ACC 307 CH 1, ACC 307 CH 2, ACC 307 CH 4, ACC 307 CH 5
The supply chain refers to the sequence of business functions in which customer usefulness is added to products or services. T/F
F
Value chain refers to its value to the employee. T/F
F
_______ is the detailed planning and engineering of products, service, or processes a) distribution b) design of products, services, or processes c) production d) marketing
b
The process of preparing a budget: A) forces coordination and communication across business functions B) increases accounting efficiencies C) reduces overcapacity D) promotes production automation
A
The most important planning tool is a ________. A) performance evaluation report B) balanced scorecard C) goal D) budget
D
Financial accounting is broader in scope than management accounting. T/F
F
Tracking what is happening in other companies is illegal. T/F
F
A bottleneck occurs when the work to be performed exceeds the available capacity. T/F
T
_____ is the after-sale support provided to customers a) distribution b) customer service c) production d) marketing
b
_____ is the acquisition, coordination, and assembly of resources to produce a product or deliver a service. a) research and development b) customer service c) production d) marketing
c
A report showing the actual financial results for a period compared to the budgeted financial results for that same period would most likely be called a:
C
Employees ________ how their performance is measured. A) pay close attention to B) pay no attention to C) rarely know D) None of the above are correct.
A
Managers always require the information in an accounting system to be presented in the same format. T/F
F
Planning consists of all of these areas EXCEPT: A) selecting organizational goals B) deciding how to attain the desired goals C) evaluating performance D) predicting results under various alternatives
C
A budget can serve as: A) a planning tool B) a control tool C) a basis for preparing financial statements D) a planning and control tool
D
A budget: A) is a quantitative expression of a proposed management plan B) helps translate strategy into actions C) aids in the coordination and communication among various business functions D) All of these answers are correct.
D
An Enterprise Resource Planning (ERP) System is a single database that collects data and feeds into applications that support each of the company's business activities, such s purchases, production, distribution, and sales. T/F
T
Cost accounting measures and report short-term, long-term, financial, and non financial information. T/F
T
Cost management provides information that helps increase value for customers. T/F
T
For best results, cost management emphasizes independently coordinating supply chain activities within your company and with other companies that act as suppliers and customers. T/F
T
Increased global competition is placing pressure on companies to reduce costs. T/F
T
Key success factors are geared to improving customer satisfaction. T/F
T
Key success factors include cost, quality, timeliness, and innovation. T/F
T
Modern cost accounting takes the perspective that collecting cost information is a function of the management decisions being made. T/F
T
Whose perceptions of the company's products or services are the most important to the manager? a) board of director's perception b) customer's perception c) president's perception d) stockholer's perception
b
A data warehouse or infobarn: a) is reserved for exclusive use by the CFO b) is primarily used for financial reporting purposes c) stores information used by different managers for multiple purposes d) gathers only non financial information
c
Cusomter relationship management initiatives use technology to coordinate all: a) production activities b) research activities c) customer-facing activities d) inventory management activities
c
Financial accounting provides the primary source of information for: a) decision making in the finishing department b) improving customer service c) preparing the income statement for shareholders d) planning next year's operating budget
c
Place the four business functions in the order they appear along the value chain: customer service design marketing production a) Customer service, designed, production, marketing b) customer service, marketing, production, design c) design, production, marketing, customer service d) design, customer service, production, marketing
c
Strategy is formulated by answering all of the following EXCEPT: a) who are our most important customers? b) In industry demand growing or shrinking? c) Will our external auditors certify our strategy? d) how sensitive are purchasers to price, quality, and service?
c
The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as: a) value chain management b) enterprise resource planning c) cost management d) customer value management
c
The person most likely to use ONLY financial accounting information is a: a) factory shift supervisor b) vice president of operations c) current shareholder d) department manager
c
Which of the following is NOT one of the questions management accountants might attempt to help answer in the formulation of strategy? a) Who are our most important customers? b) What substitute products exist in the marketplace? c) Does the strategy comply with GAAP? d) Will adequate cash be available to implement the strategy?
