ACCT 422 Finals

Which of the following aspects of a company would not be considered a critical success factor, for a company that competes on differentiation? Cutting edge research and development. Excellent customer service. Award-winning product quality. Continually beating competitors to the market with new, innovative products. A high level of production efficiency.

A high level of production efficiency.

The balanced scorecard measures the strategic business unit (SBU)'s performance in all of the following areas except: Learning and growth. Managerial performance. Customer satisfaction. Internal business processes. Accounting and tax compliance.

Accounting and tax compliance.

Which of the following is a financial Critical Success Factor? Sales Market Value Liquidity Profitability All of the answer choices are financial Critical Success Factors

All of the answer choices are financial Critical Success Factors

The balanced scorecard can be made more effective by developing it at a detail level so that employees: Can see how it is put together. Appreciate all the effort that goes into its preparation. Respect management for including them in its formulation. Can see how their actions contribute to the success of the firm. Do not feel left out.

Can see how their actions contribute to the success of the firm.

What is one of the weaknesses of the differentiation strategy? Easy to undermine its strength by attempting to lower costs. A lack of strategic information. It undermines demand for the product. It cuts out the need for a marketing department. Consumers come to expect too high of quality from your company.

Consumers come to expect too high of quality from your company.

Over the past several years it has become increasingly important for firms to improve achievement towards their social and environmental responsibilities. What is the best way the management accountant can help the firm improve on sustainability? Participate in programs of environmental organizations. Develop and implement a legal staff and public relations staff for dealing with sustainability issues that may affect the firm. Develop and implement a sustainability scorecard. Risk management. None of the answer choices are correct.

Develop and implement a sustainability scorecard. Risk management.

The balanced scorecard is particularly important in difficult economic times because: Financial measures are even more important. Nonfinancial measures are even more important. Financial measures may be distorted. Nonfinancial measures may be distorted. Financial measures are more accurate.

Financial measures may be distorted.

Which of the following perspectives of a Balanced Scorecard would most likely be the ultimate goal in a strategy map for a public company? Learning and innovation. Internal processes. Financial performance. Customer service. Employees and community.

Financial performance.

A firm has decided to use the balanced scorecard. Which of the following is not an advantage the company will gain by using the balanced scorecard? It links the firm's Critical Success Factors to its strategy. It helps the firm monitor progress to achievement of its strategic goals. It can provide a basis for implementing strategic changes desired by the firm. It provides a comprehensive financial overview of the firm. It helps to coordinate activities in the firm.

It provides a comprehensive financial overview of the firm.

Which of the following is not a key benefit of the balanced scorecard (BSC)? It provides a means for implementing strategy. It provides an objective basis for determining each manager's compensation and advancement. It provides a framework for the firm to achieve a desired organizational change in strategy. It provides a baseline for how an organization's financial operations compare to competition within the industry. It provides a means for tracking progress toward the achievement of strategic goals. It provides a means for tracking progress toward the achievement of strategic goals.

It provides a means for tracking progress toward the achievement of strategic goals.

After critical success factors have been identified, the next step in developing a competitive strategy is to develop relevant and reliable measure for these critical success factors. These measures are important to help the organization: Make profit for any extended period. Increase sales above previous year(s). Develop policies to enhance customer profitability. Improve productivity in selected product areas. Monitor progress toward achieving strategic goals.

Monitor progress toward achieving strategic goals.

A 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 type of new information, that the company currently does not use in its financial reports, should the company now include? Nonfinancial information, including customer satisfaction, innovation, etc. Additional financial information, such as profitability measures and market value. Product life cycle information. Supplemental accounting reports. Continuous improvement.

Nonfinancial information, including customer satisfaction, innovation, etc.

Which one of the following would be the best way to measure quality of internal critical success factors? Number of returns. Setup time. Share Price. Warranty Expense. Trends in sales performance.

Number of returns.

Which of the following is considered to be a nonfinancial measure of success for customer satisfaction? Product Quality. Innovation (number of new products). On-time delivery. Product yield and reduction in waste. Increase in stock price.

On-time delivery.

The customer critical success factor of price can be measured by: Community service activities. Customer returns and complaints. Number of product defects. Cash Flows. Sales Volume.

Sales Volume.

Which of the following measures would likely be found on the financial perspective section of a balanced scorecard? Sales growth. Customer retention. Efficiency of manufacturing. Increase in number of sales staff. None of these answer choices are correct.

Sales growth.

Nonfinancial measures of operations include all the following except: Stock price. Product quality. Customer satisfaction. Market share. Growth opportunities.

Stock price.

What is a common characteristic of Strategic business units (SBU) in practice? They rely on nonfinancial information. They use little or no nonfinancial information. They rely on management expertise. They cost millions of dollars to implement. They assume the company is in the growth stage.

They use little or no nonfinancial information.

The strategy map is a tool that is used: as one of the key aspects of the contemporary management environment. to enhance the sustainability of the organization. to link the perspectives of the balanced scorecard. to organize the critical success factors of a company. to implement strategy.

to link the perspectives of the balanced scorecard.