Question 1

Cost leadership can improve on execution through

Accepted Answer

A) improved automation and a higher output of products. 
B) benchmarking and total quality management. 
C) cost cutting and downsizing of personnel. 
D) improvements in product development. 
A) improved automation and a higher output of products. 
B) benchmarking and total quality management. 
C) cost cutting and downsizing of personnel. 
D) improvements in product development.

Question 2

Cost accounting information can be used by managers to defraud customers,creditors,and owners.The design of the cost accounting system has the potential to be misused to defraud customers,employees,or shareholders.

Accepted Answer

A) True 
 B)False

Question 3

Surf Boards,Inc.had the following summarized results for the month ending July 30:   As the cost accountant,which single note to the above financial results is most appropriate in the report to management?

Accepted Answer

A) The departmental manager is performing to expectations because budgeted income equals actual income. 
B) Revenues are above budget and a bonus based on this increase should be considered. 
C) Costs as a percentage of revenues are above budget and a further scrutiny of the results might be appropriate. 
D) Costs are 17.5% above budget and the department manager's position should be critically evaluated by senior management. 
A) The departmental manager is performing to expectations because budgeted income equals actual income. 
B) Revenues are above budget and a bonus based on this increase should be considered. 
C) Costs as a percentage of revenues are above budget and a further scrutiny of the results might be appropriate. 
D) Costs are 17.5% above budget and the department manager's position should be critically evaluated by senior management.

Question 4

Which of the following is not one of the overarching ethical principles of the Institute of Management Accountants (IMA)Code of Ethics?

Accepted Answer

A) Competence 
B) Responsibility 
C) Honesty 
D) Objectivity 
A) Competence 
B) Responsibility 
C) Honesty 
D) Objectivity

Question 5

During 2013,the JKL Restaurant had sales revenues and food costs of $800,000 and $600,000,respectively.During 2014,JKL plans to introduce a new menu item that is expected to increase sales revenues by $100,000 and food costs by $40,000.Assuming no changes are expected for the other food items,operating profits for 2013 are expected to increase by

Accepted Answer

A) $260,000. 
B) $100,000. 
C) $60,000. 
D) $40,000. 
A) $260,000. 
B) $100,000. 
C) $60,000. 
D) $40,000.

Question 6

In 2013,the Turnkey Company had consulting revenues of $1,000,000 while operating costs were $750,000.In 2014,Turnkey will be introducing a new service that will generate $150,000 in sales revenues and $60,000 in operating costs.Assuming no changes are expected for the other services,the differential revenue for 2014 will be

Accepted Answer

A) $250,000. 
B) $150,000. 
C) $90,000. 
D) $60,000. 
A) $250,000. 
B) $150,000. 
C) $90,000. 
D) $60,000.

Question 7

Lucena Corporation purchased a machine 7 years ago for $339,000 when it launched product X05K.Unfortunately,this machine has broken down and cannot be repaired.The machine could be replaced by a new model 360 machine costing $353,000 or by a new model 280 machine costing $332,000.Management has decided to buy the model 280 machine.It has less capacity than the model 360 machine,but its capacity is sufficient to continue making product X05K.Management also considered,but rejected,the alternative of dropping product X05K and not replacing the old machine.If that were done,the $332,000 invested in the new machine could instead have been invested in a project that would have returned a total of $426,000.In making the decision to buy the model 280 machine rather than the model 360 machine,the differential cost was:

Accepted Answer

A) $21,000. 
B) $87,000. 
C) $7,000. 
D) $14,000. 
A) $21,000. 
B) $87,000. 
C) $7,000. 
D) $14,000.

Question 8

Which of the following is a nonvalue-added activity?

Accepted Answer

A) Product design 
B) Customer service 
C) Research and development 
D) Rework of defective items 
A) Product design 
B) Customer service 
C) Research and development 
D) Rework of defective items

Question 9

Managers are usually responsible for the revenues needed to achieve the targets set during the budgeting process,but not the resources consumed to achieve those targets.Usually,managers are responsible for both the revenues and resources needed to carry out activities and meet financial goals.

Accepted Answer

A) True 
 B)False

Question 10

Costs that change in response to a particular course of action are

Accepted Answer

A) differential costs. 
B) cost-benefit analysis. 
C) activity-based costs 
D) cost drivers. 
A) differential costs. 
B) cost-benefit analysis. 
C) activity-based costs 
D) cost drivers.

Question 11

Which of the following activities would not be included in the value chain of a manufacturing company?

Accepted Answer

A) Research and Development 
B) Customer Service 
C) Design 
D) Accounting 
A) Research and Development 
B) Customer Service 
C) Design 
D) Accounting

Question 12

The delivery of products or services to customers is an example of which element in the value chain?

Accepted Answer

A) Production 
B) Design 
C) Marketing 
D) Distribution 
A) Production 
B) Design 
C) Marketing 
D) Distribution

Question 13

The lean thinking model focuses on reducing defects to as close to zero as possible.Lean is about making cost-effective changes to products and services along the value chain.

Accepted Answer

A) True 
 B)False

Question 14

R&D,production,and customer service are business functions that are all included as part of

Accepted Answer

A) the value chain. 
B) benchmarking. 
C) marketing. 
D) the supply chain. 
A) the value chain. 
B) benchmarking. 
C) marketing. 
D) the supply chain.

