c.
preparing reports for the tax authorities
d.
preparing a statement of cash flows
ANSWER:
a
12. Which of the following cost management tools supports the firm's concentration on the delivery of value to the customer?
a.
service industry growth
b.
global competition
c.
preparing an earnings report for external reporting
d.
value-chain analysis
ANSWER:
d
13. Factors that have led to a global market for manufacturing and service firms are
a.
improved transportation and communications systems.
b.
improved telemarketing and communications.
c.
improved distribution and transportation systems.
d.
None of these factors have contributed.
ANSWER:
a
14. Which of the following activities is NOT significant to the advancement of information technology?
a.
enterprise resource planning software
b.
emergence of electronic commerce
c.
theory of constraints
d.
decision support systems
ANSWER:
c
15. Software that has integrated system capability using real time data is
a.
enterprise resource planning software.
b.
on-line analytic programs.
c.
computer-assisted engineering software.
d.
none of the above.
ANSWER:
a
16. Automation of the manufacturing environment is associated with increases in
a.
inventory.
b.
capacity.
c.
processing time.
d.
none of these.
ANSWER:
b
17. Total quality management emphasizes
a.
zero defects.
b.
continual improvement.
c.
elimination of waste.
d.
all of the above.
ANSWER:
d
18. Which of the following emerging themes in cost accounting deals with managers striving to create an environment that will enable workers to manufacture perfect (zero-defect) products?
a.
advances in information technology
b.
time as a competitive element
c.
global competition
d.
total quality management
ANSWER:
d
19. Competitive advantage is established by
a.
providing more customer products than competitors.
b.
providing better quality than competitors.
c.
providing greater customer value for less cost than competitors.
d.
providing greater efficiencies than competitors.
ANSWER:
c
20. Improvement in time performance is most likely NOT enhanced by
a.
redesign of products.
b.
adding processes in production.
c.
eliminating waste.
d.
eliminating nonvalue-added activities.
ANSWER:
b
21. 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
22. Accounting
a.
always has an external orientation.
b.
always has an internal orientation.
c.
information assists in planning and controlling.