Question 1

_______________ are structural and executional factors that determine the long-term cost structure of an organization.

Accepted Answer

A)  Organizational activities 
B)  Organizational cost drivers 
C)  Operational activities 
D)  Operational cost drivers 
A)  Organizational activities 
B)  Organizational cost drivers 
C)  Operational activities 
D)  Operational cost drivers

Question 2

Which of the following are true about total quality control?

Accepted Answer

A)  Total quality control is an approach to differentiate and reduce overall quality costs. 
B)  Total quality control demands production of defect-free products. 
C)  Total quality control links suppliers closely with the firm. 
D)  All of these statements are true about total quality control. 
A)  Total quality control is an approach to differentiate and reduce overall quality costs. 
B)  Total quality control demands production of defect-free products. 
C)  Total quality control links suppliers closely with the firm. 
D)  All of these statements are true about total quality control.

Question 3

Figure 11-2 Vibro Company sells a product used in many manufacturing processes.The sales activity involves three activity areas:
  The following customer information is given:
  
-Refer to Figure 11-2.Which customer is most profitable?

Accepted Answer

A)  AX 
B)  BY 
C)  DZ 
D)  They are equally profitable. 
A)  AX 
B)  BY 
C)  DZ 
D)  They are equally profitable.

Question 4

____________ manufacturing reduces inventory levels because production is geared to demand.

Accepted Answer

A)  Traditional 
B)  Conventional 
C)  JIT 
D)  Both a and b 
A)  Traditional 
B)  Conventional 
C)  JIT 
D)  Both a and b

Question 5

Todd Corporation sells a product for $400 per unit.Its market share is 22 percent of the units sold.The marketing manager feels that the market share can be increased to 28 percent of the units sold with a reduction in price to $340.The product is currently earning a profit of $64 per unit.The president of Todd Corporation feels that his company needs to maintain the same profit level per unit.The market share consists of $4,000,000 (10,000 units).
Required:

Accepted Answer

The answer of Todd Corporation sells a product for $400...

Question 6

Figure 11-1 Clinton Corp.is a manufacturer of equipment used in manufacturing.It currently produces a product with 30 parts but through redesign has reduced the number of parts to 9.Then current activity capacity and demand for the 30 unit configuration and expected activity demand for the 9 part configuration are provided below:
  Materials usage has a rate of $5 per part and no fixed costs.Assembly has a rate of $20 per labor hour with no fixed component.Purchasing requires clerks that can process 5,000 purchase orders.Each clerk earns $40,000 per year.There is also a $1 per order processing cost.
-
Refer to Figure 11-1.What is the cost savings from purchasing parts?

Accepted Answer

A)  $88,000 
B)  $80,000 
C)  $48,000 
D)  $40,000 
A)  $88,000 
B)  $80,000 
C)  $48,000 
D)  $40,000

Question 7

Which stage in the marketing viewpoint is characterized by preproduction and startup activities?

Accepted Answer

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

Question 8

The operational activity of inspecting is classified as 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 9

Figure 11-1 Clinton Corp.is a manufacturer of equipment used in manufacturing.It currently produces a product with 30 parts but through redesign has reduced the number of parts to 9.Then current activity capacity and demand for the 30 unit configuration and expected activity demand for the 9 part configuration are provided below:
  Materials usage has a rate of $5 per part and no fixed costs.Assembly has a rate of $20 per labor hour with no fixed component.Purchasing requires clerks that can process 5,000 purchase orders.Each clerk earns $40,000 per year.There is also a $1 per order processing cost.
-
Refer to Figure 11-1.What is the total cost reduction of the new design?

Accepted Answer

A)  $1,998,000 
B)  $1,984,000 
C)  $1,414,000 
D)  $1,418,000 
A)  $1,998,000 
B)  $1,984,000 
C)  $1,414,000 
D)  $1,418,000

Question 10

Fonda Company has a traditional, unit-based cost system.The Minneapolis plant of Fonda produces eight different electronic products.Each year, 100,000 units of all products are produced.The demand for each product is about the same; thus, the average output for each product is 12,500 units.Although the products differ in complexity, each product uses about the same labor time and materials.The plant has used direct labor hours for years to assign overhead to products.The cost accounting department developed the following cost equation to help design engineers understand the assumed cost relationships.(The equation describes the relationship between total manufacturing costs and direct labor hours.The equation is supported by a coefficient of determination of 63 percent):
Y = $5,000,000 + $50X where X is the number of direct labor hours

Accepted Answer

The answer of Fonda Company has a traditional, unit-based cost...

Question 11

The goal of total quality control is

Accepted Answer

A)  to have less defective material than good material. 
B)  to permit defects as long as they do not exceed a certain level. 
C)  to have zero defects. 
D)  both b and c. 
A)  to have less defective material than good material. 
B)  to permit defects as long as they do not exceed a certain level. 
C)  to have zero defects. 
D)  both b and c.

