Strategic Management Accounting Exam Bank
Course Introduction
Strategic Management Accounting explores the use of accounting information for strategic decision-making within organizations. The course covers advanced topics such as the integration of financial and non-financial data, performance measurement systems, activity-based costing, value chain analysis, and competitor analysis. Students learn how to align accounting practices with organizational strategy, support long-term planning, and assess the impact of managerial decisions on business performance. Emphasis is placed on contemporary developments and real-world case studies to equip students with practical skills for enhancing organizational value through effective management accounting strategies.
Recommended Textbook Management Accounting 2nd Edition by
Leslie G. Eldenburg
Available Study Resources on Quizplus
20 Chapters
1520 Verified Questions
1520 Flashcards
Source URL: https://quizplus.com/study-set/3533
Page 2
Chapter 1: The Role of Accounting Information in Management Decision Making
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/70182
Sample Questions
Q1) Incremental cash flows are relevant for decision making.
A)True
B)False
Answer: True
Q2) The process of making higher quality business decisions requires each of the following except
A) Distinguishing between relevant and irrelevant information
B) Recognising and evaluating assumptions
C) Considering organisational values and core competencies
D) Relying on preconceived notions to make decisions more quickly
Answer: D
Q3) Analysing the strengths and weaknesses of different alternatives includes all of the following except
A) Recognising and evaluating assumptions
B) Drawing a conclusion about which alternative is best overall
C) Gauging the quality of information
D) Considering different viewpoints
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Cost Concepts, Behaviour and Estimation
Available Study Resources on Quizplus for this Chatper
88 Verified Questions
88 Flashcards
Source URL: https://quizplus.com/quiz/70181
Sample Questions
Q1) Milano Company has an average overhead cost per hour of $10.50 at 3,500 machine hours, and at 3,000 hours it is $11.25. The company managers wish to estimate the overhead cost function. What is the variable overhead cost per machine hour?
A) $1.00
B) $2.00
C) $6.00
D) $8.00
Answer: C
Q2) The high-low method is a specific application of this method of cost estimation
A) Two-point
B) Scatter plot
C) Engineered estimate of cost
D) Analysis at the account level
Answer: A
Q3) Fixed costs per unit
A) Vary inversely with changes in volume
B) Change regardless of changes in volume
C) Will not change over the relevant range
D) Increase with an increase in volume
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: A Costing Framework and Cost Allocation
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/70180
Sample Questions
Q1) The method that allocates support department costs by ignoring all services rendered between support departments is:
A) the direct method
B) the step-down method
C) the reciprocal method
D) the dual-rate method
Answer: A
Q2) Indirect costs can also be referred to as overhead costs.
A)True
B)False
Answer: True
Q3) The reciprocal method is more likely to cause support department managers to control their use of other support department services than is the direct method.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Cost-Volume-Profit Cvp Analysis
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/70179
Sample Questions
Q1) Which of the following techniques examine changes in profits in response to changes in volume, costs, and prices?
A) Activity-based costing
B) Financial statement analysis
C) Cost-volume-profit analysis
D) Balanced scorecard
Q2) Managers should consider which of the following in CVP analysis
I Assumptions
II Uncertainties
III Biases
A) I and III only
B) II and III only
C) I and II only
D) I, II, and III
Q3) On a cost-volume-profit graph, the breakeven point is located where the fixed cost line intersects the x-axis.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Job Costing Systems
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/70178
Sample Questions
Q1) The cost of normal spoilage arising from the requirements of a specific job:
A) is charged to general overhead
B) is charged to the job
C) is charged to the income statement as a loss
D) none of the above
Q2) Prime costs are $72,000 for the period and overhead is 40% of the period's total manufacturing costs. If beginning work in process was $12,500 and ending work in process is $10,000 the cost of goods manufactured is:
A) $122,500
B) $120,000
C) $74,500
D) $182,500
Q3) Under a job costing system, as actual overhead costs are incurred, they are debited to an overhead control account.
A)True
B)False
Q4) The accounting standard dealing with inventories is AASB 102.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Process Costing Systems
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/70177
Sample Questions
Q1) When an organisation uses a long-term procurement contract, direct labor costs are normally stable over long periods of time.
