Font size
WorksheetsStrategic Management Accounting
Total questions: 155
Worksheet time: 2hrs 30mins
Which TWO of the following would be data rather than information?
a. Sales increase/decrease per product in last quarter
b. Total sales value per product
c. Total material usage
d. Sales staff commission as a percentage of total sales
a & d
b & c
a & b
b & d
Which of the following statements is correct?
Management accounting systems provide information for use in fulfilling legal requirements.
Management accounting systems provide information for the use of decision-makers within an organisation.
Management accounting systems provide information for use by shareholders.
Management accounting systems provide information for use by tax authorities.
Use the drop down list to select which of the following processes occurs at the business planning stage.
(a) Obtaining data about actual results
(b) Taking corrective action
(c) Comparing actual performance with budget
(d) Establishing objectives
(b)
(d)
Monthly variance reports are an example of which one of the following types of management information?
Tactical
Strategic
Non-financial
Operational
Which of the following statements is/are correct?
(i) Information for decision-making should incorporate uncertainty in some way. (ii) The data used to prepare financial accounts and management accounts are the same.
(i) is true and (ii) is false
(ii) is true and (i) is false
Both are true
Both are false
Good information should have certain qualities.
Which TWO of the following are required as qualities of good management information?
1. Complete
2. Extensive
3. True and fair
4. Accurate
1 & 3
2 & 4
2 & 3
1 & 4
Which of the following statements is/are correct?
(i) A management control system is a term used to describe the hardware and software used to drive a database system which produces information outputs that are easily assimilated by management.
(ii) An objective is a course of action that an organisation might pursue in order to achieve its strategy.
(iii) Information is data that has been processed into a form meaningful to the recipient.
(i), (ii) and (iii)
(i) and (iii)
(ii) and (iii)
(iii) only
Which TWO of the following statements about management accounting information are true?
(a) They may include non-financial information
(b) They are required by law to be produced
(c) They are used to aid planning
(d) They are for use by parties external to the organisation
a & c
b & d
c & d
a & b
The sales manager has prepared a manpower plan to ensure that sales quotas for the forthcoming year are achieved.
This is an example of what type of planning?
Strategic planning
Tactical planning
Operational planning
Corporate planning
Which TWO of the following statements about qualities of good information are true?
(a) It should be relevant for its purposes
(b) It should be communicated to the right person
(c) It should be completely accurate
(d) It should be provided whatever the cost
a & c
b & d
a & b
c & b
Which TWO of the following would be classified as data rather than information?
Sales increase/decrease per product in last quarter
Total sales value per product
Total material usage
Sales staff commission as a percentage of total sales
Which of the following processes occurs at the business planning stage?
Obtaining data about actual results
Taking corrective action
Comparing actual performance with budget
Establishing objectives
Which of the following statements is/are correct?
(i) Information for decision-making should incorporate uncertainty in some way
(ii)The data used to prepare financial accounts and management accounts are the same.
(i) true and (ii) is false
(ii) is true and (i) is false
Both are true
Both are false
Monthly variance reports are an example of which one of the folowing types of management information?
Tactical
Strategic
Non-financial
Operational
Good information should have certain qualities.
Which TWO of the folowing are required as qualities of good management information?
Complete
Extensive
True and fair
Accurate
Which of the following statements is/are correct?
(i) A management control system is a term used to describe the hardware and software used to drive a database system which produces information outputs that are easily assimilated by management.
(ii) An objective is a course of action that an organisation might pursue in order to achieve its strategy.
(iii) Information is data that has been processed into a form meaningful to the recipient.
All of the above
(i) and (ii)
(ii) and (iii)
(iii) only
Which TWO of the following statements about management accounting information are true?
They may include non-financial information
They are required by law to be produced
They are used to aid planning
They are for use by parties external to the organisation
The sales manager has prepared a manpower plan to ensure that sales quotas for the forthcoming year are achieved. This is an example of what type of planning?
Strategic planning
Tactical planning
Operational planning
Corporate planning
Which TWO of the following statements about qualities of good information are true?
It should be relevant for its purposes
It should be communicated to the right person
It should be completely accurate
It should be provided whatever the cost
Which of the following describes the role of tactical objectives?
