Professional Documents
Culture Documents
Strategic Cost Management Prefin
Strategic Cost Management Prefin
A good example of a common cost which normally could not be assigned to products on a
segmented income statement except on an arbitrary basis would be. (SALARY OF A
CORPORATION PRESIDENT)
All other things being equal, if a division’s traceable fixed expenses increase; (THE DIVISION’S
SEGMENT MARGIN WILL DECREASE)
This is computed by dividing the value added time by throughput time (Manufacturing Cycle
Efficiency)
This involves budgeting and profit planning, cash flow management and other decisions related
to the firm’s operations (Planning and Decision Making)
A competitive strategy in which firm succeeds by targeting its attention to a specific segment of
a market such as type of customer, product line etc. (Focus Strategy)
It is consisting of an integrated system of performance measures that are derived from and
support the company’s strategy (Balance Scorecard)
The amount of time from when an order is received from a customer to when the completed
order is shipped (Delivery Cycle Time)
The amount of time required to turn raw material into completed product (throughput/
manufacturing time)
This involves the evaluation of mid-level managers by upper level managers (Management
Control)
This involves the development of a sustainable competitive position in which the firm’s
competitive advantage provides continued success (Strategic Management)
This is a competitive strategy in which a firm succeeds by producing products or services at the
lowest cost in the industry (Cost leadership)
This involves monitoring the activities of operating-level managers and employees by mid-level
managers (operational control)
Which of the following represents value-added time in the manufacturing cycle? (process time)
Throughput time consists of (Process Time, inspection time, move time, and queue time)
Manufacturing cycle efficiency (MCE) is computed as (value-added time/ throughput time)
A report that measures financial and nonfinancial performance measures for various
organization units in a single report is called a(n) – balanced scorecard
Customer-satisfaction measures are an example of (balance scorecard approach)
An example of a performance measure with a long-run time horizon (is number of new patents
developed)
Should assets be defined as total assets or net assets? This question is considered part of which
step in designing an accounting-based performance measure? (choose a definition for each
performance measure)
Should assets be measured at historical cost or current cost? This question is considered part of
which step in designing an accounting-based performance measure? (choose a measurement
alternative for each performance measure)
Which of the following statements about designing an accounting-based performance measure
is false? (the issues considered in each step are independent)
The return on investment is usually considered the most popular approach to incorporating the
investment base into a performance measure because (it blends all the ingredients of
profitability into a single percentage)
A problem with utilizing residual income is that (a corporation with a larger peso amount of
assets is likely to have a higher residual income than a corporation with a smaller peso amount
of assets)
A company which favors the residual income approach (wants managers to concentrate on
maximizing an absolute amount of pesos)
A negative feature of defining investment by excluding the portion of total assets employed that
are financed by short-term creditors is (t`his method encourages managers to use an excessive
amount of short-term debt)
Following are the influences that may impact the business plan, except (spiritual influence)
Budgeted production depends on (budgeted sales and expected changes in inventory levels)
An effective system of performance………. What critical performance indicator uses performance
measure as warning and diagnostic signals? (provision of feedback)
Budgeted manufacturing overhead cost includes all type of factory expenses except (direct labor
and direct materials)
The amount of time a product spends waiting to be worked on, to be moved, to be inspected or
to be shipped is called (queue time)
A business plan can help implement (all of the given)
Which of the following statement is true (the economic, legal, political, social and cultural
environments differ across countries and government in some countries may impose control
and limit selling prices of a company product entries)
A sales forecast is (often the outcome of elaborate information gathering and discussion among
sales managers)
To gain the benefits of business planning, ____ must understand and support the budget
(management at all level)
Financing decisions primarily deal with (how to obtain funds to acquire resources)
The four key marketing areas that must be considered by business owner are (publicity,
promotion, merchandising, and market research)
The sales forecast should be primarily based on (input from sales managers and sales
representatives)
An effective system of performance…………. Customer-focused performance measures help
organization members manage activities by concentrating their attention on improving what
matters to the customers. (reflection of the customer’s perspective)
The sales forecast is influenced by (all of the given)
The non-value added time consist of the following (wait time, inspection time, move time and
queue time)
SOLVINGS MC
If variable expenses are P300,000 in Division C, and if division C’s contribution margin ratio is
25%, then sales in Division D must be (P100,000)
For August, Walsh Company’s sales were; (P455,000)
If variable expenses are P405,000 in Division S, and if Division S’s contribution margin ratio is
25%, then sales in Division T must be (P150,000)
JTC Company
The total fixed cost (traceable and common) for JTC Company for the year were (P49,000)
The variable costs for the West Area for the year were (P162,500)
Okinawa Company
Mamee Company
Lorenzo corp.
The manufacturing cycle efficiency for this operation would be closest to (0.375)
Nicole Corp
Seven Corp
What is the return on investment if the amount of the investment is P280,000 (14%)
Delta Corp
HZL Corp
Federov company
What are the bleach’s and cleanser’s return on investment based on book values, respectively?
(0.67; 0.22)
What are the bleach’s and cleanser’s return on investment based on current values,
respectively? (0.52; 0.42)
What are Bleach’s and cleanser’s residual incomes based on book values, respectively?
(116,250; 32,500)