When cost relationships are linear, total variable costs will


Question Description:

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When cost relationships are linear, total variable costs will vary in proportion to changes in: (Points : 2) Direct labor hours. Total material cost. Total overhead cost. Volume of production. Machine hours. 2. The main objective(s) of internal accounting controls is/are: (Points : 2) To increase customer satisfaction. To increase revenue. To prevent or detect errors and fraudulent acts. To facilitate new product lines. To increase employee morale. 3. With the enactment of the Sarbanes-Oxley Act of 2002, all public companies are now required by the SEC to disclose whether or not the company has: (Points : 2) An audit committee. Human resources guidelines. A code of ethics. A management compensation plan. 4. Which of the following could be considered part of the value chain in a service firm? (Points : 2) Inspection of product. Advertising. Raw materials. Customer service. Advertising and customer service. 5. The following problems have occurred at your company: management seems to be making decisions based on guesses and intuition, there’s a lack of clarity concerning direction and goals, and profitable opportunities are being missed. What is your company suffering from? (Points : 2) A lack of strategic information; management has not determined its strategic competitive position. Managers have too much information. The company is not familiar with business reengineering and value chain analysis. The company has an inappropriate mission statement. 6. The decline of the U.S. dollar relative to other currencies has caused firms outside the U.S., such as BMW and Volkswagen to: (Points : 2) Experience increasing sales in the U.S. Experience increasing sales worldwide. Locate plants in the U.S. to reduce overall manufacturing costs. Require dealers to make payments in the Euro. 7. The cause and effect relationships among critical success factors are best captured in: (Points : 2) The balanced scorecard Business intelligence The value chain The strategy map SWOT analysis 8. Target costing determines the desired cost for a product upon the basis of a given competitive price such that the product will: (Points : 2) Earn at least a small profit. Earn a desired profit. Earn the maximum profit. Break even. Sell the highest volume. 9. The main objective(s) of internal accounting controls is/are: (Points : 2) To increase customer satisfaction. To increase revenue. To prevent or detect errors and fraudulent acts. To facilitate new product lines. To increase employee morale. 10. Which of the following types of organizations can most benefit from value chain analysis? (Points : 2) Service firms. Not-for-profit organizations. Manufacturing firms. All types of organizations can benefit from value chain analysis. 11. After critical success factors (CSFs) have been identified, the next step in developing a competitive strategy is to develop relevant and reliable measures for these CSFs. These measures are important to help the organization: (Points : 2) Make profit for any extended period. Increase sales above previous year(s). Develop policies to enhance customer profitability. Improve productivity in selected product areas. Monitor progress toward achieving strategic goals. 12. Any product, service, or organizational unit to which costs are assigned for some management purpose is a(n): (Points : 2) Cost object. Direct cost. Indirect cost. Cost driver. Allocation base. 13. The five steps of strategic decision making include all of the following steps except: (Points : 2) Obtain information and conduct analyses. Determine the organization’s strategy. Identify the alternative actions. Continue an on-going evaluation of the problem. Choose and implement the desired action. 14. Which one of the following critical success customer factors is best measured by warranty expense? (Points : 2) Quality. Dealer and distributor efficiency and effectiveness. Timeliness of delivery. Customer satisfaction. 15. A manager of a small manufacturing firm is interest

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