Question 1

The five key core objectives of the customer perspective of the Balanced Scorecard do NOT include which of the following?

Accepted Answer

A) increase market share 
B) increase customer satisfaction 
C) increase customer retention 
D) increase customer contact 
A) increase market share 
B) increase customer satisfaction 
C) increase customer retention 
D) increase customer contact D

Question 2

In the customer perspective, objectives and measures that drive the creation of customer value are

Accepted Answer

A) customer survey ratings. 
B) postpurchase cost. 
C) on-time deliveries. 
D) all of the above. 
A) customer survey ratings. 
B) postpurchase cost. 
C) on-time deliveries. 
D) all of the above. D

Question 3

____ is creating better customer value for the same or lower cost than competitors or creating equivalent value for lower cost than offered by competitors.

Accepted Answer

A) Strategic decision making 
B) Strategic cost management 
C) Competitive advantage 
D) Total product 
A) Strategic decision making 
B) Strategic cost management 
C) Competitive advantage 
D) Total product C

Question 4

____ provide some idea of what to expect currently or in the near future.

Accepted Answer

A) Trailing measures 
B) Leading measures 
C) Financial measures 
D) All of the above 
A) Trailing measures 
B) Leading measures 
C) Financial measures 
D) All of the above

Question 5

Roberts, SA., manufactures a product that experiences the following activities: $\begin{array}{lr}
\text { Processing (three departments) } & 18 \text { hours } \
\text { Moving (four moves) } & 2 \text { hours } \
\text { Waiting time } & 14 \text { hours } \
\text { Storage time (before delivery) } & 26 \text { hours }
\end{array}$

Accepted Answer

A) 0.48. 
B) 0.45. 
C) 0.42. 
D) 0.30. 
A) 0.48. 
B) 0.45. 
C) 0.42. 
D) 0.30.

Question 6

Objectives for increasing revenue growth include

Accepted Answer

A) adopting a new pricing strategy. 
B) reducing the cost per unit. 
C) eliminating nonvalue-added activities. 
D) reducing distribution channel cost. 
A) adopting a new pricing strategy. 
B) reducing the cost per unit. 
C) eliminating nonvalue-added activities. 
D) reducing distribution channel cost.

Question 7

For a firm to have balanced measures, the measures selected must be balanced between

Accepted Answer

A) lag and lead measures. 
B) objective and subjective measures. 
C) financial and nonfinancial measures. 
D) all of these. 
A) lag and lead measures. 
B) objective and subjective measures. 
C) financial and nonfinancial measures. 
D) all of these.

Question 8

____ is the use of cost data to develop and identify superior strategies that will produce a sustainable competitive advantage.

Accepted Answer

A) Strategic decision making 
B) Strategic cost management 
C) Competitive advantage 
D) Customer value 
A) Strategic decision making 
B) Strategic cost management 
C) Competitive advantage 
D) Customer value

Question 9

Richards, SA., manufactures a product that experiences the following activities: $\begin{array}{lr}
\text { Processing (three departments) } & 9 \text { hours } \
\text { Moving (four moves) } & 1 \text { hours } \
\text { Waiting time } & 7 \text { hours } \
\text { Storage (before delivery) } & 13 \text { hours }
\end{array}$ The manufacturing cycle efficiency (MCE) for the product is

Accepted Answer

A) 0.48. 
B) 0.45. 
C) 0.42. 
D) 0.30. 
A) 0.48. 
B) 0.45. 
C) 0.42. 
D) 0.30.

Question 10

Which of the following statements about a balanced scorecard is true?

Accepted Answer

A) The balanced scorecard gives managers a perspective of the organization's performance using a recurring set of criteria. 
B) The advantage of a balanced scorecard approach is that it can best be used as a single, comprehensive measure of corporate performance. 
C) The advantage of a balanced scorecard approach is that it eliminates the need for management accounting data. 
D) The advantage of a balanced scorecard approach is that it leads management to focus exclusively on critical downstream issues such as consumer demand, and away from lesser upstream issues such as design and production. 
A) The balanced scorecard gives managers a perspective of the organization's performance using a recurring set of criteria. 
B) The advantage of a balanced scorecard approach is that it can best be used as a single, comprehensive measure of corporate performance. 
C) The advantage of a balanced scorecard approach is that it eliminates the need for management accounting data. 
D) The advantage of a balanced scorecard approach is that it leads management to focus exclusively on critical downstream issues such as consumer demand, and away from lesser upstream issues such as design and production.

Question 11

When a computer company increases the internal storage space for the same price, it is following a

Accepted Answer

A) focusing strategy. 
B) low-cost strategy. 
C) differentiation strategy. 
D) strategic positioning strategy. 
A) focusing strategy. 
B) low-cost strategy. 
C) differentiation strategy. 
D) strategic positioning strategy.

Question 12

Which of the following is not a step in developing the Balanced Scorecard?

