Investigating production variances and adjusting the

106. Investigating production variances and adjusting the production process is an example of
a. planning.
b. control.
c. internal auditing.
d. both a and c.
ANSWER: b
107. In a performance report, the
108. Evaluating the performance of a segment of the company is an example of

Chapter 1: Introduction to Cost Management
109. The formulation of a program for the accomplishment of a specific purpose is referred to as
110. The manager has to decide what tasks are needed and how they should be accomplished. This statement describes
a. the organization chart.
b. planning.
c. organizing.
d. none of these.
ANSWER: b
111. The monitoring of a plan's implementation is called
112. Inspecting units produced to determine if they meet specifications is an example of
113. Continuous improvement is

Chapter 1: Introduction to Cost Management
114. Which of the following describes the managerial activity of comparing actual results with budgeted results?
a. control
b. continuous improvement
c. planning
d. decision making
ANSWER: a
115. Managers are considering outsourcing sub-components of production. Data is collected about the costs of making
the sub-component. Different bids are sought about the purchase of the sub-components. Which managerial
activity is applicable in this situation?
116. In a company, engineers have redesigned production processes lowering production costs, shortening production
cycle time, reducing waste and improving quality. Which type of managerial activity applies to this situation?