Cost Management - Part 1

Question 1

It is a system that a business uses to collect, store, manage, process, retrieve and report its financial data

Answer 1

Accounting information system

Question 2

It is a system where financial data of the organization is maintained. contains transactions (debit/credit)

Answer 2

Financial accounting system

Question 3

It follows established rules and conversations to provide information as investors, government agencies , and banks

Answer 3

Financial accounting system

Question 4

It identifies, collects, measures, classifies, and reports information that is useful to managers in costing (determining what something cost), planning, controlling, and decision making.

Answer 4

Cost management system

Question 5

It is the process planning and controlling the cost associated with running a business

Answer 5

Cost management system

Question 6

It helps determine how much the production of a good service will cost. It also assigns cost to individual products and services and other cost objects as specified by management.

Answer 6

Cost accounting system

Question 7

It provides accurate and timely feedback concerning performance; concerned with what activities should be performed and assessing those activities

Answer 7

Operational control system

Question 8

Vastly imported transportation and communication has led to a global market for many manufacturing service firms.

Answer 8

Global competition

Question 9

Global competition allows companies to by and sell their services internationally. T/F

Answer 9

True

Question 10

The deregulation of many services has increased in service industry. T/F

Answer 10

True

Question 11

As the manufacturing industries has increased in importance, the service sector of the economy has increased in importance. T/F

Answer 11

False (manufacturing industry declined, service sector increase).

Question 12

They are used to continuously monitor and control system wide operations

Answer 12

Computers

Question 13

Accuracy in product cost increased because of advancements in available tools. T/F

Answer 13

True

Question 14

The advances in information technology brought the emergence of?

Answer 14

Electronic Commerce

Question 15

Advancements in technology increases _________ and _________ of data

Answer 15

Precision and Accuracy

Question 16

A theory used to continuously improve manufacturing activities and non-manufacturing activities

Answer 16

Theory of Constraints

Question 17

It is a demand-pull system that strives to produce a product only when its needed and only in the quantities demanded by customers

Answer 17

Just-in Time Manufacturing

Question 18

It identifies the most important limiting factor that stands in the way of achieving a goal

Answer 18

Theory of constraints

Question 19

In manufacturing terms, Constraint is often referred to as a?

Answer 19

Bottleneck

Question 20

It can produce a competitive advantage for a firm. It typically follows JIT as a response to increase needs for quality and shorter response time

Answer 20

Computer integrated manufacturing

Question 21

Define as carrying out marketing offers in a manner that results in maximum consumer satisfaction. Understanding Consumers real needs.

Answer 21

Consumer Orientation

Question 22

It is the set of activities required to design, develop, produce, market, and deliver products and services to customers.

Answer 22

Value Chain

Question 23

Management recognizes that a high proportion of production cost are committed during the development and design stage of a new product. T/F

Answer 23

True

Question 24

The requirement to control the cost encourages the use of target costing and activity-based management. T/F

Answer 24

True

Question 25

The two foundation principles that govern a state of manufacturing excellence

Answer 25

Continual Improvement
Elimination of waste

Question 26

A philosophy of ___________________ in which managers strive to create an environment that will enable organizations to manufacture the perfect product.

Answer 26

Total Quality Management

Question 27

It is defied as the continual process of detecting and reducing, pr eliminating errors in manufacturing.

Answer 27

Total Quality Management

Question 28

TQM does not streamlines supply chain management, improves the customer experience and ensures that employees are up to speed with training. T/F

Answer 28

False (It streamlines supply chain management)

Question 29

It is a crucial element in all phases of the value chain

Answer 29

Time

Question 30

It appears to go hand in hand with increasing quality.

Answer 30

Decreasing non-value-added time

Question 31

A business must respond and adapt to changes in the market. T/F

Answer 31

True

Question 32

While quality and time are important, improving these dimensions without corresponding improvements in financial performance may be futile if not fatal

Answer 32

Efficiency

Question 33

Accounting system information is used by management to:

Answer 33

Plan
Control
Make decisions

Question 34

It is the detailed formulation of future actions to achieve a particular end. It requires setting objectives and identifying methods to achieve those objectives

Answer 34

Planning

Question 35

It is the managerial activity of monitoring a plan’s implementation and taking corrective action as needed

Answer 35

Controlling

Question 36

It is information that can be used to evaluated or correct the steps being taken to implement a plan

Answer 36

Feedback

Question 37

It is required in a dynamic environment of a firm is to remain competitive or to establish a competitive advantage

Answer 37

Continuous improvement

Question 38

The process of choosing among competing alternatives

Answer 38

Decision making

Question 39

Decisions are based on information provided by the accounting system. T/F

Answer 39

True