Test Bank for Cost Management Essay

Answers1. A.Competence, confidentiality, integrity, and relevance. Given 2. B. Competence, confidentiality, integrity, and credibility. 3. C. Competence, confidentiality, independence, and objectivity. 4. D. Competence, accuracy, integrity, and independence.According to the IMA Code of Ethics, what should a management accountant do if a significant ethical situation cant be re put to workd? incision IncorrectAnswers1. A.The accountant should confront the guilty party and pauperization the unethical action be stopped. 2. B. The accountant should try to rationalize and understand the position of the other party. 3. C. The accountant should say nothing about the matter until he or she has retired. 4. D. The accountant should first discuss the matter with the immediate supervisor. The dodge map is a tool that is usedMark IncorrectAnswers1. A.as one of the find aspects of the contemporary management environment 2. B. to enhance the sustainability of the organization3. C. to link the perspectives of the balanced scorecard4. D. to organize the unfavorable success factors of a caller5. E. to implement strategyWhich of the undermentioned is the primary user of management taradiddle information regarding lineage units? Mark IncorrectAnswers1. A. Company management.2. B. Investors.3. C. Creditors.4. D. Industry and governmental organizations.When managers produce value for the customer, their orientation course consists of all the following except Mark IncorrectAnswers1. A.Quality and Service.2. B. Timeliness of delivery.3. C. The ability to respond to the customers desire for specific features. 4. D. State of the art manufacturing facilities.If a theatre decided to reevaluate and reorganize the commission it did transmission line, in hopes of creating matched advantage, by changing or decreasing jobs, the company would be using which of the following management technique? Mark IncorrectAnswers1. A.The value chain.2. B. Business intelligence.3. C. Busi ness process improvement.4. D. Product reevaluation.5. E. Life cycle costing.Which of the following is not considered part of the ground of Management Accountants definition of management accounting? Mark IncorrectAnswers1. A.Partnering in management decision making.2. B. Devising planning and performance management systems.3. C. Gathering, summarizing, analyzing, and providing information. 4. D. Providing expertise in financial reporting and control. 5. E. Assisting management in the formulation and executing of an organizations strategy. The difference between wholesalers and retailers isMark IncorrectAnswers1. A.Wholesalers are merchandisers that treat today to customers whereas retailers are merchandisers that sell to other merchandisers. 2. B. Wholesalers are merchandisers that sell to other merchandisers whereas retailers are merchandisers that sell directly to consumers. 3. C. Wholesalers are merchandisers that sell directly to the government whereasretailers are mercha ndisers that sell to other merchandisers. 4. D. Wholesalers are merchandisers that sell directly to customers whereas retailers are merchandisers that sell directly to the government. 5. E. There is no difference between wholesalers and retailers. Cost management has moved from a traditional role of increase costing and operational control to a broader strategic revolve around, which places an emphasis on Mark IncorrectAnswers1. A.Competitive pricing.2. B. Domestic market.3. C. Short-term thinking.4. D. strategic thinking.5. E. Independent judgment.Target costingMark IncorrectAnswers1. A.Determines cost based on an expected market demand for the product.2. B. Determines cost based on a budget.3. C. Determines cost based on standard cost.4. D. Determines cost based upon market price and desired profit. Cost management information typically is the responsibility of the Mark IncorrectAnswers1. A.Chief Financial Officer.2. B. Controller.3. C. Treasurer.4. D. Chief Information Offi cer.A practical example of when the theory of constraints would not be an appropriate management technique to use would be Mark IncorrectAnswers1. A.Long lines at checkout stands.2. B. Busy signals on Internet server sites.3. C. One critical production process provides 60 parts/min. output, compared with a company-wide output of 90 parts/min. 4. D. Balanced, fast flow of product through the plant.A companys management accountant is trying to improve the way costs are allocated within the company. Currently, several corporate expenses are grouped together and labeled overhead. If the accountant wanted to use activity-based costing (ABC) to help solve the problem, what should she do? Mark IncorrectAnswers1. A. She should try to map the departments costs to their cost objects, and then charge each department based on those cost relationships. 2. B. She should seek how the companys competitors are allocating their costs, and then implement one of those strategies. 3. C. She should lo ok for bottlenecks within the production process, and try to eliminate them, thus reducing costs. 