STRATEGIC COST MANAGEMENT

FINAL EXAMINATION
*Kinakailangan

STUDENT'S COMPLETE NAME *

CUBANGBANG, LYCA MAE, R.

YEAR LEVEL *
2ND YEAR
COURSE *
BSA
1. Just-in-time production process is triggered by? *
1 punto

a. Economy
b. Supply for the consumer
c. Demand for finished product
d. Production capacity
e. Inventory

2. Which of the following represents value-added time in the manufacturing cycle? *

1 punto

a. Process time
b. Inspection time
c. Move time
d. Queue time

3. Throughput time consists of: *

1 punto

a. wait time, process time, inspection time, move time, queue time
b. process time, inspection time, move time, queue time
c. inspection time, move time, queue time
d. move time, queue time

4. Budgeted production for a period is equal to:

1 punto

a. the beginning inventory + sales - ending inventory

b. the ending inventory + sales - ending inventory
c. the ending inventory + the beginning inventory – sales
d. sales - the beginning inventory + purchases
e. the ending inventory + sales - purchases - the beginning inventory

I-clear ang pinili

5. Of the following budgets, which one is least likely to be determined by the dictates of
top management? *
1 punto

a. sales
b. material usage
c. revenues
d. general and administrative
e. marketing

6. The amount of raw material purchased in a period may be different than the amount
of material used in the production because *
1 punto

a. finished goods inventory may fluctuate during the period

b. the raw material inventory may increase/decrease during the period
c. the number of units sold may be different from the number of units produced
d. companies often pay for material in the period after it is purchased
e. none of the above

7. The purchase budget is *

1 punto

a. not affected by the firm's policy of granting credit to customers

b. the same thing as production budget
c. needed only if a firm does not pay for its merchandise in the same period as it is purchased
d. affected by a firm’s inventory policy only if the firm purchases on credit
e. none of the above

8. Which of the following equations can be used to budget purchases?BI=Beginning

Inventory, EI=Ending Inventory, CGS=Budgeted Cost of Goods Sold, P=Purchases *
1 punto

a. P=CGS+BI-EI
b. P=CGS+BI
c. P=CGS+EI+BI
d. P=CGS+EI-BI
e. cannot be obtained from the information given

9. Manufacturing Cycle Efficiency (MCE) is computed as follows: *

1 punto

a. value-added time / delivery cycle time

b. value-added time / throughput time
c. process time / delivery cycle time
d. throughput time / delivery cycle time
e. value-added time / nonvalue-added time

10. If a company policy of maintaining an inventory of finished goods at a specified

percentage of the next month's budgeted sales, budgeted production for January will
exceed budgeted sales for January when budgeted. *
1 punto

a. January sales exceed budgeted December sales

b. January sales exceed budgeted February sales
c. December sales exceed budgeted January Sales
d. February sales exceed budgeted December sales
e. February sales exceed budgeted January sales

11. The manufacturing cycle efficiency for this operation would be closest to:SCM
Corporation has provided the following data for one of its products: *
Process Time 5.5days Queue Time 2.8days Inspection Time 2.7days Wait Time 4.0days

1 punto

a. 0.58
b. 0.33
c. 0.45
d. 0.30
e. 0.28

12. What is the total value-added time?SCM Corporation has provided the following
information: *
Process Time 35days Storage Time 20days Inspection Time 8days Wait Time 7days

1 punto

a. 70 days
b. 7 days
c. 8 days
d. 20 days
e. 35 days

13. What is the value-added time? *

SCM Corporation has provided the following information: Process Time 35days Storage Time 20days
Inspection Time 8days Wait Time 7days

1 punto

a. 70 days
b. 7 days
c. 8 days
d. 20 days
e. 35 days

14. What is the nonvalue-added time? *

SCM Corporation has provided the following information: Process Time 35days Storage Time 20days
Inspection Time 8days Wait Time 7days

1 punto

a. 55 days
b. 35 days
c. 63 days
d. 62 days
e. 70 days

15. The detailed plan for the acquisition and replacement of major portions of property,
plant, and equipment is known as the *
1 punto

a. master budget
b. capital budget
c. commitment budget
d. treasury budget
e. purchase budget

16. What is the manufacturing cycle efficiency? *

SCM Corporation has provided the following information: Process Time 35days Storage Time 20days
Inspection Time 8days Wait Time 7days

1 punto

a. 60%
b. 63.63%
c. 50%
d. 56.45%
e. 55.55%

17. The cash budget ignores all *

1 punto

a. dividend payments
b. sales of capital assets
c. non-cash accounting accruals
d. sales of common stock
e. all of the above

18. Which of the following items would not be found in the financing section of the
cash budget? *
1 punto

a. cash payment for debt retirement

b. cash payment of interest
c. dividend payments
d. payment of accounts payable
e. Both C and D
19. What is the delivery cycle time? *
Process Time 35days Storage Time 20days Inspection Time 8days Wait Time 7days

1 punto

a. 70 days
b. 63 days
c. 62 days
d. 55 days
e. 35 days

20. The pro forma income statement is not a component of the *

1 punto

a. master budget
b. financial budgets
c. operating budgets
d. capital budget
e. none of the above

21. ______ is an example of a line position *

1 punto

a. Controller of a merchandising company

b. Chief financial officer of a merchandising company
c. Store manager for National Bookstore
d. Human resources manager for a community college
e. None of the above

