管理会计示范性双语课件习题07

管理会计示范性双语课件习题07
CHAPTER 7
MANAGEMENT ACCOUNTING AND CONTROL
SYSTEMS: ASSESSING PERFORMANCE OVER THE
VALUE CHAIN
TRUE/FALSE
1. A system is in control if it is on the path to achieving its strategic
objectives.
a. True
b. False
2. For the process of control to have meaning, the organization must be
able to identify and correct out-of-control situations.
a. True
b. False
3. The same basic control process applies to all industries.
a. True
b. False
4. One key difference in the control process lies in determining the most
appropriate types of performance measures for each company.
a. True
b. False
5. The control function in management accounting focuses on disciplining
employees who do not meet targeted production levels.
a. True
b. False
6. The scope of a well-designed management accounting and control
system should be on manufacturing rather than on the entire value chain.
a. True
b. False
7. A well-designed management accounting and control system should
provide a consistent framework across the organization and yet allow flexibility to accommodate the local needs of each division.
a. True
b. False
8. Total-life-cycle costing manages costs along the entire value chain.
a. True
b. False
9. Deciding how to allocate organizational resources over the life cycle is
primarily determined during the manufacturing stage.
a. True
b. False
10. The proportion of costs incurred during each stage of the product life
cycle varies by industry.
a. True
b. False
11. Deciding how to allocate resources over the life cycle is usually
decided once at the beginning of the design phase.
a. True
b. False
12. To be profitable, a company must generate revenues to cover costs
incurred throughout the entire value chain.
a. True
b. False
13. By some estimates, 10-15% of product’s total life costs are committed
during the research, development, and engineering cycle.
a. True
b. False
14. Spending more on the design phase of a new product usually reduces
subsequent product-related costs.
a. True
b. False
15. One goal of target costing is to design costs out of products during the
research, development, and engineering stage of the product life cycle.
a. True
b. False
16. Target costing starts by estimating expected product costs.
a. True
b. False
17. Suppliers play a key role in the success of target costing.
a. True
18. Supply chain management may result in buyers and suppliers sharing
information about each other’s companies.
a. True
b. False
19. Guiding the target costing process is a cross-functional team made up
of individuals from within and from outside the organization.
a. True
b. False
20. One concern of target costing is that even though the target cost might
be met, increased development time may cause the product to come late to market.
a. True
b. False
21. Target costing uses the total-life-cycle concept by making it a key goal
to minimize the cost of ownership.
a. True
b. False
22. Target costing is a comprehensive approach to profit planning and cost
management.
a. True
b. False
23. Kaizen costing offers more opportunity to affect change than target
costing.
b. False
24. Employee burnout is a problem for Kaizen costing but not for target
costing.
a. True
b. False
25. The goal of target costing is to reduce costs through small, incremental
changes.
a. True
b. False
26. Kaizen costing assumes engineers and managers possess the best
knowledge to improve processes and reduce costs.
a. True
b. False
27. Kaizen costing requires relevant financial results to be shared with
front-line employees.
a. True
b. False
28. Environmental costing computes the cost effects an organization has
on the environment.
a. True
b. False
29. Benchmarking partners should be within the same industry.
a. True
MULTIPLE CHOICE
30. Which BEST describes the control function in a management
accounting and control system?
a. MACS seeks out areas that are out-of-control for corrective
action.
b. MACS achieves cost reduction targets that are continually
adjusted downward.
c. MACS guides and motivates employees to achieve organizational
objectives.
d. MACS ensures performance standard goals are being met.
31. For the process of control to have meaning and credibility, the BEST
response is:
a. the organization must have the ability to correct situations that it
identifies as out-of-control
b. a consistent framework must be applied globally across the
organization
c. reports need to be generated that are both timely and accurate
d. information must be gathered about the best practices of others
32. Which of the following is NOT true regarding a control system?
a. A control system includes developing organizational objectives
and executing a plan for implementation.
b. A control system includes monitoring the current level of
performance and comparing it to the planned level of performance.
c. The same performance measures apply to all organizations.
d. The basic control process applies to all organizations.
33. The process of keeping an organization in control consists of the
following five stages:
a. research and development, design, manufacturing, marketing, and
service
b. research and development, design, manufacturing, distribution,
and disposal
c. planning, design, manufacturing, marketing, and benchmarking
d. planning, execution, monitoring, evaluation, and correcting
34. A management accounting and control system is in control if it is on
the path:
a. to achieving its strategic objectives
b. to implementing a plan
c. to developing objectives
d. to measuring performance
35. Which BEST describes the purpose of a management accounting and
control system (MACS)?
a. A MACS defines the value chain and identifies nonvalue-
activities for a business.
b. A MACS helps decision makers determine whether strategies and
objectives are being met.
c. A MACS offers a system of controls to ensure employees are
meeting predetermined standards.
d. A MACS provides a signal for management attention when
areas are out-of-control.
