Question 1

Explain how 'collaborative relationships' with suppliers are essential when the strategic focus of a firm is cost leadership.

Accepted Answer

As purchased material and components can

Question 2

Which of the following activities does B2B include?
i. Purchasing and procurement
ii. Customer service
iii. Supplier management
iv. Inventory management

Accepted Answer

A)  i, ii and iii 
B)  ii, iii and iv 
C)  i, ii and iv 
D)  All of the given answers 
A)  i, ii and iii 
B)  ii, iii and iv 
C)  i, ii and iv 
D)  All of the given answers

Question 3

Which of the following statements regarding a just-in-time (JIT) system are true?
i. Materials are purchased and goods are produced only as required.
ii. Employees are highly skilled at single tasks in order to maintain quality control.
iii. A JIT system is characterised by small lot sizes.

Accepted Answer

A)  i and ii 
B)  i and iii 
C)  ii and iii 
D)  All of the given answers 
A)  i and ii 
B)  i and iii 
C)  ii and iii 
D)  All of the given answers

Question 4

Firm A has the following information:  
What is the economic order quantity for Firm A?

Accepted Answer

A)  2000 
B)  3000 
C)  1133 
D)  1414 
A)  2000 
B)  3000 
C)  1133 
D)  1414

Question 5

Highlight three approaches that illustrate how the growing use of e-commerce has had a major impact on the design of business processes and accounting systems.

Accepted Answer

E-commerce is the conduct of busi

Question 6

The economic order quantity model:

Accepted Answer

A)  determines ordering costs. 
B)  determines total costs involved in holding inventory. 
C)  is a mathematical tool for determining the order quantity that minimises the costs of ordering and holding inventory. 
D)  is a mathematical tool for determining shortage and ordering costs. 
A)  determines ordering costs. 
B)  determines total costs involved in holding inventory. 
C)  is a mathematical tool for determining the order quantity that minimises the costs of ordering and holding inventory. 
D)  is a mathematical tool for determining shortage and ordering costs.

Question 7

When selecting new suppliers, which of the following would not be part of the selection criteria?

Accepted Answer

A)  Supplier performance history 
B)  Cheapest price 
C)  Communication systems 
D)  Geographical location 
A)  Supplier performance history 
B)  Cheapest price 
C)  Communication systems 
D)  Geographical location

Question 8

A firm is likely to develop collaborative relationships with suppliers to help minimise supplier and inventory-related costs when the strategic focus of the firm is:

Accepted Answer

A)  growth leadership. 
B)  differentiation strategy. 
C)  segmentation strategy. 
D)  cost leadership. 
A)  growth leadership. 
B)  differentiation strategy. 
C)  segmentation strategy. 
D)  cost leadership.

Question 9

When a business wants to achieve efficiencies in supply chain management, they will often use software packages called enterprise resource planning systems software that support information systems across a number of functions.

Accepted Answer

A) True 
 B)False

Question 10

The core customer measure at which an organisation attracts and wins new customers is known as customer:

Accepted Answer

A)  acquisition. 
B)  satisfaction. 
C)  retention. 
D)  profitability. 
A)  acquisition. 
B)  satisfaction. 
C)  retention. 
D)  profitability.

Question 11

Artwright Graphics uses a special-purpose paper in 80 per cent of its jobs. The paper is purchased in l00-sheet packages at a cost of $100 per package. Management estimates the cost of placing and receiving a typical order to be $15 and the annual cost of carrying a package in inventory is $1.50. The firm uses 2600 packages each year and production is constant all year. The lead time to receive an order is one week. No safety stock is kept. The reorder point for the paper is:

Accepted Answer

A)  100 units. 
B)  25 units. 
C)  50 units. 
D)  203 units. 
A)  100 units. 
B)  25 units. 
C)  50 units. 
D)  203 units.

Question 12

Which of the following is not an assumption underlying economic order quantity?

Accepted Answer

A)  Demand is known and constant. 
B)  The order is delivered as needed. 
C)  On average one-half of inventory is in stock at any one time. 
D)  Acquisition cost per unit is constant. 
A)  Demand is known and constant. 
B)  The order is delivered as needed. 
C)  On average one-half of inventory is in stock at any one time. 
D)  Acquisition cost per unit is constant.

Question 13

A valuable method of assessing supplier performance is to use a supplier performance index. This index is calculated by:

Accepted Answer

A)  total purchase price $\div$ total supplier costs 
B)  total supplier costs $\div$ total purchase price 
C)  average purchase price $\div$ average supplier costs 
D)  average supplier costs $\div$ average purchase price 
A)  total purchase price $\div$ total supplier costs 
B)  total supplier costs $\div$ total purchase price 
C)  average purchase price $\div$ average supplier costs 
D)  average supplier costs $\div$ average purchase price

Question 14

Explain why calculating customer profitability assists in the management of customer-driven costs.

