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15 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Which of the following statements best describes the difference between a financial-based responsibility accounting system and an activity-based responsibility accounting system?
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a.) The basic unit for a financial-based responsibility accounting system is a business unit or individual: the basic unit for an activity-based responsibility accounting system is the product life cycle.
b.) The FBRAS emphasizes individual awards: the ABRAS claims that all reward systems are dysfunctional. c.) The FBRAS emphasizes cost control: the ABRAS emphasizes cost reduction. d.) The FBRAS reward system is focused on the individual award: the ABRAS reward system is focused on more activity. |
c.)
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Which of the following aspects of activity analysis focuses on nonvalue-added activities?
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a.) Activity costing
b.) Activity elimination c.) Activity reduction d.) Activity selection e.) Activity sharing |
b.) Activity elimination
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Using the best practices for a given activity as the standard for evaluating activity performance is known as:
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a.) Trend reporting
b.) Driver analysis c.) Flexible budgeting d.) Benchmarking e.) Interim Standards |
d.) Benchmarking
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Which of the following statements is correct?
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a.) Value-added costs are all costs caused by value-added activities.
b.) Nonvalue-added costs are all costs caused by either nonvalue-added activities or the inefficient performance of value-added activities. c.) value-added activities include only those activities that are related to profitably selling a product or service. d.) nonvalue-added activities include most overhead costs. |
b.) Nonvalue-added costs are all costs caused by either nonvalue-added activities or the inefficient performance of value-added activities.
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A company keeps 20 days of raw materials inventory on hand to avoid shutdowns due to raw materials shortage. carrying costs average $4000 per day. A competitor keeps 20 days of inventory on hand, and the competitors carrying costs average $2000 per day. The value-added costs of carrying inventory at the given company are:
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a.) $80000
b.) $40000 c.) $20000 d.) $0 |
d.) $0
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Inspection of incoming raw materials in an example of which category of quality cost?
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a.) Appraisal costs
b.) External failure costs c.) internal failure costs d.) Prevention costs e.) this is not a cost of quality |
a.) Appraisal costs
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Rework is an example of which category of quality cost?
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a.) Appraisal costs
b.) external failure costs c.) internal failure costs d.) Prevention costs e.) this is not a cost of quality |
c.) internal failure costs
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ISO 9000:
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a.) is a series of standards regarding how a company insures quality
b.) certifies that the products meet a minimum quality level. c.) pertains only to firms producing goods for the international market. d.) is an annual award given by the U.S. Department of Commerce. e.) is a method for inspecting incoming raw materials. |
a.) is a series of standards regarding how a company insures quality
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what is the difference between an acceptable quality level (AQL) and a zero-defects standard?
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a.) an AQL uses a Taguchi loss function; zero defects assumes a linear loss function.
b.) an AQL assumes there will be some defects; zero defects assumes that no defect is acceptable. c.) an AQL assumes that no defect is acceptable; zero defects assumes that some small amount of failure is inevitable. d.) An AQL considers only the failure costs (internal and external); zero defects considers only the control costs (prevention and appraisal). |
b.) an AQL assumes there will be some defects; zero defects assumes that no defect is acceptable.
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As prevention and appraisal costs increase, internal and external failure costs are expected to:
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a.) decrease
b.) increase c.) remain the same. d.)vary with no relation to preventive and appraisal costs. e.) decrease first, then increase. |
a.) decrease
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Technical efficiency can be defined as:
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a.) The difference between the total profit change and the profit-linked productivity change.
b.) the point at which, for any mix of inpus that will produce a given output, no more of any one input is used than is absolutely necessary. c.) Producing outputs efficiently, using the least quantity of inputs possible. d.) The point at which technical and price efficiency are achieved. |
b.) the point at which, for any mix of inpus that will produce a given output, no more of any one input is used than is absolutely necessary.
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Allocative efficiency can be defined as:
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a.) the difference between the total profit change and the profit linked productivity change
b.) the point at which, for any mix of input that will produce a given output, no more of any one input is used than is absolutely necessary. c.) Producing outputs efficiently, using the least quantity of inputs possible. d.) The point at which technical and price efficiency are achieved. e.) the least-cost, technically efficient mix o |
e.) the least-cost, technically efficient mix of inputs.
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Total productive efficiency can be defined as:
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a.) The difference between the total profit change and the profit-linked productivity change.
b.) the point at which, for any mix of inpus that will produce a given output, no more of any one input is used than is absolutely necessary. c.) Producing outputs efficiently, using the least quantity of inputs possible. d.) The point at which technical and price efficiency are achieved. |
d.) The point at which technical and price efficiency are achieved.
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Measuring productivity for one input at a time is called:
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a.) Total Productive Efficiency
b.)Partial Productivity c.) Technical Productivity d.) Activity Productivity e.)Process Efficiency |
b.)Partial Productivity
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Measuring the amount of profit change attributable to productivity change is called the:
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a.) total productivity measurement
b.) partial operational productivity measurement c.) Partial financial productivity measurement d.) profit-linked productivity measurement e.) Total productive efficiency |
d.) profit-linked productivity measurement
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