of the following is NOT an essential element of responsibility accounting?

Accepted Answer

A)  assigning responsibility 
B)  establishing performance measures 
C)  evaluating performance 
D)  ridiculing poor performers 
A)  assigning responsibility 
B)  establishing performance measures 
C)  evaluating performance 
D)  ridiculing poor performers

Question 5

The major source of information for the activity management system is

Accepted Answer

A)  driver analysis. 
B)  an activity-based costing system. 
C)  a performance measurement system. 
D)  product information. 
A)  driver analysis. 
B)  an activity-based costing system. 
C)  a performance measurement system. 
D)  product information.

Question 6

What is the purpose of driver analysis?

Accepted Answer

A)  identify activities in a process 
B)  identify number of processes 
C)  identify root causes of activity costs 
D)  identify complexity of processes 
A)  identify activities in a process 
B)  identify number of processes 
C)  identify root causes of activity costs 
D)  identify complexity of processes

Question 7

Activity-based management focuses management's attention on activities resulting in improving customer value and profits.

Accepted Answer

A) True 
 B)False

Question 8

One of the major reasons for the failure of ABM is lack of upper management support.

Accepted Answer

A) True 
 B)False

Question 9

Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows:   The actual prices paid per unit of each activity driver were equal to the standard prices. The actual costs for receiving are

Accepted Answer

A)  $49,500. 
B)  $67,500. 
C)  $85,500. 
D)  $18,000. 
A)  $49,500. 
B)  $67,500. 
C)  $85,500. 
D)  $18,000.

Question 10

A technique for improving performance of activities and processes that compares the number of times an activity can be performed to the number actually performed is called

Accepted Answer

A)  value-added activity reporting. 
B)  activity flexible budgeting. 
C)  activity capacity reporting. 
D)  activity trend reporting. 
A)  value-added activity reporting. 
B)  activity flexible budgeting. 
C)  activity capacity reporting. 
D)  activity trend reporting.

Question 11

Cheshire Cat Company sells one of its products for $100 each. Sales volume averages 750 units per year. Recently, its main competitor reduced the price of its product to $80. Cheshire Cat Company expects sales to drop dramatically unless it matches the competitor's price. In addition, the current profit per unit must be maintained. Information about the product (for production of 750) is as follows:   The non-value-added cost per unit is

Accepted Answer

A)  $49.67. 
B)  $48.33. 
C)  $48.67. 
D)  $51.67. 
A)  $49.67. 
B)  $48.33. 
C)  $48.67. 
D)  $51.67.

Question 12

Which of the following is NOT part of the two-dimensional activity-based management model?

Accepted Answer

A)  personnel selection 
B)  driver analysis 
C)  resources 
D)  performance measures 
A)  personnel selection 
B)  driver analysis 
C)  resources 
D)  performance measures

Question 13

The activity-based management model has two dimensions: a cost dimension and a process dimension.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is NOT a necessary essential element of activity-based responsibility accounting?

Accepted Answer

A)  Process management requires significant group activity. 
B)  Performance evaluation employs dynamic standards. 
C)  Performance evaluation uses only financial measures. 
D)  Performance evaluation is based on optimal standards. 
A)  Process management requires significant group activity. 
B)  Performance evaluation employs dynamic standards. 
C)  Performance evaluation uses only financial measures. 
D)  Performance evaluation is based on optimal standards.

Question 15

Which of the following is descriptive of activity-based responsibility accounting?

Accepted Answer

A)  It assumes that activities can be collected into independent subgroups. 
B)  Its focus is the organization. 
C)  It assigns responsibility to processes. 
D)  Its standards are engineered and tend to be static. 
A)  It assumes that activities can be collected into independent subgroups. 
B)  Its focus is the organization. 
C)  It assigns responsibility to processes. 
D)  Its standards are engineered and tend to be static.

Question 16

Which of the following is NOT true about assigning rewards in activity-based responsibility accounting?

