Question 1

Small profit margins and high capital costs in organizations can discourage potential new entrants into a market.

Accepted Answer

A) True 
 B)False

Question 2

Why are more companies in the manufacturing,merchandising,and service sectors giving greater weight to nonfinancial measures when employees are promoted?

Accepted Answer

Managers believe that those no

Question 3

In which step of the five-step decision-making framework does a manager develop a customer preference map and gather data on the internal capabilities of the company?

Accepted Answer

A) Step 1: Identify the Problem and Uncertainties. 
B) Step 2: Obtain Information. 
C) Step 3: Make Predictions About the Future. 
D) Step 4: Make Decisions by Choosing Among Alternatives. 
E) Step 5: Implement the Decision,Evaluate Performance and Learn. 
A) Step 1: Identify the Problem and Uncertainties. 
B) Step 2: Obtain Information. 
C) Step 3: Make Predictions About the Future. 
D) Step 4: Make Decisions by Choosing Among Alternatives. 
E) Step 5: Implement the Decision,Evaluate Performance and Learn.

Question 4

Managers can achieve cost leadership if they build internal capabilities by reengineering the processes in an organization.

Accepted Answer

A) True 
 B)False

Question 5

How can a manager evaluate the success of their strategy?

Accepted Answer

The manager must trace the sou

Question 6

Why do managers choose to form cross-functional teams?

Accepted Answer

Managers form cross-functional

Question 7

Why is it important for managers to further analyze the changes in operating income?

Accepted Answer

The changes in operating income could re

Question 8

Which of the following components measures the change in operating income attributable solely to changes in prices of inputs and outputs?

Accepted Answer

A) Growth. 
B) Strategy. 
C) Organic. 
D) Productivity. 
E) Price recovery. 
A) Growth. 
B) Strategy. 
C) Organic. 
D) Productivity. 
E) Price recovery.

Question 9

Which of the following is not a pitfall to avoid in implementing a balanced scorecard?

Accepted Answer

A) Managers always assume the cause-and-effect linkages are precise. 
B) Manages should not assume the cause-and-effect linkages are precise. 
C) Managers should not seek improvements across all of the measures all of the time. 
D) Managers should not use only objective measures in the balanced scorecard. 
E) Despite challenges of measurement,top management should not ignore nonfinancial measures when evaluating managers and other employees. 
A) Managers always assume the cause-and-effect linkages are precise. 
B) Manages should not assume the cause-and-effect linkages are precise. 
C) Managers should not seek improvements across all of the measures all of the time. 
D) Managers should not use only objective measures in the balanced scorecard. 
E) Despite challenges of measurement,top management should not ignore nonfinancial measures when evaluating managers and other employees.

Question 10

Which of the following is not true about the five forces in industry analysis?

Accepted Answer

A) The collective effect of the forces shapes an organization's profit potential. 
B) Profit potential decreases with greater competition. 
C) Profit potential decreases with stronger potential entrants. 
D) Profit potential decreases with products that are similar. 
E) Profit potential increases with products that are similar. 
A) The collective effect of the forces shapes an organization's profit potential. 
B) Profit potential decreases with greater competition. 
C) Profit potential decreases with stronger potential entrants. 
D) Profit potential decreases with products that are similar. 
E) Profit potential increases with products that are similar.

Question 11

Which of the following is not a measure of the internal-business process perspective?

Accepted Answer

A) Yield. 
B) On-time delivery. 
C) Order-delivery time. 
D) Service response time. 
E) Employee-satisfaction ratings. 
A) Yield. 
B) On-time delivery. 
C) Order-delivery time. 
D) Service response time. 
E) Employee-satisfaction ratings.

Question 12

Which of the following is not a feature of a good balanced scorecard?

Accepted Answer

A) It tells the story of a company's strategy. 
B) The balanced scorecard helps to communicate strategy to all members of the organization. 
C) In for-profit companies,the balanced scorecard must motivate managers to take actions that eventually result in improvements in financial performance. 
D) The balanced scorecard increases the number of measures,identifying smaller measures. 
E) The balanced scorecard highlights less-than-optimal tradeoffs that managers may make when they fail to consider operational and financial measures together. 
A) It tells the story of a company's strategy. 
B) The balanced scorecard helps to communicate strategy to all members of the organization. 
C) In for-profit companies,the balanced scorecard must motivate managers to take actions that eventually result in improvements in financial performance. 
D) The balanced scorecard increases the number of measures,identifying smaller measures. 
E) The balanced scorecard highlights less-than-optimal tradeoffs that managers may make when they fail to consider operational and financial measures together.

Question 13

In which step of the five-step decision-making framework does a manager decide to follow a cost-leadership rather than a product-differentiation strategy?

Accepted Answer

A) Step 1: Identify the Problem and Uncertainties. 
B) Step 2: Obtain Information. 
C) Step 3: Make Predictions About the Future. 
D) Step 4: Make Decisions by Choosing Among the Alternatives. 
E) Step 5: Implement the Decision,Evaluate Performance and Learn. 
A) Step 1: Identify the Problem and Uncertainties. 
B) Step 2: Obtain Information. 
C) Step 3: Make Predictions About the Future. 
D) Step 4: Make Decisions by Choosing Among the Alternatives. 
E) Step 5: Implement the Decision,Evaluate Performance and Learn.

