Grading Summary
These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the “Details”
section below.
Date and Time Started:
9/29/2015 8:32:21 PM
Time Spent:
28 min , 18 secs
Points Received:
18 / 30 (60%)
Question Type:
# Of Questions:
# Correct:
Multiple Choice
15 9
Grade Details – All Questions
Question 1. Question :
Which of the following does not represent a main focus of cost management information?
Student Answer: Strategic management.
Performance measurement.
Planning and decision making.
INCORRECT Preparation of financial statements.
CORRECT Internal audit and control.
Instructor Explanation: Feedback: Learning Objective: 01-01 Explain the use of cost management information in each of the four functions of
management and in different types of organizations; with emphasis on the strategic management function.
Points Received: 0 of 2
Comments:
Question 2. Question :
Strategic management can be defined as the development of a sustainable:
Student Answer: Chain of command.
CORRECT Competitive position.
Cash flow.
Business entity.
Company image.
Instructor Explanation: Feedback: Learning Objective: 01-01 Explain the use of cost management information in each of the four functions of
management and in different types of organizations; with emphasis on the strategic management function Topic: Strategy
Points Received: 2 of 2
Comments:
Question 3. Question :
Cost management has moved from a traditional role of product costing and operational control to a broader strategic focus, which places an
emphasis on:
Student Answer: Competitive pricing.
Domestic marketing.
Short-term thinking.
CORRECT Strategic thinking.
Independent judgment.
Instructor Explanation: Feedback: Learning Objective: 01-01 Explain the use of cost management information in each of the four functions of
management and in different types of organizations; with emphasis on the strategic management function Topic: Strategy
Points Received: 2 of 2
Comments:
Question 4. Question :
The competitive strategy of differentiation requires that a product or service must be:
Student Answer: Always readily available.
Price competitive.
Produced at the lowest possible cost.
CORRECT Unique in some important way, in terms of features, innovation, service or quality.
Instructor Explanation: Feedback: Learning Objective: 01-04 Explain the different types of competitive strategies Topic: Strategy
Points Received: 2 of 2
Comments:
Question 5. Question :
Which of the following is not a critical success factor?
Student Answer: Financial factor.
Learning and growth.
Governmental relations.
CORRECT Brand recognition.
Instructor Explanation: Feedback: Learning Objective: 02-01 Explain how to implement a competitive strategy by using Strengths-Weaknesses-
Opportunities-Threats (SWOT) Analysis Topic: Strategy
Points Received: 2 of 2
Comments:
Question 6. Question :
Patagonia, maker of clothing and gear for outdoor enthusiasts, is very conscious of sustainability issues. The company chose not to produce a
product because:
Student Answer: The cost of manufacturing the product exceeded its target cost.
There was not sufficient demand for the product at the planned price.
INCORRECT The environmental impact of toxic waste was unacceptable.
CORRECT The environmental impact of producing the product in terms of carbon emissions and energy consumptions was unacceptable.
Instructor Explanation: Feedback: Learning Objective: 02-05 Explain how to expand the balanced scorecard by integrating sustainability Topic:
Sustainability
Points Received: 0 of 2
Comments:
Question 7. Question :
Which of the following is not a reason why global companies choose to report on corporate responsibility?
Student Answer: Ethical considerations.
Innovation and learning.
Risk management.
Market share.
CORRECT Saves time.
Instructor Explanation: Feedback: Learning Objective: 02-05 Explain how to expand the balanced scorecard by integrating sustainability Topic:
Ethics
Points Received: 2 of 2
Comments:
Question 8. Question :
All of the following are required resources for differentiation except:
Student Answer: Product engineering.
Corporate reputation for quality.
CORRECT Intense supervision of labor.
Strong marketing capability.
Instructor Explanation: Feedback: Learning Objective: 02-02 Explain how to implement a competitive strategy by focusing on the execution of
goals Topic: Strategy
Points Received: 2 of 2
Comments:
Question 9. Question :
Which of the following is not an example of a product cost?
Student Answer: Salary of manufacturing supervisor
Power for equipment
CORRECT Depreciation on company-owned sales outlets
Depreciation on company-owned manufacturing plant
Instructor Explanation: Feedback: Learning Objective: 03-03 Explain the cost concepts used in product and service costing
Points Received: 2 of 2
Comments:
Question 10. Question :
Which of the following is not a correct pair between the activity and the potential cost driver?
Student Answer: Provide cashier service-number of customers
Process loan applications-number of loan applications processed
Mail customer statements-number of accounts by customer type and size
CORRECT Advise customers on banking services-number of ATM transactions
Instructor Explanation: Feedback: Learning Objective: 03-02 Explain the cost driver concepts at the activity; volume; structural; and executional
levels
Points Received: 2 of 2
Comments:
Question 11. Question :
Variable costs within the relevant range for a firm are assumed:
Student Answer: CORRECT Not to vary per unit.
Not to vary in total.
