Question 1

The total quality management (TQM) approach originated in:

Accepted Answer

A)  Germany 
B)  USA 
C)  Japan 
D)  South Korea 
A)  Germany 
B)  USA 
C)  Japan 
D)  South Korea C

Question 2

Under a lean accounting system it is possible to dispense with supplier's invoices.

Accepted Answer

A) True 
 B)False  True

Question 3

Lean accounting is based on the philosophy:

Accepted Answer

A)  that there should be a complete shareholder-focused approach in the organisation 
B)  that there should be a complete customer-focused approach in the organisation 
C)  that there should be a complete employee-focused approach in the organisation 
D)  that there should be a complete management-focused approach in the organisation 
A)  that there should be a complete shareholder-focused approach in the organisation 
B)  that there should be a complete customer-focused approach in the organisation 
C)  that there should be a complete employee-focused approach in the organisation 
D)  that there should be a complete management-focused approach in the organisation B

Question 4

Lean accounting embraces full absorption costing.

Accepted Answer

A) True 
 B)False

Question 5

Physical inspections at every point of the value chain are the key principle underlying TQM.

Accepted Answer

A) True 
 B)False

Question 6

In implementing lean accounting concepts the value chain is considered to end when the product or service is sold to the customer.

Accepted Answer

A) True 
 B)False

Question 7

The theory of constraints (TOC) involves imposing strict controls and standards on all aspects of the value chain in order to improve efficiency.

Accepted Answer

A) True 
 B)False

Question 8

Under a total quality management approach entities that seek only to match the quality of their competitors should reposition themselves as high-quality producers to maximise their profitability.

Accepted Answer

A) True 
 B)False

Question 9

The theory of constraints (TOC) is concerned with constraints on the supply side, not those on the demand side.

Accepted Answer

A) True 
 B)False

Question 10

It is correct that under a successful just-in-time production and inventory control system:

Accepted Answer

A)  distance from the supplier is not an issue as long as the supplier is reliable 
B)  suppliers will normally make frequent deliveries of small lots of materials 
C)  there must be only one supplier 
D)  all of the above are correct 
A)  distance from the supplier is not an issue as long as the supplier is reliable 
B)  suppliers will normally make frequent deliveries of small lots of materials 
C)  there must be only one supplier 
D)  all of the above are correct

Question 11

A practice associated with lean accounting is:

Accepted Answer

A)  Vertical reporting 
B)  Accounting information provided to managers and supervisors only 
C)  Producing to forecast 
D)  Producing in teams 
A)  Vertical reporting 
B)  Accounting information provided to managers and supervisors only 
C)  Producing to forecast 
D)  Producing in teams

Question 12

MNL's accounting information system reported warranty repair and product replacement costs totalling $120,000 in a recent accounting period. These costs are an example of which type of quality costs?

Accepted Answer

A)  External activity costs 
B)  Appraisal activity costs 
C)  Internal activity costs 
D)  Prevention activity costs 
A)  External activity costs 
B)  Appraisal activity costs 
C)  Internal activity costs 
D)  Prevention activity costs

Question 13

The 'lean' accounting approach applies to manufacturing entities and is not appropriate for service entities.

Accepted Answer

A) True 
 B)False

Question 14

The philosophy of just-in-time processing results in finished goods being completed just in time to be offered for sale.

Accepted Answer

A) True 
 B)False

Question 15

Which of these is not typically associated with successful implementation of just-in-time (JIT) systems?

Accepted Answer

A)  Locating suppliers with short transit times 
B)  Using as many suppliers as possible to minimise the risk of non-delivery 
C)  Finding high quality suppliers 
D)  Developing management commitment to the JIT process 
A)  Locating suppliers with short transit times 
B)  Using as many suppliers as possible to minimise the risk of non-delivery 
C)  Finding high quality suppliers 
D)  Developing management commitment to the JIT process

Question 16

Lean accounting may involve cutting:

Accepted Answer

A)  the workload 
B)  paperwork 
C)  inventory levels 
D)  all of the above 
A)  the workload 
B)  paperwork 
C)  inventory levels 
D)  all of the above

Question 17

Which of these is not associated with the lean accounting philosophy?

