Horngren’s Cost Accounting A Managerial Emphasis 17th Global Edition by Srikant M. Datar test bank

A) Cost-benefit approach
B) Customer focus
C) Customer relationship management
D) Total quality management
Answer:  D
Diff: 1
Objective:  3
AACSB:  Analytical thinking
 
14) Which of the following is an area that customers want to see improved levels of performance?
A) higher sales margin
B) quality of the product
C) lower marginal costs
D) profit margins
Answer:  B
Diff: 2
Objective:  3
AACSB:  Analytical thinking
 

 
15) Which of the following statements about a company's supply chain is true?
A) A company's supply chain is always internal to a firm.
B) A company's supply chain is always external to a firm.
C) A company's supply chain is the same thing as a company's value chain.
D) Management accountants provide information to enhance a company's supply chain.
Answer:  D
Diff: 2
Objective:  3
AACSB:  Analytical thinking
 
16) When managers determine whether it is less expensive to buy products from a vendor or make them in house they are performing:
A) cost-benefit analysis
B) supply-chain analysis
C) value-chain analysis
D) research and development
Answer:  A
Diff: 2
Objective:  3
AACSB:  Analytical thinking
 
17) The ________ function supports the six functions of value-chain analysis.
A) controlling
B) administration
C) planning
D) direction
Answer:  B
Diff: 1
Objective:  3
AACSB:  Analytical thinking
 
18) ________ aims to improve operations throughout the value chain and to deliver products and services that exceed customer expectations.
A) Total Quality Management
B) Innovation
C) Customer response time
D) Cost and efficiency
Answer:  A
Diff: 1
Objective:  3
AACSB:  Analytical thinking
 

 
19) New-product development time is the time taken to:
A) test the prototype and start the large scale production of a product
B) design and develop the prototype product
C) create new products and bring them to market
D) improvise existing products and re-launch them to market
Answer:  C
Diff: 2
Objective:  3
AACSB:  Analytical thinking
 
20) Customer response time involves:
A) the speed it takes a customer to respond to an advertisement and place an order
B) the speed at which an organization responds to customer requests
C) the speed it takes to develop a new product
D) the speed it takes an organization to develop a Total Quality Management (TQM) program
Answer:  B
Diff: 2
Objective:  3
AACSB:  Analytical thinking
 
21) Sustainability is a strategy to achieve long term:
A) cost reductions and efficiency objectives
B) financial and quality goals
C) financial, social, and environmental goals
D) innovation and technology goals
Answer:  C
Diff: 2
Objective:  3
AACSB:  Analytical thinking
 
22) The supply chain refers to the sequence of business functions in which customer usefulness is added to products or services.
Answer:  FALSE
Explanation:  The value chain refers to the sequence of business functions in which customer usefulness is added to products or services.
Diff: 2
Objective:  3
AACSB:  Analytical thinking
 
23) An effective way to cut costs is to eliminate activities that do NOT improve the product attributes that customers value.
Answer:  TRUE
Diff: 1
Objective:  3
AACSB:  Analytical thinking
 

 
24) For optimal planning success it is best if each business function within the value chain is performed one at a time in sequence.
Answer:  FALSE
Explanation:  Optimally, success is achieved when two or more of the individual business functions work concurrently as a team.
Diff: 2
Objective:  3
AACSB:  Analytical thinking
 
25) For best results, cost management emphasizes independently coordinating supply chain activities within your company and with other companies that act as suppliers and customers.
Answer:  TRUE
Diff: 2
Objective:  3
AACSB:  Analytical thinking
 
26) Technological innovation has led to shorter product-life cycles and increased the need to bring new products to market more rapidly.
Answer:  TRUE
Diff: 1
Objective:  2
AACSB:  Analytical thinking
 
27) Management accounting information helps managers calculate a target cost for a product by subtracting from the target price the net income per unit of product that the company wants to earn.