Accepted Answer

In many businesses, customer-driven cost

Question 15

Which of the following is a supplier cost?
i. Inwards inspection
ii. Outwards inspection
iii. Expediting raw material deliveries

Accepted Answer

A)  i and ii 
B)  i and iii 
C)  ii and iii 
D)  All of the given answers 
A)  i and ii 
B)  i and iii 
C)  ii and iii 
D)  All of the given answers

Question 16

Lead time is:

Accepted Answer

A)  the amount of time it takes to place an order. 
B)  the length of time it takes for goods to be received after an order is placed. 
C)  the length of time it takes for an item, in inventory, to be sold. 
D)  the length of time it takes to sell goods. 
A)  the amount of time it takes to place an order. 
B)  the length of time it takes for goods to be received after an order is placed. 
C)  the length of time it takes for an item, in inventory, to be sold. 
D)  the length of time it takes to sell goods.

Question 17

A firm has the following stock and carrying costs:  
The economic order quantity is:

Accepted Answer

A)  490 units. 
B)  346 units. 
C)  424 units. 
D)  692 units. 
A)  490 units. 
B)  346 units. 
C)  424 units. 
D)  692 units.

Question 18

The following dates apply to a specific order processed by Hamilton Ltd:  
What is the production time?

Accepted Answer

A)  4 days 
B)  10 days 
C)  13 days 
D)  21 days 
A)  4 days 
B)  10 days 
C)  13 days 
D)  21 days

Question 19

If time is not managed efficiently by companies, costs relating to a build-up of inventories and the rate at which products are produced can get out of control.

Accepted Answer

A) True 
 B)False

Question 20

The economic order quantity is influenced by carrying costs, annual requirements and the costs to place an order.

Accepted Answer

A) True 
 B)False

Explain how 'collaborative relationships' with suppliers are essential when the strategic focus of a firm is cost leadership.

Which of the following activities does B2B include? i. Purchasing and procurement ii. Customer service iii. Supplier management iv. Inventory management

Which of the following statements regarding a just-in-time (JIT) system are true? i. Materials are purchased and goods are produced only as required. ii. Employees are highly skilled at single tasks in order to maintain quality control. iii. A JIT system is characterised by small lot sizes.

Firm A has the following information: What is the economic order quantity for Firm A?

Highlight three approaches that illustrate how the growing use of e-commerce has had a major impact on the design of business processes and accounting systems.

The economic order quantity model:

When selecting new suppliers, which of the following would not be part of the selection criteria?

A firm is likely to develop collaborative relationships with suppliers to help minimise supplier and inventory-related costs when the strategic focus of the firm is:

When a business wants to achieve efficiencies in supply chain management, they will often use software packages called enterprise resource planning systems software that support information systems across a number of functions.

The core customer measure at which an organisation attracts and wins new customers is known as customer:

Which of the following is not an assumption underlying economic order quantity?

A valuable method of assessing supplier performance is to use a supplier performance index. This index is calculated by:

Explain why calculating customer profitability assists in the management of customer-driven costs.

Which of the following is a supplier cost? i. Inwards inspection ii. Outwards inspection iii. Expediting raw material deliveries

Lead time is:

A firm has the following stock and carrying costs: The economic order quantity is:

The following dates apply to a specific order processed by Hamilton Ltd: What is the production time?

If time is not managed efficiently by companies, costs relating to a build-up of inventories and the rate at which products are produced can get out of control.

The economic order quantity is influenced by carrying costs, annual requirements and the costs to place an order.

Management Accounting: Information for Creating Value and Managing Resources

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters

Exam 15: Managing Suppliers and Customers

Explain how 'collaborative relationships' with suppliers are essential when the strategic focus of a firm is cost leadership.

Which of the following activities does B2B include? i. Purchasing and procurement ii. Customer service iii. Supplier management iv. Inventory management

Which of the following statements regarding a just-in-time (JIT) system are true? i. Materials are purchased and goods are produced only as required. ii. Employees are highly skilled at single tasks in order to maintain quality control. iii. A JIT system is characterised by small lot sizes.

Firm A has the following information: What is the economic order quantity for Firm A?

Highlight three approaches that illustrate how the growing use of e-commerce has had a major impact on the design of business processes and accounting systems.

The economic order quantity model:

When selecting new suppliers, which of the following would not be part of the selection criteria?

A firm is likely to develop collaborative relationships with suppliers to help minimise supplier and inventory-related costs when the strategic focus of the firm is:

When a business wants to achieve efficiencies in supply chain management, they will often use software packages called enterprise resource planning systems software that support information systems across a number of functions.

The core customer measure at which an organisation attracts and wins new customers is known as customer:

Which of the following is not an assumption underlying economic order quantity?

A valuable method of assessing supplier performance is to use a supplier performance index. This index is calculated by:

Explain why calculating customer profitability assists in the management of customer-driven costs.

Which of the following is a supplier cost? i. Inwards inspection ii. Outwards inspection iii. Expediting raw material deliveries

Lead time is:

A firm has the following stock and carrying costs: The economic order quantity is:

The following dates apply to a specific order processed by Hamilton Ltd: What is the production time?

If time is not managed efficiently by companies, costs relating to a build-up of inventories and the rate at which products are produced can get out of control.

The economic order quantity is influenced by carrying costs, annual requirements and the costs to place an order.

Management Accounting: Information for Creating Value and Managing Resources

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters