Question 1

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 2

The successful implementation of activity-based management relies on support from higher __________ .

Accepted Answer

The answer of The successful implementation of activity-based management relies...

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

A time-and-motion study revealed that it should take 3 hours to produce a product that currently takes 7.5 hours to produce. Labor is $18 per hour. The non-value-added costs are

Accepted Answer

A) $27. 
B) $54. 
C) $81. 
D) $0. 
A) $27. 
B) $54. 
C) $81. 
D) $0.

Question 5

The common steps in implementing activity-based management are systems planning and activity identification, definition, and classification.

Accepted Answer

A) True 
 B)False

Question 6

Process value analysis maximizes systemwide performance by emphasizing activity management.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Reducing non-value added costs decreases activity deficiency.

Accepted Answer

A) True 
 B)False

Question 9

The continuous improvement subcycle of Kaizen costing is defined by what sequence?

Accepted Answer

A) check-do-plan-act 
B) do-check-plan-act 
C) plan-do-check-act 
D) None of these is the correct sequence. 
A) check-do-plan-act 
B) do-check-plan-act 
C) plan-do-check-act 
D) None of these is the correct sequence.

Question 10

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 11

Cost reduction is a measure of activity improvement.

Accepted Answer

A) True 
 B)False

Question 12

Controlling the cost reduction process using Kaizen costing is accomplished

Accepted Answer

A) through repetition of subcycle processes. 
B) by punishment of those not reaching the Kaizen standard. 
C) through one-time adjustments. 
D) through reviews every four to five years. 
A) through repetition of subcycle processes. 
B) by punishment of those not reaching the Kaizen standard. 
C) through one-time adjustments. 
D) through reviews every four to five years.

Question 13

Cadmium, Inc., keeps 20 days of materials inventory on hand to avoid shutdowns due to material shortages. Carrying costs average $800 per day. A competitor, Barium Inc., keeps 10 days of inventory on hand, and the competitor's carrying costs average $600 per day. Compute the non-value-added costs incurred by Cadmium, Inc.

Accepted Answer

A) $7,200 
B) $16,000 
C) $8,800 
D) $12,000 
A) $7,200 
B) $16,000 
C) $8,800 
D) $12,000

Question 14

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

Question 15

Non-value-added activities

Accepted Answer

A) are unnecessary inputs. 
B) are valued outputs to internal users. 
C) are valued outputs to external users. 
D) help meet the organization's needs, not the product needs. 
A) are unnecessary inputs. 
B) are valued outputs to internal users. 
C) are valued outputs to external users. 
D) help meet the organization's needs, not the product needs.

Question 16

Boysenberry Company recorded the following activities in the current year. Determine the amount of value-added and non-value-added costs in each of the activities performed.
a.Boysenberry keeps 5 days of materials inventory on hand to avoid shutdowns due to materials shortages.Carrying costs are $18,000 per day.
b.A time-and-motion study revealed that it should take 15 minutes to produce a product that now takes 45 minutes to produce.Labor cost is $16 per hour.
c.Warranty work costs the firm $200,000 per year. Warranty costs for the industry average $50,000 per year.

Accepted Answer

The answer of Boysenberry Company recorded the following activities in...

Question 17

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 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

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...

The major source of information for the activity management system is

The successful implementation of activity-based management relies on support from higher __________ .

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

A time-and-motion study revealed that it should take 3 hours to produce a product that currently takes 7.5 hours to produce. Labor is $18 per hour. The non-value-added costs are

The common steps in implementing activity-based management are systems planning and activity identification, definition, and classification.

Process value analysis maximizes systemwide performance by emphasizing activity management.

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

Reducing non-value added costs decreases activity deficiency.

The continuous improvement subcycle of Kaizen costing is defined by what sequence?

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

Cost reduction is a measure of activity improvement.

Controlling the cost reduction process using Kaizen costing is accomplished

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

Non-value-added activities

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

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

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

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

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

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 major source of information for the activity management system is

The successful implementation of activity-based management relies on support from higher __________ .

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

A time-and-motion study revealed that it should take 3 hours to produce a product that currently takes 7.5 hours to produce. Labor is $18 per hour. The non-value-added costs are

The common steps in implementing activity-based management are systems planning and activity identification, definition, and classification.

Process value analysis maximizes systemwide performance by emphasizing activity management.

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

Reducing non-value added costs decreases activity deficiency.

The continuous improvement subcycle of Kaizen costing is defined by what sequence?

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

Cost reduction is a measure of activity improvement.

Controlling the cost reduction process using Kaizen costing is accomplished

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

Non-value-added activities

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

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

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

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

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

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