Chapter 1 - Overview of Cost Management and Strategy

Question 1

Is a set of policies, procedures and approaches to business that produce long-term success

Answer 1

Strategy

Question 2

Involves the development of a sustainable competitive position

Answer 2

Strategic Management

Question 3

Involves the development of cost management information to facilitate the principal management function which is strategic managent

Answer 3

Strategic Cost Management

Question 4

Is the information that the manager needs to effectively manage the firm, profit-oriented as well as not-for-profit organization

Answer 4

Cost management information

Question 5

Is the practice of accounting in which the accountant develops and uses cost management information

Answer 5

Cost Management

Question 6

Cost management information, is thus a ________________

Answer 6

Value added concept

Question 7

Takes place when mid-level managers monitors the activities of operating-level managers and employers

Answer 7

Operational Control

Question 8

Is the evaluation of mid-level manager by upper-level manager

Answer 8

Management control

Question 9

Are the accounting professionals who develop and analyze cost management information and other accounting information

Answer 9

Management Accountants

Question 10

Involves the application of appropriate techniques and concepts to economic data so as to assist management in establishing plans for reasonable economic objectives and in the making of rational decisions with a view toward achieving these objectives.

Answer 10

Management Accounting

Question 11

Generally, management accountants do the following tasks:

Answer 11

1. Scorekeeping or data accumulation
2. Interpreting and reporting of information
3. Problem-solving or quantification of the relative merits of possible courses of action

Question 12

Management accountants continually face resource-allocation decisions. The ____________ should be used in making these decisions

Answer 12

Cost Benefit Approach

Question 13

Management accountant provides a system which allows management to receive the necessary information used in performing its administrative functions of:

Answer 13

1. Planning
2. Controlling
3. Decision Making

Question 14

A key activity for all companies is

Answer 14

Planning

Question 15

Involves identifying alternatives and selecting a course of action and specifying how the action will be implemented to further the organization’s objectives.

Answer 15

Planning

Question 16

The plans of management are often expressed formally in

Answer 16

Budgets

Question 17

Is achieved by evaluating the performance of managers and the operations for which they are responsible

Answer 17

Control

Question 18

The report used to evaluate the performance of managers and the operations they control are referred to as

Answer 18

Performance reports

Question 19

Is a systematic set of procedures for recording and reporting measurements of cost of manufacturing goods and performing services in the aggregate and in detail.

Answer 19

Cost accounting

Question 20

needs the output of cost accounting. Its purpose is to provide managers with information which aids decision.

Answer 20

Cost management

Question 21

Is a “game plan” that enables the company to attract customers by distinguishing itself from competitors.

Answer 21

Strategy

Question 22

Companies that adopt this strategy are in essence saying “You should choose us because we can customize our products and services to meet your individual needs better than our competitors”

Answer 22

Customer Intimacy Strategy

Question 23

Companies that adopt this strategy are in essence saying “You should choose us because we deliver products and service faster, more conveniently, and at a lower price than our competitors”

Answer 23

Operational Excellence

Question 24

Companies that adopt this strategy are in essence saying “You should choose us because we offer higher quality products than our competitors”

Answer 24

Product Leadership

Question 25

Is a process used by an entity to identify those risks and develop responses to them that enable it to be assured of meeting its goals

Answer 25

Enterprise Risk Management

Question 26

Is a concept where business organizations consider the needs of all stakeholders when making decisions.

Answer 26

Corporate Social Responsibility (CSR)

Question 27

Is a series of steps that are followed in order to carry out some tasks in business.

Answer 27

Business Process

Question 28

Is often used to describe how an organization’s functional departments interact with one another to form business processes.

Answer 28

Value Chain

Question 29

Is a management approach that organizes resources such as people and machines around the flow of business processes and that only produces units in response to customer orders

Answer 29

Lean Production

Question 30

Refers to motivation that comes from within one’s self.

Answer 30

Internal motivation

Question 31

Such as bonus compensations, are given by many organizations to highlight important goals and to motivate employees to achieve them

Answer 31

External Incentives

Question 32

Leaders should be aware that all people should possess this, such as promoting false assertion that can adversely affect planning, controlling and decision making

Answer 32

Cognitive Bias