Strategic Management Accounting
Solved Exam Questions
Course Introduction
Strategic Management Accounting explores the use of accounting information in formulating and implementing business strategies. The course examines how management accounting practices can be aligned with organizational goals to enhance competitive advantage and value creation. Topics include cost management, performance measurement, budgetary control, and the integration of financial and non-financial data for strategic decision-making. Through case studies and real-world examples, students learn to analyze external and internal business environments, support strategic planning, and drive strategic change within organizations.
Recommended Textbook
Cost Management A Strategic Emphasis 7th Edition by Edward Blocher
Available Study Resources on Quizplus
20 Chapters
2503 Verified Questions
2503 Flashcards
Source URL: https://quizplus.com/study-set/2728
Page 2
Chapter 9: Short-Term Profit Planning:
CVP Analysis
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/54384
Sample Questions
Q1) With the enactment of the Sarbanes-Oxley Act of 2002, all public companies are now required by the SEC to disclose whether or not the company has:
A)An audit committee.
B)Human resources guidelines.
C)A code of ethics.
D)A management compensation plan.
E)None of the above.
Answer: C
Q2) The competitive strategy of differentiation is implemented by a firm's targeted, careful attention to a(n):
A)Specific feature of the product or service.
B)High efficiency level of production.
C)Broad possible market.
D)Aggressive competitive pricing plan.
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter
Available Study Resources on Quizplus for this Chatper
70 Verified Questions
70 Flashcards
Source URL: https://quizplus.com/quiz/54383
Sample Questions
Q1) Gordon Manufacturing produces high-end furniture products for the luxury hotel industry. Gordon has succeeded through excellence in design, careful attention to quality in manufacturing and in customer service, and through continuous product innovation. The manufacturing process at Gordon begins with a close consultation with each customer so that the finished product exactly meets the customer's specifications. This commonly means unique designs, special fabrics, and high levels of manufacturing quality. In addition, Gordon believes that a key competitive edge it has over other competitors is that it has an outstanding design staff that is able to work with customers to come up with product designs that go beyond the customer's expectations.
Required:
Present a value chain for Gordon Manufacturing with at least five activities and explain the role of each activity in the value chain.
Answer: Answer may vary
Feedback: One of a variety of possible answers follows: 11ea6dd6_96ee_4d0d_9c10_db9e46ed7dd3_TB2361_00
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Basic Cost Management Concepts
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/54382
Sample Questions
Q1) Factory overhead costs for a given period were 3 times as much as the direct material costs. Prime costs totaled $2,000. Conversion costs totaled $3,280. What are the direct labor costs for the period?
A)$1,220.
B)$1,360.
C)$1,410.
D)$1,540.
Answer: B
Q2) When cost relationships are linear, total variable costs will vary in proportion to changes in:
A)Direct labor hours.
B)Total material cost.
C)Total overhead cost.
D)Volume of production.
E)Machine hours.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Job Costing
Available Study Resources on Quizplus for this Chatper
118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/54381
Sample Questions
Q1) Depending on the nature of rework being done on a particular unit, the cost can be charged to one of three specific accounts. Which of the following is correct?
A)Abnormal rework is charged to a Loss from Abnormal Rework account.
B)Abnormal rework is charged to the Work-in-Process Inventory account.
C)Normal rework for a particular job is charged to that specific job's Finished Goods Inventory account.
D)Normal rework common to all jobs is charged to the Work-in-Process Inventory account.
E)Normal rework common to all jobs is charged to a Loss from Normal Rework account.
Q2) The normal cost of goods sold, before under or overapplied overhead is:
A)$1,332,600.
B)$1,354,700.
C)$1,336,700.
D)$1,373,600.
E)$1,339,300.
To view all questions and flashcards with answers, click on the resource link above.
6
Chapter 5: Activity-Based Costing and Customer
Profitability Analysis
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/54380
Sample Questions
Q1) Purchase order, set-up, and inspection costs are examples of:
A)Unit-level costs.
B)Batch-level costs.
C)Product-level costs.
D)Facility-level costs.
E)Department-level costs.
Q2) A volume-based rate is an appropriate overhead application base when:
A)Several well-differentiated products are manufactured.
B)Direct labor costs are large.
C)Direct material costs are large relative to direct labor costs incurred.
D)Only one product is manufactured.
E)Manufacturing is process-based.
Q3) ABC costing helps an organization implement its strategy through all of the following means except:
A)Providing accurate cost information.
B)Identifying the most profitable products and customers.
C)Helping improve cycle time.
D)Identifying value added and non-value added activities.
E)Providing a basis for effective utilization of capacity.
