Deck 16: The Strategic Management of Costs and Revenues

Question 1

Cost per unit is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Answer 1

A

Question 2

Market share is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Answer 2

B

Question 3

Kaplan and Norton introduced four different perspectives from which a company's activity can be evaluated. Which of the following perspectives describes how we perceive our customers

A)Financial perspective
B)Customer perspective
C)Process perspective
D)Learning and growth

Answer 3

B

Question 4

Kaplan and Norton introduced four different perspectives from which a company's activity can be evaluated. Which of the following perspectives describes how we perceive our shareholders

A)Financial perspective
B)Customer perspective
C)Process perspective
D)Learning and growth

Question 5

Growth rate of new customers is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 6

Number of new customers is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 7

Employee turnover is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 8

Employee satisfaction is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 9

Kaplan and Norton introduced four different perspectives from which a company's activity can be evaluated. Which of the following perspectives describes how we sustain our ability to change and improve?

A)Financial perspective
B)Customer perspective
C)Process perspective
D)Learning and growth

Question 10

Time to settle a claim from a customer is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 11

The Customer perspective describes how do we perceive our customers

Question 12

Customer satisfaction should focus on setup time.

Question 13

Unfavourable standard cost variances is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 14

Kaplan and Norton introduced four different perspectives from which a company's activity can be evaluated. Which of the following is not one of the four perspectives

A)Financial perspective (how do we perceive our shareholders?)
B)Customer perspective (how do we perceive our customers?)
C)Process perspective (in what processes should we excel to succeed?)
D)Manufacturing innovation (how will we sustain our ability to change and improve?)

Question 15

Employee productivity is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 16

Suggestions per employee is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 17

Ultimately most companies exist to provide financial rewards to owners

Question 18

Employee retention is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 19

Employee productivity is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 20

Total operating expenses as a percentage of total costs is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 21

Return on assets is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 22

Revenue generated per employee is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 23

Time to introduce new products to market is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 24

All companies basically have the same strategy

Question 25

Profit per market segment is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 26

If the MCE is less than 0.1 this means

A)The company is doing very well
B)90% of time a unit is in process is spent on non-value-added activities
C)10% of time a unit is in process is spent on non-value-added activities
D)1% of time a unit is in process is spent on non-value-added activities

Question 27

Ultimately most companies exist to provide financial rewards to owners

Question 28

Number of customer complaints is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 29

Kaplan and Norton introduced four different perspectives from which a company's activity can be evaluated. Which of the following perspectives describes in what processes should we excel to succeed

A)Financial perspective
B)Customer perspective
C)Process perspective
D)Learning and growth

Question 30

If the MCE is less than 1 then non-value-added time is present in the production process

Question 31

Quality costs is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 32

Strategic Management Accounting (SMA) may be defined as the process of provision and analysis of management accounting data about a business and its competitors for the use in developing and monitoring business strategy?

Question 33

Managers should carefully select the performance measures relevant to their business

Question 34

The best possible score for the MCE is

A)0
B)10
C)10 per cent
D)1

Question 35

The manufacturing cycle efficiency (MCE) is monitored to reduce value-added activities

Question 36

The Process perspective identifies the processes we should improve to succeed

Question 37

The Financial perspective describes how do we perceive our shareholders

Question 38

Time to deliver versus expectations is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 39

Hours of in-house training per employee is an example of a performance measure in the following group

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 40

Product returns as a percentage of sales is an example of a performance measure in the following group:

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 41

One of the following is not a key principle of SMA

A)The ascribed parameters are outside the paradigm of description
B)collection of information
C)explanation of cost reduction opportunities
D)matching of account emphasis with strategic position

Question 42

Discuss why the Balanced Scorecard approach is regarded as being so useful

Question 43

Discuss why Benchmarking has been so widely taken up by so many organisations. Give examples.

Question 44

The first steps to planning are not based on

A)pricing
B)high living
C)flexible budgeting
D)cost behaviour

Question 45

Define Structural Drivers and Executional Drivers in the Value Chain.

Question 46

One obstacle that has not reduced the uptake of SMA has been

A)a reluctance to share non-accounting data
B)some companies don't already follow SMA subconsciously
C)there is a difficulty in pulling in data from other parts of the organization
D)SMA is widely marketed by committees

Question 47

Define cost leadership and product differentiation following Michel Porter.

Question 48

One of the following is not part of the value chain

A)distributing
B)product design
C)strategic thinking
D)research and development

Question 49

Explain what Double Loop Learning is. How does it differ from Single Loop learning?

Question 50

Define Defender and Prospector as conceived by Miles and Snow.

Question 51

The story of GEC/Marconi is told on pages 672/3 of Chapter 16. Explain in your own words what went wrong.

Question 52

SMA is not concerned with the implementation of strategies

Question 53

Lean enterprises avoid confrontation

Question 54

SMA helps managers make choices though information support.

Question 55

Profit planning gains nothing from sensitivity exercises