1. Which of the following is not a major change in the business environment that has affected the way many companies think about conducting business?

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. The development of improved cost management methods.

Question 2. 2. 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? (Points : 2)

Benchmarking. Activity-Based Costing. Theory of Constraints. Continuous Improvement. Total Quality Management.

Question 3. 3. In keeping with the current trend of increased strategic planning, how have management accountants changed their use of life-cycle costing? (Points : 2)

They have now shifted their focus from R&D costs to marketing and promotion costs. They have turned from a sole focus on manufacturing costs to a much wider outlook, taking into account costs from the entire product life-cycle. They stopped looking at the entire life-cycle, and now focus their attention on product design costs. Accountants don't use life-cycle costing, that task is left for the operations manager.

Question 4. 4. The competitive strategy in which the firm succeeds by developing and maintaining a unique value for the product, as perceived by the customer, is termed: (Points : 2)

Differentiation. Specialization advantage. Design strategy. Benchmarking. Product Specialization.

Question 5. 5. A firm that has traditionally succeeded on the basis of its innovative products and excellent customer service has started to place greater emphasis on reducing waste and providing its customers with the lowest priced product. Which of the following most accurately describes this change of competitive strategy? (Points : 2)

Cost leadership to differentiation. A balanced strategy to cost leadership. Differentiation to a balanced strategy. Cost leadership to a balanced strategy. Differentiation to cost leadership.

Question 6. 6. 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 Materials purchases are calculated to be: (Points : 2)

$143,000. $156,000. $91,000. $169,000. $140,000.

Question 7. 7. 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