Basic Concepts

MODULE 1 BASIC CONCEPTS IN MANAGEMENT ACCOUNTING 1. The major functions of management is (are): A. strategic management and long-range planning. B. planning and decision making. C. identifying threats and opportunities for the firm. . all of the a!o"e.

financial accounting/ A. +anagerial accounting places more emphasis on precision than financial accounting. B. Both are highly dependent on timely information. C. Both rely on the same accounting information system. . +anagerial accounting is concerned (ith e,ternal decision makers. Bo!adilla Bo!adilla 3. .hich of the follo(ing is true of managerial accounting rather than financial accounting/ A. The outputs of this accounting system are the primary financial statements. B. The methods of this accounting system are esta!lished !y an o"erseeing !oard. C. The accounting methods are standardi%ed to allo( comparisons among companies. . The accounting system (ould !e uni4ue to each company. Bo!adilla 5. +anagement accounting)s role in the control processes is to pro"ide A. managers (ith information that can !e used to determine customer satisfaction le"els. B. in"estors and creditors information on the financial sta!ility of the company. C. managers (ith rele"ant information to compare (ith e,pectations. . input to managers on the !est (ays to achie"e continuous impro"ement in the production process. Bo!adilla 16. .hich of the follo(ing statements are true regarding financial and managerial accounting/ 7. Both are mandatory. 77. Both rely on the same underlying financial data. 777. Both emphasi%e the segments of an organi%ation$ rather than just looking at the organi%ation as a (hole. 78. Both are geared to the future$ rather than to the past. A. 7$ 77$ 777$ and 78 C. 9nly 77 and 777 B. 9nly 77$ 777 and 78 . 9nly 77 Bo!adilla 11. +anagerial accounting acti"ity adds "alue to an organi%ation !y pursuing fi"e major o!jecti"es$ (hich include A. pro"iding information for decision making and planning. B. measuring the performance of acti"ities (ithin an organi%ation. C. assisting managers in directing and controlling operational acti"ities. . all of them Bo!adilla 1#. +anagerial accounting places considera!le (eight on: A. generally accepted accounting principles. B. the financial history of the entity.
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#. The process of identifying$ measuring$ analy%ing$ interpreting$ and communicating information in pursuit of an organi%ation&s goals is called A. managerial accounting C. management B. financial accounting . promotional acti"ities Bo!adilla '. The primary o!jecti"e of management accounting is A. to pro"ide stockholders and potential in"estors (ith useful information for decision making. B. to pro"ide !anks and other creditors (ith information useful in making credit decisions. C. to pro"ide management (ith information useful for planning and control of operations. . to pro"ide super"ising go"ernment agencies (ith information a!out the company)s management affairs. Bo!adilla *. +anagement accounting information A. uses historical cost as the !asis for reports to managers (ho are making decisions a!out future courses of action. B. should !e de"eloped and pro"ided only if its !enefits e,ceed its costs. C. does not reflect the financial criteria of "erifia!ility or consistency. . should ser"e the !asic needs of in"estors and creditors. Bo!adilla -. .hich of the follo(ing is included in the day-to-day (ork of the management team/ A. decision making C. controlling B. planning . all of the a!o"e Bo!adilla 0. 1aying rent$ purchasing supplies$ and purchasing in"entory are (hich of the day-to-day (ork acti"ities of the management team/ A. decision making C. directing operational acti"ities B. planning . only A and B Bo!adilla 2. .hich of the follo(ing statements is true (hen comparing managerial accounting to

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C. ensuring that all transactions are properly recorded. . detailed segment reports a!out departments$ products$ and customers. 1'. .hich of the follo(ing statement is :A;<=/ A. +anagerial accounting need not conform to >AA1. B. :inancial accounting reports focus on su!units of the organi%ation. C. +anagerial accounting is not re4uired . +anagerial accounting focuses on the needs of internal users. 1*. :or internal uses$ managers are more concerned (ith recei"ing information that is: A. completely o!jecti"e and "erifia!le. B. completely accurate and precise. C. rele"ant$ fle,i!le$ and immediately a"aila!le. . rele"ant$ completely accurate$ and precise.

