Question 1

The life cycles of many products are becoming shorter

Accepted Answer

A) causing companies to recognize that it may be more advantageous to confront,rather than compete with,the competition. 
B) making products in the maturity stage of their life cycle the basis on which firms expect growth to be generated. 
C) so companies spend less and less on product design and development because products will not last as long as previously. 
D) meaning that tools such as benchmarking and target costing become less important in adapting to the competitive environment. 
A) causing companies to recognize that it may be more advantageous to confront,rather than compete with,the competition. 
B) making products in the maturity stage of their life cycle the basis on which firms expect growth to be generated. 
C) so companies spend less and less on product design and development because products will not last as long as previously. 
D) meaning that tools such as benchmarking and target costing become less important in adapting to the competitive environment.

Question 2

How costs change relative to changes in production or sales volume is referred to as ______________________________.

Accepted Answer

The answer of How costs change relative to changes in...

Question 3

An important function of a cost management system is to relate resource consumption and cost to alternative product and process design.

Accepted Answer

A) True 
 B)False

Question 4

What are five ways that an organization could reduce product costs? Provide an example of how each method would cause cost reduction.

Accepted Answer

The answer could include any of the foll

Question 5

A cost management system would be an integral part of implementing which of the following?
Strategic resource     Core competency           Centralized
$\text {\underline{ managemen} }$        $\text {\underline{ assessment} }$              $\text {\underline{ management} }$

Accepted Answer

A) no yes yes 
B) no no no 
C) yes no yes 
D) yes yes no 
A) no yes yes 
B) no no no 
C) yes no yes 
D) yes yes no

Question 6

Which of the following is a primary element of a cost management system?
$\text {\underline{ Information} }$         $\text {\underline{ Reporting} }$             $\text {\underline{ Motivation} }$            $\text {\underline{ Evaluation} }$

Accepted Answer

A) yes yes yes yes 
B) no yes yes no 
C) yes no no yes 
D) yes yes yes no 
A) yes yes yes yes 
B) no yes yes no 
C) yes no no yes 
D) yes yes yes no

Question 7

The costs generated by the cost management system are used to

Accepted Answer

A) assess product/service profitability. 
B) establish prices for products with significant competition. 
C) determine underlying reasons for variations from standards. 
D) all of the above. 
A) assess product/service profitability. 
B) establish prices for products with significant competition. 
C) determine underlying reasons for variations from standards. 
D) all of the above.

Question 8

The life-cycle stage of a business is an important determinant of an organization's activities.

Accepted Answer

A) True 
 B)False

Question 9

____ refers to avoiding competition in making a product distinct from that of competitors by adding value or features for which consumers are willing to pay more.

Accepted Answer

A) Kaizen 
B) Differentiation 
C) Confrontation 
D) Cost leadership 
A) Kaizen 
B) Differentiation 
C) Confrontation 
D) Cost leadership

Question 10

Distinguishing a product by adding additional features or value is part of which of the following competitive strategies?
$\text {\underline{ Differentiation} }$                    $\text {\underline{ Cost leadership} }$                  $\text {\underline{ Confrontation} }$

Accepted Answer

A) yes no yes 
B) yes yes yes 
C) yes no no 
D) no yes yes 
A) yes no yes 
B) yes yes yes 
C) yes no no 
D) no yes yes

Question 11

Substantial reductions in product cost can be obtained by

Accepted Answer

A) decreasing capacity utilization. 
B) using focused factory arrangements. 
C) using tried and true manufacturing techniques. 
D) using product life cycle accounting. 
A) decreasing capacity utilization. 
B) using focused factory arrangements. 
C) using tried and true manufacturing techniques. 
D) using product life cycle accounting.

Question 12

Information about the life-cycle performance of a product or service should be provided in the
$\text {\underline{ Financial ac counting system} }$                 $\text {\underline{ Cost managenent system} }$

Accepted Answer

A) yes yes 
B) yes no 
C) no yes 
D) no no 
A) yes yes 
B) yes no 
C) no yes 
D) no no

Question 13

A cost management system should

Accepted Answer

A) identify and evaluate new activities. 
B) determine whether the organization is effective and efficient. 
C) identify the cost of consumed resources within the organization. 
D) all of the above. 
A) identify and evaluate new activities. 
B) determine whether the organization is effective and efficient. 
C) identify the cost of consumed resources within the organization. 
D) all of the above.

Question 14

Reducing the time-to-market for a new product

Accepted Answer

A) is only possible if a company has formed strategic alliances with its suppliers. 
B) generally increases long-run product costs because of the need to develop new production processes. 
C) results in the ability of a firm to pursue a cost leadership competitive strategy. 
D) may result in design flaws,a need for engineering change orders,and customer "bad will." 
A) is only possible if a company has formed strategic alliances with its suppliers. 
B) generally increases long-run product costs because of the need to develop new production processes. 
C) results in the ability of a firm to pursue a cost leadership competitive strategy. 
D) may result in design flaws,a need for engineering change orders,and customer "bad will."

