GB519: Measurement and Decision Making by ella | Mar 26, 2024 | Finance nit 1 : Unit 1: Introduction to Strategy, Cost Management and Cost Systems – Quiz 1.With regard to critical success factors, which one of the following would not be considered a financial measure of success? (Points : 2) Cash flow. Growth in industry productivity. Sales growth. Earnings growth. Reduction in the cost of inventory. 2.In the current business environment, companies cannot survive without a long-term strategy. What exactly should an effective strategy include? (Points : 2) A set of policies, procedures, and approaches to business that will result in long-term success. A focus on accurate financial data, thus allowing the firm to effectively compete in any environment. A focus on long-term nonfinancial information that will provide the company with versatile management techniques capable of being used in a wide variety of situations. A clear, concise mission statement, naming every product and outlining the company’s long-term goals of success. 3.It is becoming more common to see manufacturing firms use the value chain to take strategic steps to improve the overall profitability of the firm by: (Points : 2) Placing greater emphasis on the value chain. Moving to an emphasis on upstream activities in the value chain. Moving to an emphasis on downstream activities in the value chain. Identifying most profitable customers. Finding low-cost manufacturing locations. 4.Sustainability is the balancing of short and long term goals in all three dimensions of the company’s performance. Those three areas are: (Points : 2) Economic, social, and environmental. Economic, social, and financial. Economic, environmental, and political. Social, environmental, and financial. 5.The following problems have occurred at your company: management seems to be making decisions based on guesses and intuition, there’s a lack of clarity concerning direction and goals, and profitable opportunities are being missed. What is your company suffering from? (Points : 2) A lack of strategic information; management has not determined its strategic competitive position. Managers have too much information. The company is not familiar with business reengineering and value chain analysis. The company has an inappropriate mission statement. 6.The additional cost incurred as the cost driver increases by one unit is: (Points : 2) Average cost. Controllable cost. Variable cost. Unit cost. 7.Corporate 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: (Points : 2) Inclusive approach. Integrative approach. Intra-function approach. Multilateral approach. 8.The cause and effect relationships among critical success factors are best captured in: (Points : 2) The balanced scorecard Business intelligence The value chain The strategy map SWOT analysis 9.NAFTA and WTO refer to (Points : 2) Organizations with expertise in business process improvement. Laws and organizations which regulate international trade. Laws and regulations regarding sustainability. Organizations and trade groups that work for global economic development. 10.The main objective(s) of internal accounting controls is/are: (Points : 2) To increase customer satisfaction. To increase revenue. To prevent or detect errors and fraudulent acts. To facilitate new product lines. To increase employee morale. 11.Which of the following aspect of a contemporary management technique is a framework and process that organizations use to manage the occurrence of possible events that could negatively or positively affect the company’s competitiveness and success? (Points : 2) Total quality management Lean accounting The theory of constraints Enterprise sustainability Enterprise risk management 12.The change in total cost associated with each change in the quantity of the cost driver is: (Points : 2) Average cost. Controllable cost. Variable cost. Unit cost. 13.Any product, service, or organizational unit to which costs are assigned for some management purpose is a(n): (Points : 2) Cost object. Direct cost. Indirect cost. Cost driver. Allocation base. 14.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 setting prices, among other uses? (Points : 2) Business Intelligence Target Costing Life Cycle Costing Benchmarking Business Process Improvement 15.In order to assure that accounting information is accurate and to avoid potentially costly mistakes in the decision making process, firms should: (Points : 2) Design and monitor an effective system of internal accounting controls. Have the internal auditors and controller each check the accounting data before it is released to management. Purchase an accounting system that is designed specifically for the industry in which the firm conducts business. Develop and implement a code of ethics. 16.Strategic analysis uses which of the following to help a firm improve its competitive position through an analysis of product and production complexity? (Points : 2) Differential cost drivers. Discretionary cost drivers. Structural cost drivers. Marginal cost drivers. 17.Which one of the following would not be found in a merchandising company? (Points : 2) Beginning inventory. Cost of goods sold. Ending inventory. Gross profit. Work-in-process. 18.Using value-chain analysis, a firm can develop a competitive advantage by specifically looking for ways to: (Points : 2) Add value and reduce cost. Improve manufacturing productivity. Improve customer service. Improve product quality. Reduce organizational risk. 19.The strategy map is a tool that is used (Points : 2) 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 20.Which of the following could be considered part of the value chain in a service firm? (Points : 2) Inspection of product. Advertising. Raw materials. Customer service. Advertising and customer service. 21.Which of the following types of organizations can most benefit from value chain analysis? (Points : 2) Service firms. Not-for-profit organizations. Manufacturing firms. All types of organizations can benefit from value chain analysis. 22.The cost of goods that were finished and transferred out of work-in-process during the current period is: (Points : 2) Cost of goods sold. Cost of goods available for use. Cost of goods manufactured. Cost of goods available for sale. Cost of goods purchased. 23.Which of the following is normally considered to be a product cost? (Points : 2) Insurance on a factory building. Selling expenses. President’s salary. Miscellaneous office expense. 24.Which of the following is the primary user of management accounting information regarding business units? (Points : 2) Company management. Investors. Creditors. Industry and governmental organizations. 25.After critical success factors (CSFs) have been identified, the next step in developing a competitive strategy is to develop relevant and reliable measures for these CSFs. These measures are important to help the organization: (Points : 2) 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. 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