Exam (elaborations)
Cost Management A Strategic Emphasis Edward Blocher 8e
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- Cost Management
Cost Management A Strategic Emphasis Edward Blocher 8e
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,Cost Management: A Strategic Emphasis, 8e (Blocher)Chapter 1 Cost Management and Strategy
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 audit and control.
Answer: E
Difficulty: 1 Easy
Topic: The Four Functions of Management
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.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
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.
Answer: B
Difficulty: 1 Easy
Topic: The Four Functions of Management
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.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,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) Short-term thinking.
D) Strategic thinking.
E) Independent judgment.
Answer: D
Difficulty: 1 Easy
Topic: The Four Functions of Management
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.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
4) All of the following are examples of total quality management practices except:
A) Redesign of a product to reduce its parts by 50 percent.
B) Reduction in the movement required in a manufacturing job.
C) Separating the sales and services functions.
D) Raising raw material quality standards.
E) Cross-training assembly line workers to cover sick leave absences.
Answer: C
Difficulty: 2 Medium
Topic: Contemporary Management Techniques
Learning Objective: 01-03 Explain the contemporary management techniques and how they are
used in cost management to respond to the contemporary business environment.
Bloom's: Remember
AACSB: Reflective Thinking
AICPA: BB Resource Management
2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
, 5) In a local factory, employees are rewarded for finding new and better ways of changing the
way they work. This company is motivating its employees to use what management technique?
A) Benchmarking.
B) Activity-Based Costing.
C) Theory of Constraints.
D) Continuous Improvement.
E) Total Quality Management.
Answer: D
Difficulty: 1 Easy
Topic: Contemporary Management Techniques
Learning Objective: 01-03 Explain the contemporary management techniques and how they are
used in cost management to respond to the contemporary business environment.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Resource Management
6) A company's management accountant is trying to improve the way costs are allocated within
the company. Currently, several corporate expenses are grouped together and labeled
"overhead." If the accountant wanted to use activity-based costing (ABC) to help solve the
problem, what should she do?
A) She should try to trace the departments' costs to their cost objects, and then charge each
department based on those cost relationships.
B) She should research how the company's competitors are allocating their costs, and then
implement one of those strategies.
C) She should look for bottlenecks within the production process, and try to eliminate them, thus
reducing costs.
D) She should examine the firm's value chain and apply target costing before adopting ABC.
Answer: A
Difficulty: 2 Medium
Topic: Contemporary Management Techniques
Learning Objective: 01-03 Explain the contemporary management techniques and how they are
used in cost management to respond to the contemporary business environment.
Bloom's: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking; FN Measurement
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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