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the practice of management consulting. . 7ncluded in the practice of consulting is the pro"ision of confidential ser"ice in (hich the identity of the client is concealed. (?1C1A) 13. The primary purpose of management ad"isory ser"ices is A. To conduct special studies$ preparation of recommendations$ de"elopment of plans and programs$ and pro"ision of ad"ice and assistance in their implementation. B. To pro"ide ser"ices or to fulfill some social needs. C. To impro"e the client)s use of its capa!ilities and resources to achie"e the o!jecti"es of the organi%ation. . To earn the !est rate of return on resources entrusted to its care (ith safety of in"estment !eing taken into account and consistent (ith firm)s social and legal responsi!ilities. Bo!adilla 15. +anagerial accounting information: A. pertains to the entity as a (hole and is highly aggregated. B. pertains to su!units of the entity and may !e "ery detailed. C. is prepared only once a year. Bo!adilla . is constrained !y the re4uirements of generally accepted accounting principles. #6. +anagerial accounting is primarily concerned (ith: A. segments of a company rather than the company as a (hole. B. the data needs of stockholders and creditors. C. meeting the re4uirements of generally accepted accounting principles. . the company as a (hole rather than a segment of the organi%ation. #1. The major reporting standard for presenting managerial accounting information is A. rele"ance B. generally accepted accounting principles C. the cost principle . the current ta, la(

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1-. .hich of the follo(ing statements is correct/ A. A certified pu!lic accountant can readily render management ad"isory ser"ices to the pu!lic. B. A C1A (ith +BA and B+ degrees is automatically 4ualified to render management ad"isory ser"ices. C. Competence as a standard in the rendition of management ad"isory ser"ices !y a C1A may !e e4uated to ha"ing e,cellent scholarly preparation to include the usual !accalaureate degree$ an +BA and other post graduate studies. . Ade4uate training and e,perience in !oth the analytical approach and process in a particular undertaking are re4uisites for the C1A to !e in"ol"ed in a management ad"isory ser"ice engagement. (?1C1A) 10. The follo(ing characteri%e management ad"isory ser"ices e,cept A. 7t in"ol"es decision for the future B. 7t !roader in scope and "aried in nature C. 7t utili%es more junior staff than senior mem!ers of the firm . 7t relates to specific pro!lems (here e,pert help is re4uired

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Bo!adilla ##. .ith respect to the time dimension$ performance e"aluation/ Bo!adilla +anagerial ecision +aking =,ternal 1erformance ho( does managerial decision compare (ith e,ternal A. 1ast 1ast B. 1ast :uture C. :uture 1ast . :uture :uture

12. .hich of the follo(ing statements is incorrect/ A. C1As pro"ide management ad"isory ser"ices to go around the ethical constraints as mandated !y the Accountancy ;a(. B. Businesses hire management consultants to help define specific pro!lems and de"elop solutions. C. C1As (ho are performing management ad"isory ser"ices may !e considered to !e in
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#'. +anagerial accounting differs from financial accounting in that it is

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A. B. C. .

more concerned (ith segments of a company. less constrained !y rules and regulations. more concerned (ith the future. all of the a!o"e.

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#*. The distinction !et(een traditional accounting and cost management is A. the focus of the former on accounting matters and the latter in support to management in making the right decisions for staying on a competiti"e position B. the emphasis of former on record keeping and the latter on reporting C. the focus of the former on cost cutting and the latter on product differentiation . the focus of the former on efficiency and the latter on 4uality. Bo!adilla #-. .hich of the follo(ing acti"ities is not usually performed !y a management accountant/ A. Assisting managers to interpret data in managerial accounting reports. B. esigning systems to pro"ide information for internal and e,ternal reports. C. >athering data from sources other than the accounting system. . eciding the !est le"el of in"entory to !e maintained. Bo!adilla #0. .hich of the follo(ing statements correctly distinguishes financial and managerial accounting/ A. managerial accounting reports on the (hole organi%ation B. financial accounting is oriented to(ard the future C. financial accounting is primarily concerned (ith pro"iding information for internal users . managerial accounting is oriented more to(ard the planning and control aspects of management Bo!adilla #2. @o( does managerial decision making compare (ith e,ternal performance e"aluation/ +anagerial ecision +aking =,ternal 1erformance ="aluation A. etailed etailed B. etailed +ore aggregated C. +ore aggregated etailed . +ore aggregated +ore aggregated Bo!adilla #3. +anagement accountants (ould not A. assist in !udget planning. B. prepare reports primarily for e,ternal users. C. determine cost !eha"ior. . !e concerned (ith the impact of cost and "olume on profits.

