Question 1

Which steps are included in the planning process?

Accepted Answer

The planning process typically includes setting objectives, identifying means of achieving those objectives, and making decisions based on available options and strategies.

Question 2

What is the term for the formulation of a program to accomplish a specific purpose?

Accepted Answer

Planning is the term used for the formulation of a program to accomplish a specific purpose. Controlling is the process of monitoring and adjusting performance, motivating is the act of inspiring or encouraging someone to take action, and organizing is the process of arranging resources and tasks in order to achieve specific goals.

Question 3

The manager has to decide what tasks are needed and how they should be accomplished.What is this an example of?

Accepted Answer

This is an example of planning. The manager is making decisions about what tasks need to be done and how they should be accomplished, which is a fundamental aspect of the planning function of management.

Question 4

A performance report is a type of accounting report.What information does a performance report compare?

Accepted Answer

A performance report compares planned data with actual data to assess how well an organization or department is meeting its goals and objectives. This allows management to identify areas where improvements can be made and make informed decisions about resource allocation.

Question 5

What is the term for the managerial activity of comparing actual results with budgeted results?

Accepted Answer

The term for comparing actual results with budgeted results is control. Control is the process of monitoring a company's performance and ensuring that it is on track to meet its goals. This involves comparing actual results with budgeted results, identifying any variances, and taking corrective action as needed.

Question 6

What is the term for the setting of objectives and the identification of methods to achieve those objectives?

Accepted Answer

The term for setting objectives and identifying methods to achieve them is planning. This involves creating a roadmap for the organization or individual to follow, and outlines the steps required to reach specific goals. Controlling involves monitoring your progress towards those objectives, performance evaluation is an assessment of how well you have met those objectives, and decision making involves making choices about how to prioritize objectives, allocate resources, and navigate challenges along the way.

Question 7

What is the accounting report that provides feedback by comparing planned data to actual data?

Accepted Answer

A performance report provides feedback by comparing planned data (budgeted or forecasted) to actual data. It helps management evaluate how well the company is performing in relation to its goals and objectives.

Question 8

What is determining the bid your company should submit on a construction contract an example of?

Accepted Answer

Determining the bid your company should submit on a construction contract involves making a decision, which is an example of decision making. While planning, control, and continuous improvement may all be factors that inform the bidding decision, the act of choosing a specific bid amount is ultimately a decision-making process.

Question 9

What management function involves setting a company's profit targets for the upcoming year?

Accepted Answer

Setting profit targets for the upcoming year falls under the planning function of management, which involves setting goals and developing strategies to achieve them.

Question 10

In a company,engineers have redesigned the production process,lowering production costs,shortening the production cycle time,reducing waste,and improving quality.What managerial activity is occurring in this situation?

Accepted Answer

The engineers' actions of redesigning the production process to lower costs, shorten cycle time, reduce waste, and improve quality align with the concept of continuous improvement. This is an ongoing managerial activity that involves constantly seeking out ways to improve processes, products, and services. Therefore, choice B - continuous improvement - is the best answer.

Question 11

What management function involves monitoring the number of defects produced?

Accepted Answer

Monitoring the number of defects produced falls under the management function of control, which involves ensuring that plans and goals are being met and making necessary adjustments to improve performance.

Question 12

What is developing a company strategy for responding to anticipated new markets an example of?

Accepted Answer

Developing a company strategy for responding to anticipated new markets is an example of planning, which involves setting goals and determining the best course of action to achieve them. Control involves monitoring and adjusting ongoing operations to ensure they are on track with the established plan, while decision making involves choosing between multiple options in order to reach a desired outcome. Performance evaluation involves measuring the success of the plan after it has been implemented.

Question 13

What is NOT a characteristic of continuous improvement?

Accepted Answer

Continuous improvement is focused on finding ways to improve efficiency, quality, and reduce costs, and therefore is not too costly to implement. In fact, it is often seen as a way to improve profitability and competitiveness.

Question 14

What is evaluating the performance of a segment of the company an example of?

Accepted Answer

Evaluating the performance of a segment of the company falls under the category of control. Control is the process of monitoring and measuring performance and taking corrective actions as necessary to ensure that goals and objectives are achieved.

Question 15

What is the term for the monitoring of a plan's implementation?

Accepted Answer

Controlling is the term used to describe the process of monitoring progress toward achieving goals and making any necessary adjustments to ensure success.

Question 16

What is inspecting units produced to determine if they meet specifications an example of?

Accepted Answer

Inspecting units produced to determine if they meet specifications is an example of quality control, which falls under the management function of controlling.

Question 17

What is investigating production variances and adjusting the production process an example of?

Accepted Answer

Investigating production variances and adjusting the production process is an example of control. Control involves monitoring and taking corrective actions to ensure that the actual performance matches the planned performance. In this case, production variances are deviations from the planned performance, so investigating them and making adjustments is part of the control process.

Question 18

What is setting the selling price of a company's product an example of?

Accepted Answer

Setting the selling price is a decision that involves analyzing market trends, production costs, and competitor prices. It requires the use of management skills to make a choice that maximizes the company's profit while remaining competitive in the market. Therefore, the selling price is an example of decision making.

Question 19

What is comparing actual quality costs with planned quality costs an example of?

Accepted Answer

Comparing actual quality costs with planned quality costs is an example of controlling, which involves monitoring actual performance and taking corrective actions to keep performance on track with planned goals.

Question 20

Managers are considering outsourcing the subcomponents of a product.They collect data about the costs of making the subcomponents in-house.They then seek different bids from suppliers to purchase the subcomponents.What managerial activity applies in this situation?

Accepted Answer

The managerial activity that applies in this situation is decision making, as managers are analyzing the costs of producing subcomponents in-house versus outsourcing them and making a decision on whether to go with suppliers or keep production in-house.

Quiz 1: A: Basic Cost Management Concepts