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1. The five stages in the process of keeping an organization in control are:planning, implementing, measuring, evaluating and correctingplanning, executing, monitoring, evaluating and correcting

budgeting, implementing, monitoring, evaluation and feedbackbudgeting, executing, measuring, feedback and evaluation

2. Which B!T describes the purpose of a management accounting and control s"stem#$%&!'(

% $%&! defines the value chain and identifies nonvalue)added activities for abusiness.

A MACS helps decision makers determine whether strategies and objectives are

being met.

% $%&! offers a s"stem of controls to ensure emplo"ees are meeting predeterminedstandards.

d. % $%&! provides a signal for management attention *hen areas are out)of)

control.

+. Total)life)c"cle costing is the name given to:a method of cost planning to reduce manufacturing costs to targeted levelsthe process of examining each component of a product to determine *hether its cost

can be reducedthe process of managing all costs along the value chain

a s"stem that focuses on reducing costs during the manufacturing c"cle

. ---------- starts *ith the estimated product costs and next determines the estimatedselling price.!tandard costingTarget costingaizen costingTraditional costing

/. %ll of the follo*ing are true regarding target costing except that:improvements are implemented in small, incremental amounts

customer input is collected continuall" throughout the target costing processinput is re0uested from suppliers and distributorsa ke" goal is to minimize o*nership costs over the products useful life

. 3elevant costs for target costing include:variable manufacturing costsvariable manufacturing and variable nonmanufacturing costsall fixed costs

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all future costs, both variable and fixed

4.The follo*ing information applies to 5uestions 4 through 16.

%fter conducting a market research stud", !chultz $anufacturing decided to produce ane* interior door to complement its exterior door line. 7t is estimated that the ne* interiordoor can be sold at a target price of 86. The annual target sales volume for interior doorsis 26,666. !chultz has a 269 expected return on sales target.

What are target sales revenues(86,66682,666,666!,"##,###

;one of the above is correct.

$ %# x "#,###

$ !,"##,###

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8/

$ (%#,### + "#,###

$ &*

11. The Balanced !corecard is said to be >balanced? because it measures:short)term and long)term ob@ectivesfinancial and nonfinancial objectives

internal and external ob@ectives%ll of the above are correct.

12. The ---------- perspective of the Balanced !corecard focuses on creating value for

customers.Aalueinancial!takeholderCustomer

1+. 7f a performance measure in the customer perspective of the Balanced !corecard *ascustomer lo"alt", then a driver from the process perspective *ould $C!T likel" be:

implementing cutting)edge technolog"repeat saleshigh)ualit- production processes

increased profits

1. Which of the follo*ing statements is true(ision and mission statements set the general direction for the organi/ation.!trateg" is a concise, internall")focused statement of ho* the organization expects

to compete and deliver value to customers.$ission is a concise, externall")focused statement that expresses ho* the

organization *ants to be perceived b" the external *orld.Aision is about selecting the set of activities to create a sustainable difference in the

marketplace.

1/. The follo*ing information applies to 5uestions 1/ and 1.argo &orporation plans to gro* b" offering a sound s"stem, the ;7&D2, *hich issuperior and uni0ue from the competition. argo believes that putting additionalresources into 3EF and sta"ing ahead of the competition *ith technological innovationsis critical to implementing its strateg".

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argos value proposition is:product innovation and leadership

lo*est total costcomplete customer solutions

emplo"ees recognizing customer needs

1. To further the compan"s strateg", measures on the Balanced !corecard *ould $C!Tlikel" include:

shorter c"cle timesmanufacturing ualit-

"ieldlo*est cost supplier

14. The follo*ing information applies to 5uestions 14.

!plashdo*n &orporation manufactures *ater to"s. 7t plans to gro* b" producing high)0ualit" *ater slides at a lo* cost that are delivered in a timel" manner. There are anumber of other manufacturers *ho produce similar *ater slides. !plashdo*n believesthat continuousl" improving its manufacturing processes and having satisfied emplo"eesare critical to implementing its strateg".

!plashdo*ns value proposition is:product innovation and leadershipcomplete customer solutionsemplo"ees recognizing customer needslowest total cost

1

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%ll of the above are correct

26. !uccessful implementation of the Balanced !corecard:ma" be completed b" one important member of the senior management team, such

as the chief financial officerinvolves ever-one in the organi/ation knowing and understanding the strateg-should not begin until data are collected for all scorecard measuresstarts *ith a process to ac0uire a ne* data collection s"stem