#5. 7n the contemporary !usiness en"ironment$ cost management focus is on A. financial reporting and cost analysis. B. common emphasis on standardi%ation and standard costs. C. de"elopment and implementation of the !usiness strategy. . all of the a!o"e. '6. +anagement accounting is similar to financial accounting in that A. !oth are go"erned !y generally accepted accounting principles. B. !oth deal (ith economic e"ents. C. !oth concentrate on historical data. . !oth classify reported information in the same manner.

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'1. @o( fre4uent is management accounting report (hen compared to report to e,ternal users/ +anagement Accounting ?eport =,ternal ?eport A. +ore fre4uent ;ess fre4uent B. +ore fre4uent +ore fre4uent C. ;ess fre4uent ;ess fre4uent . ;ess fre4uent +ore fre4uent Bo!adilla '#. +anagerial accounting differs from financial accounting in that financial accounting is A. more oriented to(ard the future. B. primarily concerned (ith e,ternal financial reporting. C. concerned (ith non4uantati"e information. . hea"ily in"ol"ed (ith decision analysis and implementation of decisions. Bo!adilla ''. +anagerial accounting pro"ides data for all of the follo(ing major o!jecti"es e,cept: A. planning and control of costs B. supporting management planning C. compliance (ith <=C reporting re4uirements . determining the costs of products Bo!adilla '*. .hich statement is false/ +anagerial accounting information: A. in"ol"es planning for the future B. should !e re4uested and used !y management e"en if it is "ery costly to gather and analy%e C. helps managers make financing decisions . need not comply (ith generally accepted accounting principles Bo!adilla
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'-. 7nternal reports must !e communicated A. daily B. monthly

C. annually . as needed

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*#. The informational needs of internal usersBmanagement: A. are historical in nature B. emphasi%e the company as a (hole C. emphasi%e accuracy o"er timeliness . may re4uire more customi%ed reports than e,ternal financial statements

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'0. .hich of the follo(ing does not apply to the content of managerial reports/ A. ?eporting standard is rele"ant to the decision to !e made. B. +ay e,tend !eyond dou!le-entry accounting system. C. 1ertain to su!units of the entity and may !e "ery detailed. . 1ertains to the entity as a (hole and is highly aggregated.

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*'. The role of the managerial accountant in today)s corporate (orld includes all of the follo(ing e,cept: A. interpreting financial information C. financial modeling B. financial planning . !ookkeeping Bo!adilla **. .hich of the follo(ing is most associated (ith managerial accounting/ A. +ust follo( generally accepted accounting principles. B. +ay rely on estimates and forecasts. C. 7s prepared for users outside the organi%ation. . Al(ays reports on the entire entity.

'2. .hich consideration influences the fre4uency of an internal report/ A. The (ishes of the managers recei"ing the report. B. The fre4uency (ith (hich decisions are made that re4uire the information in the report. C. The cost of preparing the report. . All of the a!o"e. Bo!adilla '3. .hich of the follo(ing statements a!out internal reports is not true/ A. The content of internal reports may e,tend !eyond the dou!le-entry accounting system. B. 7nternal reports may sho( all amounts at market "alues. C. 7nternal reports may discuss prospecti"e e"ents. . +ost internal reports are summari%ed rather than detailed. Bo!adilla '5. +anagement accountants help de"elop and maintain reporting systems that are aligned (ith organi%ational structures and that pro"ide useful information on an organi%ation)s performance. +anagement decision processes fall into three categories that consist of A. Aonrepetiti"e$ nonprogrammed$ and nonstrategic. B. ?epetiti"e$ nonprogrammed$ and strategic. C. ?epetiti"e$ programmed$ and strategic. . Aonrepetiti"e$ nonprogrammed$ and strategic. Bo!adilla *6. 7nternal reports are generally A. aggregated B. detailed C. regulated . unrelia!le

