Question 1

The process which involves choosing among various sets of activities that are caused by competing strategies.

Accepted Answer

A)   Activity sharing
B)   Activity selection
C)   Activity elimination
D)   Activity reductionE) A) and D)
F) B) and D)

Question 2

The results or products of an activity are called:

Accepted Answer

A)   Activity inputs
B)   Driver analysis
C)   Activity outputs
D)   Value-added activitiesE) C) and D)
F) All of the above

Question 3

Which of the following is a financial measure of activity efficiency?

Accepted Answer

A)   activity flexible budgeting
B)   trends in activity costs
C)   benchmarking
D)   all of theseE) None of the above
F) B) and C) D

Question 4

A technique for improving performance of activities and processes that compares the number of times an activity can be performed to the number actually performed is called

Accepted Answer

A)   value-added activity reporting.
B)   activity flexible budgeting.
C)   activity capacity reporting.
D)   activity trend reporting.E) All of the above
F) C) and D)

Question 5

Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows:  The actual prices paid per unit of each activity driver were equal to the standard prices. The actual costs for receiving are

Accepted Answer

A)   $49,500.
B)   $67,500.
C)   $85,500.
D)   $18,000.E) A) and B)
F) A) and C)

Question 6

The effort to reduce costs of existing products and processes is named:

Accepted Answer

A)   Activity reduction
B)   Activity elimination
C)   Activity selection
D)   Kaizen costingE) A) and C)
F) B) and C) D

Question 7

Which of the following is descriptive of activity-based responsibility accounting?

Accepted Answer

A)   It assumes that activities can be collected into independent subgroups.
B)   Its focus is the organization.
C)   It assigns responsibility to processes.
D)   Its standards are engineered and tend to be static.E) B) and C)
F) A) and C)

Question 8

Which of the following is NOT an essential element of responsibility accounting?

Accepted Answer

A)   assigning responsibility
B)   establishing performance measures
C)   evaluating performance
D)   ridiculing poor performersE) C) and D)
F) All of the above

Question 9

Cheshire Cat Company sells one of its products for $100 each. Sales volume averages 750 units per year. Recently, its main competitor reduced the price of its product to $80. Cheshire Cat Company expects sales to drop dramatically unless it matches the competitor's price. In addition, the current profit per unit must be maintained. Information about the product (for production of 750)  is as follows:  The non-value-added cost per unit is

Accepted Answer

A)   $49.67.
B)   $48.33.
C)   $48.67.
D)   $51.67.E) None of the above
F) C) and D)

Question 10

A financial-based responsibility accounting system focuses on the assignment of responsibility to organizational units and measures performance in financial terms.

Accepted Answer

A) True 
 B)False

Question 11

Mendelsohn company keeps 20 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $4,000 per day. Bach, Inc., a competitor, keeps 10 days of inventory on hand, and the competitor's carrying costs average $2,000 per day. The non-value-added costs for the company are

Accepted Answer

A)   $-0-.
B)   $40,000.
C)   $20,000.
D)   $80,000.E) A) and B)
F) A) and C)

Question 12

Which of the following is NOT true about assigning rewards in activity-based responsibility accounting?

Accepted Answer

A)   Rewards are assigned based on budgetary standards.
B)   Rewards are assigned based on individual as well as team performance.
C)   Rewards are assigned based on progress towards optimal standards.
D)   Rewards include bonuses, profit sharing, and gainsharing.E) B) and C)
F) All of the above

Question 13

What is the purpose of driver analysis?

Accepted Answer

A)   identify activities in a process
B)   identify number of processes
C)   identify root causes of activity costs
D)   identify complexity of processesE) A) and B)
F) None of the above

Question 14

The activity-based management model has two dimensions: a cost dimension and a process dimension.

Accepted Answer

A) True 
 B)False

Question 15

The major source of information for the activity management system is

Accepted Answer

A)   driver analysis.
B)   an activity-based costing system.
C)   a performance measurement system.
D)   product information.E) A) and B)
F) A) and C)

Question 16

One of the major reasons for the failure of ABM is lack of upper management support.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is NOT part of the two-dimensional activity-based management model?

Accepted Answer

A)   personnel selection
B)   driver analysis
C)   resources
D)   performance measuresE) A) and D)
F) All of the above

Question 18

Activity-based management focuses management's attention on activities resulting in improving customer value and profits.