A)True
B)False
Q2) Conversion costs may be separated into direct labor and overhead when it is relatively easy to track direct labor and the use of labor occurs in a different pattern than the use of overhead resources.
A)True
B)False
Q3) Xeno Ltd operates a process costing system and uses the FIFO method. Beginning work in process consists of 1,000 units, 30% complete. Ending work in process is 15% complete, and direct materials are added at the 20% point. The equivalent units of production for materials are 14,000 and for conversion costs are 18,000. The number of units started this month was
A) 15,000
B) 18,000
C) 36,000
D) 37,000
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Absorption, Variable and Throughput Costing
Available Study Resources on Quizplus for this Chatper
102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/70176
Sample Questions
Q1) Brady Ltd uses a normal absorption costing system in which the overhead rate and variable manufacturing costs have remained unchanged for the last 2 years. During the current year the following activity occurred: The firm had no beginning or ending work in process inventories. However, there were 1,000 units in beginning finished goods. If variable costing had been used, operating profit would be
A) $27,040
B) $56,560
C) $52,960
D) $45,040
Q2) When calculating an estimated fixed production cost overhead allocation rate, accountants choose the
A) Allocation base to use as the denominator
B) Allocation base to use as the numerator
C) Allocation base to use as the rate
D) Allocation base that minimises total fixed production overhead
Q3) Synonyms for variable costing include direct costing and marginal costing.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 8: Activity Analysis: Costing and Management
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/70175
Sample Questions
Q1) One of the uncertainties associated with ABC and ABM systems is employee response to design and implementation of the system.
A)True
B)False
Q2) Phuong is a customer of PVL Ltd. She consistently orders low-margin products, but requires costly services from PVL. In employing ABM techniques to manage customer profitability, PVL's staff should
A) Make no changes in service to Phuong
B) Develop creative approaches to managing Phuong as a customer
C) Require Phuong to pay for all orders in cash
D) Classify Phuong as a value-added customer and increase the amount of services provided to her
Q3) An allocation base is
A) Normally related to cost changes in a traditional costing system
B) A measure of activity that causes costs to fluctuate
C) Seldom related to cost changes in an ABC system
D) Often used incorrectly as a synonym for "cost driver"
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Relevant Costs for Decision Making
Available Study Resources on Quizplus for this Chatper
122 Verified Questions
122 Flashcards
Source URL: https://quizplus.com/quiz/70174
Sample Questions
Q1) Wolff Ltd. sells product P at a price of $38 a unit. The per-unit cost data are: direct materials $8, direct labor $10, and overhead $12 (25% fixed and 75% variable). Wolff has sufficient capacity to accept a special order for 40,000 units just received. Selling costs associated with this order would be $3 per unit. At a selling price of $33 per unit, the operating profit will
A) Increase by $60,000
B) Increase by $80,000
C) Increase by $120,000
D) Increase by $160,000
Q2) Yvonne and Ken own and operate Deluxe Housecleaning Service. Which of the following is a qualitative factor associated with dropping carpet cleaning from their current line of services?
A) The timeliness with which they can provide other cleaning services
B) The quality of their current carpet cleaning equipment
C) The potential effect on demand for their other services
D) The lost revenue from current customers
Q3) One way to deal with constrained resources is to spend money to alleviate them.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 11
Chapter 10: Standard Costs, Flexible Budgets and Variance Analysis
Available Study Resources on Quizplus for this Chatper
104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/70173
Sample Questions
Q1) Everett Ltd budgeted $1,488,000 for total overhead. The standard variable overhead rate was $2 per direct labor hour, or $6 per unit, based on an anticipated activity level of 600,000 direct labor hours. During the year 220,000 units were produced. Fixed overhead costs incurred were $300,000. The variable overhead budget variance was $19,800 unfavorable, and the actual variable overhead rate was $2.10 per direct labor hour. The standard fixed overhead rate per direct labor hour was
A) $0.48
B) $0.90
C) $0.50
D) $0.96
Q2) Theft of raw materials is most likely to lead to
A) Direct materials price variance
B) Favorable direct materials price variance
C) Unfavorable direct materials efficiency variance
D) Favorable direct materials efficiency variance
Q3) Errors in the accounting records related to actual production output could lead to a fixed overhead production volume variance.
