Acc 405 Exam 1 Questions With Correct
Answers
Differences between Financial Accounting and Management
| | | | | |
Accounting: - CORRECT ANSWER✔✔-Financial Accounting: Follows
| | | | | |
GAAP, reports to external parties, looks at performance over previous
| | | | | | | | | |
year.
Management Accounting: Does not follow GAAP but based on cost-
| | | | | | | | |
benefit analysis, reports to internal parties, forward looking to plan and
| | | | | | | | | | |
implement strategies for coming year.
| | | |
Cost Accounting: - CORRECT ANSWER✔✔-Involves measuring,
| | | | | |
analyzing, and reporting financial/non-financial information regarding
| | | | | |
cost of using and acquiring resources.
| | | | |
What are the two broad management strategies: - CORRECT
| | | | | | | | |
ANSWER✔✔-Cost leadership and Product differentiation | | | |
Cost Leadership: - CORRECT ANSWER✔✔-Obtaining competitive
| | | | | |
advantage by having lower cost than competitors.
| | | | | |
Productivity and efficiency are main targets.
| | | | |
, Product Differentiation - CORRECT ANSWER✔✔-Offering products that
| | | | | | |
are unique/superior to other competitors.
| | | |
Staying on cutting edge is main target.
| | | | | |
Ways of creating Value: - CORRECT ANSWER✔✔-Good price
| | | | | | |
Quality
Delivering the product in timely manner| | | | |
Innovation
Providing support |
Sustainability
The value-chain: - CORRECT ANSWER✔✔-Research and Development
| | | | | |
Design of Product and Processes
| | | |
Production
Marketing
Distribution
Customer Service |
Customer Relationship Management: - CORRECT ANSWER✔✔-Strategy
| | | | | |
that integrate people and tech in all business functions to deepen
| | | | | | | | | | |
relationships with customers. | |
Answers
Differences between Financial Accounting and Management
| | | | | |
Accounting: - CORRECT ANSWER✔✔-Financial Accounting: Follows
| | | | | |
GAAP, reports to external parties, looks at performance over previous
| | | | | | | | | |
year.
Management Accounting: Does not follow GAAP but based on cost-
| | | | | | | | |
benefit analysis, reports to internal parties, forward looking to plan and
| | | | | | | | | | |
implement strategies for coming year.
| | | |
Cost Accounting: - CORRECT ANSWER✔✔-Involves measuring,
| | | | | |
analyzing, and reporting financial/non-financial information regarding
| | | | | |
cost of using and acquiring resources.
| | | | |
What are the two broad management strategies: - CORRECT
| | | | | | | | |
ANSWER✔✔-Cost leadership and Product differentiation | | | |
Cost Leadership: - CORRECT ANSWER✔✔-Obtaining competitive
| | | | | |
advantage by having lower cost than competitors.
| | | | | |
Productivity and efficiency are main targets.
| | | | |
, Product Differentiation - CORRECT ANSWER✔✔-Offering products that
| | | | | | |
are unique/superior to other competitors.
| | | |
Staying on cutting edge is main target.
| | | | | |
Ways of creating Value: - CORRECT ANSWER✔✔-Good price
| | | | | | |
Quality
Delivering the product in timely manner| | | | |
Innovation
Providing support |
Sustainability
The value-chain: - CORRECT ANSWER✔✔-Research and Development
| | | | | |
Design of Product and Processes
| | | |
Production
Marketing
Distribution
Customer Service |
Customer Relationship Management: - CORRECT ANSWER✔✔-Strategy
| | | | | |
that integrate people and tech in all business functions to deepen
| | | | | | | | | | |
relationships with customers. | |