Accepted Answer

A) True 
 B)False

Question 19

Mattison Company has developed cost formulas for the drivers of the following production activities:  The budgeted inspection cost for 20 setups is

Accepted Answer

A)   $34,000.
B)   $40,000.
C)   $175,860.
D)   $30,000.E) All of the above
F) A) and B) A

Question 20

Which of the following is NOT a necessary essential element of activity-based responsibility accounting?

Accepted Answer

A)   Process management requires significant group activity.
B)   Performance evaluation employs dynamic standards.
C)   Performance evaluation uses only financial measures.
D)   Performance evaluation is based on optimal standards.E) B) and C)
F) All of the above

Exam 12: Activity-Based Management

The process which involves choosing among various sets of activities that are caused by competing strategies.

Correct Answer
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The results or products of an activity are called:

Correct Answer
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Which of the following is a financial measure of activity efficiency?

Correct Answer
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D

A technique for improving performance of activities and processes that compares the number of times an activity can be performed to the number actually performed is called

Correct Answer
verified

Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. The actual costs for receiving are

Correct Answer
verified

The effort to reduce costs of existing products and processes is named:

Correct Answer
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D

Which of the following is descriptive of activity-based responsibility accounting?

Correct Answer
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Which of the following is NOT an essential element of responsibility accounting?

Correct Answer
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Correct Answer
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A financial-based responsibility accounting system focuses on the assignment of responsibility to organizational units and measures performance in financial terms.

Correct Answer
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Correct Answer
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Which of the following is NOT true about assigning rewards in activity-based responsibility accounting?

Correct Answer
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What is the purpose of driver analysis?

Correct Answer
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The activity-based management model has two dimensions: a cost dimension and a process dimension.

Correct Answer
verified

The major source of information for the activity management system is

Correct Answer
verified

One of the major reasons for the failure of ABM is lack of upper management support.

Correct Answer
verified

Which of the following is NOT part of the two-dimensional activity-based management model?

Correct Answer
verified

Activity-based management focuses management's attention on activities resulting in improving customer value and profits.

Correct Answer
verified

Mattison Company has developed cost formulas for the drivers of the following production activities: The budgeted inspection cost for 20 setups is

Correct Answer
verified
A

Which of the following is NOT a necessary essential element of activity-based responsibility accounting?

Correct Answer
verified

Exam 12: Activity-Based Management

The process which involves choosing among various sets of activities that are caused by competing strategies.

Correct AnswerverifiedShow Answer

The results or products of an activity are called:

Correct AnswerverifiedShow Answer

Which of the following is a financial measure of activity efficiency?

Correct AnswerverifiedD

A technique for improving performance of activities and processes that compares the number of times an activity can be performed to the number actually performed is called

Correct AnswerverifiedShow Answer

Bandolero Corporation has developed ideal standards for four activities: labor, materials, inspection, and receiving. Information is as follows: The actual prices paid per unit of each activity driver were equal to the standard prices. The actual costs for receiving are

Correct AnswerverifiedShow Answer

The effort to reduce costs of existing products and processes is named:

Correct AnswerverifiedD

Which of the following is descriptive of activity-based responsibility accounting?

Correct AnswerverifiedShow Answer

Which of the following is NOT an essential element of responsibility accounting?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A financial-based responsibility accounting system focuses on the assignment of responsibility to organizational units and measures performance in financial terms.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is NOT true about assigning rewards in activity-based responsibility accounting?

Correct AnswerverifiedShow Answer

What is the purpose of driver analysis?

Correct AnswerverifiedShow Answer

The activity-based management model has two dimensions: a cost dimension and a process dimension.

Correct AnswerverifiedShow Answer

The major source of information for the activity management system is

Correct AnswerverifiedShow Answer

One of the major reasons for the failure of ABM is lack of upper management support.

Correct AnswerverifiedShow Answer

Which of the following is NOT part of the two-dimensional activity-based management model?

Correct AnswerverifiedShow Answer

Activity-based management focuses management's attention on activities resulting in improving customer value and profits.

Correct AnswerverifiedShow Answer

Mattison Company has developed cost formulas for the drivers of the following production activities: The budgeted inspection cost for 20 setups is

Correct AnswerverifiedA

Which of the following is NOT a necessary essential element of activity-based responsibility accounting?

Correct AnswerverifiedShow Answer

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D

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D

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A

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