ACCT 526 EXAM TEST PAPER ANSWERS AND
QUESTIONS SET A+
✔✔Strategic Cost Management consists of - ✔✔Strategic Position Analysis
Cost Driver Analysis
Value Chain Analysis
✔✔The examination of a company's basic way of competing to sell - ✔✔strategic
position analysis
✔✔the study of factors that cause or influence costs - ✔✔cost driver analysis
✔✔the study of value-producing activities, from raw materials to consumers - ✔✔value
chain analysis
✔✔the basic purpose toward which a company's activities are directed - ✔✔mission
✔✔a definable, measurable target or objective - ✔✔goal
✔✔a course of action that will assist in achieving one or more goals - ✔✔strategy
✔✔managerial accounting information assist in determining which strategies for
achieving the goal of quality improvement are _______ - ✔✔cost effective
✔✔according to Michael Porter, What are the three possible strategic positions that lead
to business success? - ✔✔Cost Leadership
Product or Service Differentiation
Market Niche
, ✔✔When low costs create higher profits at the same selling price as competition, or
when companies pursue aggressive price competition while remaining competitive -
✔✔cost leadership
✔✔creating a perception of uniqueness and being worth a premium price - ✔✔product
or service differentiation
✔✔focusing on a specific market segment, such as a buyer group, segment of the
product, or geographic market - ✔✔market niche
✔✔how does managerial accounting support the achievement of goals? - ✔✔provides
tools for:
careful budgeting
cost control
frequent and detailed performance reports
✔✔describe the planning, organizing, and control cycle - ✔✔in planning, goals and
strategies are planned
implementation of plans requires the development of sub-goals and the assignment of
responsibility to others
in organizing, people are organized to implement plans
authority to take action to implement plans is delegated to other managers
in controlling, knowledge of results assists future planning
controlling feeds forward into the next planning stage
✔✔the initial purchase price of an investment, plus subsequent operating and
maintenance costs - ✔✔price/cost
✔✔the degree to which products or services meet the customer's needs - ✔✔quality
✔✔effects such as timely delivery, helpfulness of sales personnel, and subsequent
support - ✔✔service
✔✔Describe the relationship between activities, profits, and cost drivers -
✔✔Performance of activities consumes resources that cost money
QUESTIONS SET A+
✔✔Strategic Cost Management consists of - ✔✔Strategic Position Analysis
Cost Driver Analysis
Value Chain Analysis
✔✔The examination of a company's basic way of competing to sell - ✔✔strategic
position analysis
✔✔the study of factors that cause or influence costs - ✔✔cost driver analysis
✔✔the study of value-producing activities, from raw materials to consumers - ✔✔value
chain analysis
✔✔the basic purpose toward which a company's activities are directed - ✔✔mission
✔✔a definable, measurable target or objective - ✔✔goal
✔✔a course of action that will assist in achieving one or more goals - ✔✔strategy
✔✔managerial accounting information assist in determining which strategies for
achieving the goal of quality improvement are _______ - ✔✔cost effective
✔✔according to Michael Porter, What are the three possible strategic positions that lead
to business success? - ✔✔Cost Leadership
Product or Service Differentiation
Market Niche
, ✔✔When low costs create higher profits at the same selling price as competition, or
when companies pursue aggressive price competition while remaining competitive -
✔✔cost leadership
✔✔creating a perception of uniqueness and being worth a premium price - ✔✔product
or service differentiation
✔✔focusing on a specific market segment, such as a buyer group, segment of the
product, or geographic market - ✔✔market niche
✔✔how does managerial accounting support the achievement of goals? - ✔✔provides
tools for:
careful budgeting
cost control
frequent and detailed performance reports
✔✔describe the planning, organizing, and control cycle - ✔✔in planning, goals and
strategies are planned
implementation of plans requires the development of sub-goals and the assignment of
responsibility to others
in organizing, people are organized to implement plans
authority to take action to implement plans is delegated to other managers
in controlling, knowledge of results assists future planning
controlling feeds forward into the next planning stage
✔✔the initial purchase price of an investment, plus subsequent operating and
maintenance costs - ✔✔price/cost
✔✔the degree to which products or services meet the customer's needs - ✔✔quality
✔✔effects such as timely delivery, helpfulness of sales personnel, and subsequent
support - ✔✔service
✔✔Describe the relationship between activities, profits, and cost drivers -
✔✔Performance of activities consumes resources that cost money