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Process Costing
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/54379
Sample Questions
Q1) From the industries listed below, which one is most likely to use process costing in accounting for production costs?
A)Printing shop.
B)Accounting firm.
C)Electrical contractor.
D)Steel mill.
E)Automobile repair shop.
Q2) Total equivalent units for conversion under the weighted-average method are calculated to be:
A)104,000 equivalent units.
B)71,600 equivalent units.
C)85,400 equivalent units.
D)72,000 equivalent units.
E)94,000 equivalent units.
Q3) How many units were started and completed in June?
A)12,000.
B)10,000.
C)14,000.
D)16,000.
E)18,000.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Cost Allocation: Departments, Joint Products, and
By-Products
Available Study Resources on Quizplus for this Chatper
96 Verified Questions
96 Flashcards
Source URL: https://quizplus.com/quiz/54378
Sample Questions
Q1) The amount of joint costs allocated to product M using the physical measure method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar):
A)$23,438.
B)$33,434.
C)$40,313.
D)$27,109.
E)$11,250.
Q2) If a budgeted activity base is used as the base in cost allocation, each department's cost allocation will be predictable, and not influenced by the:
A)Actual total cost.
B)Change in activity.
C)Variations from budget.
D)Errors in calculations.
E)Actual usage in other departments.
To view all questions and flashcards with answers, click on the resource link above.
9
Chapter 8: Cost Estimation
Available Study Resources on Quizplus for this Chatper
120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/54377
Sample Questions
Q1) Which of these job characteristics would result in the learning curve having less of an effect?
A)Repetitive tasks.
B)Working on an assembly line.
C)Use of robotics and computer-aided manufacturing.
D)Activities where teaching and learning take place.
Q2) The high-low method:
A)Always selects the highest and lowest data points.
B)Chooses the data points that are likely to produce a line that is representative of the data.
C)Chooses the highest and lowest data points for the dependent variable only.
D)Chooses the highest and lowest data points for the independent variable only.
Q3) Patterson Equipment Inc. produced a pilot run of 20 units of a recently developed motor used in the finished products. The pilot run required an average of 12 direct labor hours per motor. Patterson has an eighty percent learning curve on the direct labor hours needed to produce new motors.
Required:
Calculate the average direct labor hours per unit for the first 640 motors (including the pilot run) produced.
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Cvp Analysis
Available Study Resources on Quizplus for this Chatper
105 Verified Questions
105 Flashcards
Source URL: https://quizplus.com/quiz/54376
Sample Questions
Q1) Assuming that sales mix remains constant in units, what is the breakeven point in total units? (Round intermediate calculations to 2 decimal places and final answer to the nearest whole number.)
A)687.
B)711.
C)805.
D)945.
E)1,006.
Q2) The breakeven point is:
A)The sales volume at which revenues equal total cost plus an operating profit of zero.
B)The sales volume at which revenues equal variable cost and profit is zero.
C)The sales volume at which revenues equal fixed cost and profit is zero.
D)The point at which revenues meet the budget target.
E)The sales volume at which the total contribution margin exceeds total variable costs.
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Strategy and the Master Budget
Available Study Resources on Quizplus for this Chatper
146 Verified Questions
146 Flashcards
Source URL: https://quizplus.com/quiz/54375
Sample Questions
Q1) Brownsville's budgeted bad debts expense for May is:
A)$7,200.
B)$10,800.
C)$7,560.
D)$5,400.
E)$14,400.
Q2) Which of the following factors is least likely to be considered in preparing a sales budget?
A)Plant capacity.
B)General economic and industry conditions.
C)Past sales volume.
D)The cash budget.
E)Proposed selling expenses.
Q3) How many pounds of steel powder does Ardel Co. need to purchase during September if Ardel plans to manufacture 150,000 units of Zbox in September?
A)725,000 pounds.
B)745,000 pounds.
C)750,000 pounds.
D)755,000 pounds.
E)775,000 pounds.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Decision Making With a Strategic Emphasis
Available Study Resources on Quizplus for this Chatper
137 Verified Questions
137 Flashcards
Source URL: https://quizplus.com/quiz/54374
Sample Questions
Q1) A useful device for solving production problems involving multiple products and limited resources is:
A)Gross profit per unit of product.
B)Contribution per unit of scarce resource.
C)Value-stream costing.
D)Relevant cost pricing.
E)The contribution income statement.
Q2) The shadow price in a linear programming model is:
A)Interesting from a mathematical standpoint, but not useful from an accounting standpoint.
B)Equal to the current market price for an additional unit of the related resource.
