Deck 22: Strategic Management Accounting

Question 1

Hampton, SA., manufactures a product that experiences the following activities: The manufacturing cycle efficiency (MCE) for the product is

A) 0.33.
B) 0.27.
C) 0.25.
D) 0.18.

Answer 1

C

Question 2

____ are outcome measures that are a result of past efforts.

A) Objective measures
B) External measures
C) Financial measures
D) Lag measures

Answer 2

D

Question 3

For a firm to have balanced measures, the measures selected must be balanced between

A) lag and lead measures.
B) objective and subjective measures.
C) financial and nonfinancial measures.
D) all of these.

Answer 3

D

Question 4

____ are outcome measures that are expressed in monetary terms.

A) Objective measures
B) External measures
C) Financial measures
D) Lag measures

Question 5

When a computer company increases the internal storage space for the same price, it is following a

A) focusing strategy.
B) low-cost strategy.
C) differentiation strategy.
D) strategic positioning strategy.

Question 6

When a computer company targets customers in the South, it is following a

A) focusing strategy.
B) low-cost strategy.
C) differentiation strategy.
D) strategic positioning strategy.

Question 7

____ is the use of cost data to develop and identify superior strategies that will produce a sustainable competitive advantage.

A) Strategic decision making
B) Strategic cost management
C) Competitive advantage
D) Customer value

Question 8

____ are outcome measures that relate to customers.

A) Objective measures
B) External measures
C) Financial measures
D) Lag measures

Question 9

Hugh, SA., recently evaluated its manufacturing process and determined the following about its main product: The manufacturing cycle efficiency (MCE) for the product is

A) 1.00.
B) 0.75.
C) 0.67.
D) 0.50.

Question 10

____ describe the relationships of a firm's value chain activities that are performed with its suppliers and customers.

A) External linkages
B) Internal linkages
C) Industrial value chain
D) Both a and b

Question 11

____ involves choosing among alternative strategies with the goal of selecting a strategy, or strategies, that provides a company with reasonable assurance of long-term growth and survival.

A) Strategic decision making
B) Strategic cost management
C) Competitive advantage
D) Customer value

Question 12

____ are relationships among activities that are performed with a firm's portion of the value chain.

A) External linkages
B) Internal linkages
C) Industrial value chain
D) Both a and b

Question 13

Richards, SA., manufactures a product that experiences the following activities: The manufacturing cycle efficiency (MCE) for the product is

A) 0.48.
B) 0.45.
C) 0.42.
D) 0.30.

Question 14

____ are outcome measures that can be readily quantified and verified.

A) Objective measures
B) External measures
C) Financial measures
D) Lag measures

Question 15

____ is creating better customer value for the same or lower cost than competitors or creating equivalent value for lower cost than offered by competitors.

A) Strategic decision making
B) Strategic cost management
C) Competitive advantage
D) Total product

Question 16

The industrial value-chain analysis

A) recognizes only complex linkages within the firm.
B) is not compatible with differentiation strategies.
C) determines a linked set of value-creating activities.
D) requires a firm to operate across the entire value chain.

Question 17

When a computer company maintains the internal storage space for a lower price, it is following a

A) focusing strategy.
B) low-cost strategy.
C) differentiation strategy.
D) strategic positioning strategy.

Question 18

The five key core objectives of the customer perspective of the Balanced Scorecard do NOT include which of the following?

A) increase market share
B) increase customer satisfaction
C) increase customer retention
D) increase customer contact

Question 19

An example of a lag measure is

A) hours of employee training.
B) customer profitability.
C) employee capabilities.
D) none of the above.

Question 20

When a computer company selects a mix of strategies in order to create sustainable competitive advantage, it is following a

A) focusing strategy.
B) low-cost strategy.
C) differentiation strategy.
D) strategic positioning strategy.

Question 21

Objectives for increasing revenue growth include

A) adopting a new pricing strategy.
B) reducing the cost per unit.
C) eliminating nonvalue-added activities.
D) reducing distribution channel cost.

Question 22

Which of the following is not a step in developing the Balanced Scorecard?

A) setting balanced objectives
B) outlining control procedures
C) setting target values
D) rewards

Question 23

Roberts, SA., manufactures a product that experiences the following activities: The MCE for the product is

A) 0.48.
B) 0.45.
C) 0.42.
D) 0.30.

Question 24

Which of the following would be a lag measure?

A) budget forecasts
B) sales per employee
C) plant investment
D) employee training hours

Question 25

Which of the following would be a lead measure?

A) customer profitability
B) cost per employee
C) return on investment
D) employee training hours

Question 26

Why does the Balanced Scorecard differ from company to company? Whose responsibility is the implementation?

Question 27

From the customer perspective, which of the following might be considered a core objective rather than a performance value?

A) decrease price
B) increase customer retention
C) improve image
D) improve product quality

Question 28

In the customer perspective, objectives and measures that drive the creation of customer value are

A) customer survey ratings.
B) postpurchase cost.
C) on-time deliveries.
D) all of the above.

Question 29

Strategic-based performance measures are balanced measures. Give examples of four types of balanced measures.

Question 30

Describe the basic features of the Balanced Scorecard.

Question 31

Which of the following statements about a balanced scorecard is true?

A) The balanced scorecard gives managers a perspective of the organization's performance using a recurring set of criteria.
B) The advantage of a balanced scorecard approach is that it can best be used as a single, comprehensive measure of corporate performance.
C) The advantage of a balanced scorecard approach is that it eliminates the need for management accounting data.
D) The advantage of a balanced scorecard approach is that it leads management to focus exclusively on critical downstream issues such as consumer demand, and away from lesser upstream issues such as design and production.

Question 32

____ provide some idea of what to expect currently or in the near future.

A) Trailing measures
B) Leading measures
C) Financial measures
D) All of the above