Accepted Answer

A)  Rewards are assigned based on budgetary standards. 
B)  Rewards are assigned based on individual as well as team performance. 
C)  Rewards are assigned based on progress towards optimal standards. 
D)  Rewards include bonuses, profit sharing, and gainsharing. 
A)  Rewards are assigned based on budgetary standards. 
B)  Rewards are assigned based on individual as well as team performance. 
C)  Rewards are assigned based on progress towards optimal standards. 
D)  Rewards include bonuses, profit sharing, and gainsharing.

Question 17

A financial-based responsibility accounting system focuses on the assignment of responsibility to organizational units and measures performance in financial terms.

Accepted Answer

A) True 
 B)False

Question 18

The process which involves choosing among various sets of activities that are caused by competing strategies.

Accepted Answer

A)  Activity sharing 
B)  Activity selection 
C)  Activity elimination 
D)  Activity reduction 
A)  Activity sharing 
B)  Activity selection 
C)  Activity elimination 
D)  Activity reduction

Question 19

Mendelsohn company keeps 20 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $4,000 per day. Bach, Inc., a competitor, keeps 10 days of inventory on hand, and the competitor's carrying costs average $2,000 per day. The non-value-added costs for the company are

Accepted Answer

A)  $-0-. 
B)  $40,000. 
C)  $20,000. 
D)  $80,000. 
A)  $-0-. 
B)  $40,000. 
C)  $20,000. 
D)  $80,000.

Question 20

The results or products of an activity are called:

Accepted Answer

A)  Activity inputs 
B)  Driver analysis 
C)  Activity outputs 
D)  Value-added activities 
A)  Activity inputs 
B)  Driver analysis 
C)  Activity outputs 
D)  Value-added activities

Which of the following is a financial measure of activity efficiency?

Mattison Company has developed cost formulas for the drivers of the following production activities: The budgeted inspection cost for 20 setups is

The effort to reduce costs of existing products and processes is named:

Which of the following is NOT an essential element of responsibility accounting?

The major source of information for the activity management system is

What is the purpose of driver analysis?

Activity-based management focuses management's attention on activities resulting in improving customer value and profits.

One of the major reasons for the failure of ABM is lack of upper management support.

Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. The actual costs for receiving are

A technique for improving performance of activities and processes that compares the number of times an activity can be performed to the number actually performed is called

Which of the following is NOT part of the two-dimensional activity-based management model?

The activity-based management model has two dimensions: a cost dimension and a process dimension.

Which of the following is NOT a necessary essential element of activity-based responsibility accounting?

Which of the following is descriptive of activity-based responsibility accounting?

Which of the following is NOT true about assigning rewards in activity-based responsibility accounting?

A financial-based responsibility accounting system focuses on the assignment of responsibility to organizational units and measures performance in financial terms.

The process which involves choosing among various sets of activities that are caused by competing strategies.

The results or products of an activity are called:

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 12: Activity-Based Management

Which of the following is a financial measure of activity efficiency?

Mattison Company has developed cost formulas for the drivers of the following production activities: The budgeted inspection cost for 20 setups is

The effort to reduce costs of existing products and processes is named:

Which of the following is NOT an essential element of responsibility accounting?

The major source of information for the activity management system is

What is the purpose of driver analysis?

Activity-based management focuses management's attention on activities resulting in improving customer value and profits.

One of the major reasons for the failure of ABM is lack of upper management support.

Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. The actual costs for receiving are

A technique for improving performance of activities and processes that compares the number of times an activity can be performed to the number actually performed is called

Which of the following is NOT part of the two-dimensional activity-based management model?

The activity-based management model has two dimensions: a cost dimension and a process dimension.

Which of the following is NOT a necessary essential element of activity-based responsibility accounting?

Which of the following is descriptive of activity-based responsibility accounting?

Which of the following is NOT true about assigning rewards in activity-based responsibility accounting?

A financial-based responsibility accounting system focuses on the assignment of responsibility to organizational units and measures performance in financial terms.

The process which involves choosing among various sets of activities that are caused by competing strategies.

The results or products of an activity are called:

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters