Exam (elaborations)
Cost Management A Strategic Emphasis Edward Blocher 8e
- Course
- Institution
Cost Management A Strategic Emphasis Edward Blocher 8e
[Show more]
Seller
Follow
evileye251
Reviews received
Content preview
,Cost Management: A Strategic Emphasis, 8e (Blocher)Chapter 1 Cost Management and Strategy
1) Which of the following does not represent a main focus of cost management information?
A) Strategic management.
B) Performance measurement.
C) Planning and decision making.
D) Preparation of financial statements.
E) Internal audit and control.
Answer: E
Difficulty: 1 Easy
Topic: The Four Functions of Management
Learning Objective: 01-01 Explain the use of cost management information in each of the four
functions of management and in different types of organizations, with emphasis on the strategic
management function.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
2) Strategic management can be defined as the development of a sustainable:
A) Chain of command.
B) Competitive position.
C) Cash flow.
D) Business entity.
E) Company image.
Answer: B
Difficulty: 1 Easy
Topic: The Four Functions of Management
Learning Objective: 01-01 Explain the use of cost management information in each of the four
functions of management and in different types of organizations, with emphasis on the strategic
management function.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,3) Cost management has moved from a traditional role of product costing and operational control
to a broader strategic focus, which places an emphasis on:
A) Competitive pricing.
B) Domestic marketing.
C) Short-term thinking.
D) Strategic thinking.
E) Independent judgment.
Answer: D
Difficulty: 1 Easy
Topic: The Four Functions of Management
Learning Objective: 01-01 Explain the use of cost management information in each of the four
functions of management and in different types of organizations, with emphasis on the strategic
management function.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
4) All of the following are examples of total quality management practices except:
A) Redesign of a product to reduce its parts by 50 percent.
B) Reduction in the movement required in a manufacturing job.
C) Separating the sales and services functions.
D) Raising raw material quality standards.
E) Cross-training assembly line workers to cover sick leave absences.
Answer: C
Difficulty: 2 Medium
Topic: Contemporary Management Techniques
Learning Objective: 01-03 Explain the contemporary management techniques and how they are
used in cost management to respond to the contemporary business environment.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Resource Management
2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
, 5) In a local factory, employees are rewarded for finding new and better ways of changing the
way they work. This company is motivating its employees to use what management technique?
A) Benchmarking.
B) Activity-Based Costing.
C) Theory of Constraints.
D) Continuous Improvement.
E) Total Quality Management.
Answer: D
Difficulty: 1 Easy
Topic: Contemporary Management Techniques
Learning Objective: 01-03 Explain the contemporary management techniques and how they are
used in cost management to respond to the contemporary business environment.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Resource Management
6) A company's management accountant is trying to improve the way costs are allocated within
the company. Currently, several corporate expenses are grouped together and labeled
"overhead." If the accountant wanted to use activity-based costing (ABC) to help solve the
problem, what should she do?
A) She should try to trace the departments' costs to their cost objects, and then charge each
department based on those cost relationships.
B) She should research how the company's competitors are allocating their costs, and then
implement one of those strategies.
C) She should look for bottlenecks within the production process, and try to eliminate them, thus
reducing costs.
D) She should examine the firm's value chain and apply target costing before adopting ABC.
Answer: A
Difficulty: 2 Medium
Topic: Contemporary Management Techniques
Learning Objective: 01-03 Explain the contemporary management techniques and how they are
used in cost management to respond to the contemporary business environment.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller evileye251. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $26.63. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76799 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now