Strategic Cost Management Quiz

Which of the following is the main objective of traditional management accounting?

• Strategic decision making

• Cost control

• Shareholder wealth maximization

• Innovation and quality improvement

What is the primary focus of cost management in the strategic phase?

• Product pricing

• Cost reduction

• Value creation

• Budgeting

Which term refers to management accounting that supports strategic decision-making?

• Operational cost control

• Traditional cost accounting

• Strategic cost management

• Absorption costing

Which of the following is NOT a characteristic of strategic cost management?

• Long-term focus

• External orientation

• Emphasis on cost behavior

• Focus on internal cost control

Strategic cost management integrates cost information with:

• Marketing reports

• Strategic business analysis

• External audits

• Capital budgeting

Which development marked the beginning of the strategic cost management era?

• Financial accounting principles

• Introduction of variance analysis

• The shift in competitive advantage through cost leadership

• Job order costing systems

The first era of management accounting emphasized:

• Strategic planning

• Information for internal reporting

• Performance measurement

• External financial reporting

The evolution of management accounting can be categorized into how many stages?

• Two

• Three

• Four

• Five

Which of the following is associated with the third stage of management accounting evolution?

• Budgeting

• Cost-volume-profit analysis

• Activity-based costing

• Absorption costing

The main trigger for the evolution to strategic management accounting was:

• The industrial revolution

• The emergence of global competition

• Tax regulation changes

• Higher education standards