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*-. .hich statement a!out the e,tent of detail in a management accounting report is true/ A. 7t may depend on the fre4uency of the report. B. 7t depends on the type of manager recei"ing the report. C. 7t depends on the le"el of the manager recei"ing the report. . All of the a!o"e. Bo!adilla *0. +anagerial accounting information A. pertains to the entity as a (hole and is highly aggregated. B. pertains to su!units of the entity and may !e "ery detailed. C. is prepared only once a year. Bo!adilla . is constrained !y the re4uirements of generally accepted accounting principles. *2. .hich of the follo(ing characteristics is inherent to management accounting/ A. ?eporting of historical information B. Compliance to generally accepted accounting principles C. Contri!ution approach income statement . =,ternal users of financial report

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*1. +anagerial accounting reports can !e descri!ed as: A. general-purpose C. classified financial statements B. special purpose . macro-report

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*3. 7n order to !e useful to managers$ management accounting reports should possess all of the follo(ing characteristics e,cept: A. 1ro"ide o!jecti"e measures of past operations and su!jecti"e estimates a!out future decisions.

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B. Be prepared in accordance (ith generally accepted accounting principles. C. Be pro"ided at any time management needs information. . Be prepared to report information for any unit of the !usiness to support decision making. Bo!adilla *5. The follo(ing are inherent to either management accounting or financial accounting: 1. =,ternal report #. @istorical information '. Contri!ution approach income statement *. >enerally accepted accounting principles -. 1rospecti"e financial statements .hich of the foregoing are related to management accounting and financial accounting$ respecti"ely/ Bo!adilla A. B. C. . +anagement Accounting 1$ #$ '$ #$ ' ' :inancial Accounting '$ * 1$ #$ * 1$ *$ 1$ #$ *$ -6. .hich of the follo(ing is an incorrect statement/ A. There is no o"erlap !et(een financial and managerial accounting. B. +anagerial accounting sometimes relies on past information. C. +anagerial accounting does not need to conform to generally accepted accounting principles. Bo!adilla . :inancial accounting must conform to generally accepted accounting principles. -1. :or managerial reports$ the accounting data used: A. must !e the same accounting data for reporting to shareholders$ !ut may use different data for ta, purposes. B. must !e the same accounting data for ta, purposes$ !ut may use different data for reporting to shareholders. Bo!adilla C. must !e the same accounting data for !oth ta, purposes and reporting to shareholders. . may !e different accounting data for !oth ta, purposes and reporting to shareholders. -#. .hich of the follo(ing is an ethical standard of conduct for managerial accountants/ 1. competence #. confidentiality '. integrity *. o!jecti"ity A. All of them C. 1$ #$ ' only B. 1$ '$ * only . 1 and ' only Bo!adilla
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-'. Cnder (hich ethical standard of conduct does the managerial accountant ha"e the responsi!ility to prepare complete and clear reports and recommendations after appropriate analyses of rele"ant and relia!le information/ A. competence C. integrity B. confidentiality . o!jecti"ity Bo!adilla -*. Cnder (hich ethical standard of conduct does the managerial accountant ha"e the responsi!ility to communicate information fairly and o!jecti"ely/ A. competence C. integrity B. confidentiality . o!jecti"ity Bo!adilla --. Cnder (hich ethical standard of conduct does the managerial accountant ha"e the responsi!ility to refuse any gift$ fa"or$ or hospitality that (ould influence or appear to influence his or her decision/ A. competence C. integrity B. confidentiality . o!jecti"ity Bo!adilla -0. Cnder (hich ethical standard of conduct does the managerial accountant ha"e the responsi!ility to refrain from either acti"ely or passi"ely su!"erting the attainment of an organi%ation&s legitimate and ethical o!jecti"es/ A. integrity C. o!jecti"ity B. competence . confidentiality Bo!adilla -2. Cnder (hich ethical standard of conduct does the managerial accountant ha"e the responsi!ility to disclose fully all rele"ant information that could reasona!ly !e e,pected to influence an intended user&s understanding of the reports$ comments$ and recommendations presented/ A. o!jecti"ity C. confidentiality B. competence . integrity Bo!adilla -3. :or managerial decision purposes$ the "olume of information should !e e"aluated on the !asis of A. cost-!enefit relationship. B. A cost$ !ut not !enefit. C. A !enefit$ !ut not cost. . Aeither costs nor !enefits$ !ut some other criteria. Bo!adilla -5. .hat is the primary criterion for the preparation of managerial accounting reports/