C)The price one would be willing to pay for an additional unit of the scarce resource.
D)Greater than the market price for the related resource.
E)Zero for a binding constraint.
Q3) What strategic factors/considerations are generally relevant to the special order decision problem (i.e., whether a company should accept a one-time order from a customer with whom the company does not generally do business)?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Strategy and the Analysis of Capital Investments
Available Study Resources on Quizplus for this Chatper
167 Verified Questions
167 Flashcards
Source URL: https://quizplus.com/quiz/54373
Sample Questions
Q1) The internal rate of return (IRR) for an investment:
A)Frequently results in positive net present values on attractive projects.
B)Generally is greater than the company's desired rate of return.
C)Ignores the time value of money.
D)May produce different results than the net present value method (NPV) in evaluating projects with different useful lives.
E)Would tend to be reduced if a company used an accelerated method of depreciation for tax purposes.
Q2) Tyson Company has a pre-tax net cash inflow of $1,200,000. The company can claim depreciation expense of $500,000 this year. The company is subject to a combined income tax rate of 26%. What is the after-tax cash flow for the year?
A)$700,000.
B)$1,018,000.
C)$182,000.
D)$370,000.
E)$1,200,000.
To view all questions and flashcards with answers, click on the resource link above.
Page 14
Chapter 13: Cost Planning for the Product Life Cycle: Target
Costing, Theory of Constraints, and Strategic Pricing
Available Study Resources on Quizplus for this Chatper
94 Verified Questions
94 Flashcards
Source URL: https://quizplus.com/quiz/54372
Sample Questions
Q1) Target cost can be defined as:
A)Manufacturing cost - sales price.
B)Competitive price - desired profit.
C)Desired profit - market price.
D)Target price - manufacturing cost.
Q2) What price will the company charge if the firm uses cost-plus pricing based on variable manufacturing cost and a markup percentage of 200%?
A)$810.
B)$450.
C)$540.
D)$675.
E)Some other amount.
Q3) If Johnson determines price using a 20% markup of life cycle cost, the price is:
A)$262.50
B)$306.00
C)$375.00
D)$364.29
E)$330.00
To view all questions and flashcards with answers, click on the resource link above. Page 15
Direct-Cost Variances, and the Role of Nonfinancial
Performance Measures
Available Study Resources on Quizplus for this Chatper
178 Verified Questions
178 Flashcards
Source URL: https://quizplus.com/quiz/54371
Sample Questions
Q1) Which one of the following is the difference between the actual hourly wage rate and the standard hourly wage rate, multiplied by the actual direct labor hours worked during a period?
A)Total direct labor standard cost variance.
B)Direct labor efficiency variance.
C)Direct labor usage variance.
D)Direct labor flexible-budget variance.
E)Direct labor rate variance.
Q2) A flexible budget contains:
A)Cost targets based on actual output (e.g., sales volume) for the period.
B)Cost targets based on planned output (e.g., sales volume) for the period.
C)Actual costs incurred for the actual output of the period.
D)Costs and revenues for the difference between planned and actual output.
E)Costs based on actual output of the period, and revenue based on master budgeted output.
Q3) What was Mandy's direct labor rate variance for the month?
A)$15,120 unfavorable.
B)$20,880 unfavorable.
C)$23,490 unfavorable.
D)$42,480 favorable.
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 15: Operational Performance Measurement:
Indirect-Cost Variances and Resource-Capacity Management
Available Study Resources on Quizplus for this Chatper
167 Verified Questions
167 Flashcards
Source URL: https://quizplus.com/quiz/54370
Sample Questions
Q1) When there is a standard batch size for production activity:
A)A modification of the traditional approach to constructing the flexible budget for control purposes allows for a more detailed analysis of batch-related overhead costs.
B)It is not possible to construct a flexible budget for cost-control purposes.
C)Standard cost variances for only the variable portion of batch-related manufacturing overhead costs can be calculated.
D)The variable portion of the total flexible-budget variance for batch-related costs can be further decomposed into a spending and a volume variance, which leads to better cost control.
Q2) The fixed factory overhead production-volume variance represents:
A)Money lost or gained because of achieved production levels.
B)An artifact of unitizing fixed overhead costs for product-costing purposes.
C)Information regarding the effectiveness of the organization in meeting sales targets.
D)Information that management can use for cost-control purposes.
E)Important information for companies pursuing a JIT production philosophy.
To view all questions and flashcards with answers, click on the resource link above.
