Question 1

Choosing alternative strategies that provide long-term growth involves __________ decision making.

Accepted Answer

The answer of Choosing alternative strategies that provide long-term growth...

Question 2

Life-cycle cost management consists of

Accepted Answer

A)  actions taken to enable a product to be designed, developed, produced, marketed, distributed, operated, maintained, serviced, and disposed of in order to maximize profits. 
B)  actions to extend the life of a product through design, development, production, and maintenance. 
C)  actions that focus on minimizing the cost of developing, designing, producing, distributing, operating, servicing, and disposal of a product. 
D)  actions taken to design, develop, test, market, distribute, maintain, service, and dispose of a product to maximize revenues. 
A)  actions taken to enable a product to be designed, developed, produced, marketed, distributed, operated, maintained, serviced, and disposed of in order to maximize profits. 
B)  actions to extend the life of a product through design, development, production, and maintenance. 
C)  actions that focus on minimizing the cost of developing, designing, producing, distributing, operating, servicing, and disposal of a product. 
D)  actions taken to design, develop, test, market, distribute, maintain, service, and dispose of a product to maximize revenues.

Question 3

Figure 11-4 the Algonquin Company developed the following budgeted life-cycle income statement for two proposed products. Each product's life cycle is expected to be two years.
  A 10 percent return on sales is required for new products. Because the proposed products did not have a 10 percent return on sales, the products were going to be dropped.
Relative to Product B, Product A requires more research and development costs but fewer resources to market the product. Sixty percent of the research and development costs are traceable to Product A, and 30 percent of the marketing costs are traceable to Product A.
Refer to figure 11-4. If research and development costs and marketing costs are traced to each product, life-cycle income for Product B would be

Accepted Answer

A)  $35,000. 
B)  $7,000. 
C)  $12,000. 
D)  $20,000. 
A)  $35,000. 
B)  $7,000. 
C)  $12,000. 
D)  $20,000.

Question 4

Which of the following is a trait of a traditional manufacturing system?

Accepted Answer

A)  push-through system 
B)  value-chain focus 
C)  total quality control 
D)  high employee involvement 
A)  push-through system 
B)  value-chain focus 
C)  total quality control 
D)  high employee involvement

Question 5

Luminous Company sells a product for $450 per unit. Its market share is 25 percent. The marketing manager feels that the market share can be increased to 33 percent with a reduction in price to $390. The product is currently earning a profit of $72 per unit. The president of Luminous Company feels that the $72 profit per unit must be maintained. What is the original cost per unit?

Accepted Answer

A)  $390 
B)  $450 
C)  $378 
D)  $318 
A)  $390 
B)  $450 
C)  $378 
D)  $318

Question 6

A firm that has implemented JIT had the following transactions:   Which of the following would NOT be an entry under the backflush system, assuming the second trigger point is the completion of goods?

Accepted Answer

A)  Materials and In Process Inventory 40,000 Accounts Payable 40,000 
B)  Work-in-Process Inventory 40,000 Materials Inventory 40,000 
C)  Conversion Cost Control 46,000 Wages Payable 6,000
Accounts Payable 40,000 
D)  Cost of Goods Sold 82,000 Finished Goods Inventory 82,000 
A)  Materials and In Process Inventory 40,000 Accounts Payable 40,000 
B)  Work-in-Process Inventory 40,000 Materials Inventory 40,000 
C)  Conversion Cost Control 46,000 Wages Payable 6,000
Accounts Payable 40,000 
D)  Cost of Goods Sold 82,000 Finished Goods Inventory 82,000

Question 7

The operational activity of assembling parts is an example of a

Accepted Answer

A)  unit-level activity. 
B)  batch-level activity. 
C)  product-level activity. 
D)  facility-level activity. 
A)  unit-level activity. 
B)  batch-level activity. 
C)  product-level activity. 
D)  facility-level activity.

Question 8

Which of the following manufacturing costs is assigned to products in a traditional and JIT environment using direct tracing?

Accepted Answer

A)  direct materials 
B)  direct labor 
C)  operating supplies 
D)  both a and b 
A)  direct materials 
B)  direct labor 
C)  operating supplies 
D)  both a and b

Question 9

JIT manufacturing eliminates waste by producing products only when, and in the quantities needed.

Accepted Answer

A) True 
 B)False

Question 10

In traditional and JIT environments using direct tracing, the manufacturing costs assigned to products are the direct materials costs and the __________ costs.

Accepted Answer

The answer of In traditional and JIT environments using direct...

Question 11

Building plants, management structuring, and grouping employees are examples of

Accepted Answer

A)  executional activities. 
B)  structural activities. 
C)  operational activities. 
D)  both a and b. 
A)  executional activities. 
B)  structural activities. 
C)  operational activities. 
D)  both a and b.