A)True
B)False
Page 12
To view all questions and flashcards with answers, click on the resource link above.
Chapter 11: Operational Budgets
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/70172
Sample Questions
Q1) Matz Ltd expects to sell 24,000 units of finished goods over the next 6-month period. The company has 10,000 units on hand and its managers want to have 14,000 units on hand at the end of the period. To produce one unit of finished product, two units of direct materials are needed. Matz has 100,000 units of direct material on hand and has budgeted for an ending inventory of 110,000 units. What is the number of finished units to be produced?
A) 38,000
B) 28,000
C) 20,000
D) 24,000
Q2) When evaluating actual results at the end of an accounting period, the static budget provides an appropriate benchmark for actual operations.
A)True
B)False
Q3) Master budgets are often summarised in a company's short-term operating plans.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Strategy and Control
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/70171
Sample Questions
Q1) The statement that is incorrect concerning the 'StratEx' (strategic expenditure) component under the Kaplan and Norton's framework, is:
A) This type of expenditure generally involves investment assets that require a different form of analysis to tangible assets,
B) This type of expenditure should have its own line in the income statement.
C) This type of expenditure is generally given priority by the firm above more routine types of expenditure
D) This type of expenditure does not always have a simple causal relationship with sales and operating levels
E)g. research and development, training.
Q2) Strategy can be viewed at which level?
A) Corporate level
B) Business unit level
C) Task level
D) both a and b
Q3) Overproduction is a non-value added activity.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
14
Chapter 13: Planning and Budgeting for Strategic Success
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/70170
Sample Questions
Q1) The statement that is true in relation to engineering cost centres is:
A) Planning is more difficult in engineering cost centres than in discretionary cost centres
B) The research and development department of an organisation is likely to be an engineering cost centre
C) In a manufacturing firm departments where standard products are produced are likely to be engineering cost centres
D) All of the statements are true
Q2) The primary disadvantage of zero-based budgeting is
A) Its tendency to motivate managers to create budgetary slack
B) It encourages managers to spend all their budgeted money each year to avoid future cutbacks
C) It ignores the input of managers
D) The time it takes to develop a zero-based budget
Q3) In any planning exercise, profit is regarded as the key independent variable.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Capital Budgeting and Strategic Investment Decisions
Available Study Resources on Quizplus for this Chatper
93 Verified Questions
93 Flashcards
Source URL: https://quizplus.com/quiz/70169
Sample Questions
Q1) A negative net present value means that the
A) Internal rate of return is less than the required rate of return
B) Project is acceptable
C) Present value of the inflows exceeds the present value of the outflows
D) Company chose the wrong discount rate
Q2) George Shaw & Co invested in a project that was to last for 2 years. The project has an internal rate of return of 12%. The project is expected to produce cash inflows of $70,000 in the first year and $80,000 in the second year. The project cost is
A) $143,760
B) $142,510
C) $150,000
D) $126,270
Q3) Which of the following is not a step in the process for addressing capital budgeting decisions?
A) Identify decision alternatives.
B) Identify financial statement effects.
C) Apply quantitative analysis techniques.
D) Perform sensitivity analysis.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: The Strategic Management of Costs and Revenues
Available Study Resources on Quizplus for this Chatper
109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/70168
Sample Questions
Q1) In cost-based pricing, managers must use only variable costs in the cost base. A)True
B)False
Q2) List the three product characteristics that a target costing design team would choose to enhance or minimise as they make trade-offs to achieve the target cost. Describe two of the types of trade-offs they may consider. Correct
Q3) The supply chain involves suppliers, but not customers. A)True
B)False
Q4) The Internet is likely to
A) Decrease price elasticity of demand because transactions are numerous and quick
B) Have no impact on price elasticity of demand because few people do business on the Internet
C) Increase price elasticity of demand because of the availability of substitute products
D) Decrease price elasticity of demand because of the availability of complementary products
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Strategic Management Control: a Lean Perspective
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/70167
Sample Questions
Q1) NRL's accounting information system reported warranty repair and product replacement costs totaling $120,000 in a recent accounting period. These costs are an example of which type of quality costs?
