SCM

Question 1

involves the development if a sustainable competitive position or strategy. It is simply how to develop a strategy

Answer 1

Strategic Management

Question 2

is the financial and non-financial data needed by the manager to effectively manage the firm.

Answer 2

Cost Management Information

Question 3

is the practice in accounting
in which the accountant develops and uses cost management information.

Answer 3

Cost Management

Question 4

is the development of cost management information (gathering of data) to aid in strategic management

Answer 4

Strategic Cost Management

Question 5

It is also important to view a problem not as a separate departmental problem but as a problem of all departments or the use of

Answer 5

Cross functional View

Question 6

actively but not directly involved in the process of managing the entity, which includes strategic (long term), tactical (mid long/short), and operating (short) decisions.

Answer 6

Management Accountant

Question 7

often do the following:
1. scorekeeping or data accumulation
2. interpreting and reporting information
3. problem-solving

Also provide cost management data

Answer 7

Management Accountant

Question 8

Organizational leaders must be able to unite the behaviors of employees who have diverse needs, beliefs, and goals.

Answer 8

Leadership Perspective

Question 9

 concern is to create value for customers and how to attain this is what strategy is about.
 considers how to make the business stand out among others to attract customer.

Answer 9

Strategic Management Approach

Question 10

“We can customize our products
and services to meet your individual
needs better than our competitors.”

Answer 10

Customer Intimacy

Question 11

“We deliver products and service
faster, more conveniently, and at a
lower price than our competitors.”

Answer 11

Operational Excellence

Question 12

“We offer higher quality products
than our competitors.”

Answer 12

Product Leadership

Question 13

 also called the finance director
 chiefly responsible for the financial operations of the organization.

Answer 13

CFO

Question 14

aims to ensure that resources are
utilized in line with goals and
objectives.

Answer 14

Controllership

Question 15

 authority to give orders or command action to subordinates
 people with this authority are directly responsible for attaining the objectives of the business
 exercised downward. (e.g. sales and production managers, CEO)

Answer 15

Line Authority

Question 16

ensure that the procedures and
policies of the company are followed
especially procedures about
accounting.

Answer 16

Internal Audit

Question 17

you are expert and reliable because you know what you are doing because of your technical knowledge and skills

Answer 17

Competence

Question 18

undergo ongoing and continuous development of knowledge and skills

Answer 18

Competence

Question 19

prepare complete, clear, and comprehensive
reports

Answer 19

Competence

Question 20

refrain from unnecessary sharing of
information

Answer 20

Confidentiality

Question 21

don’t use information for unethical and illegal personal advantage

Answer 21

Confidentiality

Question 22

refers to honesty and purity of image, character, conscience, and professional position

Answer 22

Integrity

Question 23

avoid actual or apparent conflict of interest

Answer 23

Integrity

Question 24

refrain from actively or passively subverting the organization’s goals and objectives

Answer 24

Integrity

Question 25

disclose fully all relevant information that could influence an intended user’s understanding of comments, reports, and recommendations.

Answer 25

Objectivity

Question 26

objective means based from facts and what the real data or result is.

Answer 26

Objectivity

Question 27

 involved identifying constraints  constraints are barriers that hinder or impede the progress toward an objective  steps are taken to improve or remove this constraint.  look for possible mix of products to maximize the limited resources and therefore push the profit to become higher.  analyzes constraint and find ways to eliminate that limit.

Answer 27

Theory of constraints

Question 28

are barriers that hinder or impede the progress toward an objective

Answer 28

constraints

Question 29

 use of technology in designing and manufacturing a product to quickly respond to the market demand.  use of computer to make intricate design and produce it as well in an instant.

Answer 29

Computer Aided Design

Question 30

 involves radical redesigning of processes  aims to simplify processes and eliminate waste.

Answer 30

Process Reeningineering

Question 31

 procedures are evaluated whether they are value-adding or non-value adding  jobs are modified, combined, and eliminated

Answer 31

Process Reengineering

Question 32

involves looking at the best practices within the firm or industry and aiming to achieve or surpass that standard.

Answer 32

Benchmarking

Question 33

 costs are grouped into cost pools and finding cost drivers.  cost drivers are managed to minimize cost

Answer 33

Activity Based Costing Management

Question 34

ensures that budget guidelines are being followed by reviewing and approving the budget.

Answer 34

Top Management

Question 35

composed of representatives from the different functional areas is formed with the controller as the head in many cases.

Answer 35

Budget Committee

Question 36

acts as the coordinator of the process and: - recommends how budgets must be prepared - assembles the budgets - prepares budgetary reports and analysis - offers suggestions for improvement

Answer 36

Controller

Question 37

quarterly or annually (maximum) overall financial and operating plan

Answer 37

Master Budget

Question 38

plan for major expenditures on plant, equipment, or product lines, prepared for a period of 5 to 10 years.

Answer 38

Capital Budget

Question 39

a monthly report on the budgetary performance of a particular segment - comparison of actual performance to the budget prepared and analyze why there are significant deviation or variances.