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A. ?ele"ance of the reports. B. +eet the manager)s needs.

C. Timing of the reports. . Cost of the reports.

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06. The first step in managerial decision making is to A. specify the standard or e,pected outcome. B. gather information a!out the conse4uence of each alternati"e. C. identify a pro!lem. . list alternati"e courses of action.

00. +anagement accounting A. reports are al(ays o!jecti"e B. pro"ides information to e,ternal users C. generates general purpose financial statements and reports . has fe( e,ternally imposed standards 02. +anagement accounting reports are prepared A. to meet the needs of decision makers (ithin the firm B. (hene"er stockholders re4uest them C. according to guidelines prepared !y the <=C . !y C1As

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01. 7n a !road sense$ cost accounting can !e defined (ithin the accounting system as A. internal and e,ternal reporting that may !e used in making nonroutine decisions and in de"eloping plans and policies. B. e,ternal reporting to go"ernment$ "arious outside parties$ and stockholders. C. internal reporting for use in management planning and control$ and e,ternal reporting to the e,tent its product-costing function satisfies e,ternal reporting re4uirements. . internal reporting for use in planning and controlling routing operations. Bo!adilla 0#. The cost management function is usually under A. the chief information officer. C. purchasing manager. B. treasurer. . controller.

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03. .hich of the follo(ing is true of managerial accounting rather than financial accounting/ A. The outputs of this accounting system are the primary financial statements B. The methods of this accounting system are esta!lished !y an o"erseeing !oard. C. The accounting methods are standardi%ed to allo( comparisons among companies . The accounting system (ould !e uni4ue to each company Bo!adilla 05. Traditional managerial accounting systems are often critici%ed for: A. not focusing on the acti"ities that actually dri"e the costs. B. only looking at historical data. C. !eing too >AA1 oriented. . not emphasi%ing cost control. 26. The managerial function of controlling A. is performed only !y the controller of a company. B. is only applica!le (hen the company sustains a loss. C. is concerned mainly (ith a operating a manufacturing segment. . includes performance e"aluation !y management. 21. 1lanning is a function that in"ol"es A. hiring the right people for a particular jo!. B. coordinating the accounting information system. C. setting goals and o!jecti"es for an entity. . analy%ing financial statements.

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0'. 7f a distinction is made !et(een cost accounting and managerial accounting$ managerial accounting is more oriented to(ard A. "aluation of in"entory. B. analysis of "ariances including spoilage. C. financial reporting to third parties. . the planning and controlling aspects of the management process. Bo!adilla 0*. +anagement accounting and financial accounting differ in that management accounting information A. is prepared follo(ing prescri!ed rules B. is prepared using (hate"er methods the company finds !eneficial C. is prepared for stockholders . is prepared follo(ing >enerally Accepted Accounting 1rinciples Bo!adilla 0-. .hich of the follo(ing does not descri!e managerial accounting/ A. internally focused C. e,ternally focused B. emphasis on the future . detailed information

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2#. 7n determining (hether planned goals are !eing met$ a manager is performing the function of A. planning C. moti"ating

