ACCT 320 EXAM 1 STUDY GUIDE WITH ALL
CORRECT & VERIFIED ANSWERS
Cost Management Correct answer-is the development and use of cost management information
management accountants Correct answer-are the accounting professionals who develop and
analyze cost management information and other accounting information
cost management information Correct answer-consists of financial and nonfinancial information
that is developed and used to implement the organization's strategy
What are the four stages of development across management systems? Correct answer-1: Basic
Transaction Reporting Systems
2: External Financial Reporting
3. Track key operating data and develop more accurate and relevant cost information
4. Relevant Cost Management
Critical Success Factors (CSFs) Correct answer-measures of those aspects of the firm's performance
that are essential to its competitive advantage and, therefore, to its success
The Balance Scorecard Correct answer-financial
customer
internal business processes
learning and growth
financial performance Correct answer-measures of profitability and market value, among others,
as indicators of how well the firm satisfies its owners and shareholders
customer satisfaction Correct answer-measured by satisfaction surveys, percentage of existing
customers retained, and increases in revenue dollars per customer
internal processes Correct answer-Measures of the efficiency and effectiveness with which the
firm produces the product or service
learning and growth Correct answer-Measures of the firm's ability to develop and utilize human
resources to meet its strategic goals now and into the future
strategy map Correct answer-diagram that links the various perspectives in a balanced scorecard
Value Chain Correct answer-the series of internal departments that carry out value-creating
activities to design, produce, market, deliver, and support a firm's products
Activity Analysis Correct answer-The development of a detailed description of the specific activities
performed in the firm's operations
Activity-based costing (ABC) Correct answer-An overhead cost-allocation system that allocates
overhead to multiple activity cost pools and assigns the activity cost pools to products or services by
means of cost drivers that represent the activities used.
target costing Correct answer-the desired cost for a product as determined on the basis of a given
competitive price, so the product will earn a desired profit
, Life Cycle Costing (LCC) Correct answer-A method of combining the initial cost of products with the
cost of their maintenance, periodic replacement, and residual value
Benchmarking Correct answer-A process of continuously measuring system results, comparing
those results to optimal system performance (benchmark values), and identifying steps and
procedures to improve system performance
Total Quality Management (TQM) Correct answer-a management philosophy that focuses on
satisfying customers through empowering employees to be an active part of continuous quality
improvement
lean accounting Correct answer-a cost accounting system that provides measures at the work cell
or process level and minimizes wasteful or unnecessary transaction processes
Theory of Constraints (TOC) Correct answer-Systems management philosophy that states that
every organization is hindered by constraints that come from its internal policies.
Bottleneck Correct answer-a place where a road becomes narrow, or a place where there is often a
lot of traffic, causing the traffic to slow down or stop:
The construction work is causing bottlenecks in the city centre.
