Question 1

Why has time become such an important factor in competition?

Accepted Answer

Reducing the time that it takes to act means that companies are able to respond to customers and suppliers more quickly.It fosters adaptability and the ability to respond to changing demands.Reducing time is accomplished by reducing waste and non-value-added activities.Reducing activities and waste lowers cost and builds competitive advantage.

Question 2

Describe a cost management information system,its objectives,and major subsystems.

Accepted Answer

The cost management information system is an accounting information subsystem that is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives.The objectives are as follows: 1. To provide information for costing aut services, products, and ather objects of interest to management.
2. To provide information for planning and control.
3. Ta provide information for decision maloing. The major subsystems of a cost management information system are the cost accounting information system and the operational control information system.

Question 3

In choosing a cost management system,the controller must balance the total costs of implementing such systems.What costs must be balanced to determine total cost? How do functional-based and activity-based cost systems balance the trade-offs?

Accepted Answer

Error costs and measurement costs must be considered in choosing a cost management system.Activity-based cost management has greater measurement costs due to analyzing many activities but has greater accuracy and fewer error costs.Functional-based cost systems have lower measurement costs but higher error costs.Controllers must assess the need for accuracy in costing,pricing,and managing profitability.

Question 4

Contrast the role of the financial vice president,the controller,and the treasurer.

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Question 5

What is the role of the controller in an organization? Describe some of the activities over which he or she has control.

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Question 6

Describe the connection between planning,controlling,and feedback.

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Question 7

Explain the differences between direct tracing,driver tracing,and allocation.

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Question 8

Identify and discuss the factors that are affecting the way cost accounting is practised.

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Question 9

Discuss four factors that are changing the way we manufacture.

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Question 10

Give some examples of reporting feedback that will assist in continuous improvement of a dry cleaning company.

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Question 11

Define activity-based management.In your answer,present the activity-based management model in good form.

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Question 12

What are the two major subsystems of the cost management system and why are they important?

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Question 13

Briefly discuss the relationship between cost accounting,management accounting,and cost management.

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Question 14

What is the difference between a staff position and a line position?

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Question 15

Discuss the advances of information technology and how these advances might affect the university education supply chain.

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Question 16

What is customer orientation? Why is it important in a global environment? What role does cost management play in serving customers?

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Question 17

Explain the relationship between the financial accounting system and the cost management system.

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Question 18

Information from the records of the Fisher Enterprises for the month of March is as follows:
 $\begin{array}{lr}
\text { Purchases of direct materials } & \$ 54,000 \
\text { Indirect labour } & 15,000 \
\text { Direct labour } & 31,200 \
\text { Depreciation on machinery } & 9,000 \
\text { Sales } & 165,900 \
\text { Selling and administrative expenses } & 18,900 \
\text { Rent on factory building } & 21,000
\end{array}$  $$\begin{array} { l r r } 
&&  \underline { \text { Irventaries } }  \
 &\underline { \text { March } 1 }& \underline {\text { March } 31} \
\text { Direct materials } &\$24,000&\$26,100\
\text { Wark in pracess } & 6,300 & 9,600 \
\text { Finished goods } & 15,000 & 17,100
\end{array}$$ 
a.Prepare a statement of cost of goods manufactured for the month of March.
b.Prepare an income statement for the month of March.
c.Determine prime and conversion costs.

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Question 19

How has the nature of accounting systems shifted in response to technology?

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Question 20

Big Foot Athletics designs and manufactures running shoes.A new model of shoes,Fast Track,has been developed and is ready for production.
Which costs will the production manager collect from the value chain,and how would these costs be used in different decisions?
a.traditional product costs
b.operating product costs
c.value-chain product costs

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Quiz 1: B: Basic Cost Management Concepts