Question 1

What is the purpose of trend reporting on non-value-added costs?

Accepted Answer

A) tracing resources to cost objectives 
B) assessing value content 
C) defining root causes 
D) seeing if cost reductions occurred as expected 
A) tracing resources to cost objectives 
B) assessing value content 
C) defining root causes 
D) seeing if cost reductions occurred as expected

Question 2

Which of the following is part of the cost and process dimensions of the activity-based management model?

Accepted Answer

A) resources 
B) driver analysis 
C) activities 
D) cost objects 
A) resources 
B) driver analysis 
C) activities 
D) cost objects

Question 3

Which of the following is descriptive of financial-based responsibility accounting?

Accepted Answer

A) It assumes that activities are linked. 
B) It assigns responsibility to organization units. 
C) Its control emphasis is costs. 
D) Its goal is continuous improvement. 
A) It assumes that activities are linked. 
B) It assigns responsibility to organization units. 
C) Its control emphasis is costs. 
D) Its goal is continuous improvement.

Question 4

Describe how activity-based management and activity-based costing systems differ.

Accepted Answer

Activity-based management is a system wi

Question 5

Each unit of product requires 16 kilograms of material.Due to scrap and rework,each unit has been averaging 18 kilograms of material.The material costs $4 per pound.What are the non-value-added costs?

Accepted Answer

A) $4 
B) $8 
C) $64 
D) $72 
A) $4 
B) $8 
C) $64 
D) $72

Question 6

What term refers to the performance of a process in a new way to achieve major improvements?

Accepted Answer

A) process improvement 
B) process innovation 
C) process creation 
D) process efficiency 
A) process improvement 
B) process innovation 
C) process creation 
D) process efficiency

Question 7

Each unit of product requires 16 kilograms of material.Due to scrap and rework,each unit has been averaging 18 kilograms of material.The material costs $4 per pound.What are the value-added costs?

Accepted Answer

A) $4 
B) $8 
C) $64 
D) $72 
A) $4 
B) $8 
C) $64 
D) $72

Question 8

Which of the following is the order of the elements of responsibility accounting?

Accepted Answer

A) establish performance measures,define responsibility,measure performance,and reward based on performance. 
B) define responsibility,establish performance measures,measure performance,and reward based on performance. 
C) define responsibility,measure performance,establish performance measures,and reward based on performance 
D) define responsibility,establish performance measures,measure performance,and reward based on performance 
A) establish performance measures,define responsibility,measure performance,and reward based on performance. 
B) define responsibility,establish performance measures,measure performance,and reward based on performance. 
C) define responsibility,measure performance,establish performance measures,and reward based on performance 
D) define responsibility,establish performance measures,measure performance,and reward based on performance

Question 9

When different units that perform the same types of activities within the same organization are compared to the unit with the best performance,what is the practice called?

Accepted Answer

A) variance benchmarking 
B) competitive benchmarking 
C) external benchmarking 
D) internal benchmarking 
A) variance benchmarking 
B) competitive benchmarking 
C) external benchmarking 
D) internal benchmarking

Question 10

Pillow Company sells one of its products for $35 each.Sales volume averages 2,400 units per year.Recently,its main competitor reduced the price of its product to $30.Pillow Company expects sales to drop dramatically unless it matches the competitor's price.In addition,the current profit per unit must be maintained.Information about the product (for production of 2,400)is as follows: $\begin{array}{lrrr}
  &\underline{\text { SQ}}&\underline{\text { AQ}}& \underline{\text { Actual Cost}}\
\text { Materials (kilograms) } & 7,200 &8,000 & \$ 12,000 \
\text { Labour (hours) } & 1,500 & 1,600 & 8,000 \
\text { Setups (hours) } & 0 & 1,600 &2,500 \
\text { Material handling (moves) } & 0 & 500 & 1,500 \
\text { Warranties (number repaired) } & 0 & 300 & 6,000
\end{array}$

What is the non-value-added cost per unit?

Accepted Answer

A) $3.475 
B) $4.190 
C) $4.525 
D) $4.875 
A) $3.475 
B) $4.190 
C) $4.525 
D) $4.875

Question 11

Which of the following is an example of activity reduction?

Accepted Answer

A) improving cycle time so the need for expediting is eliminated 
B) redesigning products to lead to a reduced cost set of activities 
C) designing a new product that uses components already used by another product 
D) reducing demand for customer complaint handling by improving product quality 
A) improving cycle time so the need for expediting is eliminated 
B) redesigning products to lead to a reduced cost set of activities 
C) designing a new product that uses components already used by another product 
D) reducing demand for customer complaint handling by improving product quality

Question 12

What is the global incentive that encourages employees to contribute to the overall financial well-being?

Accepted Answer

A) bonuses 
B) perquisites 
C) profit sharing 
D) gainsharing 
A) bonuses 
B) perquisites 
C) profit sharing 
D) gainsharing

Question 13

Sasha Cat Company sells one of its products for $100 each.Sales volume averages 750 units per year.Recently,its main competitor reduced the price of its product to $80.Sasha Cat Company expects sales to drop dramatically unless it matches the competitor's price.In addition,the current profit per unit must be maintained.Information about the product (for production of 750)is as follows: $\begin{array}{lrrr}
  &\underline{\text { SQ}}&\underline{\text { AQ}}& \underline{\text { Actual Cost}}\
\text { Materials (kilograms) } & 2,000 & 2,500 & \$ 25,000 \
\text { Labour (hours) } & 450 & 500 & 12,500 \
\text { Setups (hours) } & 0 & 600 & 7,500 \
\text { Material handling (moves) } & 0 & 300 & 3,750 \
\text { Warranties (number repaired) } & 0 & 200 & 15,000
\end{array}$
 What is the non-value-added cost per unit?

