Question 1

The process that focuses on accountability for activities rather than costs and emphasizes systemwide performance is called __________ .

Accepted Answer

process value analysis (PVA)

Question 2

Financial measures of performance focus on the dollar effect of activity performance changes.

Accepted Answer

A) True 
 B)False  True

Question 3

Value-added costs equal standard quantity times

Accepted Answer

A)  non-value-added costs. 
B)  currently attainable standards. 
C)  standard price. 
D)  actual price. 
A)  non-value-added costs. 
B)  currently attainable standards. 
C)  standard price. 
D)  actual price. C

Question 4

Mattison Company has developed cost formulas for the drivers of the following production activities:   If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for inspections was $5,000, the total variance for inspections is

Accepted Answer

A)  $1,000 favorable. 
B)  $2,000 favorable. 
C)  $1,000 unfavorable. 
D)  $2,000 unfavorable. 
A)  $1,000 favorable. 
B)  $2,000 favorable. 
C)  $1,000 unfavorable. 
D)  $2,000 unfavorable.

Question 5

The process which refers to the performance of a process in a new way to achieve major improvements is called:

Accepted Answer

A)  Process improvement 
B)  Process creation 
C)  Process innovation 
D)  Process efficiency 
A)  Process improvement 
B)  Process creation 
C)  Process innovation 
D)  Process efficiency

Question 6

The process that decreases the time and resources required by different activities is called:

Accepted Answer

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

Question 7

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 8

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 9

The process that focuses on non-value-added activities is called:

Accepted Answer

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

Question 10

Which of the following is NOT part of the process dimension of the activity-based management model?

Accepted Answer

A)  resources 
B)  driver analysis 
C)  activities 
D)  performance measures 
A)  resources 
B)  driver analysis 
C)  activities 
D)  performance measures

Question 11

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 12

When different units that perform the same types of activities within the same organization are compared to the unit with the best performance, this practice is called

Accepted Answer

A)  variance benchmarking. 
B)  competitive benchmarking. 
C)  external benchmarking. 
D)  internal benchmarking. 
A)  variance benchmarking. 
B)  competitive benchmarking. 
C)  external benchmarking. 
D)  internal benchmarking.

Question 13

The purpose of trend reporting on non-value-added costs is to

Accepted Answer

A)  trace resources to cost objectives. 
B)  assess value content. 
C)  define root causes. 
D)  see if cost reductions occurred as expected. 
A)  trace resources to cost objectives. 
B)  assess value content. 
C)  define root causes. 
D)  see if cost reductions occurred as expected.

Question 14

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 15

A technique for improving performance of activities and processes that predicts activity costs as activity output changes is called

Accepted Answer

A)  value-added reporting. 
B)  activity flexible budgeting. 
C)  Kaizen costing. 
D)  benchmarking. 
A)  value-added reporting. 
B)  activity flexible budgeting. 
C)  Kaizen costing. 
D)  benchmarking.

Question 16

The process which increases the efficiency of necessary activities by using economies of scale is called:

Accepted Answer

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

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 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

Question 19

The system that provides the justification for implementing activity-based management and addresses the issues related with its implementation is called .

Accepted Answer

The answer of The system that provides the justification for...

Question 20

Setup time for a product is 12 hours. A firm that uses JIT and produces the same product has reduced setup time to 1 hour. Setup labor is $6 per hour. The value-added costs are

Accepted Answer

A)  $72. 
B)  $66. 
C)  $12. 
D)  $6. 
A)  $72. 
B)  $66. 
C)  $12. 
D)  $6.

The process that focuses on accountability for activities rather than costs and emphasizes systemwide performance is called __________ .

Financial measures of performance focus on the dollar effect of activity performance changes.

Value-added costs equal standard quantity times

Mattison Company has developed cost formulas for the drivers of the following production activities: If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for inspections was $5,000, the total variance for inspections is

The process which refers to the performance of a process in a new way to achieve major improvements is called:

The process that decreases the time and resources required by different activities is called:

What is the purpose of driver analysis?

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

The process that focuses on non-value-added activities is called:

Which of the following is NOT part of the process dimension of the activity-based management model?

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

When different units that perform the same types of activities within the same organization are compared to the unit with the best performance, this practice is called

The purpose of trend reporting on non-value-added costs is to

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

A technique for improving performance of activities and processes that predicts activity costs as activity output changes is called

The process which increases the efficiency of necessary activities by using economies of scale is called:

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

The results or products of an activity are called:

The system that provides the justification for implementing activity-based management and addresses the issues related with its implementation is called .

Setup time for a product is 12 hours. A firm that uses JIT and produces the same product has reduced setup time to 1 hour. Setup labor is $6 per hour. The value-added costs are

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

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

The process that focuses on accountability for activities rather than costs and emphasizes systemwide performance is called __________ .

Financial measures of performance focus on the dollar effect of activity performance changes.

Value-added costs equal standard quantity times

Mattison Company has developed cost formulas for the drivers of the following production activities: If the actual activity was 20 setups and the actual fixed cost for inspections was $28,000 and the variable cost for inspections was $5,000, the total variance for inspections is

The process which refers to the performance of a process in a new way to achieve major improvements is called:

The process that decreases the time and resources required by different activities is called:

What is the purpose of driver analysis?

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

The process that focuses on non-value-added activities is called:

Which of the following is NOT part of the process dimension of the activity-based management model?

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

When different units that perform the same types of activities within the same organization are compared to the unit with the best performance, this practice is called

The purpose of trend reporting on non-value-added costs is to

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

A technique for improving performance of activities and processes that predicts activity costs as activity output changes is called

The process which increases the efficiency of necessary activities by using economies of scale is called:

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

The results or products of an activity are called:

The system that provides the justification for implementing activity-based management and addresses the issues related with its implementation is called .

Setup time for a product is 12 hours. A firm that uses JIT and produces the same product has reduced setup time to 1 hour. Setup labor is $6 per hour. The value-added costs are

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

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