To be nonlinear.
To be curvilinear.
INCORRECT None of the above are correct.
Instructor Explanation: Feedback: Learning Objective: 03-02 Explain the cost driver concepts at the activity; volume; structural; and executional
levels
Points Received: 0 of 2
Comments:
Question 12. Question :
The total manufacturing cost consists of the costs for materials used, labor, and ________.
Student Answer: CORRECT Overhead cost
Average cost
Step cost
Prime cost
Instructor Explanation: Feedback: Learning Objective: 03-04 Demonstrate how costs flow through the accounts and prepare an income
statement for both a manufacturing and a merchandising company
Points Received: 2 of 2
Comments:
Question 13. Question :
Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting information remained in the
office files:
COGS = $80,000
WIP Inventory – January 1. = $18,500
WIP Inventory – December 31 = $14,500
Selling & Administrative Expenses = $16,000
Net Income = $30,000
Factory O/H = $20,000
Direct Materials Inventory, January 1= $26,000
Direct Materials Inventory, December 31= $14,000
COGM = $98,000
Finished Goods Inventory, January 1 = 31,000
Direct labor cost incurred during the period amounted to 2.5 times the factory overhead. The CFO of Tierney Construction, Inc. has asked you to
recalculate the following accounts and to report to him by the end of tomorrow.
What should be the amount of direct materials purchased?
Student Answer: INCORRECT $28,000.
$19,000.
$15,000.
CORRECT $12,000.
Instructor Explanation: Feedback: Learning Objective: 03-04 Demonstrate how costs flow through the accounts and prepare an income
statement for both a manufacturing and a merchandising company – $12,000 = $24,000 – ($26,000 – $14,000)
Points Received: 0 of 2
Comments:
Question 14. Question :
Assume the following information pertaining to Moonbeam Company:
Beginning Finished Goods Inventory = $130,000
Ending Finished Goods Inventory = $124,000
Beginning WIP Inventory = $85,000
Ending WIP Inventory = $104,000
Beginning Direct Materials = $117,000
Ending Direct Materials = $130,000
Costs incurred during the period are as follows:
Total Manufacturing Costs = $896,000
Factory Overhead = $199,000
Direct Materials Used = $156.000
Cost of goods sold is calculated to be:
Student Answer: $890,000.
INCORRECT $896,000.
CORRECT $883,000.
$877,000.
Instructor Explanation: Feedback: Learning Objective: 03-04 Demonstrate how costs flow through the accounts and prepare an income
statement for both a manufacturing and a merchandising company – COGM = $85,000 + $896,000 – $104,000 = $877,000, COGS = $130,000 +
$877,000 – $124,000 = $883,000
Points Received: 0 of 2
Comments:
Question 15. Question :
Jeffrey’s Bottling Co. incurred the following costs during November:
Prime Costs = $220,000
Manufacturing O/H = $175,000
If direct materials cost was $140,000 in November, what was the conversion cost for November?
Student Answer: CORRECT $255,000
INCORRECT $240,000
$215,000
$235,000
Instructor Explanation: Feedback: Learning Objective: 03-02 Explain the cost driver concepts at the activity; volume; structural; and executional
levels – Direct Labor Cost = $220,000 – $140,000 = $80,000, Conversion Cost = $80,000 + $175,000 = $255,000
Points Received: 0 of 2
Comments:
Grading Summary
These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the “Details”
section below.
Date and Time Started:
9/29/2015 9:43:03 PM
Time Spent:
54 min , 34 secs
Points Received:
26 / 30 (86.7%)
Question Type:
# Of Questions:
# Correct:
Multiple Choice
15 13
Grade Details – All Questions
Question 1. Question :
The difference between wholesalers and retailers is:
Student Answer: Wholesalers are merchandisers that sell directly to customers whereas retailers are merchandisers that sell to other
merchandisers.
CORRECT Wholesalers are merchandisers that sell to other merchandisers whereas retailers are merchandisers that sell directly to consumers.
Wholesalers are merchandisers that sell directly to the government whereas retailers are merchandisers that sell to other merchandisers.
Wholesalers are merchandisers that sell directly to customers whereas retailers are merchandisers that sell directly to the government.
There is no difference between wholesalers and retailers.
Instructor Explanation: Feedback: Learning Objective: 01-01 Explain the use of cost management information in each of the four functions of
management and in different types of organizations; with emphasis on the strategic management function Topic: Service
Points Received: 2 of 2
Comments:
Question 2. Question :
Which of the following is not a major change in the business environment that has affected the way many companies think about conducting
business?
Student Answer: An increased focus on the customer, especially their opinions about functionality and quality.
A growing emphasis on globalization -new markets for products and new competitors.
A larger number of companies are starting to use advanced information technologies, such as business intelligence.
CORRECT The development of improved cost management methods.