Question 12

Information for life-cycle cost management is supported by a(n)

Accepted Answer

A)  functional-based costing system. 
B)  activity-based costing system. 
C)  normal costing system. 
D)  all of these. 
A)  functional-based costing system. 
B)  activity-based costing system. 
C)  normal costing system. 
D)  all of these.

Question 13

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 14

The difference between what a customer receives and what the customer gives up is called:

Accepted Answer

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

Question 15

The following transactions take place after the implementation of JIT:   What will be the entry to record material placed into production using the traditional approach?

Accepted Answer

A)  Materials and In Process Inventory 75,000 Work-in-Process Inventory 75,000 
B)  Materials Inventory 75,000 Accounts Payable 75,000 
C)  Work-n-Process Inventory 75,000 Materials and In Process Inventory 75,000 
D)  Work-in-Process Inventory 75,000 Materials Inventory 75,000 
A)  Materials and In Process Inventory 75,000 Work-in-Process Inventory 75,000 
B)  Materials Inventory 75,000 Accounts Payable 75,000 
C)  Work-n-Process Inventory 75,000 Materials and In Process Inventory 75,000 
D)  Work-in-Process Inventory 75,000 Materials Inventory 75,000

Question 16

Which of the following is NOT a stage of the marketing viewpoint of the product life cycle?

Accepted Answer

A)  decline 
B)  growth 
C)  maturity 
D)  production 
A)  decline 
B)  growth 
C)  maturity 
D)  production

Question 17

Which of the following is a trait of a JIT system?

Accepted Answer

A)  push-through system 
B)  significant inventory 
C)  buyers' market 
D)  large supplier base 
A)  push-through system 
B)  significant inventory 
C)  buyers' market 
D)  large supplier base

Question 18

The relationships among activities that are performed with a firm's portion of the value chain is(are) called:

Accepted Answer

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

Question 19

If JIT manufacturing is used and each manufacturing cell produces a single product, which of the following is considered a direct product cost?

Accepted Answer

A)  inspection costs 
B)  materials 
C)  setup costs 
D)  all of these 
A)  inspection costs 
B)  materials 
C)  setup costs 
D)  all of these

Question 20

Life-cycle cost management emphasizes

Accepted Answer

A)  cost control. 
B)  cost reduction. 
C)  normal costing. 
D)  process costing. 
A)  cost control. 
B)  cost reduction. 
C)  normal costing. 
D)  process costing.

Choosing alternative strategies that provide long-term growth involves __________ decision making.

Life-cycle cost management consists of

Which of the following is a trait of a traditional manufacturing system?

A firm that has implemented JIT had the following transactions: Which of the following would NOT be an entry under the backflush system, assuming the second trigger point is the completion of goods?

The operational activity of assembling parts is an example of a

Which of the following manufacturing costs is assigned to products in a traditional and JIT environment using direct tracing?

JIT manufacturing eliminates waste by producing products only when, and in the quantities needed.

In traditional and JIT environments using direct tracing, the manufacturing costs assigned to products are the direct materials costs and the __________ costs.

Building plants, management structuring, and grouping employees are examples of

Information for life-cycle cost management is supported by a(n)

The industrial value-chain analysis

The difference between what a customer receives and what the customer gives up is called:

The following transactions take place after the implementation of JIT: What will be the entry to record material placed into production using the traditional approach?

Which of the following is NOT a stage of the marketing viewpoint of the product life cycle?

Which of the following is a trait of a JIT system?

The relationships among activities that are performed with a firm's portion of the value chain is(are) called:

If JIT manufacturing is used and each manufacturing cell produces a single product, which of the following is considered a direct product cost?

Life-cycle cost management emphasizes

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 Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Activity-Based 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 11: Strategic Cost Management

Choosing alternative strategies that provide long-term growth involves __________ decision making.

Life-cycle cost management consists of

Which of the following is a trait of a traditional manufacturing system?

A firm that has implemented JIT had the following transactions: Which of the following would NOT be an entry under the backflush system, assuming the second trigger point is the completion of goods?

The operational activity of assembling parts is an example of a

Which of the following manufacturing costs is assigned to products in a traditional and JIT environment using direct tracing?

JIT manufacturing eliminates waste by producing products only when, and in the quantities needed.

In traditional and JIT environments using direct tracing, the manufacturing costs assigned to products are the direct materials costs and the __________ costs.

Building plants, management structuring, and grouping employees are examples of

Information for life-cycle cost management is supported by a(n)

The industrial value-chain analysis

The difference between what a customer receives and what the customer gives up is called:

The following transactions take place after the implementation of JIT: What will be the entry to record material placed into production using the traditional approach?

Which of the following is NOT a stage of the marketing viewpoint of the product life cycle?

Which of the following is a trait of a JIT system?

The relationships among activities that are performed with a firm's portion of the value chain is(are) called:

If JIT manufacturing is used and each manufacturing cell produces a single product, which of the following is considered a direct product cost?

Life-cycle cost management emphasizes

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 Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Activity-Based 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