Question 1

In designing strategy, a company must match the opportunities and threats in the marketplace with

Accepted Answer

In order to design an effective strategy, a company must match the opportunities and threats in the marketplace with its resources and capabilities. This ensures that the strategy is feasible and can be implemented successfully. Understanding its competitors is also important, but this is only one aspect of the overall strategy development process. The capabilities of current suppliers and branding opportunities may be important considerations, but they are not the primary focus of strategy design. The CFO's priorities may not necessarily align with the company's broader strategic goals.

Question 2

Generally, companies follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition. Assume you are opening a small food outlet across the street from your campus. How might that business be operated under each of the two broad strategies? Consider the following specific operational areas:
a. target customers
b. products offered
c. product pricing
d. location choice
e. advertising content
f. advertising media

Accepted Answer

The answer of Generally, companies follow one of two broad...

Question 3

In the value chain, Research and Development generates and experiments with new ideas related to new products.

Accepted Answer

Research and Development is the stage in the value chain where new ideas related to new products are generated and experimented with.

Question 4

Key success factors such as quality, time, and innovative products and services, must be executed well to achieve corporate performance.

Accepted Answer

Key success factors such as quality, time, and innovative products and services are crucial components in achieving corporate performance. However, just having these factors is not enough - they must be executed well to produce optimal results.

Question 5

Strategy specifies

Accepted Answer

Strategy involves the planning and execution of actions to match an organization's strengths and weaknesses with the opportunities and threats present in the marketplace. It involves making conscious choices about how to allocate resources to achieve the organization's goals.

Question 6

There are 8 business functions in the value chain.

Accepted Answer

The value chain typically consists of five primary activities and four support activities, making a total of nine business functions.

Question 7

A budget is a quantitative expression of a proposed plan of action by management.

Accepted Answer

A budget is a financial plan that outlines anticipated expenses and revenues over a certain period of time. It is typically used by management to guide decision-making and ensure that resources are allocated effectively. A budget is a quantitative expression because it involves assigning specific amounts to different categories of expenses and revenues.

Question 8

Sub-contracting a business function is part of supply chain management.

Accepted Answer

Sub-contracting a business function means outsourcing a part of the supply chain to another company, which is a key element of supply chain management. Therefore, the statement is true.

Question 9

Value chain and supply chain are two (2) terms describing the same set of business functions.

Accepted Answer

While there is some overlap between the two concepts, value chain refers specifically to the activities and processes that add value to a product or service, while supply chain refers to the network of organizations and activities involved in getting a product or service from the supplier to the customer. Different activities may be included in each chain, and they serve different purposes in the overall business strategy.

Question 10

Describe management accounting and financial accounting.

Accepted Answer

The answer of Describe management accounting and financial accounting....

Question 11

The value chain includes the following functions: research and development; design of products, services, or processes; production; marketing; distribution; customer service; and management satisfaction.

Accepted Answer

The answer of The value chain includes the following functions:...

Question 12

TQM is a method for improving quality.

Accepted Answer

TQM stands for Total Quality Management, which is a method for continuous improvement of the quality of products, services, and processes. Its focus is on involving all employees in ongoing efforts to improve quality, streamlining processes, and reducing waste. Therefore, TQM is a method for improving quality.

Question 13

Generally, companies follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition. Is it possible to follow a strategy that is "in the middle"?

Accepted Answer

The answer of Generally, companies follow one of two broad...

Question 14

Financial accounting

Accepted Answer

Financial accounting must comply with GAAP, which are a set of standard guidelines for financial reporting in the United States. The other options are not accurate, as financial accounting focuses on past performance and is intended for use by stakeholders outside of the organization. Financial reports also provide an overview of the business as a whole, rather than detailed information on specific segments or departments. Finally, while profitability analysis may be a part of financial accounting, it is not the primary focus.

Question 15

In the value chain, Research and Development is the detailed planning and engineering of products, services, or processes.

Accepted Answer

Research and Development (R&D) is focused on the innovation and creation of new products, services, or processes, while detailed planning and engineering are typically part of the product development or design phase.

Question 16

Enterprise Resource Planning software (ERP)

Accepted Answer

ERP systems integrate data from different departments or business activities, providing managers with reports that show how those activities are interdependent. It provides a centralized database that can be accessed by different departments, allowing for increased communication and collaboration throughout the organization. ERP systems can also automate business processes, saving time and reducing errors.

Question 17

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as

Accepted Answer

The answer of The approaches and activities of managers in...

Question 18

An Enterprise Resource Planning System can best be described as

Accepted Answer

An ERP system is a centralized database that collects data from different departments within a company and uses it to support various business activities such as purchasing, production, distribution, and sales. It provides a unified view of the organization's data, enabling effective decision-making and simplifying business processes.

Question 19

Management accounting

Accepted Answer

Management accounting involves measuring, analyzing, and reporting financial and nonfinancial information to internal managers to assist with decision-making and performance evaluation. It is focused on providing information to internal stakeholders rather than external parties, and is not bound by GAAP (Generally Accepted Accounting Principles).

Question 20

Information used to project budgeted amounts does not require non-financial information.

Accepted Answer

Non-financial information, such as market trends and customer behaviors, can impact budget projections and should be taken into consideration. Budgeting should incorporate both financial and non-financial information to ensure accuracy and effectiveness.

Quiz 1: The Accountants Vital Role in Decision Making