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B. controlling

. follo(-up

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2'. .hich of the follo(ing is not a separate management function/ A. +oti"ating C. Controlling B. 1lanning . ecision-making 2*. Total 4uality management emphasi%es A. %ero defects B. continual impro"ement C. elimination of (aste . all of the a!o"e

called A. planning B. controlling

C. decision making . performance e"aluation

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31. .hich of the follo(ing !est descri!es (hat performance e"aluation should !e designed to do/ A. +odify goal and o!jecti"es each month C. Compare actual results to plan B. =sta!lish sales goals and targets . =sta!lish !lame Bo!adilla 3#. 7n the planning and control process$ (hat is the proper se4uence of e"ents/ A. <et goals$ set o!jecti"es$ de"elop plans$ implement plans$ e"aluate performance B. =sta!lish a master !udget$ set standard costs$ de"elop "ariance analysis Bo!adilla C. e"elop engineered costs$ de"elop pricing targets$ calculate contri!ution margins . 7dentify "aria!le costs$ identify fi,ed costs$ project the sales mi,$ determine !reake"en 3'. .hich of the follo(ing is a staff position/ A. "ice-president of production B. "ice-president of marketing C. "ice-president of finance . plant foreman

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2-. Automation of the manufacturing process increases A. the 4uantity of information C. the num!er of production employees B. the timeliness of information . !oth a and ! Bo!adilla 20. .hich of the follo(ing emerging themes in cost accounting deals (ith managers stri"ing to create and en"ironment (hich (ill ena!le (orkers to manufacture perfect (%ero defect) products/ A. customer orientation C. total 4uality management Bo!adilla B. glo!al competition . ad"ance in information technology 22. +anagerial accounting creates "alue !y: A. !y forcing managers to analy%e historical figures and interpret the results B. !y eliminating all pricing and costing errors C. !y focusing managers attention on the relationship !et(een financial and non-financial factors . all of the a!o"e Bo!adilla 23. <ystems implemented to reduce defects in finished products (ith the goal of achie"ing %ero defects are A. acti"ity-!ased costing systems. B. enterprise resource planning systems. C. "alue chain systems. . total 4uality management systems. Bo!adilla 25. .hich of the follo(ing functions is most directly related to management !y o!jecti"e/ A. ?eporting C. Control B. ecision making . 1lanning Bo!adilla 36. The setting of o!jecti"es and the identification of methods to achie"e those o!jecti"es is
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3*. .hich management position is responsi!le for raising capital/ A. 7nternal auditor C. Controller B. Treasurer . C:9 3-. All of the follo(ing (ould !e considered staff functions =DC=1T: A. the "ice-president of finance B. the "ice-president of corporate planning C. the "ice-president of research and de"elopment . the "ice president of marketing 30. +anagement accountants generally e,ercise (hich type of authority/ A. Company. C. ;ine. B. :unctional. . <taff. 32. The treasurer function is usually not concerned (ith A. in"estor relations. B. financial reports. C. short-term financing. . credit e,tension and collection of !ad de!ts. 33. .hich of the follo(ing duties is usually assigned to the controller/

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A. B. C. . 35.

directing the granting of credit to clients in"esting the organi%ation)s funds ta, planning independently e"aluating the firm)s financial statements

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50. 7tems that pre"ent the organi%ation from attaining a higher le"el of achie"ement (ithin its "alue chain are called the A. theory of constraints C. strategic costs management B. "alue chain . cost management systems Bo!adilla 52. The o"erall recognition of the importance of cost relationships among the acti"ities in the "alue chain and the process of managing those cost relationships among the acti"ities in the "alue chain is called A. the theory of constraints C. acti"ity-!ased management of acti"ities B. the "alue chain . strategic cost management Bo!adilla 53. The set of processes that transform ra( materials into finished products is kno(n as a A. "alue chain C. lo(est cost strategy Bo!adilla B. differentiation strategy . fle,i!le manufacturing system

e"eloping a company strategy for responding to anticipated ne( markets is an e,ample of: A. decision making C. planning B. controlling . moti"ating Bo!adilla