36. A well-designed management accounting and control system assesses
performance:
a. primarily in the actual production process
b. primarily in the research, development, and engineering cycle
c. primarily in the post-sales service and disposal cycle
d. over the entire value chain of activities
37. The two major categories of technical considerations for a
management accounting and control system are:
a. design and accuracy
b. relevance and scope
c. service and timely information
d. development and flexibility
38. Relevance of information includes providing all of the following
EXCEPT:
a. the most accurate information possible
b. a global framework that can be applied uniquely to each
or unit
c. feedback on performance measures in a timely fashion
d. different costing methods for each division
39. The scope of management accounting and control system technical
considerations should include:
a. the performance of suppliers
b. design activities
c. the actual production process
d. All of the above are correct.
40. Information is relevant if:
a. it can be applied in a flexible manner
b. it is inaccurate
c. it is inconsistent
d. it is late
41. By some estimates, 80% to 85% of a product’s total life costs are
committed by decisions made during the __________ cycle.
a. research, development, and engineering
b. manufacturing
c. post-sale service and disposal
d. operating
42. The characteristic of a management accounting and control system that
allows employees to customize applications for local decisions is
referred to as being:
a. timely
b. flexible
c. accurate
d. in control
43. The characteristic of a management accounting and control system that
means the language used and the technical methods applied do not
conflict within various parts of the organization is referred to as being:
a. in control
b. accurate
c. consistent
d. Kaizen
44. For most products, the majority of costs are incurred during the:
a. research, development, and engineering cycle
b. manufacturing cycle
c. post-sale service and disposal cycle
d. operating cycle
45. Facilities layout and just-in-time manufacturing help reduce costs
incurred during the:
a. research, development, and engineering cycle
b. manufacturing cycle
c. post-sale service and disposal cycle
d. operating cycle
46. Total-life-cycle costing is the name given to:
a. a method of cost planning to reduce manufacturing costs to
targeted levels
b. the process of examining each component of a product to
determine whether its cost can be reduced
c. the process of managing all costs along the value chain
d. a system that focuses on reducing costs during the manufacturing
cycle
47. Deciding how to allocate resources over the life cycle usually is:
a. decided once at the beginning of the design phase
b. not known until the beginning of the manufacturing cycle
c. part of product development
d. an iterative process over the life of the product
48. Total-life-cycle costing is the process of managing costs within:
a. research, development, and engineering, manufacturing, and
post-sale service and disposal
b. market research, product design, and product development
c. planning, monitoring, and correcting
d. timeliness, consistency, and flexibility
49. The service cycle consists of the following stages:
a. market research, product design, and product development
b. research, development, and engineering, manufacturing, and post-
sale service and disposal
c. selling price, target profit, and target cost
d. rapid growth, transition, and maturity
50. An understanding of total-life-cycle costs can lead to:
a. additional costs during the manufacturing cycle
b. less need for the evaluation of opportunity costs
c. cost effective product designs that are easier to service
d. mutually beneficial relationships between buyers and sellers
51. Emerging customer needs are assessed and ideas generated for new
products during the __________ stage of research, development, and engineering.
a. market research
b. product design
c. product development
d. service
52. Total-life-cycle costing is particularly important when:
a. the development period for research, development, and
engineering is short and inexpensive
b. there are significant nonproduction costs
c. most costs are locked in during production
d. a low percentage of costs are incurred before any revenues are
received
53. The best chance of incorporating engineering flexibility is during the:
a. research, development, and engineering cycle
b. manufacturing cycle
c. post-sale service and disposal cycle
d. operating cycle
54. One goal of __________ is to design costs out of products in the
research, development, and engineering stage.
a. cost-plus pricing
b. target costing
c. Kaizen costing
d. traditional costing
55. __________ starts with estimated product costs and next determines
the estimated selling price.
a. Standard costing
b. Target costing
c. Kaizen costing
d. Traditional costing
56. __________ starts with estimated product costs and next adds the
expected profit margin.
