Test Bank: Cost Management and Strategy

Chapter 01 - Cost Management and Strategy

Chapter 01
Cost Management and Strategy
Multiple Choice Questions

1. Which of the following does not represent a main focus of cost management information?
A. Strategic management.
B. Performance measurement.
C. Planning and decision making.
D. Preparation of financial statements.
E. Internal auditing and control.

2. Strategic management can be defined as the development of a sustainable:
A. Chain of command.
B. Competitive position.
C. Cash flow.
D. Business entity.
E. Company image.

3. Cost management has moved from a traditional role of product costing and operational control to a broader strategic focus, which places an emphasis on:
A. Competitive pricing.
B. Domestic marketing.
C. …show more content…

Lean manufacturing
C. Life cycle costing
D. Enterprise sustainability

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Chapter 01 - Cost Management and Strategy

12. The strategy map is a tool that is used
A. as one of the key aspects of the contemporary management environment
B. to enhance the sustainability of the organization
C. to link the perspectives of the balanced scorecard
D. to organize the critical success factors of a company
E. to implement strategy

13. Cost management information typically is the responsibility of the:
A. Chief Financial Officer.
B. Controller.
C. Treasurer.
D. Chief Information Officer.

14. Which of the following aspects of a company would not be considered a critical success factor, for a company that competes on differentiation?
A. Cutting edge research and development.
B. Excellent customer service.
C. Award-winning product quality.
D. Continually beating competitors to the market with new, innovative products.
E. High level of production efficiency.

15. Target costing:
A. Determines cost based on an expected market demand for the product.
B. Determines cost based on a budget.
C. Determines cost based on standard cost.
D. Determines cost based upon market price and desired profit.

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Chapter 01 - Cost Management and Strategy

16. If a firm decided to reevaluate and reorganize the way it did business, in hopes of creating competitive advantage, by changing or decreasing jobs, the company would be using which of the following management technique?
A. The