56. <trategic cost management has emerged from a !lending of: A. cost dri"er analysis C. "alue chain analysis B. strategic position analysis . all of the a!o"e 51. <trategic cost management includes all of the follo(ing tools e,cept: A. standard cost "ariance analysis C. acti"ity !ased management B. "alue chain analysis . all of the a!o"e

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Bo!adilla 55. The period that !egins (ith the arri"al of materials and ends (ith the shipment of a completed goods refers to A. performance period. C. manufacturing cell. B. computer-integrated manufacturing. . cycle time. Bo!adilla 166.Con"entional and just-in-time manufacturers differ in that the con"entional manufacturer is likely to A. ha"e a longer production cycle than its E7T competitors. B. need less storage space than its E7T competitors. C. ha"e a fle,i!le manufacturing system. . a high degree of 4uality control. Bo!adilla 161.A form of strategy that a management may adopt in order to attempt in creating a perception of uni4ueness that (ill permit a higher selling price. A. 8alue chain. C. ;ead time. B. ;o(est cost. . ifferentiation. Bo!adilla 16#. eciding (hether to sell a product or process it further is an e,ample of a(n): A. controlling acti"ity C. planning acti"ity B. operating acti"ity . none of the a!o"e

5#. <trategic planning is different from operational planning in that operational planning: A. in"ol"es large sums of money B. (ould !e in"ol"ed in determining production le"els for ne,t 4uarter C. in"ol"es only long range goals . operational and strategic planning are the same Bo!adilla 5'. .hich of the follo(ing might !e a performance measure for the financial perspecti"e of a !alanced scorecard/ A. percentage of on-time deli"eries !y the organi%ation B. percentage of product defects C. return on assets . percentage of market share held !y the organi%ation Bo!adilla 5*. The initiati"e to reduce non-"alue added acti"ity is meeting (hich !alanced scorecard o!jecti"e/ A. internal operations perspecti"e C. financial perspecti"e Bo!adilla B. customer perspecti"e . learning and gro(th perspecti"e 5-. The !alanced scorecard internal operations perspecti"e includes A. customer complaints C. market share B. num!er of engineering changes . in"entory turno"er

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16'.The !enefits lost or forfeited as a result of selecting one alternati"e o"er another are called A. ifferential costs C. 9pportunity costs

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B. <unk costs

. 7ndirect costs

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16*.9!taining feed!ack is generally identified most directly (ith (hich of the functions of management/ A. 1lanning C. Controlling B. irecting and moti"ating . ecision making Bo!adilla 16-.A staff position: A. relates directly to the carrying out of the !asic o!jecti"es of the organi%ation. B. is supporti"e in nature$ pro"iding ser"ice and assistance to other parts of the organi%ation. C. is superior in authority to a line position. . none of these. Bo!adilla 160.The controller occupies: A. a line position. B. a staff position. C. neither a line nor a staff position$ since the accounting department must !e independent. . !oth a line and a staff position. Bo!adilla 162.F?acing (ith no finishG refers to A. de"eloping the !est selling product. B. research and de"elopment. C. !enchmarking and continuous impro"ement. . designing the highest 4uality product in a gi"en segmented market. 163.A company)s "alue chain reflects the A. organi%ational le"els of authority and responsi!ility. B. stages of production from ra( materials to finished goods. C. linked set of acti"ities that increase the "alue of products or ser"ices. . sales distri!ution net(ork for the company)s products and ser"ices.

A. determine (ho in the industry performs similar processes most effecti"ely. B. determine the processes that ha"e high "alue-to-cost relationships. C. compare certain internal processes$ ser"ices and acti"ities to those of other companies in order to identify strengths and (eaknesses. . reproduce another company)s product design and manufacturing processes to eliminate competiti"e ad"antage. Bo!adilla

Bo!adilla

Bo!adilla

165.The process of comparing$ in"estigating$ and e"aluating the company)s processes or products against the !est le"el of performance is kno(n as A. attestation. C. product re"ie(. B. feed!ack. . !enchmarking. Bo!adilla 116.Benchmarking allo(s managers to:
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