Chapter 3-Activity-Based Management
1. Which of the following is a systematic way for organizations to identify and eliminate
activities that add costs but not value to the product?
A. customer profitability analysis.
B. activity analysis.
Chapter 7-Differential Cost Analysis for
1. A differential cost is a cost that changes (differs) as a result of changing which of the
A. products or levels of products.
B. departments or levels of departments.
Chapter 4-Strategic Management of Costs,
Quality, and Time
1. Which of the following prestigious, internationally renowned awards was created in
A. The Baldrige Award.
B. The Deming Prize.
C. The ISO 9000 Award.
D. The AMA Prize.
Chapter 10-Profit and Cost Center
1. Which of the following might cause a materials variance?
A. Failing to take purchase discounts.
B. Using a better grade of raw material.
C. Changes in the market supply for the raw mat
Chapter 6-Financial Modeling for Short-Term
1. Financial modeling can be used by managers for which of the following purposes?
A. staff rotation planning purposes.
B. analyzing financial relationships that are useful for decisio
Chapter 9-Profit Planning and Budgeting
1. What is a short-term operating budget?
A. managements quantitative action plan for the coming year.
B. shareholders quantitative action plan for the coming year.
C. investment bankers quantitative acti
Chapter 5-Cost Drivers and Cost Behavior
1. The total cost (TC) of an item is calculated as TC = F + VX, where V is the
A. estimated volume of production
B. variable cost per unit of activity.
C. total variable costs
D. actual volume of product
Chapter 1-Fundamental Concepts Key
1. Which of the following is true of Managerial Accounting?
A. Complies with Securities and Exchange Commission rules and regulations.
B. Uses cost-benefit analysis to determine the amount of detail presented.
The Digital Dental Laboratory (DDL) project for the Dentistry Department of King
Fahad Medical City
By Dr. Abdulsalam Aljabab
The dental laboratory is an important part of the dental clinic. It is entitled to manufactu
Describing Data: Frequency Distributions and Graphic Presentations
1. A frequency distribution groups data into classes showing the number of observations in each class.
2. A frequency distribution for qualitative data shows the numbe
Since capacities made available for many production and support activities cannot be
altered easily in the short term, managers need to pay attention to whether surplus
capacity is available for additional production or whether the availab
The four generic elements of an organizations value proposition are:
Pricethe price paid by the customer
Qualitythe degree of conformance between what the customer is
promised and what the customer receives
Functionality and featuresthe
In evaluating the different alternatives from which managers can choose, it
is better to focus only on the relevant costs that differ across different
alternatives because it does not divert the managers attention with irrelevant
facts. If s