22. The following are financial benefits of JIT: A. Reduction in cost of waste and
spoilage. B. Reductions in paperwork *
1 punto

a. A Only
b. B only
c. Both A and B
d. None of the above

23. Which ethical standard is most clearly violated if a financial manager/ management
accountant knows of a problem that could mislead users but does nothing about it? *
1 punto

a. Objectivity
b. Integrity
c. Competence
d. Confidentiality

24. Cost of conformance includes: *

1 punto
a. prevention cost and external failure cost
b. prevention cost and appraisal cost
c. appraisal and internal failure cost
d. internal cost and external cost

25. Costs of meetings would be classified as: *

1 punto

a. external failure cost

b. internal failure cost
c. prevention cost
d. appraisal cost

26. A management approach that emphasizes the importance of managing

constraints *
1 punto

a. Theory of Constraints
b. Decentralization
c. Control
d. Business process

27. The “balanced scorecard” accounting report can be made more effective by
developing it at a detail level so that employees: *
1 punto

a. Can see how it is put together

b. Appreciate all the effort that goes into its preparation
c. Respect management for including them in its formulation
d. Can see how their actions contribute to the success of the firm

28. Costs incurred in measurement and analysis of data to ascertain conformity of

products and services to the specifications are: *
1 punto

a. external failure cost

b. internal failure cost
c. appraisal cost
d. prevention cost

29. After critical success factors (CSFs) have been identified, the next step in
developing a competitive strategy is to develop relevant and reliable measure for these
CSFs. If these measures are not developed, a firm cannot hope to: *
1 punto

a. Make profit for any extended period

b. Increase in sales above previous year(s)
c. Develop policies to enhance profitability
d. Monitor its progress toward achieving its strategic goals
30. The competitive strategy of differentiation requires that a product or service must
be: *
1 punto

a. Unique in some important way, usually of being of higher quality

b. Price competitive
c. Always readily available
d. Produced at a lowest possible cost

31. Costs incurred as a result of poor quality found through appraisal prior to delivery
to customers are: *
1 punto

a. appraisal costs
b. prevention costs
c. external failure costs
d. internal failure costs

32. Examples of the quality cost of prevention include all of the following except: *
1 punto

a. tuition fee for external training

b. an annual award for lowest rework rate
c. depreciation of a training room
d. additional tolerance controls for machinery

33. The preparation of an organization’s budget *

1 punto

a. Forces management to look ahead and try to see the future of the organization
b. Requires that the entire management team work together to make and carry out the yearly plan
c. Makes performance review possible at all levels of management
d. All of the above

34. External factors that cause the achievement of company goals are the *
1 punto

a. Annual budget
b. Industry price and cost structure
c. Talents possessed by its managers
d. Board of directors

35. Strategic planning is *

1 punto

a. Planning activities for promoting products for the future

b. Planning for appropriate assignments of resources
c. Setting standards for the use of important but hard to find materials
d. Stating and establishing long term plans
36. Key variables that are identified in strategic planning are *
1 punto

a. Normally controllable if they are internal

b. Seldom if ever controllable
c. Normally controllable if they occur in a domestic market
d. Normally uncontrollable if they are internal

37. Authoritative planning usually involves which level of management? *

1 punto

a. Middle
b. Top
c. Middle and top
d. Operational

38. Which of the following statement is true? *

1 punto

a. All organizations have the same set of budgets

b. All organizations are required to budget
c. Budget are quantitative expression of an organization’s past performance
d. Budget should never be used to evaluate performance
e. None of the above

39. The master budget usually includes *

1 punto

a. An operating budget
b. A capital budgets
c. Pro forma financial statements
d. All of the above

40. Typically, as prevention costs increase, other cost of quality: *

1 punto

a. decrease
b. increase
c. are not affected
d. change, but the direction cannot be predicted

41. The quality cost of prevention is exampled by: *

1 punto

a. cost of servicing warranties

b. an upstream cost
c. a downstream cost
d. zero-defects programs

42. An example of a recurring short-term plan is *

1 punto

a. A probable product line change

b. Expansion of plant and facilities
c. A unit sales forecast
d. A change in marketing strategies

43. The least likely that a production budget revision would cause a revision in the *
1 punto

a. Capital budget
b. Cash budget
c. Purchase budget
d. Sales budget

44. Budgeted production for a period is equal to *

1 punto

a. The beginning inventory + sales – the ending inventory

b. The ending inventory + sales + the beginning inventory
c. The ending inventory + beginning inventory – sales
d. Sales – the beginning inventory + purchases
e. None of the above

45. Which of the following budget are chronologically arranged? *

1 punto

a. Sales, purchases, cash

b. Sales, production, purchases
c. Production, purchases, selling and administrative
d. A, B and C
e. A and B only

46. A budget that identifies revenues and costs with an individual controlling their
incurrence is: *
1 punto

a. Responsibility budget
b. Budgetary control
c. Master budget
d. Production budget

47. In preparing quarterly budget estimates, who should be responsible for the cash
budget? *
1 punto

a. Sales manager
b. Production manager
c. Finance manager
d. General manager
48. Which of the following components of the master budget must be prepared before
the others? *
1 punto

a. Direct labor peso budget

b. Cost of goods sold forecast
c. Production budget
d. Raw materials purchase budget

49. Which of the following factors are not important to consider in making sales
forecast? *
1 punto

a. Past sales volume

b. Distribution costs involved
c. Plant capacity
d. None of the above

50. Management by exception uses which accounting tool to a great extent? *

1 punto

a. CVP Analysis
b. Financial Statement analysis
c. A worksheet
d. Variance Analysis