Page 18
Chapter 16: Operational Performance Measurement:
Further Analysis of Productivity and Sales
Available Study Resources on Quizplus for this Chatper
134 Verified Questions
134 Flashcards
Source URL: https://quizplus.com/quiz/54369
Sample Questions
Q1) Which one of the following is a productivity measure that focuses only on the relationship between one of the inputs and the output attained?
A)Financial productivity.
B)Total productivity.
C)Total financial productivity.
D)Productivity.
E)Partial productivity.
Q2) The sales quantity variance for Product Y is:
A)$4,000 favorable.
B)$25,000 favorable.
C)$26,000 favorable.
D)$45,000 favorable.
E)$52,000 unfavorablE.Total units: budget = 2,000 + 6,000 = 8,000; actual units = 1,500 + 8,500 = 10,000
Q3) A measure of productivity can be either:
A)Operational or financial.
B)Total or segmented.
C)Short-term or long-term.
D)Activity-based or TOC based.
Page 19
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: The Management and Control of Quality
Available Study Resources on Quizplus for this Chatper
147 Verified Questions
147 Flashcards
Source URL: https://quizplus.com/quiz/54368
Sample Questions
Q1) Product-quality-related costs are part of a total quality control program. A product-quality-related cost incurred in detecting individual products that do not conform to specifications is an example of a(n):
A)Prevention cost.
B)Appraisal cost.
C)Internal failure cost.
D)External failure cost.
E)Opportunity cost.
Q2) Which one of the following is not a category of the Cost of Quality (COQ) reporting model?
A)Value-stream cost.
B)External failure cost.
C)Internal failure cost.
D)Detection cost.
E)Prevention cost.
Q3) Value stream costing attempts to do all of the following except:
A)Reduce the need for cost allocations.
B)Increase tracing of direct costs to value streams.
C)Identify and accumulate all value-stream costs.
D)Eliminate the need for complex overhead allocation methods.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 18: Strategic Performance Measurement: Cost
Centers, Profit Centers, and the Balanced Scorecard
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/54367
Sample Questions
Q1) Using the balanced scorecard to describe the firm's strategy in detail through the use of a cause-and-effect diagram which is also known as a(n):
A)Status Diagram.
B)Strategy Map.
C)Performance Flowchart.
D)Organizational Diagram.
E)Operational Work-through.
Q2) Production or support SBUs within the firm that have the goal of providing the best quality product or service at the lowest cost are:
A)Revenue centers.
B)Contribution centers.
C)Profit centers.
D)Cost centers.
E)Investment centers.
Q3) Which of the following is an advantage of decentralization?
A)Promote coordination among SBUs.
B)Limits conflicts among SBUs.
C)Motivates managers.
D)Offers qualitative method of performance evaluation.
21
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Strategic Performance Measurement:
Investment Centers and Transfer Pricing
Available Study Resources on Quizplus for this Chatper
151 Verified Questions
151 Flashcards
Source URL: https://quizplus.com/quiz/54366
Sample Questions
Q1) Edwards Inc. manufactures electronics. It consists of several divisions operating investment centers. Division A desires to purchase materials from Division B at a price of $85 per unit. Division B can produce 25,000 units at full capacity, and is currently operating at 90% capacity with a variable cost of $80 per unit. Division B currently sells only to outside customers who pay $115 per unit. Division A pays an outside company $110 per unit. If purchased from Division B, B's variable costs would be $10 less because it would save on marketing expenses for these internal transfers. Division A requires 10,000 units.
Required:
1. How would Division B selling to Division A affect Division A's purchasing costs?
2. How would intercompany sales affect Division B?
3. What solution would be best for Edwards Inc., assuming Division B has the ability to operate at full capacity?
Q2) What special problems and opportunities arise in setting transfer prices in an international setting (i.e., for transfers between subunits that operate in different countries)? Hint: In terms of special problems, make sure you reference OECD requirements and practical implementation alternatives for general OECD requirements.)
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 20: Management Compensation, Business
Analysis, and Business
Valuation
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/54365
Sample Questions
Q1) Salary is:
A)A fixed payment that includes a bonus.
B)A fixed payment that includes benefits.
C)A benefit that includes a bonus.
D)A fixed payment.
Q2) Which of the following is a bonus payment option?
A)Increased health coverage.
B)Increased SBU funding.
C)Stock options.
D)Membership in a fitness club.
Q3) Jackson Supply Company has a 2 to 1 current ratio. This ratio would increase to more than 2 to 1 if the company:
A)Purchased a marketable security for cash.
B)Wrote off an uncollectible receivable.
C)Sold merchandise on account that earned a normal gross margin.
D)Purchased inventory on account.
To view all questions and flashcards with answers, click on the resource link above. Page 23