Question 14

How could a manager consider downsizing a negative strategy at a company?

Accepted Answer

Managers and employees could c

Question 15

In for-profit companies,the primary goal of the balanced scorecard is to implement short-run successful financial performance.

Accepted Answer

A) True 
 B)False

Question 16

One difference between variance analysis and subdividing the change in operating income is that management accountants compare actual operating performance ________,not actual to budgeted numbers in the same period as in variance analysis.

Accepted Answer

A) over one period 
B) over two different periods 
C) in one fiscal year 
D) in two fiscal years 
E) over three different periods 
A) over one period 
B) over two different periods 
C) in one fiscal year 
D) in two fiscal years 
E) over three different periods

Question 17

How can a manager determine which strategy to follow?

Accepted Answer

Managers can develop a custome

Question 18

Why is the relationship between discretionary costs and output referred to as a "black box"?

Accepted Answer

The relationship between discr

Question 19

Which of the following is not true about benchmarking data in the internal-business-process perspective?

Accepted Answer

A) The data is gathered from published financial statements. 
B) The data is gathered from information about prevailing prices. 
C) The data is gathered from suppliers. 
D) The data is gathered from former employees. 
E) The data is gathered from a random research group. 
A) The data is gathered from published financial statements. 
B) The data is gathered from information about prevailing prices. 
C) The data is gathered from suppliers. 
D) The data is gathered from former employees. 
E) The data is gathered from a random research group.

Question 20

Which of the following is not one of the four perspectives of the balanced scorecard?

Accepted Answer

A) Financial perspective. 
B) Customer perspective. 
C) External control perspective. 
D) Learning and growth perspective. 
E) Internal business process perspective. 
A) Financial perspective. 
B) Customer perspective. 
C) External control perspective. 
D) Learning and growth perspective. 
E) Internal business process perspective.

Small profit margins and high capital costs in organizations can discourage potential new entrants into a market.

Why are more companies in the manufacturing,merchandising,and service sectors giving greater weight to nonfinancial measures when employees are promoted?

In which step of the five-step decision-making framework does a manager develop a customer preference map and gather data on the internal capabilities of the company?

Managers can achieve cost leadership if they build internal capabilities by reengineering the processes in an organization.

How can a manager evaluate the success of their strategy?

Why do managers choose to form cross-functional teams?

Why is it important for managers to further analyze the changes in operating income?

Which of the following components measures the change in operating income attributable solely to changes in prices of inputs and outputs?

Which of the following is not a pitfall to avoid in implementing a balanced scorecard?

Which of the following is not true about the five forces in industry analysis?

Which of the following is not a measure of the internal-business process perspective?

Which of the following is not a feature of a good balanced scorecard?

In which step of the five-step decision-making framework does a manager decide to follow a cost-leadership rather than a product-differentiation strategy?

How could a manager consider downsizing a negative strategy at a company?

In for-profit companies,the primary goal of the balanced scorecard is to implement short-run successful financial performance.

One difference between variance analysis and subdividing the change in operating income is that management accountants compare actual operating performance ________,not actual to budgeted numbers in the same period as in variance analysis.

How can a manager determine which strategy to follow?

Why is the relationship between discretionary costs and output referred to as a "black box"?

Which of the following is not true about benchmarking data in the internal-business-process perspective?

Which of the following is not one of the four perspectives of the balanced scorecard?

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Transfer Pricing

Performance Measurement and Compensation

Filters

Exam 14: Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Small profit margins and high capital costs in organizations can discourage potential new entrants into a market.

Why are more companies in the manufacturing,merchandising,and service sectors giving greater weight to nonfinancial measures when employees are promoted?

In which step of the five-step decision-making framework does a manager develop a customer preference map and gather data on the internal capabilities of the company?

Managers can achieve cost leadership if they build internal capabilities by reengineering the processes in an organization.

How can a manager evaluate the success of their strategy?

Why do managers choose to form cross-functional teams?

Why is it important for managers to further analyze the changes in operating income?

Which of the following components measures the change in operating income attributable solely to changes in prices of inputs and outputs?

Which of the following is not a pitfall to avoid in implementing a balanced scorecard?

Which of the following is not true about the five forces in industry analysis?

Which of the following is not a measure of the internal-business process perspective?

Which of the following is not a feature of a good balanced scorecard?

In which step of the five-step decision-making framework does a manager decide to follow a cost-leadership rather than a product-differentiation strategy?

How could a manager consider downsizing a negative strategy at a company?

In for-profit companies,the primary goal of the balanced scorecard is to implement short-run successful financial performance.

One difference between variance analysis and subdividing the change in operating income is that management accountants compare actual operating performance ________,not actual to budgeted numbers in the same period as in variance analysis.

How can a manager determine which strategy to follow?

Why is the relationship between discretionary costs and output referred to as a "black box"?

Which of the following is not true about benchmarking data in the internal-business-process perspective?

Which of the following is not one of the four perspectives of the balanced scorecard?

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Transfer Pricing

Performance Measurement and Compensation

Filters