A) Internal activity costs
B) External activity costs
C) Appraisal activity costs
D) Prevention activity costs
Q2) Lean accounting is based on the philosophy
A) that there should be a complete employee-focused approach in the organisation
B) that there should be a complete shareholder-focused approach in the organisation
C) that there should be a complete customer-focused approach in the organisation
D) that there should be a complete management-focused approach in the organisation
Q3) Just-in-time manufacturing is dedicated to:
A) having excessive amounts of materials on hand at all times
B) having the right amount of materials at the time they are needed
C) having no materials on hand at any time
D) having to order materials when the factory runs out
To view all questions and flashcards with answers, click on the resource link above.
Page 18
Chapter 17: Responsibility Accounting, Performance
Evaluation and Transfer Pricing
Available Study Resources on Quizplus for this Chatper
63 Verified Questions
63 Flashcards
Source URL: https://quizplus.com/quiz/70166
Sample Questions
Q1) The Geelong Division of the Wasson Widget Co. requires a 12% rate of return. During a recent year Shannon had a net profit of $400,000 and a residual income of $250,000. What was its ROI?
A) 32%
B) 15%
C) 12%
D) 26%
Q2) Return on investment is typically calculated as net profit divided by total sales. A)True B)False
Q3) A segment with an ROI of 30% has a profit of $84,000. The company's required rate of return on segment investments is 18%. The segment's residual income is
A) $50,400
B) $25,200
C) $26,712
D) $33,600
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: The Balanced Scorecard and Strategy Maps
Available Study Resources on Quizplus for this Chatper
83 Verified Questions
83 Flashcards
Source URL: https://quizplus.com/quiz/70165
Sample Questions
Q1) In which order should the following steps be taken in implementing a balanced scorecard? 1 Develop links among the objectives of the organisation, divisions, departments, and individuals.
2 Provide feedback to employees and others.
3 Establish action plans and specific performance targets
A) 1, 2, 3
B) 2, 1, 3
C) 3, 2, 1
D) 1, 3, 2
Q2) Which of the following is an implementation mistake related to the balanced scorecard?
A) Beginning by clarifying organisational vision
B) Linking objectives to strategies
C) Defining objectives in too general a manner
D) Integrating vision and strategies into operations in a more complete manner
Q3) The balanced scorecard may be inappropriate for
A) Compensating employees
B) Motivating employees
C) Generating improved financial performance
D) Improving communication
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Rewards, Incentives and Risk Management
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/70164
Sample Questions
Q1) Which of these is correct concerning agency theory? Normally the
A) Chief Executive Officer (CEO) is a principal and an agent
B) Chief Executive Officer (CEO) is a principal only
C) Chief Executive Officer (CEO) is an agent only
D) None of the above is correct
Q2) Which of these is a not a policy in a banking group that would help reduce company risk?
A) Requiring more scrutiny of less successful traders and less of the more successful
B) Requiring all employees to take regular holidays
C) Ensuring that incentive systems don't encourage excessive risk taking
D) None of the above, i.e. all are policies that would help reduce company risk
Q3) "Reduce costs by 5%" is an example of a(n)
A) measurement
B) agency cost
C) benchmark
D) reward
Q4) Reward systems at top management level are most commonly fixed payment packages.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Sustainability Management Accounting
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/70163
Sample Questions
Q1) Currently many organisations are well on their way to being sustainable.
A)True
B)False
Q2) A key goal relating to sustainability and sustainable development is to:
A) live within our environmental resource limits
B) achieve social justice
C) foster economic and social progress
D) all of the above are key goals
Q3) The three sustainability management goals of economic, environmental, and social sustainability are generally in harmony.
A)True
B)False
Q4) A principle of sustainable operations is 'what goes in must come out'. The input that doesn't match its output is:
A) External produced electricity from coal fired power stations - municipal waste
B) Oranges in a juice factory - orange peel that is turned into stock feed
C) Packaging - recyclable waste
D) Gold production - arsenic and heavy metals
To view all questions and flashcards with answers, click on the resource link above.
Page 22