Sustainability Correct answer-meeting the needs of the present without compromising the ability
of future generations to meet their own needs
Enterprise Risk Management Correct answer-a framework and process that firms use to manage
the risks that could negatively or positively affect the company's competitiveness and success
Ethical Professional Practice Contains 4 main standards Correct answer-competence
confidentiality
integrity
credibility
CH1: The IMA definition of management accounting states that Correct answer-management
accounting involves partnering in mgmt decision making, planning, and performance measurement
to assist in the formulation and implementation of an organizations strategy
CH1: Management Accounting, as defined by the IMA, uses the expertise of the mgmt accountant to
Correct answer-Implement an Organzitaions Strategy
CH1: The balanced scorecard is related to the strategy map in a way similar to how Correct answer-
The organizations key activities are related to the value chain
Ch1: The mean objective of value chain analysis is to identify stages of the value chain where the firm
can Correct answer-Increase value to the customer or reduce cost in some way
CH1: The balanced Scorecard Correct answer-Is forward looking, stressing non financial measures
that can lead to benefits in the future
In order to remain competitive in the contemporary business environment, several firm have started
training their employees to stop reviewing problems as a strictly fictional - That is, as only a
CORRECT & VERIFIED ANSWERS
Cost Management Correct answer-is the development and use of cost management information
management accountants Correct answer-are the accounting professionals who develop and
analyze cost management information and other accounting information
cost management information Correct answer-consists of financial and nonfinancial information
that is developed and used to implement the organization's strategy
What are the four stages of development across management systems? Correct answer-1: Basic
Transaction Reporting Systems
2: External Financial Reporting
3. Track key operating data and develop more accurate and relevant cost information
4. Relevant Cost Management
Critical Success Factors (CSFs) Correct answer-measures of those aspects of the firm's performance
that are essential to its competitive advantage and, therefore, to its success
The Balance Scorecard Correct answer-financial
customer
internal business processes
learning and growth
financial performance Correct answer-measures of profitability and market value, among others,
as indicators of how well the firm satisfies its owners and shareholders
customer satisfaction Correct answer-measured by satisfaction surveys, percentage of existing
customers retained, and increases in revenue dollars per customer
internal processes Correct answer-Measures of the efficiency and effectiveness with which the
firm produces the product or service
learning and growth Correct answer-Measures of the firm's ability to develop and utilize human
resources to meet its strategic goals now and into the future
strategy map Correct answer-diagram that links the various perspectives in a balanced scorecard
Value Chain Correct answer-the series of internal departments that carry out value-creating
activities to design, produce, market, deliver, and support a firm's products
Activity Analysis Correct answer-The development of a detailed description of the specific activities
performed in the firm's operations
Activity-based costing (ABC) Correct answer-An overhead cost-allocation system that allocates
overhead to multiple activity cost pools and assigns the activity cost pools to products or services by
means of cost drivers that represent the activities used.
target costing Correct answer-the desired cost for a product as determined on the basis of a given
competitive price, so the product will earn a desired profit
, Life Cycle Costing (LCC) Correct answer-A method of combining the initial cost of products with the
cost of their maintenance, periodic replacement, and residual value
Benchmarking Correct answer-A process of continuously measuring system results, comparing
those results to optimal system performance (benchmark values), and identifying steps and
procedures to improve system performance
Total Quality Management (TQM) Correct answer-a management philosophy that focuses on
satisfying customers through empowering employees to be an active part of continuous quality
improvement
lean accounting Correct answer-a cost accounting system that provides measures at the work cell
or process level and minimizes wasteful or unnecessary transaction processes
Theory of Constraints (TOC) Correct answer-Systems management philosophy that states that
every organization is hindered by constraints that come from its internal policies.
Bottleneck Correct answer-a place where a road becomes narrow, or a place where there is often a
lot of traffic, causing the traffic to slow down or stop:
The construction work is causing bottlenecks in the city centre.
Sustainability Correct answer-meeting the needs of the present without compromising the ability
of future generations to meet their own needs
Enterprise Risk Management Correct answer-a framework and process that firms use to manage
the risks that could negatively or positively affect the company's competitiveness and success
Ethical Professional Practice Contains 4 main standards Correct answer-competence
confidentiality
integrity
credibility
CH1: The IMA definition of management accounting states that Correct answer-management
accounting involves partnering in mgmt decision making, planning, and performance measurement
to assist in the formulation and implementation of an organizations strategy
CH1: Management Accounting, as defined by the IMA, uses the expertise of the mgmt accountant to
Correct answer-Implement an Organzitaions Strategy
CH1: The balanced scorecard is related to the strategy map in a way similar to how Correct answer-
The organizations key activities are related to the value chain
Ch1: The mean objective of value chain analysis is to identify stages of the value chain where the firm
can Correct answer-Increase value to the customer or reduce cost in some way
CH1: The balanced Scorecard Correct answer-Is forward looking, stressing non financial measures
that can lead to benefits in the future
In order to remain competitive in the contemporary business environment, several firm have started
training their employees to stop reviewing problems as a strictly fictional - That is, as only a