Middle tier objectives to facilitate the planning and control of individual functions within the organisation
Day-to-day performance targets related to the organization's operations
A clear vision of the organisation's reason for existing
Long-term objectives for the organization as a whole
Which of the following describes the role of strategic objectives?
Middle tier objectives to facilitate the planning and control of individual functions within the organisation
Day-to-day performance targets related to the organisations operations
A clear vision of the organisation's reason for existing
Long term objectives for the organization as a whole
Information systems can facilitate supply chain management by:
a. Tracking the status of orders.
b. Rapidly communicating orders.
c. Providing product specifications.
d. all of the above
Enterprise Resource Planning (ERPs) support:
a. Manufacturing processes.
b. Financial and accounting processes.
c. Human resource processes.
d. All of the above.
Customer numbers and their names would be an example of the __________________ component of an order management information system.
a. software
b. hardware
c. data
d. procedure
The quality of your ____________is a large part of the quality of your information system.
a. computer
b. decision
c. time
d. challenges
A human data operator can be bypassed for basic data entry when using a(n) .
a. Office automation system
b. Management information system
c. Transaction processing system
d. Decision support system
Batch processing is preferred over on-line transaction processing when i) processing efficiency is important ii) the volume of data to be processed is large iii) only periodic processing is needed
a. i ,ii
b. i, iii
c. ii ,iii
d. i , ii ,iii
Management information systems usually:
a. Serve managers interested in weekly, monthly, and yearly results, not day-to-day activities.
b. Help managers make decisions that are unique, rapidly changing, and not easily specified in advance.
c. Provide managers with a generalized computing and telecommunications capacity that can be applied to a changing array of problems.
d. Perform and record the daily routine transactions necessary to the conduct of business.
Which of the following individuals typically have less formal, advanced educational degrees and tend to process rather than create information?
a. Knowledge workers
b. Chief Executives
c. System analysts
d. Data operators
Sales Projections and responses to queries are information output characteristics associated with a(n):
a. DSS
b. MIS
c. OAS
d. TPS
Q1. Information systems that monitor the elementary activities and transactions of the organizations are:
a. Management-level system
b. Operational-level system
c. Knowledge-level system
d. Strategic level system
Two people from different cultures could have the same need, but also could have different satisfiers for that need?
True
False
Are customer needs and satisfiers the same?
False
True
A Quality Culture means having concepts, values, and norms that allow an organizations to be in a continuos improvement process!
True
False
The following qualities are important in an ethical quality management system.
Trust
Integrity
Responsibility
All of them
Ethics is not that important in quality management!
False
True
A strategic planning process involves the following steps?
Vision and mission definition.
Defining Objectives and plan of action
Swot analysis
All of the above
Two major components of strategic management are?
Budgeting and accounting
Customer and customer satisfaction
Customer and budgeting
Strategic planning and strategic execution
Core competencies are things an organization does so we'll that they can be viewed as providing competence in the marketplace
True
False
Strategic management bases actions, activities, and decisions on what is most likely to ensure successful performance
True
False
WHICH OF THESE STRATEGIES ENSURES SELECTION OF RIGHT PERSON FOR THE RIGHT JOB?
FINANCE
HUMAN RESOURCES
STRATEGY FORMULATION IS A ____ PROCESS.
ANALYTICAL
INTERNAL
SWOT ANALYSIS IS USED AT ______ INTERVAL.
INFREQUENT
REGULAR
SWOT ANALYSIS CONVERTS THREATS INTO ______.
ADVANTAGES
DISADVANTAGES
_______ & THREATS ARE EXTERNAL FACTORS OVER WHICH THE BUSINESS HAS NO CONTROL.
OPPORTUNITIES
WEAKNESSES
WHICH ENVIRONMENT CONSISTS OF LARGER FACTORS LIKE POLITICAL, ECONOMIC & SOCIAL THAT AFFECT THE FIRMS?
MICRO
MACRO
STRATEGY _________ IS THE MAPPING THE BUSINESS LANDSCAPE.
FORMULATION
IMPLEMENTATION
WHICH INTEGRATION OCCURS WHEN A PRODUCING FIRM STARTS UNDERTAKING THE MARKETING AND DISTRIBUTION OF THE SAME PRODUCT?