c
Which of the following statements concerning an organization's strategy is NOT true? a) strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. b) management accountants provide input to help managers formulate strategy c) a good strategy always overcome poor implementation d) businesses usually follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition
c
Cost accounting: a) provides information on the efficiency of factory labor b) provides information on the cost of servicing commercial customers c) provides information on the performance of an operating division d) All of these answers are correct
d
Which item is NOT an area that customers want to see improved levels of performance in? a) innovation b) quality c) cost and efficiency d) profit
d
Which of the following descriptors refers to management accounting information? a) It is verifiable and reliable b) It is driven by rules c) It is prepared for shareholders d) It provides reasonable and timely estimates
d
Which of the following statements about a company's supply chain is true? a) a company's supply chain is always internal to a firm b) a company's supply chain is external to a firm c) a company's supply chain is the same thing as a company's value chain d) Management accountants provide information to enhance a company's supply chain
d
Place the five steps in the decision-making process in the correct order: A = Obtain information B = Make decisions by choosing among alternatives C = Identify the problem and uncertainties D = Implement the decision E = Make predictions about the future. A) C D B E A B) E D A B C C) C A E B D D) A E B D C
C
Planning includes all of the following EXCEPT A) identifying the problem and uncertainties. B) obtaining information. C) providing feedback to help with future decision making. D) making predictions about the future.
C
The supply chain always occurs within a single organization. T/F
F
The supply chain describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers. T/F
F
Companies can decide on an appropriate strategy based strictly on internally available information. T/F
F
Companies have to follow strict guidelines when designing a management accounting system. T/F
F
Cost accounting provides information only for management accounting purposes. T/F
F
Cost management is narrowly focused on a continuous reduction of costs. T/F
F
Distribution refers to promoting and selling products or services to customers or prospective customers. T/F
F
For optimal planning success it is best if each business function within the value chain is performed one at a time in sequence. T/F
F
Identifying a company's most important customers doe NOT help formulate strategy. T/F
F
Management accountants should have little or no role in deciding on a company's strategy. T/F
F
Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting. T/F
F
Management accounting information focuses on external reporting. T/F
F
Southwest Airlines is an example of a company that pursues a product differentiation strategy. T/F
F
Strategy does NOT specify how an organization matches its capabilities with the opportunities in the marketplace. T/F
F
Technological innovation has led to longer product-life cycles and lessened the need to bring new products to market more rapidly. T/F
F
The best-designed strategies are valuable whether or not they are effectively implemented. T/F
F
The key to a company's success is always to be the low cost producer in a particular industry. T/F
F
The production component of the value chain refers detailed planning, engineering, and testing of products and processes. T/F
F
An effective way to cut costs is to eliminate activities that do NOT improve the product attributes that customers value. T/F
T
An ideal database should store information in a way that allows different managers to access the information they need. T/F
T
Companies generally follow on of two basic strategies: 1) providing a quality product or service at low prices, 2) offering a unique product or service often priced higher than competing products. T/F
T
Cost management involves long-term and short-term decisions that attempt to increase value for customers and lower costs of products or services. T/F
T
Customers are demanding increased levels of performance in all aspects of the value chain and the supply chain. T/F
T
Management accountants might provide information on decisions on whether to buy a product from outside or manufacture it in-house. T/F
T
Strategic cost management describes cost management that specifically focuses on strategic issues. T/F
T
The balance sheet, income statement, and statement of cash flows are used for financial accounting, and also for management accounting. T/F
T
The best-designed strategies and the best-developed capabilities are useless unless they are effectively executed. T/F
T
The increasing pace of technological innovation has resulted in shorter product life cycles. T/F
T
The key to a company's success if creating value for customers while differentiating itself from its competitors. T/F
T
Financial accounting is concerned primarily with: a) external reporting to investors, creditors, and government authorities b) cost planning and cost controls c) profitability analysis d) providing information for strategic and tactical decisions
a
Financial accounting provides a historical perspective, whereas management accounting emphasizes: a) the future b) past transactions c) a current perspective d) reports to shareholders
a
Management accounting: a) focuses on estimating future revenues, costs, and other measures to forecast activities and their results. b) provides information about the company as a whole c) reports information that has occurred in the past that is verifiable and reliable d) provides information that is generally available only on a quarterly or annual basis
a
R&D, production, and customer service are business functions that are all included as part of: a) the value chain b) benchmarking c) marketing d) the supply chain
a
Strategy specifies: a) how an organization matches its own capabilities with the opportunities in the marketplace b) standard procedures to ensure quality products c) incremental changes for improved performance d) the demand created for products and services
a
Which of the following groups would be LEAST likely to receive detailed management accounting reports? a) stockholders b) sales representatives c) production supervisors d) managers
a
