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Flashcards in Final Deck (41)
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1

Managerial Accounting is primarily focused on:
-Providing creditors info on the status of their loans
- Providing investors with usefule info for valuing securities
- providing IRS with info to determine the amount of taxes owed
- Providing managers with relevant information to help acheive organizational goals

Providing managers with relevant information to help acheive organizational goals

2

In order to be useful to managers, management accounting reports:

Should be prepared to meet the specific needs of decision makers

3

Financial accounting information is least useful in providing:

Information for internal decision makers

4

The 3 analysis that comprise strategic cost management include all except:

Ratio analysis

5

Strategic position analysis is best defined as:

An organization's basic way of competing to sell products and services

6

A goal is best defined as:

a definable and measurable objective

7

Which of the following is not one of the 3 strategic positions that Porter views as leading to business success?

All things to all people

8

Product or service differentiation involves:

creating something that is perceived as unique and worth a premium price

9

The process of selecting strategies to acheive goals is often referred to as:

Planning

10

The process of making the organization into a well-ordered whole is referred to as:

Organizing

11

The process of ensuring the results agree with plans is referred to as:

Controlling

12

The act of delegating authority for implementing plans to other managers and employees can be viewed as an aspect of:

Organizing

13

World-class companies must continuously struggle to improve performance in the dimensions of: Price/Cost, Service, Quality, All

All of the Above

14

_____ are fundamental choices about the size and scope of operations and about technologies employed in delivering products or services to customers

Structural Cost Drivers

15

This is an organizational cost driver for a discount department store chain:

Decision to rearrange merchandise within the store

16

A decision to work closely with a limited number of suppliers for the purpose of ensuring that the proper materials are available at the optimal time is an example of:

Organizational Cost Driver

17

_______ are specific units of work performed to serve customer needs that consume costly resources.

Activity Cost Drivers

18

Examples of activity cost drivers include all of the following except:

Deciding how to arrange raw materials inventory within the warehouse

19

Ethical behavior:

Is not guided by well-defined rules and is often subjective

20

Ethics deal with: the propriety of a course of action, the fitness of a course of action, the moral quality of a course of action, all

All of the above

21

T/F: Cost-volume-profit analysis is most useful for determining costs

False

22

T/F: Fixed costs, variable costs and revenues are all included in profitablity analysis

True

23

T/F: Cost-volume-analysis is not typically used to determine the break-even point

False

24

T/F: Contribution margin is the difference between total revenue and total variable costs

True

25

T/F: One of the basic assumptions underlying the cost-volume-analysis model is that the revenue curve is curvilinear.

False

26

T/F: Functional income statements classify expenses based on business function and are typically found in corporate annual reports

True

27

T/F: A cost-volume-profit graph includes lines for total revenues, total fixed cost, total variable cost and total profit

False

28

T/F: If prices are assume to increase by 10%, the slope of the cost curve will increase by 10%, but there will be no changes in the cost curves

True

29

T/F: The break-even point for a company with multiple products cannot be determined using a unit contribution margin calculation since there are multiple products each of which has a different unit contribution margin

False

30

A basic assumption of the cost-volume-profit model is that:

All costs can be accuratley classified as either fixed or variable