a. Cost-plus pricing
b. Target costing
c. Kaizen costing
d. Standard costing
57. All of the following are true regarding target costing EXCEPT that:
a. improvements are implemented in small, incremental amounts
b. customer input is collected continually throughout the target
costing process
c. input is requested from suppliers and distributors
d. a key goal is to minimize costs over the product’s useful life
58. All of the following are associated with target costing EXCEPT:
a. value engineering
b. target reduction rates
c. supply-chain management
d. cross-functional teams
59. Concerns about target costing include all EXCEPT that:
a. attention may be diverted away from other company goals
b. excessive pressure is put on suppliers
c. development time may decrease
d. burnout of design engineers occurs
60. Target costing differs from traditional costing in all of the following
ways EXCEPT:
a. target costing collects market research continually throughout the
target costing process rather than as a single event
b. target costing uses the total-life-cycle concept to minimize
ownership costs
c. traditional costing spends less time on product specification and
design
d. traditional costing uses cross-functional teams to guide the
process
61. Target costing is:
a. used for short-term pricing decisions
b. one form of cost-plus pricing
c. where the selling price estimate is based on the customers’
perceived value of the product
d. where the relevant costs are all variable costs
62. Relevant costs for target pricing include:
a. variable manufacturing costs
b. variable manufacturing and variable nonmanufacturing costs
c. all fixed costs
d. all future costs, both variable and fixed
63. Place the following steps for the implementation of target costing in
order:
A = Derive a target cost
B = Develop a target selling price
C = Perform value engineering
D = Determine target profit margin
a. B D A C
b. B A D C
c. A D B C
d. A B C D
64. Value engineering may result in all of the following EXCEPT:
a. improved product design
b. changes in materials specifications
c. increases in the quantity of nonvalue-added cost drivers
d. the evaluation of all business functions within the value chain
65. To design costs out of products is a goal of:
a. cost-plus pricing
b. target costing
c. kaizen costing
d. peak-load costing
66. The product strategy in which companies first determine the price at
which they can sell a new product and then design a product
that can be produced at a low enough cost to provide adequate operating income is referred to as:
a. cost-plus pricing
b. target costing
c. kaizen costing
d. full costing
THROUGH 70.
After conducting a market research study, Schultz Manufacturing decided to produce a new interior door to complement its exterior door line. It is estimated that the new interior door can be sold at a target price of $60. The annual target sales volume for interior doors is 20,000. Schultz has a 20% expected return on sales target.
67. What are target sales revenues?
a. $960,000
b. $2,000,000
c. $1,200,000
d. None of the above is correct.
68. What is the target profit margin?
a. $240,000
b. $300,000
c. $192,000
d. $180,000
69. What is the target cost?
a. $900,000
b. $960,000
c. $1,260,000
d. $1,008,000
70. What is the target cost for each interior door?
a. $48
b. $58
c. $60
d. $45
THROUGH 73.
Dennis’ TV currently sells small televisions for $180. It has costs of $140.
A competitor is bringing a new small television to market that will sell for $150. Management believes it must lower the price to $150 to compete in the market for small televisions. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the ma rket. Dennis’ sales are currently 100,000 televisions per year.
71. What is the change in profit margin if Marketing is correct and only
the sales price is changed?
a. $1,100,000
b. $300,000
c. $(1,100,000)
d. $(2,900,000)
72. What is the new target cost if profit margin is 25% of sales?
a. $37.50
b. $45.00
c. $112.50
d. $135.00
73. What is the target cost if the company wants to maintain its same
profit margin and Marketing is correct?
a. $112.50
b. $113.64
c. $123.34
d. $140.00
74. __________ focuses on reducing costs during the manufacturing
stage.
a. Cost-plus pricing
b. Target costing
c. Kaizen costing
d. Traditional costing
75. All below are true regarding Kaizen costing EXCEPT that:
a. cost-variance analysis compares target Kaizen costs with actual
cost reduction amounts
b. cost reductions apply to all variable costs
c. workers are assumed to have the best knowledge to improve
processes and reduce costs
d. cost reduction targets are set and applied on an annual basis
76. Concerns about Kaizen costing include:
a. radical process improvements
b. excessive pressures are put on employees
c. focus is on the overall system
d. grace periods may be granted
77. All of the following are associated with Kaizen costing EXCEPT:
a. target reduction rate
b. supply-chain management
c. cost reductions during manufacturing
d. small monthly cost reductions
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 78
AND 79.
Dan and Donna Enterprises are using the Kaizen approach to budgeting for 2005. The budgeted income statement for January 2005 is as follows: Sales (84,000 units) $500,000
Less: Cost of goods sold 300,000
Gross margin 200,000
Operating expenses (includes $50,000 of fixed costs) 150,000 Operating income $ 50,000
Under the Kaizen approach, cost of goods sold and variable operating expenses are budgeted to decline by 1% per month.
78. What is budgeted cost of goods sold for March 2005?
a. $294,030
b. $294,000
c. $300,000
d. $297,000
79. What is budgeted gross margin for March 2005?
a. $196,020
b. $198,000
c. $204,020
d. $205,970
80. Environmental costing includes all below EXCEPT:
a. target reduction rates
b. selecting suppliers with matching environmental philosophies
c. disposing of waste products
d. addressing post-sale disposal issues
81. Benchmarking partners:
a. have to be of equal size
b. are most likely to be industry leaders
c. have to be within the same industry
d. have to trust each other。