1.Which of the following are key features of an organic system of organisation? I The management style is participative II There are less rules and regulations III There is high centralisation and formalisation IV People are considered the as one of the most important resources i.I and II. ii.I, II and IV. iii.I, II and III. iv.I, II, III and IV. 2.Which of the following statements is false? i.Goal congruence is difficult to achieve because managers are often unaware of theeffects of their decisions on the organisation's units. ii.The development of performance measures to evaluate a unit and its managers willhelp achieve goal congruence. iii.People are naturally concerned with the performance of all units within theorganisation. iv.Goal congruence can be achieved by having a reward system tied to a manager'sperformance. 3.The biggest challenge in making a decentralized organisation functioneffectively is: i.to earn maximum profits through fair practices. ii.to minimise organisational losses. iii.taking advantage of the specialised knowledge and skills of a manager. iv.obtaining goal congruence among the organisation's autonomous managers. 4. Emma Wang is a project manager at Big Rocks Ltd and is responsible for a global project with a team consisting of people from China, Chile, Russia and Australia. Stacy is keen to build a successful team and wants to prevent any cross-cultural misunderstandings when working and communicating on this project. Which of the following strategies is most likely to lead to success and prevent misunderstandings due to cross-cultural differences? Select one: i. As communication habits differ significantly across the four cultures mentioned, communication should be limited to using English verbal language. The nonverbal dimension simply bears too many risks and native languages too difficult in translation. ii. Emma should keep in mind that some cultures are developed, others are less developed. Some have more values, and some have less values. She should consequently avoid choosing members from countries with cultures that are not similar to her own iii. Emma should use all communication methods available that are suitable for the team and follow up in writing when communicating verbally. Cultural and individual diversity may help project teams in solving unforeseen problems, during the course of the project. iv. Cultural dilemmas can prevent any project from being successful. They should therefore be smoothed or suppressed so as to make sure that they cannot disrupt project work. Emma's efforts should concentrate on communication that can help reach that goal 5. A factor which has not been a major reason for heightened interest in leaders ethical decision making is: i. the introduction of the GST. ii. corporate collapses. iii. the community becoming more educated and aware. iv. globalization. 6. In an emerging business organisation and the focus of the organisation is on future businesses the best metric that leaders should be focusing on would be: i. Market Share. ii. Growth. iii. Milestones. iv. Margins. 7. Management accounting has become more strategic with an increasingly external outlook and has focused on a broader range of stakeholders." This preceding quote refers to which stage in the development of Management Accounting? i. Stage 2. ii. Stage 3. iii. Stage 4. iv. Stage 5. 8. Nexus Services, a Sydney based company, is moving its customer support operations to the Philippines. The operations will be locally managed by a subsidiary company. Which of the following best describes this move? Select one: i. Relocation. ii. Offshoring. iii. Outsourcing. iv. Outsourcing offshore. 9. Which of the following statements is not correct? i In a positive sense, the risk-return trade-off is that risks need to be taken in order to take advantage of opportunities for the organisation. ii One of the key roles of the Board in determining corporate strategy is to articulate the risk/return trade-off and the organisation's risk appetite. iii The ASX Corporate Governance Council holds the view that good corporate governance will promote investor confidence but it cautions that this confidence is not directly related to the ability of entities listed on the ASX to compete for capital. iv Performance is the need to take risks to achieve objectives and, in order to achieve these objectives, risk management needs to be integrated throughout the organisation. 10. Which of the following appropriately describe the qualities of management accounting information? I Does not focus on measurement of performance for financial reporting II Focuses on day-to-day decision-making by management III Requires timely, aggregated information IV Focuses on strategic decision-making by shareholders V Focus on analysis of past performance i. I, II and IV. ii. I, IV and V. iii. II, III and V. iv. III and IV. 11. In the past Hill Ltd has carried on its business using a relevant responsibility accounting system for its management accounting needs. Recent changes in strategic approaches within Hill have caused Sheila, Hill's recently employed "strategic management accountant", to recommend important changes to management accounting approaches. Which of the