FORWARD
BACKWARD
WHICH LEVEL STRATEGIES INCLUDES AREAS LIKE MARKETING, HR, FINANCE & OPERATIONS?
FUNCTIONAL
BUSINESS
A _____ STRATEGY MEANS TO PRODUCE GOODS & SERVICES THAT FULFILL THE NEEDS OF A NICHE GROUP OF CUSTOMERS.
DIFFERENTIATION
FOCUSSED COST LEADERSHIP
WHICH STRATEGIES HELP TAKE DECISIONS ON THE ADVERTISING OF THE PRODUCTS AND ITS SALE?
OPERATIONAL
MARKETING
FINANCE STRATEGY BALANCES THE FUND BETWEEN_______ & CURRENT ASSETS.
FIXED
MOVABLE
WHICH STRATEGY IS THE OPPOSITE OF INVESTMENT?
INTEGRATION
DIVESTMENT
STABILITY, GROWTH , RETRENCHMENT ARE TYPES OF WHICH STRATEGIES?
BUSINESS
CORPORATE
WHICH OF THESE IS A COMPETITIVE STRATEGY IN NATURE?
DIFFERENTIATION
FOCUS
WHICH OF THESE IS AN EXPANSION STRATEGY?
PROFIT
INTERNATIONAL
INTEGRATION STRATEGY _______SUPPLIER COSTS.
BALANCES
REDUCES
WHICH STRATEGY REVERSES THE PROCESS OF DECLINE IN BUSINESS?
DIVESTMENT
TURNAROUND
RETRENCHMENT STRATEGY SUPPORTS __________.
TURNAROUND
RESTRUCTURING
DIVERSIFICATION IS AN EXAMPLE OF WHICH GROWTH STRATEGY?
INTERNAL
EXTERNAL
Strategic management focuses on integrating management, , and information systems to achieve organizational success.
marketing
finance and accounting
production and operations
research and development
all of these
The price and quality of a firm’s products and services must be competitive on a worldwide basis, not just on a local basis.
True
False
Whenever a firm acquires a foreign firm and adopts that firm’s lower tax rate or establishes a holding company in a foreign country and adopts that firm’s lower tax rate, the transaction is called an _________.
Inversion
Evasion
Tax avoidance
Tax fraud
Tax exception
In 2015 a country that charges the highest tax rate is
Chad
UK
USA
UAE
Philippines
Papua New Guinea speak a total of (a) languages
The following are Cultural Pitfalls That May Help You Be a Better Manager. Which one is not?
Do not eat with your left hand when dining with clients from Malaysia or India.
Making a “good-bye” wave in Europe can mean “No,” but it means “Come here” in Peru.
Direct eye contact is impolite in Japan.
Nodding or tossing your head back in southern Italy, Malta, Greece, and Tunisia means “No.” In India, this body motion means “Yes.”
In Finland, touching your thumb and first finger—an American “Okay” sign—is the equivalent of raising your middle finger.
Globalization includes designing, producing, and marketing products with global needs in mind, instead of considering individual countries alone.
True
False
The following are the Top 10 Nations That Are Easiest To Do Business With in the world, except (You may click multiple answers)
Singapore
New Zealand
Denmark
Colombia
Turkey
Things to do before entering international markets
(You may check more than one)
Scan relevant journals and patent reports
seek the advice of academic and research organizations
participate in international trade fairs
form partnerships
conduct extensive research
The business people in this country embodies individualism, achievement, competition, curiosity, pragmatism, informality, spontaneity, and doing more than expected on the job
Mexico
USA
India
Philippines
Brazil
A vision statement answers the question, "What is our business?" whereas a mission statement answers, "What do we want to become?"
True
False
In the last five years, the position of chief strategy officer (CSO) has diminished so drastically that today it is almost unheard of for companies to have such a position on staff.
True
False
Commitment and understanding are the most important benefits of strategic management.
True
False
Making many intuitive decisions that conflict with the formal plan is one pitfall to avoid in strategic planning.
True
False
According to Greenley, strategic management offers all of the following benefits EXCEPT
increased discipline.
enhanced communication.
increased resistance to change.
increased synergy.