Answer 39

Responsibility Budget

Question 40

varies from day-to-day to monthly basis. - forecast of cash flows

Answer 40

Cash Budget

Question 41

constantly reviewed and updated; another period, usually a month, is added every end of the period.

Answer 41

Continuous Budget

Question 42

requires continuous improvements and these are incorporated in the next period’s budget.

Answer 42

Kaizen Budgeting

Question 43

looks at the inefficiencies on the previous period and improvements are injected this year.

Answer 43

Kaizen Budgeting

Question 44

unyielding and continually improving effort by everyone in an organization to understand, meet, and exceed the expectation of customers.

Answer 44

TQM

Question 45

Operations and quality are continuously improving from time to time and has no finish line. It always looks for an area within the area to improve the output quality.

Answer 45

TQM

Question 46

 also called Zero-Defects Conformance  quality is expressed as a range of values  quality is accepted as long as it falls under the specific range

Answer 46

Goalpost Conformance

Question 47

 also called the Robust Quality Approach  quality is meeting an exact value without any variation

Answer 47

Absolute Quality Conformance

Question 48

 also called inspection costs  incurred to assess the quality of products before shipment

Answer 48

Appraisal Cost

Question 49

ex: inspector’s salary, supplies used in testing

Answer 49

Appraisal Cost

Question 50

incurred to avoid poor quality during and after the production

Answer 50

Prevention Cost

Question 51

ex: testing of raw materials, cost in finding quality supplier

Answer 51

Prevention Cost

Question 52

 results from identification of defects before delivery to customer

Answer 52

Internal Failure Cost

Question 53

cost of failing to meet the quality that happened before the delivery

Answer 53

Internal Failure Control

Question 54

ex: scrap, spoilage, rework labor and overhead, re-inspection, retesting, disposal of defective products

Answer 54

Internal Failure Cost

Question 55

results from identification of defects after delivery to customers

Answer 55

External Failure Cost

Question 56

ex: warranty cost, liability arising from defects, returns and allowances from

Answer 56

External Failure Cost

Question 57

costs of conformance because they are incurred to conform or to meet the standards

Answer 57

Prevention and Appraisal Costs

Question 58

are costs of nonconformance because they arose due to failure to meet the standards.

Answer 58

Internal and External Failure Cost

Question 59

also known as Lean Production System

Answer 59

JIT

Question 60

a demand-pull system because each component in a production line is produced as soon as and only when needed by the next step in the production line.

Answer 60

JIT

Question 61

are errors in the way an entity utilizes scorecard.

Answer 61

Pitfalls

Question 62

measure the firm’s ability to develop and utilize human resources

Answer 62

Innovation and Learning

Question 63

translates an organization’s mission and strategy into a set of performance measures

Answer 63

Balanced Scorecards

Question 64

 uses financial and non-financial measures  mission and goals are expressed into specific tasks and performance measures

Answer 64

Balanced Scorecards

Question 65

the consideration of both financial and non-financial measures is being balanced because there are either good or bad effects of decision which may not be reflected in the financial statements but are evident to have an effect to other departments or aspects in the entity expressed in non-financial terms.

Answer 65

Balanced Scorecards

Question 66

Systems development

Answer 66

Prevention Cost

Question 67

Quality circles

Answer 67

Prevention Cost

Question 68

Statistical process control activities

Answer 68

Prevention Cost

Question 69

Test and inspection of incoming materials

Answer 69

Appraisal Costs

Question 70

also known as inspection cost

Answer 70

Appraisal Costs

Question 71

Finished product testing and inspection

Answer 71

Appraisal

Question 72

Net cost of scrap

Answer 72

Internal Failure Cost

Question 73

Net cost of spoilage

Answer 73

Internal Failure Cost

Question 74

Downtime caused by quality problems

Answer 74

Internal Failure Cost

Question 75

Reinspection of reworked products

Answer 75

Internal Failure

Question 76

Retesting of reworked products.

Answer 76

Internal Failure Cost

Question 77

Quality data gathering, analysis, and reporting

Answer 77

Prevention Cost

Question 78

Audits of the effectiveness of the quality system

Answer 78

Prevention Cost

Question 79

Technical support provided to suppliers

Answer 79

Prevention Cost

Question 80

Supervision of testing and inspection activities

Answer 80

Appraisal

Question 81

Depreciation of test equipment Maintenance of test equipment

Answer 81

Appraisal Costs

Question 82

Disposal of defective products

Answer 82

Internal Failure Cost

Question 83

Analysis of the cause of defects in production

Answer 83

Internal Failure Cost

Question 84

Debugging of software errors

Answer 84

Internal Failure Cost

Question 85

Cost of field servicing and handling complaints

Answer 85

External Failure Cost

Question 86

Returns and allowances arising from the quality problems

Answer 86

External Failure Cost

Question 87

Liability arising from defective products

Answer 87

External Failure Cost

Question 88

Lost sales arising from a reputation for poor quality

Answer 88

External Failure Cost

Question 89

Cost of field servicing and handling complaints

Answer 89

External Failure Cost

Question 90

Product recalls

Answer 90

External Failure Cost

Question 91

Repairs and replacements beyond the warranty period

Answer 91

External Failure Cost