Question 15

A commonly recognized critical success factor for most organizations is
                                                                                                                   Respo onsiveness
$\text {\underline{ Ouality} }$        $\text {\underline{ Decentralization} }$         $\text {\underline{ Shot cycle time} }$            $\text {\underline{ to change} }$

Accepted Answer

A) yes yes yes no 
B) yes no yes yes 
C) no yes no yes 
D) no no yes no 
A) yes yes yes no 
B) yes no yes yes 
C) no yes no yes 
D) no no yes no

Question 16

The performance measurement system should encourage each manager to act in a manner that

Accepted Answer

A) makes the manager's units profits as high as possible. 
B) most positively supports the organization's mission and competitive strategies. 
C) increases his/her performance reward in the form of profit sharing. 
D) reduces the need for informational elements in support of the manager's planning function. 
A) makes the manager's units profits as high as possible. 
B) most positively supports the organization's mission and competitive strategies. 
C) increases his/her performance reward in the form of profit sharing. 
D) reduces the need for informational elements in support of the manager's planning function.

Question 17

Which of the following is not a primary goal of a cost management system?

Accepted Answer

A) use cost drivers to develop product costs 
B) improve understanding of activities 
C) develop organizational strategies 
D) measure performance 
A) use cost drivers to develop product costs 
B) improve understanding of activities 
C) develop organizational strategies 
D) measure performance

Question 18

Focus on cost control and assessing core competencies are part of which cost management element?

Accepted Answer

A) motivational 
B) informational 
C) reporting 
D) all of the above 
A) motivational 
B) informational 
C) reporting 
D) all of the above

Question 19

A cost management system should provide the means to develop

Accepted Answer

A) the most accurate product or service costs. 
B) a reasonably accurate product or service cost given cost-benefit considerations. 
C) a product or service cost that does not include any non-value-added overhead. 
D) a costing system that traces all costs directly to individual products or services. 
A) the most accurate product or service costs. 
B) a reasonably accurate product or service cost given cost-benefit considerations. 
C) a product or service cost that does not include any non-value-added overhead. 
D) a costing system that traces all costs directly to individual products or services.

Question 20

Which of the following is considered a "feeder" system to the cost management system?
$\text {\underline{ Payioll} }$           $\text {\underline{ Budgeting} }$            $\text {\underline{ Inventory valuation} }$

Accepted Answer

A) yes no yes 
B) yes yes yes 
C) no no no 
D) yes yes no 
A) yes no yes 
B) yes yes yes 
C) no no no 
D) yes yes no

The life cycles of many products are becoming shorter

How costs change relative to changes in production or sales volume is referred to as ______________________________.

An important function of a cost management system is to relate resource consumption and cost to alternative product and process design.

What are five ways that an organization could reduce product costs? Provide an example of how each method would cause cost reduction.

A cost management system would be an integral part of implementing which of the following? Strategic resource Core competency Centralized $\text {\underline{ managemen} }$ $\text {\underline{ assessment} }$ $\text {\underline{ management} }$

Which of the following is a primary element of a cost management system? $\text {\underline{ Information} }$ $\text {\underline{ Reporting} }$ $\text {\underline{ Motivation} }$ $\text {\underline{ Evaluation} }$

The costs generated by the cost management system are used to

The life-cycle stage of a business is an important determinant of an organization's activities.

____ refers to avoiding competition in making a product distinct from that of competitors by adding value or features for which consumers are willing to pay more.

Distinguishing a product by adding additional features or value is part of which of the following competitive strategies? $\text {\underline{ Differentiation} }$ $\text {\underline{ Cost leadership} }$ $\text {\underline{ Confrontation} }$

Substantial reductions in product cost can be obtained by

Information about the life-cycle performance of a product or service should be provided in the $\text {\underline{ Financial ac counting system} }$ $\text {\underline{ Cost managenent system} }$

A cost management system should

Reducing the time-to-market for a new product

A commonly recognized critical success factor for most organizations is Respo onsiveness $\text {\underline{ Ouality} }$ $\text {\underline{ Decentralization} }$ $\text {\underline{ Shot cycle time} }$ $\text {\underline{ to change} }$

The performance measurement system should encourage each manager to act in a manner that

Which of the following is not a primary goal of a cost management system?

Focus on cost control and assessing core competencies are part of which cost management element?

A cost management system should provide the means to develop

Which of the following is considered a "feeder" system to the cost management system? $\text {\underline{ Payioll} }$ $\text {\underline{ Budgeting} }$ $\text {\underline{ Inventory valuation} }$

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Exam 12: Introduction to Cost Management Systems

The life cycles of many products are becoming shorter

How costs change relative to changes in production or sales volume is referred to as ______________________________.

An important function of a cost management system is to relate resource consumption and cost to alternative product and process design.

What are five ways that an organization could reduce product costs? Provide an example of how each method would cause cost reduction.

The costs generated by the cost management system are used to

The life-cycle stage of a business is an important determinant of an organization's activities.

____ refers to avoiding competition in making a product distinct from that of competitors by adding value or features for which consumers are willing to pay more.

Substantial reductions in product cost can be obtained by

A cost management system should

Reducing the time-to-market for a new product

The performance measurement system should encourage each manager to act in a manner that

Which of the following is not a primary goal of a cost management system?

Focus on cost control and assessing core competencies are part of which cost management element?

A cost management system should provide the means to develop

Which of the following is considered a "feeder" system to the cost management system? Payioll‾ \text {\underline{ Payioll} } Payioll​ Budgeting‾ \text {\underline{ Budgeting} } Budgeting​ Inventory valuation‾ \text {\underline{ Inventory valuation} } Inventory valuation​

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Which of the following is considered a "feeder" system to the cost management system? $\text {\underline{ Payioll} }$ $\text {\underline{ Budgeting} }$ $\text {\underline{ Inventory valuation} }$