COST ACCOUNTING MCQ HOMEWORK

| November 28, 2016

Question
21. Which of the following types of organizations can most benefit from value chain analysis?

A. Service firms.

B. Not-for-profit organizations.

C. Manufacturing firms.

D. All types of organizations can benefit from value chain analysis.

22. Which of the following would not likely be a perspective of a balanced scorecard for a consumer products retailer?

A. Learning and innovation.

B. Internal processes.

C. Financial performance.

D. Customer.

E. The exploration of space.

23. Which of the following statements concerning value chain analysis is false?

A. The goal of value chain analysis is to find areas where a company can either add value or reduce cost.

B. The value chain focuses on the entire production process, as well as the sale of the product and service after the sale.

C. If a company cannot compete in a specific area of the value chain, it might consider the option of outsourcing that portion of the value chain to someone who can perform it better.

D. Throughout most industries, the most successful firms are the ones that operate within the entire value chain, thereby overseeing every aspect of the value chain for the customer.

24. Which of the following could be considered part of the value chain in a service firm?

A. Inspection of product.

B. Advertising.

C. Raw materials.

D. Customer service.

E. Advertising and customer service.

25. When performing value chain analysis, which of the following should a company not take into account?

A. The firm’s competitive position.

B. Opportunities to reduce cost.

C. Possible opportunities where value can be added.

D. Strengths, Weaknesses, Opportunities and Threats.

26. Both cost leadership and differentiated firms can improve on execution through:

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.

27. To increase profitability, technology companies such as IBM have shifted their strategic focus toward:

A. Increasing equipment sales.

B. Improving software applications.

C. Providing new and enhanced customer services.

D. Increased focus on research and development.

28. Which of the following is not a key benefit of the balanced scorecard (BSC)?

A. It provides a means for implementing strategy.

B. It provides an objective basis for determining each manager’s compensation and advancement.

C. It provides a framework for the firm to achieve a desired organizational change in strategy.

D. It provides a baseline for how a firm’s financial operations compare to competition within the industry.

29. A strategy map is:

A. A detailed flowchart outlining which firm managers are responsible for each implementation of a firm’s strategy and when these implementations are to take place.

B. A cause and effect diagram of the relationships among the balanced scorecard perspectives to show how the achievement of critical success factors in each perspective affects the achievement of goals in other perspectives and the overall financial performance of the firm.

C. A framework for the firm to achieve a desired organizational change in strategy while mapping the successes of other firms within the industry.

D. A comprehensive framework of goals and measurable targets for executing those goals.

30. Sustainability is the balancing of short and long term goals in all three dimensions of the company’s performance. Those three areas are:

A. Economic, social, and environmental.

B. Economic, social, and financial.

C. Economic, environmental, and political.

D. Social, environmental, and financial.

31. 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?

A. Participate in programs of environmental organizations.

B. Develop and implement a legal staff and public relations staff for dealing with sustainability issues that may affect the firm.

C. Develop and implement a sustainability scorecard.

D. Risk management.

32. In terms of strategic cost management for not-for-profit organizations, which of the following is false?

A. Not-for-profit organizations can benefit from strategic cost management since they must prove their effectiveness and efficiency to a number of different stakeholders.

B. The balanced scorecard can be used to measure the organization’s performance.

C. Value chain analysis can be used for analyzing the organization’s product design, product testing, advertising, and production processes.

D. SWOT analysis is most helpful for non-profit organizations when it deals with the organization’s competitive threats, opportunities, and critical success factors.

33. In order to remain competitive in the contemporary business environment, several firms have started training their employees to stop viewing problems as strictly functional — a marketing problem, or an accounting problem, for example. What does this trend illustrate about strategic management?

A. There has been a renewed emphasis on integrative thinking and solving problems cross-functionally.

B. Functional barriers are an inherent part of a company’s value chain.

C. Firms are increasingly seeing the value of business intelligence.

D. SWOT analysis is designed to break down functional barriers.

34. Which of the following organizations presents awards to firms that excel at execution of strategy, based on criteria such as leadership, marketing, strategic planning and process management?

A. International Organization for Standardization. B. Malcolm Baldrige National Quality Program. C. Global Reporting Initiative.

D. World Resources Institute.

E. American Institute of Certified Public Accountants.

35. The critical financial success factor of profitability can be measured by:

A. Community service activities.

B. Customer returns and complaints. C. Number of product defects.

D. Number of design changes. E. Earnings from operations.

36. Using value-chain analysis, a firm can develop a competitive advantage by specifically looking for ways to:

A. Add value and reduce cost.

B. Improve manufacturing productivity. C. Improve customer service.

D. Improve product quality. E. Reduce organizational risk.

37. Value activities can best be defined as:

A. Activities that firms in the industry must perform to improve a product.

B. Activities that firms in the industry must perform in the process of converting raw material to final product, including customer service. C. Activities that firms in the industry must perform in the process of closing down a product line, including customer service.

D. Activities that firms in the industry must perform to consider ways of marketing a product.

E. Activities that firms in the industry must perform in the process of considering new products, including customer service. 38. The World Resources Institute has defined:

A. Types of cost management.

B. Categories for environmental performance indicators. C. Methods for achieving sustainability.

D. Categories for economic performance indicators.

39. A firm succeeds on its ability to deliver products to customers more quickly than rival companies in its industry. This skill is an example of the firm’s:

A. Core competency.

B. Research effectiveness.

C. Production efficiency.

D. Cost control effectiveness.

E. Value-chain analysis.

40. SWOT analysis, a valuable analysis tool, stands for:

A. Strengths – Workability – Opportunities – Threats

B. Strategies – Weaknesses – Opportunities – Threats

C. Strengths – Weaknesses – Observations – Threats

D. Strengths – Weaknesses – Opportunities – Threats

E. Strategies – Weaknesses – Observations – Threats

41. Which of the following perspectives of a Balanced Scorecard would most likely be the ultimate target in a strategy map for a public company?

A. Learning and innovation.

B. Internal processes.

C. Financial performance.

D. Customer service.

E. Employees and community.

42. Some of the indicators of a growing concern for sustainability include:

A. The liquidity crisis and sub-prime loan scandals.

B. The global economic recession.

C. The increased use of value chain analysis.

D. The increased concern about global warming.

E. The increased use of the balanced scorecard.

43. Patagonia, maker of clothing and gear for outdoor enthusiasts, is very conscious of sustainability issues. The company chose not to produce a product because:

A. The cost of manufacturing the product exceeded its target cost.

B. There was not sufficient demand for the product at the planned price.

C. The environmental impact of toxic waste was unacceptable.

D. The environmental impact of producing the product in terms of carbon emissions and energy consumptions was unacceptable.

E. The company could not justify adding another product when there were acceptable alternatives already in the company’s product offerings.

44. The decline of the U.S. dollar relative to other currencies has caused firms outside the U.S., such as BMW and Volkswagen to:

A. Experience increasing sales in the U.S.

B. Experience increasing sales worldwide.

C. Locate plants in the U.S. to reduce overall manufacturing costs.

D. Require dealers to make payments in the Euro.

45. NAFTA and WTO refer to

A. Organizations with expertise in business process improvement.

B. Laws and organizations which regulate international trade.

C. Laws and regulations regarding sustainability.

D. Organizations and trade groups that work for global economic development.

46. The five steps of strategic decision making include all of the following steps except:

A. Obtain information and conduct analyses.

B. Determine the organization’s strategy.

C. Identify the alternative actions.

D. Continue an on-going evaluation of the problem.

E. Choose and implement the desired action.

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