MBA 613 - CHAPTER 1- 3 QUESTIONS & ANSWERS
This is an organization cost driver for a discount department store chain:
a.) The decision to sale product globally versus only domestically.
b.) The decision to issue a purchase order for raw materials
c.) The decisions to rearrange merchandise within a store
d.) The decision to price lower than a key competitor - Answer -c.) The decisions to
rearrange merchandise within a store
Financial accounting information is least useful in providing:
a.) Information for stating corporate wide goals
b.) Periodic reports for shareholders
c.) Information for internal decision makers
d.) Aggregate information about an organization's assets, obligations and performance -
Answer -c.) Information for internal decision makers
The process of ensuring that results agree with plans is referred to as:
a.) Decision making
b.) Planning
c.) Controlling
d.) Organizing - Answer -c.) Controlling
Examples of activity cost drivers include all of the following except:
a.) Inspecting incoming raw materials
b.) Deciding how to arrange raw materials inventory within the warehouse
c.) Machine time spent working on a product
d.) Receiving (loading) raw materials into the warehouse - Answer -b.) Deciding how to
arrange raw materials inventory within the warehouse
Managerial accounting must conform to which of the following standards?
a.) Internal Revenue Service tax code
b.) None of the above
c.) Generally Accepted Accounting Principles (GAAP)
d.) International Financial Reporting Standards (IFRS) - Answer -b.) None of the above
Strategic Position Analysis is best defined as:
a.) Fundamental choices about the size and scope of operations and technologies
b.) An organization's basic way of competing to sell products and services
c.) The formulation of a program for a specific goal
d.) The process of making the organization into a well ordered whole - Answer -b.) An
organization's basic way of competing to sell products and services
Which of the following phrases is most descriptive of financial accounting?
a.) May measure time or customer satisfaction
b.) Future oriented
c.) Highly aggregated statements
, d.) Subject to cost-benefit analysis - Answer -c.) Highly aggregated statements
Which of the following statements best defines the mission of an organization?
a.) Increase next year's sales by 10 percent over current year sales
b.) Adopt cost effective plan for providing new products and services to customers
c.) Become the world's largest provider of consumer goods
d.) Providing high quality products and services to customers - Answer -d.) Providing
high quality products and services to customers
Which of the following is not a component of strategic cost management?
a.) Strategic position analysis
b.) Value chain analysis
c.) Ratio analysis
d.) Cost driver analysis - Answer -c.) Ratio analysis
Which of the following can be considered to be unethical behavior?
a.) Allocating overhead costs to a product based on labor hours
b.) Ordering more raw materials than forecasted in anticipation of uncertain demand
c.) Estimating sales in order to prepare the annual budget for the company
d.) Accelerating or decelerating shipments at the end of the quarter to meet current
earnings forecasts - Answer -d.) Accelerating or decelerating shipments at the end of
the quarter to meet current earnings forecasts
Which of the following is an example of an activity cost driver?
Correct answer:
a.) Receiving raw materials into the warehouse
b.) Determining the best location for a manufacturing facility
c.) Deciding how to arrange raw materials inventory within a warehouse
d.) Designing components of a product so they can fit together only in the correct
manner - Answer -a.) Receiving raw materials into the warehouse
To compete on the basis of price, the seller must most carefully manage:
a.) Quality
b.) Cost
c.) Service
d.) Product development - Answer -b.) Cost
Managerial accounting is primarily focused on:
a.) Providing creditors information on the status of their loans
b.) Providing managers with relevant information to help achieve organizational goals
c.) Providing investors with useful information for valuing securities
d.) Providing the Internal Revenue Service with information to determine the amount of
taxes owed - Answer -b.) Providing managers with relevant information to help achieve
organizational goals
This is an organization cost driver for a discount department store chain:
a.) The decision to sale product globally versus only domestically.
b.) The decision to issue a purchase order for raw materials
c.) The decisions to rearrange merchandise within a store
d.) The decision to price lower than a key competitor - Answer -c.) The decisions to
rearrange merchandise within a store
Financial accounting information is least useful in providing:
a.) Information for stating corporate wide goals
b.) Periodic reports for shareholders
c.) Information for internal decision makers
d.) Aggregate information about an organization's assets, obligations and performance -
Answer -c.) Information for internal decision makers
The process of ensuring that results agree with plans is referred to as:
a.) Decision making
b.) Planning
c.) Controlling
d.) Organizing - Answer -c.) Controlling
Examples of activity cost drivers include all of the following except:
a.) Inspecting incoming raw materials
b.) Deciding how to arrange raw materials inventory within the warehouse
c.) Machine time spent working on a product
d.) Receiving (loading) raw materials into the warehouse - Answer -b.) Deciding how to
arrange raw materials inventory within the warehouse
Managerial accounting must conform to which of the following standards?
a.) Internal Revenue Service tax code
b.) None of the above
c.) Generally Accepted Accounting Principles (GAAP)
d.) International Financial Reporting Standards (IFRS) - Answer -b.) None of the above
Strategic Position Analysis is best defined as:
a.) Fundamental choices about the size and scope of operations and technologies
b.) An organization's basic way of competing to sell products and services
c.) The formulation of a program for a specific goal
d.) The process of making the organization into a well ordered whole - Answer -b.) An
organization's basic way of competing to sell products and services
Which of the following phrases is most descriptive of financial accounting?
a.) May measure time or customer satisfaction
b.) Future oriented
c.) Highly aggregated statements
, d.) Subject to cost-benefit analysis - Answer -c.) Highly aggregated statements
Which of the following statements best defines the mission of an organization?
a.) Increase next year's sales by 10 percent over current year sales
b.) Adopt cost effective plan for providing new products and services to customers
c.) Become the world's largest provider of consumer goods
d.) Providing high quality products and services to customers - Answer -d.) Providing
high quality products and services to customers
Which of the following is not a component of strategic cost management?
a.) Strategic position analysis
b.) Value chain analysis
c.) Ratio analysis
d.) Cost driver analysis - Answer -c.) Ratio analysis
Which of the following can be considered to be unethical behavior?
a.) Allocating overhead costs to a product based on labor hours
b.) Ordering more raw materials than forecasted in anticipation of uncertain demand
c.) Estimating sales in order to prepare the annual budget for the company
d.) Accelerating or decelerating shipments at the end of the quarter to meet current
earnings forecasts - Answer -d.) Accelerating or decelerating shipments at the end of
the quarter to meet current earnings forecasts
Which of the following is an example of an activity cost driver?
Correct answer:
a.) Receiving raw materials into the warehouse
b.) Determining the best location for a manufacturing facility
c.) Deciding how to arrange raw materials inventory within a warehouse
d.) Designing components of a product so they can fit together only in the correct
manner - Answer -a.) Receiving raw materials into the warehouse
To compete on the basis of price, the seller must most carefully manage:
a.) Quality
b.) Cost
c.) Service
d.) Product development - Answer -b.) Cost
Managerial accounting is primarily focused on:
a.) Providing creditors information on the status of their loans
b.) Providing managers with relevant information to help achieve organizational goals
c.) Providing investors with useful information for valuing securities
d.) Providing the Internal Revenue Service with information to determine the amount of
taxes owed - Answer -b.) Providing managers with relevant information to help achieve
organizational goals