None of these
According to Webster's New World Dictionary, is "the science of planning and directing large-scale military operations, of maneuvering forces into the most advantageous position prior to actual engagement with the enemy."
competitive advantage
war
strategy
formulation
attack
Both business and military organizations must and to be successful.
be impervious to change; continually improve
adapt to change; continually improve
shun change; stay the course
be impervious to change; stay the course
Organizations should take a(n) approach in their industry.
adversarial rather than a collegial
collegial rather than an adversarial
reactive rather than a proactive
proactive rather than a reactive
cooperative rather than a competitive
During what stage of strategic management are a firm's specific internal strengths and weaknesses determined?
Formulation
Implementation
Evaluation
Feedback
Goal-setting
An external analysis is the process of scanning and evaluating an organization's various external environmental sectors to determine positive and negative trends that could impact on organizational performance.
True
False
The internal business environment consists of...
factors that directly impact the organisation
factors that influence the operations of the business
factors that influence the wider environment in which the business operates
When developing strategy for organization, which questions should we ask first?
How we will get there on a daily to weekly basis?
How are our departmental operational plans?
What are our short-term goals and operational objectives? How do we break down a larger strategic goal into workable tasks?
Where do we compete? What unique value do we bring to market? Which resources do we have or need? How do we sustain our value?
What does the "S" stand for in PESTLE?
Support
Short term
Social
Subsidiary
In the BCG matrix , which of the following the strategy is sell off (divest)?
Star
Cow
Question mark
Dog
Which is the FIRST step in the strategic Management process?
Monitoring and evaluating strategies
Developing the vision and mission
Strategy formulation
Goals and Objectives
Which is NOT a part of Porters 5 forces?
Bargaining power of Suppliers
Threat of New entrants
Bargaining power of customers
Financial threat
Strategic planning is....
Long term planning
Short term planning
General planning
Seasonal planning
A company’s strategic plan:
links the company’s financial targets to control mechanisms.
maps out the company’s history.
outlines the competitive moves and approaches to be used in achieving the desired business results
All the above
A formal written statement of management’s plans for a specified future time period, expressed in financial terms.
Budget
Proposal
Quotation
Management Letter
The selling price that will provide the desired profit on a product when the seller has the ability to determine the product’s price.
Target Selling Price
Negotiated Selling Price
Transfer Price
Cost-based transfer Price
The process used to identify the financial data that change under alternative courses of action is called:
Cost Volume Analysis
Break-even Analysis
Marginal Analysis
Incremental Analysis
The amount of revenue remaining after deducting variable costs.
Contribution Margin
Net Revenue
Net Profit
Residual Income
A key relationship in CVP analysis is the level of activity at which total revenues equal total costs (both fixed and variable). This is called:
Cost Volume Profit Analysis
Break-even Analysis
Marginal Analysis
Incremental Analysis
A study of the effects of changes in costs and volume on a company’s profits.
Cost Volume Profit Analysis
Break-even Analysis
Marginal Analysis
Incremental Analysis
A rate based on the relationship between estimated annual overhead costs and expected annual operating activity, expressed in terms of a common activity base.
Predetermined Overhead Rate
Underapplied Overhead
Overapplied Overhead
Fixed Overhead Rate
A performance-measurement approach that uses both financial and non-financial measures to evaluate all aspects of a company’s operations in an integrated fashion. The performance measures are linked in a cause and effect fashion to ensure that they all tie to the company’s overall objectives.
Balanced Scorecard
Theory of Constraints
Strategic Audit
Total Quality Management
This type of product costing applies to manufactures with a large volume of similar products.
Job Order Costing
Process Costing
Hybrid Costing
Activity Based Costing
Under this type of product costing, the company assigns costs to each job or to each batch of goods.
Job Order Costing
Process Costing
Hybrid Costing
Activity Based Costing
Companies allocate overhead based on each product’s use of activities in making the product. For example, companies can keep track of their cost of setting up machines for each batch of a production process. Then companies can allocate part of the total set-up cost to a particular product based on the number of set-ups that product required. This type of product costing is called.
Job Order Costing
Process Costing
Hybrid Costing
Activity Based Costing
This refers to all activities associated with providing a product or service.
