When cost relationships are linear, total variable costs

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 scorecardBusiness intelligenceThe value chainThe strategy mapSWOT analysis8. 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 interested in knowing what the company’s product costs are. Which of the following would be considered a product cost for the manager’s company? (Points : 2)Direct materials.Product design cost.Office expenses.Selling expenses.Advertising expense.16. With regard to critical success factors, which one of the following would not be considered a financial measure of success? (Points : 2)Cash flow.Growth in industry productivity.Sales growth.Earnings growth.Reduction in the cost of inventory.17. NAFTA and WTO refer to (Points : 2)Organizations with expertise in business process improvement.Laws and organizations which regulate international trade.Laws and regulations regarding sustainability….anizations and trade groups that work for global economic development.18. Which of the following best describes the type of information that cost management must provide that is important for the success of the organization? (Points : 2)Information of a record keeping nature.Reported financial information.Reported nonfinancial information.Information that addresses the strategic objectives of the organization.Long-term planning information.19. In the current business environment, companies cannot survive without a long-term strategy. What exactly should an effective strategy include? (Points : 2)A set of policies, procedures, and approaches to business that will result in long-term success.A focus on accurate financial data, thus allowing the firm to effectively compete in any environment.A focus on long-term nonfinancial information that will provide the company with versatile management techniques capable of being used in a wide variety of situations.A clear, concise mission statement, naming every product and outlining the company’s long-term goals of success.20. The change in total cost associated with each change in the quantity of the cost driver is: (Points : 2)Average cost.Controllable cost.Variable cost.Unit cost.21. Which of the following aspect of a contemporary management technique is a framework and process that organizations use to manage the occurrence of possible events that could negatively or positively affect the company’s competitiveness and success? (Points : 2)Total quality managementLean accountingThe theory of constraintsEnterprise sustainabilityEnterprise risk management22. Which one of the following would not be found in a merchandising company? (Points : 2)Beginning inventory.Cost of goods sold.Ending inventory.Gross profit.Work-in-process.23. The cost of goods that were finished and transferred out of work-in-process during the current period is: (Points : 2)Cost of goods sold.Cost of goods available for use.Cost of goods manufactured.Cost of goods available for sale.Cost of goods purchased.24. JCH Company conducts business in the lumber and building products industry. Last week, JCH purchased 50 railcars of lumber from a mill in Oregon and sold all 50 to a Home Depot store in North Carolina. In this instance, JCH Company would most likely be classified as a: (Points : 2)Manufacturer.Retailer.Warehouse.Wholesaler.25. Which one of the following is not a type of cost driver? (Points : 2)Structural cost driver.Executional cost driver.Volume-Based cost driver.Differential cost driver.Activity-Based cost driver.

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