Accepted Answer

A) setting balanced objectives 
B) outlining control procedures 
C) setting target values 
D) rewards 
A) setting balanced objectives 
B) outlining control procedures 
C) setting target values 
D) rewards

Question 13

____ are outcome measures that are a result of past efforts.

Accepted Answer

A) Objective measures 
B) External measures 
C) Financial measures 
D) Lag measures 
A) Objective measures 
B) External measures 
C) Financial measures 
D) Lag measures

Question 14

The industrial value-chain analysis

Accepted Answer

A) recognizes only complex linkages within the firm. 
B) is not compatible with differentiation strategies. 
C) determines a linked set of value-creating activities. 
D) requires a firm to operate across the entire value chain. 
A) recognizes only complex linkages within the firm. 
B) is not compatible with differentiation strategies. 
C) determines a linked set of value-creating activities. 
D) requires a firm to operate across the entire value chain.

Question 15

When a computer company selects a mix of strategies in order to create sustainable competitive advantage, it is following a

Accepted Answer

A) focusing strategy. 
B) low-cost strategy. 
C) differentiation strategy. 
D) strategic positioning strategy. 
A) focusing strategy. 
B) low-cost strategy. 
C) differentiation strategy. 
D) strategic positioning strategy.

Question 16

____ are outcome measures that relate to customers.

Accepted Answer

A) Objective measures 
B) External measures 
C) Financial measures 
D) Lag measures 
A) Objective measures 
B) External measures 
C) Financial measures 
D) Lag measures

Question 17

From the customer perspective, which of the following might be considered a core objective rather than a performance value?

Accepted Answer

A) decrease price 
B) increase customer retention 
C) improve image 
D) improve product quality 
A) decrease price 
B) increase customer retention 
C) improve image 
D) improve product quality

Question 18

When a computer company maintains the internal storage space for a lower price, it is following a

Accepted Answer

A) focusing strategy. 
B) low-cost strategy. 
C) differentiation strategy. 
D) strategic positioning strategy. 
A) focusing strategy. 
B) low-cost strategy. 
C) differentiation strategy. 
D) strategic positioning strategy.

Question 19

____ describe the relationships of a firm's value chain activities that are performed with its suppliers and customers.

Accepted Answer

A) External linkages 
B) Internal linkages 
C) Industrial value chain 
D) Both a and b 
A) External linkages 
B) Internal linkages 
C) Industrial value chain 
D) Both a and b

Question 20

Which of the following would be a lead measure?

Accepted Answer

A) customer profitability 
B) cost per employee 
C) return on investment 
D) employee training hours 
A) customer profitability 
B) cost per employee 
C) return on investment 
D) employee training hours

Exam 22: Strategic Performance Management

The five key core objectives of the customer perspective of the Balanced Scorecard do NOT include which of the following?

In the customer perspective, objectives and measures that drive the creation of customer value are

____ is creating better customer value for the same or lower cost than competitors or creating equivalent value for lower cost than offered by competitors.

____ provide some idea of what to expect currently or in the near future.

Roberts, SA., manufactures a product that experiences the following activities: Processing (three departments) 18 hours Moving (four moves) 2 hours Waiting time 14 hours Storage time (before delivery) 26 hours

Objectives for increasing revenue growth include

For a firm to have balanced measures, the measures selected must be balanced between

____ is the use of cost data to develop and identify superior strategies that will produce a sustainable competitive advantage.

Richards, SA., manufactures a product that experiences the following activities: Processing (three departments) 9 hours Moving (four moves) 1 hours Waiting time 7 hours Storage (before delivery) 13 hours The manufacturing cycle efficiency (MCE) for the product is

Which of the following statements about a balanced scorecard is true?

When a computer company increases the internal storage space for the same price, it is following a

Which of the following is not a step in developing the Balanced Scorecard?

____ are outcome measures that are a result of past efforts.

The industrial value-chain analysis

When a computer company selects a mix of strategies in order to create sustainable competitive advantage, it is following a

____ are outcome measures that relate to customers.

From the customer perspective, which of the following might be considered a core objective rather than a performance value?

When a computer company maintains the internal storage space for a lower price, it is following a

____ describe the relationships of a firm's value chain activities that are performed with its suppliers and customers.

Which of the following would be a lead measure?

Introduction to Management Accounting

An Introduction to Cost Terms and Concepts

Cost Assignment

Accounting Entries for a Job Costing System

Process Costing

Joint and By-Product Costing

Income Effects of Alternative Cost Accumulation Systems

Cost-Volume-Profit Analysis

Measuring Relevant Costs and Revenues for Decision-Making

Activity-Based Costing

Activity-Based Costing

Decision-Making Under Conditions of Risk and Uncertainty

Capital Investment Decisions: Appraisal Methods

Capital Investment Decisions: the Impact of Capital Rationing, Taxation, Inflation and Risk

The Budgeting Process

Management Control Systems

Standard Costing and Variance Analysis 1

Standard Costing and Variance Analysis 2: Further Aspects

Divisional Financial Performance Measures

Transfer Pricing in Divisionalized Companies

Strategic Cost Management

Cost Estimation and Cost Behaviour

Quantitative Models for the Planning and Control of Inventories

The Application of Linear Programming to Management Accounting

Filters