Value Chain
Production
Sales and Marketing
Customer Relation
A report that provides details on cost elements used in calculating cost of goods manufactured.
Cost of Goods Manufactured
Cost of Goods Sold
Job Cost Sheet
None of the above
A costs that are matched with the revenue of a specific time period rather than included as part of the cost of a salable product. These are non manufacturing costs which includes selling and administrative expenses.
Period Cost
Product Cost
Fixed Cost
Variable Cost
The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is called:
Direct Labor
Indirect Labor
Variable Cost
Manufacturing Overhead
Raw materials that can be physically and directly associated with the finished product during the manufacturing process are called:
Direct Materials
Indirect Materials
Variable Cost
Manufacturing Overhead
Manufacturing consists of activities and processes that convert raw materials into finished goods. Manufacturing costs are typically classified into Direct Materials, Direct Labor and Manufacturing Overhead
True
False
As a result of the Sarbanes-Oxley Act of 2002, managerial accounting reports must now comply with generally accepted accounting principles (GAAP).
True
False
Involves the measuring, recording, and reporting of product costs. From the data accumulated, companies determine both the total cost and the unit cost of each product.
Managerial Accounting
Financial Accouting
Cost Accouting
Management Services
A field of accounting that provides economic and financial information for managers and other internal user is called:
Managerial Accounting
Financial Accounting
Cost Accounting
Auditing
Beginning finished goods inventory + Cost of Goods Manufactured - Ending finished goods inventory =
Purchases
Work in Process End
Work in Process, Beg
Cost of Good Sold
Primary users are internal managers
Financial Accounting
Management Accounting
Responsibility Accounting
Cost Accounting
Variance if the actual costs is less than the budget
Unfavorable Variance
No Variance
Favorable Variance
Cannot be determined
Is the assignment of accountability for costs or production results
Responsibility Accounting
Cost Accounting
Management Accounting
Financial Accounting
Financial accounting is concerned primarily with:
external reporting to investors, creditors, and government authorities
cost planning and cost controls
profitability analysis
providing information for strategic and tactical decisions
Management accounting includes all of the following EXCEPT
implementing strategies
developing budgets
preparing special studies and forecasts
preparing the statement of cash flows
Is the process of monitoring the company’s operations
Motivating
Planning
Supervising
Controlling
This process involves the conversion of direct (raw) materials, direct labor, and factory overhead into finished goods.
Merchandising Process
Cost Accounting Process
Manufacturing Process
Trading Process
It provides the detailed cost data that management needs to control current operations and plan for the future.
Cost Accounting
Management Accounting
Financial Accounting
Financial Analysis
The following are the inventories in Manufacturing, except
Cost of Good Sold
Raw Materials
Finished Goods
Work in Process
Which of the following groups would be LEAST likely to receive detailed management accounting
reports?
stockholders
sales representatives
production supervisors
managers
Which of the following descriptors refers to management accounting information?
It is verifiable and reliable.
It is driven by rules.
It is prepared for shareholders.
It provides reasonable and timely estimates.
Compensation of all manufacturing labor that can be traced to the cost object.
Direct Materials
Indirect Labor
Salary Expense
Direct Labor
The benefit given up when one alternative is chosen over another.
Standard Cost
Differential Cost
Opportunity Cost
Standard Cost
Inventoriable Cost
Period Cost
Non-Inventoriable Cost
Non-Manufacturing Cost
Product Cost
Which TWO of the following would be data rather than information?
Sales increase/decrease per product in last quarter
Total sales value per product
Total material usage
Sales staff commission as a percentage of total sales
Which of the following statements is correct?
Management accounting systems provide information for use in fulfilling legal requirements.
Management accounting systems provide information for the use of decision-makers within an organisation.
Management accounting systems provide information for use by shareholders.
Management accounting systems provide information for use by tax authorities.
Which of the following processes occurs at the business planning stage?
Obtaining data about actual results
Taking corrective action
Comparing actual performance with budge
Establishing objectives
Which of the following statements is/are correct?
(i) Information for decision-making should incorporate uncertainty in some way.
(ii) The data used to prepare financial accounts and management accounts are the same.
