CONTEMPORARY BUSINESS ENVIRONMENT AND STRATEGIC FOCUS OF COST MANAGEMENT

Question 1

the key development that drive the extensive changes in the contemporary business environment.

Answer 1

growth of the international markets and trade

Question 2

affected significantly by the rapid growth of economic independence and increased competition for other countries

Answer 2

Profit-oriented business and not-for-profit organization, consumers and regulators

Question 3

A key competitive edge that firms have

Answer 3

ability to deliver the product or service faster than the competition

Question 4

a product development term used to define how long it takes a company to conceive of an idea, develop it and get it to its customers

Answer 4

Speed to market

Question 5

life cycle of a product

Answer 5

•Idea generation

•Product design

•Prototype creation

•Product development

•Product launch

Question 6

is perhaps the most fundamental of all business changes in recent years

Answer 6

The increasing use of information technology, the internet and e-commerce

Question 7

the key focus that businesses of all types must be concerned with

Answer 7

customer value

Question 8

has changed the orientation of managers from low-cost production of large quantities to quality, service, faster delivery and the ability to respond to the customer’s desire for specific feature

Answer 8

Producing value for the customer

Question 9

Today, many of the critical success factors are

Answer 9

customer oriented

Question 10

are also changing

Answer 10

Cost management practices

Question 11

now include specific measures of customer preference and customer satisfaction.

Answer 11

cost management reports

Question 12

Cost information plays an important in the process call

Answer 12

STRATEGIC COST MANAGEMENT

Question 13

Generally, firms chose a strategic position corresponding to one of two general strategies:

Answer 13

a. cost leadership, and

b. superior product through differentiation

Question 14

means that the management accounting system should produce information about both realization and sacrifice

Answer 14

focus on customer value

Question 15

This firm is

Answer 15

• customer-driven,
• uses advanced manufacturing technologies when appropriate,
• anticipates the effect of changes in regulatory policies and customer tastes, and
• recognizes its complex social, political and cultural environment

Question 16

Cost management should focus not on the measurement per- but on the ______ that are critical to the firm’s success.

Answer 16

identification of those measures

Question 17

is use to describe the approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services.

Answer 17

Cost management

Question 18

helps managers make such decisions

Answer 18

Information from accounting systems

Question 19

themselves are not cost management.

Answer 19

information and the accounting systems

Question 20

has a broad focus

Answer 20

Cost management

Question 21

is not practiced in isolation

Answer 21

Cost management

Question 22

it includes- but is not confined to the continuous reduction of costs

Answer 22

Cost management

Question 23

is usually inextricably linked with revenue and profit planning.

Answer 23

planning and control of costs

Question 24

It’s an integral part of general management strategies and their implementation

Answer 24

Cost management