Accepted Answer

A) $38.33 
B) $40.47 
C) $41.67 
D) $43.33 
A) $38.33 
B) $40.47 
C) $41.67 
D) $43.33

Question 14

Which of the following are the common steps in an ABM implementation model?

Accepted Answer

A) systems planning,activity identification,definition,and classification 
B) systems planning,definition,and classification 
C) systems analysis,activity identification,definition,and classification 
D) systems planning,activity identification,definition,and elimination 
A) systems planning,activity identification,definition,and classification 
B) systems planning,definition,and classification 
C) systems analysis,activity identification,definition,and classification 
D) systems planning,activity identification,definition,and elimination

Question 15

What are non-value-added activities?

Accepted Answer

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

Question 16

What are the two dimensions of an activity-based management model?

Accepted Answer

A) the cost dimension and the project dimension 
B) the cost dimension and the process dimension 
C) the quality dimension and the process dimension 
D) the quality dimension and the activity dimension 
A) the cost dimension and the project dimension 
B) the cost dimension and the process dimension 
C) the quality dimension and the process dimension 
D) the quality dimension and the activity dimension

Question 17

A firm's warranty costs are $125,000 per year.A competitor's warranty costs are $25,000 per year.Moulding costs are $50,000.What are the value-added costs?

Accepted Answer

A) $125,000 
B) $100,000 
C) $25,000 
D) $50,000 
A) $125,000 
B) $100,000 
C) $25,000 
D) $50,000

Question 18

Which of the following is part of the two-dimensional activity-based management model?

Accepted Answer

A) resources,driver analysis,cost objectives,and performance measures 
B) resources,driver analysis,cost objectives,and personnel selection 
C) resources,driver analysis,personnel selection,and performance measures 
D) resources,personnel selection,cost objectives,and performance measures 
A) resources,driver analysis,cost objectives,and performance measures 
B) resources,driver analysis,cost objectives,and personnel selection 
C) resources,driver analysis,personnel selection,and performance measures 
D) resources,personnel selection,cost objectives,and performance measures

Question 19

Under what conditions would the activity capacity used be zero?

Accepted Answer

A) If the activity is value-added. 
B) If the activity is non-value-added. 
C) If the activity is discretionary. 
D) If the activity is committed value. 
A) If the activity is value-added. 
B) If the activity is non-value-added. 
C) If the activity is discretionary. 
D) If the activity is committed value.

Question 20

What focuses on non-value-added activities?

Accepted Answer

A) activity sharing 
B) activity elimination 
C) activity selection 
D) activity reduction 
A) activity sharing 
B) activity elimination 
C) activity selection 
D) activity reduction

What is the purpose of trend reporting on non-value-added costs?

Which of the following is part of the cost and process dimensions of the activity-based management model?

Which of the following is descriptive of financial-based responsibility accounting?

Describe how activity-based management and activity-based costing systems differ.

Each unit of product requires 16 kilograms of material.Due to scrap and rework,each unit has been averaging 18 kilograms of material.The material costs $4 per pound.What are the non-value-added costs?

What term refers to the performance of a process in a new way to achieve major improvements?

Each unit of product requires 16 kilograms of material.Due to scrap and rework,each unit has been averaging 18 kilograms of material.The material costs $4 per pound.What are the value-added costs?

Which of the following is the order of the elements of responsibility accounting?

When different units that perform the same types of activities within the same organization are compared to the unit with the best performance,what is the practice called?

Which of the following is an example of activity reduction?

What is the global incentive that encourages employees to contribute to the overall financial well-being?

Which of the following are the common steps in an ABM implementation model?

What are non-value-added activities?

What are the two dimensions of an activity-based management model?

A firm's warranty costs are $125,000 per year.A competitor's warranty costs are $25,000 per year.Moulding costs are $50,000.What are the value-added costs?

Which of the following is part of the two-dimensional activity-based management model?

Under what conditions would the activity capacity used be zero?

What focuses on non-value-added activities?

A: Basic Cost Management Concepts

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters

Exam 14: Activity-Based Management

What is the purpose of trend reporting on non-value-added costs?

Which of the following is part of the cost and process dimensions of the activity-based management model?

Which of the following is descriptive of financial-based responsibility accounting?

Describe how activity-based management and activity-based costing systems differ.

Each unit of product requires 16 kilograms of material.Due to scrap and rework,each unit has been averaging 18 kilograms of material.The material costs $4 per pound.What are the non-value-added costs?

What term refers to the performance of a process in a new way to achieve major improvements?

Each unit of product requires 16 kilograms of material.Due to scrap and rework,each unit has been averaging 18 kilograms of material.The material costs $4 per pound.What are the value-added costs?

Which of the following is the order of the elements of responsibility accounting?

When different units that perform the same types of activities within the same organization are compared to the unit with the best performance,what is the practice called?

Which of the following is an example of activity reduction?

What is the global incentive that encourages employees to contribute to the overall financial well-being?

Which of the following are the common steps in an ABM implementation model?

What are non-value-added activities?

What are the two dimensions of an activity-based management model?

A firm's warranty costs are $125,000 per year.A competitor's warranty costs are $25,000 per year.Moulding costs are $50,000.What are the value-added costs?

Which of the following is part of the two-dimensional activity-based management model?

Under what conditions would the activity capacity used be zero?

What focuses on non-value-added activities?

A: Basic Cost Management Concepts

B: Basic Cost Management Concepts

Cost Behaviour

Cost-Volume-Profit Analysis

Job-Order Costing Systems

Process Costing

Activity-Based Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Responsibility Accounting,performance Evaluation,and Transfer Pricing

Tactical Decision Making

Pricing and Profitability Analysis

Strategic Cost Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Inventory Management: Economic Order Quantity,jit,and the Theory of Constraints

Filters