Accepted Answer

A)  Refocusing the performance measurement system to emphasise social controls such as training 
B)  Centralising the organisational structure 
C)  Reducing transaction processing steps 
D)  All are associated with the lean accounting philosophy 
A)  Refocusing the performance measurement system to emphasise social controls such as training 
B)  Centralising the organisational structure 
C)  Reducing transaction processing steps 
D)  All are associated with the lean accounting philosophy

Question 18

Under TOC a constraint that is a demand side rather a supply side constraint is:

Accepted Answer

A)  lack of the necessary knowledge or skills 
B)  a shortage of raw materials 
C)  insufficient processing time available 
D)  none of the above are demand side constraints, all are supply side constraints 
A)  lack of the necessary knowledge or skills 
B)  a shortage of raw materials 
C)  insufficient processing time available 
D)  none of the above are demand side constraints, all are supply side constraints

Question 19

In throughput costing which of the following is untrue?

Accepted Answer

A)  The throughput of a product is its selling price minus its totally variable costs 
B)  Investment is also called inventory 
C)  Profit is defined as throughput less operating expenses 
D)  Operating expenses are classified and thought of as direct costs 
A)  The throughput of a product is its selling price minus its totally variable costs 
B)  Investment is also called inventory 
C)  Profit is defined as throughput less operating expenses 
D)  Operating expenses are classified and thought of as direct costs

Question 20

Under a lean accounting approach the aim is to remove all non-value added activities.

Accepted Answer

A) True 
 B)False

The total quality management (TQM) approach originated in:

Under a lean accounting system it is possible to dispense with supplier's invoices.

Lean accounting is based on the philosophy:

Lean accounting embraces full absorption costing.

Physical inspections at every point of the value chain are the key principle underlying TQM.

In implementing lean accounting concepts the value chain is considered to end when the product or service is sold to the customer.

The theory of constraints (TOC) involves imposing strict controls and standards on all aspects of the value chain in order to improve efficiency.

Under a total quality management approach entities that seek only to match the quality of their competitors should reposition themselves as high-quality producers to maximise their profitability.

The theory of constraints (TOC) is concerned with constraints on the supply side, not those on the demand side.

It is correct that under a successful just-in-time production and inventory control system:

A practice associated with lean accounting is:

MNL's accounting information system reported warranty repair and product replacement costs totalling $120,000 in a recent accounting period. These costs are an example of which type of quality costs?

The 'lean' accounting approach applies to manufacturing entities and is not appropriate for service entities.

The philosophy of just-in-time processing results in finished goods being completed just in time to be offered for sale.

Which of these is not typically associated with successful implementation of just-in-time (JIT) systems?

Lean accounting may involve cutting:

Which of these is not associated with the lean accounting philosophy?

Under TOC a constraint that is a demand side rather a supply side constraint is:

In throughput costing which of the following is untrue?

Under a lean accounting approach the aim is to remove all non-value added activities.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Planning Budgeting and Behaviour

Operational Budgets

Job and Process Costing Systems

Flexible Budgets, Standard Costs and Variance Analysis

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters

Exam 15: Strategic Management Control: a Lean Perspective

The total quality management (TQM) approach originated in:

Under a lean accounting system it is possible to dispense with supplier's invoices.

Lean accounting is based on the philosophy:

Lean accounting embraces full absorption costing.

Physical inspections at every point of the value chain are the key principle underlying TQM.

In implementing lean accounting concepts the value chain is considered to end when the product or service is sold to the customer.

The theory of constraints (TOC) involves imposing strict controls and standards on all aspects of the value chain in order to improve efficiency.

Under a total quality management approach entities that seek only to match the quality of their competitors should reposition themselves as high-quality producers to maximise their profitability.

The theory of constraints (TOC) is concerned with constraints on the supply side, not those on the demand side.

It is correct that under a successful just-in-time production and inventory control system:

A practice associated with lean accounting is:

MNL's accounting information system reported warranty repair and product replacement costs totalling $120,000 in a recent accounting period. These costs are an example of which type of quality costs?

The 'lean' accounting approach applies to manufacturing entities and is not appropriate for service entities.

The philosophy of just-in-time processing results in finished goods being completed just in time to be offered for sale.

Which of these is not typically associated with successful implementation of just-in-time (JIT) systems?

Lean accounting may involve cutting:

Which of these is not associated with the lean accounting philosophy?

Under TOC a constraint that is a demand side rather a supply side constraint is:

In throughput costing which of the following is untrue?

Under a lean accounting approach the aim is to remove all non-value added activities.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Planning Budgeting and Behaviour

Operational Budgets

Job and Process Costing Systems

Flexible Budgets, Standard Costs and Variance Analysis

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters