b. providing better quality than competitors.
c. providing greater customer value for less cost than competitors.
d. providing greater efficiencies than competitors.
ANSWER: c
15. Improvement in time performance is most likely NOT enhanced by
a. redesign of products.
b. adding processes in production.
c. eliminating waste.
d. eliminating non-value-added activities.
ANSWER: b
16. Which of the following statements is NOT true about world-class firms?
a. World-class firms are firms that are poor in customer support.
b. World-class firms know their market and their products.
c. World-class firms strive continually to improve product design, manufacture, and delivery.
d. World-class firms can compete with the best of the best in a global environment.
ANSWER: a
17. Accounting
a. always has an external orientation.
b. always has an internal orientation.
c. information assists in planning and controlling.
d. terms serve as a model of the organization.
ANSWER: c
18. Monitoring the number of defects produced is an example of the management function of
a. planning.
b. control.
c. decision-making.
d. both planning and decision-making.
ANSWER: b
19. The setting of objectives and the identification of methods to achieve those objectives is called
a. planning.
b. controlling.
c. performance evaluation.
d. decision-making.
ANSWER: a
20. Comparing actual quality costs with planned quality costs is an example of
a. planning.
b. controlling.
c. performance evaluation.
d. both controlling and performance evaluation.
ANSWER: d
21. Which of the following statements correctly distinguishes between financial and management accounting?
a. Management accounting reports on the whole organization.
b. Financial accounting is oriented toward the future.
c. Financial accounting is primarily concerned with providing information for internal users.
d. Management accounting is oriented more toward the planning and control aspects of management.
ANSWER: d
22. Setting the company's profit targets for the upcoming year is an example of the management function of
a. planning.
b. control.
c. variance analysis.
d. internal auditing.
ANSWER: a
23. Setting the selling price of a company's product is an example of
a. planning.
b. control.
c. decision-making.
d. all of the above.
ANSWER: c
24. Developing a company strategy for responding to anticipated new markets is an example of
a. planning.
b. control.
c. decision-making.
d. all of the above.
ANSWER: a
25. The planning process includes
a. setting objectives.
b. identifying means of achieving the objectives.
c. making decisions.
d. all of the above.
ANSWER: d
26. Investigating production variances and adjusting the production process is an example of
a. planning.
b. control.
c. internal auditing.
d. both planning and internal auditing.
ANSWER: b
27. Evaluating the performance of a segment of the company is an example of
a. planning.
b. control.
c. internal auditing.
d. both planning and internal auditing.
ANSWER: b
28. Determining the bid your company should submit on a construction contract is an example of
a. planning.
b. control.
c. decision-making.
d. both planning and control.
ANSWER: c
29. The formulation of a scheme or program for the accomplishment of a specific purpose or goal is referred to as
a. controlling.