Instructor Explanation: Feedback: Learning Objective: 01-02 Explain the contemporary business environment and how it has influenced cost
management. Topics Global, Strategy
Points Received: 2 of 2
Comments:
Question 3. Question :
Of the following, which aspect of a contemporary management technique is a framework and process that organizations use to manage the
occurrence of possible events that could negatively or positively affect the company’s competitiveness and success?
Student Answer: Total quality management
Lean accounting
The theory of constraints
Enterprise sustainability
CORRECT Enterprise risk management
Instructor Explanation: Feedback: Learning Objective: 01-03 Explain the contemporary management techniques and how they are used in cost
management to respond to the contemporary business environment
Points Received: 2 of 2
Comments:
Question 4. Question :
Which of the following contemporary management techniques requires a balancing of multiple goals?
Student Answer: Target costing.
The theory of constraints.
Benchmarking.
Business process improvement.
CORRECT Enterprise sustainability.
Instructor Explanation: Feedback: Learning Objective: 01-03 Explain the contemporary management techniques and how they are used in cost
management to respond to the contemporary business environment Topic: Sustainability
Points Received: 2 of 2
Comments:
Question 5. Question :
Which one of the following is not usually included as a perspective of the balanced scorecard?
Student Answer: Financial Performance.
CORRECT Tax Reporting.
Learning and Growth.
Customer Satisfaction.
Instructor Explanation: Feedback: Learning Objective: 02-04 Explain how to implement a competitive strategy using the balanced scorecard and
strategy map
Points Received: 2 of 2
Comments:
Question 6. Question :
Which one of the following customer critical success factors is best measured by warranty expense?
Student Answer: CORRECT Quality.
Dealer and distributor efficiency and effectiveness.
Timeliness of delivery.
Customer satisfaction.
Instructor Explanation: Feedback: Learning Objective: 02-01 Explain how to implement a competitive strategy by using Strengths-Weaknesses-
Opportunities-Threats (SWOT) Analysis
Points Received: 2 of 2
Comments:
Question 7. Question :
When a firm is determining its opportunities and threats, which of the following would not be mentioned?
Student Answer: An intense rivalry with a local competitor was beginning to start a price war.
The firm just received a patent on its main product.
CORRECT The success of the firm’s latest marketing campaign.
In spite of its patent, there are several substitute products consumers could use.
Instructor Explanation: Feedback: Learning Objective: 02-01 Explain how to implement a competitive strategy by using Strengths-Weaknesses-
Opportunities-Threats (SWOT) Analysis Topic: Strategy
Points Received: 2 of 2
Comments:
Question 8. Question :
Value activities can best be defined as:
Student Answer: Activities that firms in the industry must perform to improve a product.
CORRECT Activities that firms in the industry must perform in the process of converting raw material to final product, including customer
service.
Activities that firms in the industry must perform in the process of closing down a product line, including customer service.
Activities that firms in the industry must perform to consider ways of marketing a product.
Instructor Explanation: Feedback: Learning Objective: 02-03 Explain how to implement a competitive strategy using value-chain analysis
Points Received: 2 of 2
Comments:
Question 9. Question :
Theoretically, a decision maker would probably be willing to buy cost management information if:
Student Answer: It is accurate.
It is consistent with management objectives.
INCORRECT It is timely.
CORRECT Its value is equal to or greater than its cost.
Instructor Explanation: Feedback: Learning Objective: 03-04 Demonstrate how costs flow through the accounts and prepare an income
statement for both a manufacturing and a merchandising company
Points Received: 0 of 2
Comments:
Question 10. Question :
A group of related products may be referenced as:
Student Answer: Cost objects
Cost drivers
CORRECT Value streams
Cost pools
Instructor Explanation: Feedback: Learning Objective: 03-02 Explain the cost driver concepts at the activity; volume; structural; and executional
levels
Points Received: 2 of 2
Comments:
Question 11. Question :
Which of the following is normally considered to be a product cost?
Student Answer: CORRECT Insurance on a factory building.
Selling expenses.
President’s salary.
Miscellaneous office expense.
Instructor Explanation: Feedback: Learning Objective: 03-03 Explain the cost concepts used in product and service costing
Points Received: 2 of 2
Comments:
Question 12. Question :
Strategic analysis uses which of the following to help a firm improve its competitive position through an analysis of product and production
complexity?
Student Answer: Differential cost drivers.
Discretionary cost drivers.
CORRECT Structural cost drivers.
Marginal cost drivers.
Instructor Explanation: Feedback: Learning Objective: 03-01 Understand the strategic role of basic cost management concepts. Learning
Objective: 03-02 Explain the cost driver concepts at the activity; volume; structural; and executional levels Topic: Strategy
Points Received: 2 of 2
Comments:
Question 13. Question :
Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting information remained in the
office files:
COGS = $80,000
WIP Inventory – January 1. = $18,500
WIP Inventory – December 31 = $14,500
Selling & Administrative Expenses = $16,000
Net Income = $30,000
Factory O/H = $20,000
