Question 1

Quantitative information is expressed only in dollars.

Accepted Answer

Quantitative information can be expressed in various units of measure, not just dollars, including numbers, quantities, or statistical data.

Question 2

Benefit-cost analysis takes into account only quantitative benefits and costs of proposed plans.

Accepted Answer

Benefit-cost analysis considers both quantitative and qualitative benefits and costs, although qualitative aspects may be quantified or given value through various methods to facilitate comparison.

Question 3

Qualitative information is descriptive and based on characteristics or perceptions, such as relative desirability, rather than quantities.

Accepted Answer

Qualitative information focuses on descriptive data that can be observed but not measured, such as textures, colors, opinions, and experiences, rather than numerical data.

Question 4

Cost managers almost always have training as accountants.

Accepted Answer

The answer of Cost managers almost always have training as...

Question 5

Teams are replacing individual decision makers in many organizations.

Accepted Answer

Teams are increasingly favored over individual decision makers in many organizations due to their ability to bring diverse perspectives, skills, and expertise to the decision-making process, leading to more comprehensive and effective solutions.

Question 6

Management should emphasize long term success over short term achievements in creating a successful culture for organizational change.

Accepted Answer

The answer of Management should emphasize long term success over...

Question 7

Cost Management teams often find that employees are sources of valuable information and suggestions in cost management review.

Accepted Answer

Employees, being closely involved in the day-to-day operations, often have practical insights and innovative ideas that can lead to cost-saving measures and efficiency improvements.

Question 8

Variances are the differences between a plan's actual and expected quantities.

Accepted Answer

Variances measure the difference between actual outcomes and expected or planned outcomes, often used in budgeting and performance analysis.

Question 9

The ethical standard of competence states that Management Accountants have a responsibility to perform their professional duties in accordance with relevant laws, regulations and professional standards.

Accepted Answer

The ethical standard of competence indeed requires Management Accountants to maintain an appropriate level of professional expertise by continually developing knowledge and skills, and to perform their professional duties in accordance with relevant laws, regulations, and technical standards.

Question 10

Management accountants have a responsibility to communicate only unfavorable professional judgments or opinions.

Accepted Answer

Management accountants have a responsibility to communicate all professional judgments or opinions, whether favorable or unfavorable, to ensure transparency and integrity in their reporting and advisory roles.

Question 11

Quantitative information is always more important than qualitative information in benefit-cost analysis.

Accepted Answer

Quantitative information provides measurable and numerical data, which is crucial for calculating costs and benefits. However, qualitative information offers insights into the impacts that are not easily quantified, such as social or environmental effects, and can be equally important in making comprehensive and informed decisions in benefit-cost analysis.

Question 12

Variance analysis will be primarily used in the quantitative aspect of performance evaluation.

Accepted Answer

Variance analysis is a quantitative tool used to measure the differences between planned and actual performance, focusing on the reasons and impacts of those differences in financial and operational metrics.

Question 13

Which one of the following is not a characteristic of cost management?

Accepted Answer

The answer of Which one of the following is not...

Question 14

Cross Functional Decision Making:

Accepted Answer

Cross-functional decision making involves collaboration among individuals from various departments or functions within an organization to leverage diverse perspectives and expertise for innovative problem-solving.

Question 15

Promoting the idea of continually finding ways to help organizations make the right decisions to create more customer value at lower cost is an example of the characteristic of the:

Accepted Answer

Promoting the idea of continually finding ways to help organizations make the right decisions to create more customer value at lower cost reflects the philosophy of effective cost management. This approach is about the overarching mindset or belief system guiding how an organization approaches cost management, rather than specific attitudes, variances, or techniques.

Question 16

Which of the following is not a piece of qualitative information in a decision?

Accepted Answer

The total cost savings to be gained from the decision is a piece of quantitative information, as it can be measured and expressed numerically, unlike the other options which are qualitative and focus on subjective assessments.

Question 17

Maria Kadison, Controller at Robbins Corporation, became aware that Robbins is in talks with Hallion Company for a friendly merger. Maria discloses this information to her immediate family. No member of Maria's family purchases either Robbins' or Hallion's stock before the merger. Which of the following is True?

Accepted Answer

Maria has violated the ethical standard of confidentiality by disclosing sensitive, non-public information about her employer's potential merger with another company to her immediate family, regardless of whether they acted on the information.

Question 18

Which of the following would be found in a high risk, high return strategic mission?

Accepted Answer

High-risk, high-return strategic missions often involve aggressive strategies such as focusing on capturing market share to achieve significant growth, despite the risks involved.

Question 19

Which of the following would be found in a low risk, low reward strategic mission?

Accepted Answer

A low risk, low reward strategic mission often involves operating in a stable or declining market where the focus is on maintaining position rather than aggressive growth or capturing significant market share.

Question 20

Which of the following activities would be included in the value chain of a manufacturing company?

Accepted Answer

The value chain of a manufacturing company includes all activities that add value to its products, from the initial concept and design, through production, to after-sales services. This encompasses Research and Development (for innovation and improvement), Design (product conceptualization and development), and Customer Service (post-sale support), making all the options correct.

Quiz 1: Cost Management and Strategic Decision Making Evaluating Opportunities and Leading Change