Question 12

Bill Jones has decided to purchase a fax machine.He has narrowed the choice to two: Brand A and Brand B.Both brands have the same transmitting speed and use the same type of paper.Both come from companies with good reputations.The selling price for each is identical.After some review, Bill discovers that the cost of operating and maintaining Brand A over a three-year period is estimated to be $300.For Brand B, the operating and maintenance cost is $150.The sales agent for Brand B emphasizes the lower operating and maintenance cost.She claims that it is lower than any other fax machine.In addition, she provides Bill with a copy of an article appearing in a PC magazine that rates service performance of various fax machines.Brand B is rated number one.
Required:

Accepted Answer

The answer of Bill Jones has decided to purchase a...

Question 13

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)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 14

Activities required to design, develop, produce, market, distribute, and service a product are known as

Accepted Answer

A)  whole life activities. 
B)  value-chain activities. 
C)  target activities. 
D)  overhead. 
A)  whole life activities. 
B)  value-chain activities. 
C)  target activities. 
D)  overhead.

Question 15

Which viewpoint of the product life-cycle is customer-value oriented?

Accepted Answer

A)  production life-cycle 
B)  marketing life-cycle 
C)  consumable life-cycle 
D)  planning life-cycle 
A)  production life-cycle 
B)  marketing life-cycle 
C)  consumable life-cycle 
D)  planning life-cycle

Question 16

Analyzing how costs and other financial factors vary as different bundles of activities are considered to strengthen a firm's strategic position is the process of

Accepted Answer

A)  exploiting linkages. 
B)  design. 
C)  cost driver analysis. 
D)  distribution. 
A)  exploiting linkages. 
B)  design. 
C)  cost driver analysis. 
D)  distribution.

Question 17

_______________ is the difference between the sales price needed to capture a predetermined market share and the desired profit per unit.

Accepted Answer

A)  Gross profit 
B)  Target cost 
C)  Target price 
D)  Both a and b 
A)  Gross profit 
B)  Target cost 
C)  Target price 
D)  Both a and b

Question 18

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 19

In activity-based costing, supplier costs

Accepted Answer

A)  must be narrower, including only the purchase price. 
B)  are allocated to products arbitrarily. 
C)  include costs of quality, reliability and timeliness and are assigned to products on a causal basis. 
D)  all of these statements are true. 
A)  must be narrower, including only the purchase price. 
B)  are allocated to products arbitrarily. 
C)  include costs of quality, reliability and timeliness and are assigned to products on a causal basis. 
D)  all of these statements are true.

Question 20

_______________ involves choosing among alternative strategies with the goal of selecting a strategy or strategies that provides a company with reasonable assurance of long-term growth and survival.

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

_______________ are structural and executional factors that determine the long-term cost structure of an organization.

Which of the following are true about total quality control?

Figure 11-2 Vibro Company sells a product used in many manufacturing processes.The sales activity involves three activity areas: The following customer information is given: -Refer to Figure 11-2.Which customer is most profitable?

____________ manufacturing reduces inventory levels because production is geared to demand.

Which stage in the marketing viewpoint is characterized by preproduction and startup activities?

The operational activity of inspecting is classified as a

The goal of total quality control is

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?

Activities required to design, develop, produce, market, distribute, and service a product are known as

Which viewpoint of the product life-cycle is customer-value oriented?

Analyzing how costs and other financial factors vary as different bundles of activities are considered to strengthen a firm's strategic position is the process of

_______________ is the difference between the sales price needed to capture a predetermined market share and the desired profit per unit.

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

In activity-based costing, supplier costs

_______________ involves choosing among alternative strategies with the goal of selecting a strategy or strategies that provides a company with reasonable assurance of long-term growth and survival.

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

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

_______________ are structural and executional factors that determine the long-term cost structure of an organization.

Which of the following are true about total quality control?

Figure 11-2 Vibro Company sells a product used in many manufacturing processes.The sales activity involves three activity areas: The following customer information is given: -Refer to Figure 11-2.Which customer is most profitable?

____________ manufacturing reduces inventory levels because production is geared to demand.

Which stage in the marketing viewpoint is characterized by preproduction and startup activities?

The operational activity of inspecting is classified as a

The goal of total quality control is

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?

Activities required to design, develop, produce, market, distribute, and service a product are known as

Which viewpoint of the product life-cycle is customer-value oriented?

Analyzing how costs and other financial factors vary as different bundles of activities are considered to strengthen a firm's strategic position is the process of

_______________ is the difference between the sales price needed to capture a predetermined market share and the desired profit per unit.

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

In activity-based costing, supplier costs

_______________ involves choosing among alternative strategies with the goal of selecting a strategy or strategies that provides a company with reasonable assurance of long-term growth and survival.

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

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