Which of the following statement about customer values if NOT true? a) customer value is shown in a corporation's balance sheet b) creating value for customers is an important part of planning and implementing strategy c) how our product delivers customer value should be determined as part of a company's strategy formulation d) it is possible to simultaneously lower cost and increase customer value
a
Which of the following statements refers to management accounting information? a) There are no regulations governing the reports b) the reports are generally delay and historical c) the audience tends to be stockholders, creditors, and tax authorities d) It primarily measures and records business transactions
a
___ is the delivery of products or service to customers a) distribution b) customer service c) production d) design of products, services, or processes
a
____ describe(s) the flow of goods, services, and information from the purchase of materials to the delivery of products to customers, regardless of whether those activities occur in the same organization or with other organizations a) supply chain b) key success factors c) continuous improvement d) customer focus
a
____ is a strategy that integrates people and technology in all business functions to enhance relationships with customers, partners, and distributors a) customer relationship management b) value-chain analysis c) supply-chain analysis d) continuous quality management
a
_____ aims to improve operations throughout the value chain and to deliver products and services that exceed customer expectations. a) total quality management b) innovation c) customer response time d) cost and efficiency
a
______ is the generation of, and experimentation with, ideas related to new products, services, or processes a) research and development b) design of products, services, or processes c) production d) marketing
a
______ describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers, regardless of whether those activities occur in the same organization or in other organizations. a) the value chain b) the supply chain c) product differentiation d) distribution
b
An Enterprise Resource Planning System can best be described as: a) a collection of programs that use a variety of unconnected databases b) a single database that collects data and feeds it into applications that support each of the company's business activities, such as purchases, production, distribution, and sales c) a database that is primarily used by a purchasing department to determine the correct amount of a particular supply item to purchase d) a sophisticated means of linking two or more companies to facilitate their planning processes
b
Cost accounting provides all of the following EXCEPT: a) information for management accounting and financial accounting b) pricing information from marketing studies c) financial information regarding the cost of acquiring resources d) non financial information regarding the cost of operation efficiencies
b
Cusomter response time involves: a) the speed it takes the customer to respond to an advertisement and place an order b) the speed at which an organization responds to customer requests c) the speed it takes to develop a new product d) the speed it takes an organization to develop a Total Quality Management (TQM) program
b
Financial accounting: a) focuses on the future and includes activities such as preparing next year's operating budget b) must comply with GAAP c) reports include detailed information on the various operating segments of the business such as product lines or departments d) is prepared for the use of departments heads and other employees
b
In designing strategy, a company must match the opportunities and threats in the marketplace with: a) those of the CFO b) its resources and capabilities c) branding opportunities d) capabilities of current suppliers
b
Processing orders and shipping products or services to customers (also called outbound logistics) is also known as: a) customer focus b) distribution c) marketing d) supply chain
b
Which of the following is NOT a way for a company to improve customer response time? A) Increase capacity of bottleneck operations. B) Purchase material in larger quantities. C) Use faster delivery procedures. D) Produce the product more quickly.
b
Which of the following people is LEAST likely to use management accounting information? a) the controller b) a shareholder evaluating a stock investment c) the treasurer d) an assembly department supervisor
b
Customers are demanding improved performance related to: a) reduced costs b) both reduced costs and increased quality c) lower, costs, improved quality, and improved customer service d) all of these answers are correct
d
Management accounting includes all of the following EXCEPT: a) implementing strategies b) developing budgets c) preparing special studies and forecasts d) preparing the statement of cash flows
d
Management accounting information includes: a) tabulated results of customer satisfaction surveys b) the cost of producing a product c) the percentage of units produced that are defective d) all of these answers are correct
d
Managers use management accounting information to ___ strategy a) choose b) communicate c) implement d) all of these answers are correct
d
Modern cost accounting plays a role in: a) planning new products b) evaluating operational processes c) controlling costs d) all of these answers are correct
d
The value chain is the sequence of business functions in which: a) value is deducted from the products or services of an organization b) value is proportionately added to the products or services of an organization c) products and services are evaluated with respect to their value to the supply chain d) usefulness is added to the products or services of an organization
d
Which of the following types of information are used in management accounting? a) financial information b) non financial information c) information focused on the long term d) all of these answers are correct
d
____ is a philosophy in which management improves operations throughout the value chain to deliver products and services that exceed customer expectations. a) cost-benefit approach b) customer focus c) cusomter relationship management d) total quality management
d
_____ is the manner by which companies promote and sell their products or services to customers or perspective customers. a) distribution b) customer service c) research and development d) marketing
d