Cost Accounting 14th Edition Global Test Bank PDF | Chapter 13 Strategy & Balanced Scorecard | Horngren Datar Rajan | Updated Latest 2025–2026 | Grade A+

Cost Accounting, 14e, Test Bank Ch13


Cost Accounting




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,Cost Accounting, 14e, Global Edition (Horngren/Datar/Rajan)
Chapter 13 Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Objective 13.1

1) describes
how!!an!!organization!!matches!!its!!own!!capabilities!!with!!the!!opportunities!!in!!the!!marketplace!!to!!acco
mplish!!its!!overall!!objectives.
A) Strategy
B) Planning
C) Learning!!and!!growth!!perspective
D) Customer!!perspective
!!Answer:! ! A

Diff:!!1
Terms:! ! total!!quality!!management!!(TQM)
!!Objective:! ! 1

AACSB:! ! Reflective!!thinking

2) In!!general,!!profit!!potential!!
with!!greater!!competition,!!stronger!!potential!!entrants,!!products!!that!!are!!similar,!!and!!more-
demanding!!customers!!and!!suppliers.
A) increases
B) stays!!constant
C) decreases
D) increases!!exponentially
!!Answer:! ! C

Diff:!!1
Terms:! ! five!!force!!industry!!analysis!!Obje
ctive:! ! 1
AACSB:! ! Reflective!!thinking

3) Which!!of!!the!!following!!is!!NOT!!a!!force!!that!!shapes!!an!!organization's!!profit!!potential?
A) Competitors
B) Equivalent!!products
C) Bargaining!!power!!of!!input!!suppliers
D) All!!of!!these!!answers!!are!!correct
.!!Answer:! ! D
Diff:!!2
Terms:! ! five!!force!!industry!!analysis!!Obje
ctive:! ! 1
AACSB:! ! Reflective!!thinking




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,4) Which!!of!!the!!following!!is!!a!!force!!that!!shapes!!an!!organization's!!profit!!potential?
A) Investors
B) Potential!!entrants!!into!!the!!market
C) Creditors
D) Research!!and!!development
!!Answer:! ! B

Diff:!!2
Terms:! ! five!!force!!industry!!analysis!!Obje
ctive:! ! 1
AACSB:! ! Reflective!!thinking

5) is!!an!!organization's!!ability!!to!!offer!!products!!or!!services!!that!!are!!perceived!!by!!its!!custom
ers!!as!!being!!superior!!and!!unique!!relative!!to!!those!!of!!its!!competitors.
A) Strategy
B) Product!!differentiation
C) Cost!!leadership
D) The!!balanced!!scorecard
!!Answer:! ! B

Diff:!!1
Terms:! ! product!!differentiation
!!Objective:! ! 1

AACSB:! ! Reflective!!thinking

6) is!!an!!organization's!!ability!!to!!achieve!!low!!costs!!relative!!to!!competitors!!through!!productivi
ty!!and!!efficiency!!improvements,!!elimination!!of!!waste,!!and!!tight!!cost!!control.
A) Strategy
B) Product!!differentiation
C) Cost!!leadership
D) The!!balanced!!scorecard
!!Answer:! ! C

Diff:!!1
Terms:! ! cost!!leadership!!Object
ive:! ! 1
AACSB:! ! Reflective!!thinking

7) An!!organization!!that!!is!!using!!the!!product!!differentiation!!approach!!would:
A) focus!!on!!tight!!cost!!control
B) carefully!!cultivate!!their!!brands
C) provide!!products!!that!!are!!similar!!to!!competitors
D) offer!!products!!at!!a!!lower!!cost!!than!!competitor
s!!Answer:! ! B
Diff:!!2
Terms:! ! product!!differentiation
!!Objective:! ! 1

AACSB:! ! Reflective!!thinking




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, 8) An!!organization!!that!!is!!using!!the!!cost!!leadership!!approach!!would:
A) incur!!costs!!for!!innovative!!R&D
B) provide!!products!!at!!a!!higher!!cost!!than!!competitors
C) focus!!on!!productivity!!through!!efficiency!!improvements
D) bring!!products!!to!!market!!rapidly
!!Answer:! ! C

Diff:!!2
Terms:! ! cost!!leadership!!Object
ive:! ! 1
AACSB:! ! Reflective!!thinking

Answer!!the!!following!!questions!!using!!the!!information!!below:

Stewart!!Corporation!!plans!!to!!grow!!by!!offering!!a!!sound!!system,!!the!!SS3000,!!that!!is!!superior!!and!!uni
que!!from!!the!!competition.!!Stewart!!believes!!that!!putting!!additional!!resources!!into!!R&D!!and!!staying!!a
head!!of!!the!!competition!!with!!technological!!innovations!!is!!critical!!to!!implementing!!its!!strategy.

9) Stewart's!!strategy!!is:
A) product!!differentiation
B) downsizing
C) reengineering
D) cost!!leadership
!!Answer:! ! A

Diff:!!2
Terms:! ! product!!differentiation
!!Objective:! ! 1

AACSB:! ! Reflective!!thinking

Answer!!the!!following!!questions!!using!!the!!information!!below:

Riter!!Corporation!!manufactures!!water!!toys.!!It!!plans!!to!!grow!!by!!producing!!high-
quality!!water!!toys!!at!!a!!low!!cost!!that!!are!!delivered!!in!!a!!timely!!manner.!!There!!are!!a!!number!!of!!other!!ma
nufacturers!!who!!produce!!similar!!water!!toys.!!Riter!!believes!!that!!continuously!!improving!!its!!manufactur
ing!!processes!!and!!having!!satisfied!!employees!!are!!critical!!to!!implementing!!its!!strategy.

10) Riter's!!strategy!!is:
A) product!!differentiation
B) downsizing
C) reengineering
D) cost!!leadership
!!Answer:! ! D

Diff:!!2
Terms:! ! cost!!leadership!!Object
ive:! ! 1
AACSB:! ! Ethical!!reasoning




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