Question 15

A firm's replies to customers' questions via email would be an example of which element of the value chain?

Accepted Answer

A) Customer Service 
B) Marketing 
C) Design 
D) Supply 
A) Customer Service 
B) Marketing 
C) Design 
D) Supply

Question 16

The Value chain is comprised of the activities that take place during the production process.The Value chain comprises activities from research and development through the production process to customer service.

Accepted Answer

A) True 
 B)False

Question 17

The value chain comprises activities from research and development through the production process,but does not include activities related to the distribution of products or services.Distribution is included in the value chain.

Accepted Answer

A) True 
 B)False

Question 18

Cost accounting information developed for managers to use in making decisions must comply with generally accepted accounting principles (GAAP)and international financial reporting standards (IFRS).In contrast to cost data for financial reporting to shareholders,cost data for managerial use (that is,within the organization)need not comply with GAAP or IFRS.

Accepted Answer

A) True 
 B)False

Question 19

The extended value chain:

Accepted Answer

A) is a set of consecutive operations or processes that begins with purchasing resources and ends with providing products or services that customers value. 
B) is a related set of tasks,manual or automated,that transforms inputs into identifiable outputs. 
C) incorporates how companies obtain their resources and distribute their products and services,using the services of other organizations. 
D) is a technique for identifying opportunities for improvement and measuring the effects of proposed improvements by comparing both the costs and benefits of a proposal. 
A) is a set of consecutive operations or processes that begins with purchasing resources and ends with providing products or services that customers value. 
B) is a related set of tasks,manual or automated,that transforms inputs into identifiable outputs. 
C) incorporates how companies obtain their resources and distribute their products and services,using the services of other organizations. 
D) is a technique for identifying opportunities for improvement and measuring the effects of proposed improvements by comparing both the costs and benefits of a proposal.

Question 20

The set of activities that transforms raw resources into the goods and services of an organization is called:

Accepted Answer

A) Value chain. 
B) Supply chain. 
C) Demand chain. 
D) Cost-benefit analysis. 
A) Value chain. 
B) Supply chain. 
C) Demand chain. 
D) Cost-benefit analysis.

Cost leadership can improve on execution through

Cost accounting information can be used by managers to defraud customers,creditors,and owners.The design of the cost accounting system has the potential to be misused to defraud customers,employees,or shareholders.

Surf Boards,Inc.had the following summarized results for the month ending July 30: As the cost accountant,which single note to the above financial results is most appropriate in the report to management?

Which of the following is not one of the overarching ethical principles of the Institute of Management Accountants (IMA)Code of Ethics?

Which of the following is a nonvalue-added activity?

Managers are usually responsible for the revenues needed to achieve the targets set during the budgeting process,but not the resources consumed to achieve those targets.Usually,managers are responsible for both the revenues and resources needed to carry out activities and meet financial goals.

Costs that change in response to a particular course of action are

Which of the following activities would not be included in the value chain of a manufacturing company?

The delivery of products or services to customers is an example of which element in the value chain?

The lean thinking model focuses on reducing defects to as close to zero as possible.Lean is about making cost-effective changes to products and services along the value chain.

R&D,production,and customer service are business functions that are all included as part of

A firm's replies to customers' questions via email would be an example of which element of the value chain?

The Value chain is comprised of the activities that take place during the production process.The Value chain comprises activities from research and development through the production process to customer service.

The value chain comprises activities from research and development through the production process,but does not include activities related to the distribution of products or services.Distribution is included in the value chain.

The extended value chain:

The set of activities that transforms raw resources into the goods and services of an organization is called:

Cost Concepts and Behavior

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

Filters

Exam 1: Cost Accounting: Information for Decision Making

Cost leadership can improve on execution through

Cost accounting information can be used by managers to defraud customers,creditors,and owners.The design of the cost accounting system has the potential to be misused to defraud customers,employees,or shareholders.

Surf Boards,Inc.had the following summarized results for the month ending July 30: As the cost accountant,which single note to the above financial results is most appropriate in the report to management?

Which of the following is not one of the overarching ethical principles of the Institute of Management Accountants (IMA)Code of Ethics?

Which of the following is a nonvalue-added activity?

Managers are usually responsible for the revenues needed to achieve the targets set during the budgeting process,but not the resources consumed to achieve those targets.Usually,managers are responsible for both the revenues and resources needed to carry out activities and meet financial goals.

Costs that change in response to a particular course of action are

Which of the following activities would not be included in the value chain of a manufacturing company?

The delivery of products or services to customers is an example of which element in the value chain?

The lean thinking model focuses on reducing defects to as close to zero as possible.Lean is about making cost-effective changes to products and services along the value chain.

R&D,production,and customer service are business functions that are all included as part of

A firm's replies to customers' questions via email would be an example of which element of the value chain?

The Value chain is comprised of the activities that take place during the production process.The Value chain comprises activities from research and development through the production process to customer service.

The value chain comprises activities from research and development through the production process,but does not include activities related to the distribution of products or services.Distribution is included in the value chain.

The extended value chain:

The set of activities that transforms raw resources into the goods and services of an organization is called:

Cost Concepts and Behavior

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

Filters