4. D. She should examine the firms value chain and apply target costing before adopting ABC. Which of the following is not a contemporary management technique used by the management accountant to respond to the changing business environment? Mark IncorrectAnswers1. A. initiative risk management2. B. Lean manufacturing3. C. Life cycle costing4. D. Enterprise sustainabilityCorporate management is required to identify and solve problems from a cross-functional view. Instead of viewing a problem as related to a specific business function, management solves these problems by combining skills from different functions simultaneously. This approach is called Mark IncorrectAnswers1. A.Inclusive approach.2. B. Integrative approach.3. C. Intra-function approach.4. D. Multilateral approach.Strategic management can be defined as the development of a sustainable Mark IncorrectAnswers1. A.Chain of command.2. B. Competitive position.3. C. Cash flow.4. D. Business entity.5. E. Company image.Which of the following does not represent a main focus of cost management information? Mark IncorrectAnswers1. A.Strategic management.2. B. Performance measurement.3. C. Planning and decision making.4. D. Preparation of financial statements.5. E. Internal auditing and control.In keeping with the current crook of increased strategic planning, how have management accountants neuterd their use of life-cycle costing? Mark IncorrectAnswers1. A.They have now shifted their focus from R&D costs to marketing and promotion costs. 2. B. They have turned from a sole focus on manufacturing costs to a much wider outlook, taking into account costs from the entire product lifecycle. 3. C. They stopped looking at the entire life-cycle, and now focus their attention on product design costs. 4. D. Accountants dont use life-cycle costing, that task is left over(p) for the operations manager. Which of the f ollowing professional certificates is considered to be the most relevant for dealing with cost management issues? Mark IncorrectAnswers1. A.The CPA, which is monitored differently for each state in the U.S. 2. B. The CMA, which is administered through the Institute of Management Accountants. 3. C. The CFA, since its program focuses on the broadest range of topics and responsibilities for financial analysis. 4. D. The CPA, CMA, and CFA are viewed as equally relevant, since all three require an exam, as comfortably as specific background and experience requirements. In a local factory, employees are rewarded for finding new and better ways of changing the way they work. This company is motivating its employees to use what managementtechnique? Mark IncorrectAnswers1. A.Benchmarking.2. B. Activity-Based Costing.3. C. Theory of Constraints.4. D. Continuous Improvement.5. E. Total Quality Management.All of the following are examples of total caliber management practices except Mark I ncorrectAnswers1. A.Redesign of a product to reduce its parts by 50 percent. 2. B. Reduction in the movement required in a manufacturing job. 3. C. Separating the sales and services functions.4. D. Raising raw material quality standards.5. E. Cross-training assembly line workers to cover sick leave absences. Which of the following aspects of the contemporary business environment involves using statistical methods such as regression or correlation analysis to predict consumer behavior, to measure customer satisfaction, or to develop models for background signal prices, among other uses? Mark IncorrectAnswers1. A. Business Intelligence2. B. Target Costing3. C. Life Cycle Costing4. D. Benchmarking5. E. Business Process ImprovementManagement accounting information plays a critical role in all of the following management functions except Mark IncorrectAnswers1. A.Profit planning.2. B. Executive compensation.3. C. Planning and decision making.4. D. Hiring a new CFO.5. E. Preparing fina ncial statements for the SEC.The five steps for strategic decision making include all of the following except Mark IncorrectAnswers1. A.Identify the alternative actions2. B. Gather, summarize, and report accounting information3. C. Determine the strategic issues surrounding the problem 4. D. Choose and implement the desired alternative5. E. Provide an ongoing evaluation of the effectiveness of implementation A local area consulting firm is trying to increase the long-term strategic focus of its company reports. Therefore, the firm has decided to use the balanced scorecard. What face of new information that the company currently doesnt use in its financial reports, should the company include? Mark IncorrectAnswers1. A. Non-financial information, including customer satisfaction, innovation, etc. 2. B. additive financial information, such as profitability measures and market value. 3. C. Product life cycle information.4. D. Supplemental accounting reports.Which of the following is not a major change in the business environment that has affected the way many companies think about conducting business? Mark IncorrectAnswers1. A.An increased focus on the customer, peculiarly their opinions about functionality and quality. 2. B. A growing emphasis on globalization new markets for products and new competitors. 3. C. A larger number of companies are starting to use in advance(p) information technologies, such as business intelligence. 4. D. The development of improved cost management methods.Which of the following aspects of a company would not be considered a critical success factor, for a company that competes on differentiation? Mark IncorrectAnswers1. A.Cutting edge research and development.2. B. Excellent customer service.3. C. Award-winning product quality.4. D. Continually lace competitors to the market with new, innovative products.5. E. High level of production efficiency.Target costing determines the desired cost for a product upon the basis of a giv en competitive price such that the product will Mark IncorrectAnswers1. A.Earn at least a small profit.2. B. Earn a desired profit.3. C. Earn the maximal profit.4. D. Break even.5. E. Sell the highest volume.Read more http//testbank102.com/free-test-bank-for-cost-management-a-strategic-emphasis-5th-edition-multiple-choice-questions-part-1/ixzz34m1MeTVt