(i) is true and (ii) is false
(ii) is true and (i) is false
Both are true
Both are false
Monthly variance reports are an example of which one of the following types of management information?
Tactical
Strategic
Non-financial
Operational
Good information should have certain qualities.
Which TWO of the following are required as qualities of good management information?
Complete
Extensive
True and fair
Accurate
Which of the following statements is/are correct?
(i) A management control system is a term used to describe the hardware and software used to drive a database system which produces information outputs that are easily assimilated by management.
(ii) An objective is a course of action that an organisation might pursue in order to achieve its strategy.
(iii) Information is data that has been processed into a form meaningful to the recipient.
(i), (ii) and (iii)
(i) and (iii)
(ii) and (iii)
(iii) only
Which TWO of the following statements about management accounting information are true?
They may include non-financial information
They are required by law to be produced
They are used to aid planning
They are for use by parties external to the organisation
The sales manager has prepared a manpower plan to ensure that sales quotas for the forthcoming year are achieved. This is an example of what type of planning?
Strategic planning
Tactical planning
Operational planning
Corporate planning
Which TWO of the following statements about qualities of good information are true?
It should be relevant for its purposes
It should be communicated to the right person
It should be completely accurate
It should be provided whatever the cost
How does management accounting contribute to strategic planning and control?
By ignoring financial information and analysis
By providing valuable financial information and analysis for formulating strategic plans and monitoring performance.
By providing inaccurate financial information and analysis
By focusing only on short-term goals and neglecting long-term strategic planning
What are the different methods of costing used in management accounting?
Fixed costing, variable costing, and standard costing
Direct costing, indirect costing, and differential costing
Job costing, process costing, activity-based costing, and marginal costing
Historical costing, absorption costing, and uniform costing
Discuss the role of management accounting in decision-making.
Management accounting only provides irrelevant financial information
Management accounting is only used for record-keeping purposes
Management accounting has no role in decision-making
Management accounting provides relevant financial information to help management make informed decisions.
What are the key performance indicators (KPIs) used in management accounting?
Number of employees
Customer satisfaction
Financial and non-financial metrics
Company's mission statement
Explain the concept of variance analysis in management accounting.
Variance analysis is the method of comparing actual costs and revenues with industry averages to identify and explain differences.
Variance analysis involves comparing actual costs and revenues with budgeted or standard amounts to identify and explain differences.
Variance analysis is the process of comparing actual costs and revenues with competitors' data to identify and explain differences.
Variance analysis involves comparing actual costs and revenues with historical data to identify and explain differences.
What is a budget and how is it used in management accounting?
A budget is a type of financial report used to track employee attendance in management accounting.
A budget is a financial plan used to set targets, allocate resources, monitor performance, and make strategic decisions in management accounting.
A budget is a form of legal documentation used to file taxes in management accounting.
A budget is a tool used to measure customer satisfaction in management accounting.
Describe the concept of cost-volume-profit analysis in the context of a manufacturing company.
Cost-volume-profit analysis is a financial accounting technique that examines the relationship between revenue and expenses.
Cost-volume-profit analysis is a human resources technique that examines the relationship between employee costs and productivity.
Cost-volume-profit analysis is a management accounting technique that examines the relationship between costs, volume of production, and profit.
Cost-volume-profit analysis is a marketing technique that examines the relationship between costs and sales volume.
What are the different types of costs in management accounting?
Direct costs, indirect costs, fixed costs, variable costs, and semi-variable costs
Total costs, average costs, and marginal costs
Operating costs, production costs, and administrative costs
Direct costs, indirect costs, variable costs, and fixed costs
Explain the difference between financial accounting and management accounting in the context of a business scenario.
Financial accounting focuses on reporting past financial performance to external stakeholders, while management accounting focuses on providing information for internal decision-making and planning.
Financial accounting focuses on future financial performance, while management accounting focuses on reporting past performance.
Financial accounting and management accounting are the same and can be used interchangeably.
Financial accounting is used for internal decision-making, while management accounting is used for external reporting.
What is the primary purpose of management accounting?
Conducting market research and analysis
Managing human resources within the organization
Preparing financial statements for external stakeholders
Internal decision-making and planning