following statements, if they had been made by Sheila, would be regarded as correct statements and also valid reasons for making changes in Hill's management accounting approaches? I Hill has set about attracting and developing highly skilled staff as part of its strategy of reducing internal bureaucracy. This involves transferring and delegating authority to lower levels of the organisation and then motivating performance. II Hill needs to identify its relevant cost centres, revenue centres and performance measurement based on increasing revenues within its existing profit centres and investment centres. III Hill will look consistently to its 'final product'. To achieve this it seeks better understanding regarding not only departmental activity but activities and processes that flow across its renewed value chain. IV Hill is outsourcing non-strategic and non-core activities so that responsibilities and difficulties involved in these activities are borne by parties external to Hill. This is being done so that Hill's value chain is no longer affected by these less important activities. i. I and II. ii. I and III. iii. II and III. iv. III and IV. 12. At a senior management meeting of Battery Ltd, one of the managers made the following four statements in relation to 'product life cycle and some aspects of this life cycle'. The manager also made a statement about a new product in Battery's portfolio of products. Evaluate the four statements and identify those that are correct: I "Introduction: Development, marketing and production are costs high. Sales volumes are low. To overcome these problems it is important to establish a temporary monopoly so as to allow a 'penetration pricing' strategy." II "Growth: Sales volumes accelerate and profits accelerate at the same rate as sales growth. New competitors may enter the market. If entry to the market is expensive (for competitors), the growth stage can see a strengthening of an organisation's competitive position." III "Maturity: Cash cows can be considered as mature products that hold a high-market share in a low-growth market. Due to the low market growth, we now need to continue investing in those products. The positive cash flows produced help to support the necessary development of our future portfolio of products." IV "Our newly introduced product has accelerating sales volume but it is in in a low growth market. That means the product is a currently a 'question mark' in our portfolio of products and we hope it will not soon enter the 'decline' stage of its product life cycle." i. I and II. ii. I and IV. iii. II and III. iv. III and IV. 13. Mark Cavendish belongs to an organisation wherein there is a large staff of middle managers between the CEO and the front line. Lines of authority branch outward from the top down like a tree's roots. Individual vice-presidents direct the activities of the staff below them according to specific lines of business and the responsibilities of managers are clearly defined along functional lines. Which type of business structure does Mark belong to? Select one: i. Vertical management. ii. Layered management. iii. Horizontal management. iv. Activity based management. 14. Which of the following statements is correct? i. The primary objective of a firm's management is to increase the firm's value. ii. The management accounting system needs to accumulate information from both internal and external sources. iii. Managers may be faced with a conflict between increasing customer value and increasing shareholder value. iv. All the given statements are correct. 15. Which of the following is necessary for management accounting information to be useful? i. It must report to external users. ii. It must develop a framework of principles and guidelines. iii. It must adapt to accommodate changes in the business environment. iv. It must focus on the enterprise in its entirety. 16. The car industry is considered to be a "mature" industry. Which of the following factors is not typical for a mature industry? I High entry barriers II High level of innovation III Competitive rivalry over even small increments of market share IV Cost consciousness V Many companies exiting from the industry i. I and V. ii. II only. iii. III and IV. iv. II and V. v. V only. 17. Typically, which characteristic would you not use to define a customer market based on a Demographic approach? i. age. ii. income. iii. personality. iv. race. v. gender. 18. Which statements are true in relation to the analysis of stakeholders? I Stakeholders can influence an organisation's strategy II The expectations of stakeholders need to be identified III A balanced scorecard approach can be used to measure performance against stakeholder required outcomes IV It is likely that there will be agreement over strategic issues if stakeholder and organisational values are the same V All stakeholders should be treated equally i. I only. ii. I and II. iii. All of the above. iv. V only. v. I, II, II and IV. 19. Which of the following statements are true in relation to the "rational" approach to strategy? I The rational approach involves defining the organisation's purpose, undertaking internal and external analysis, making choices based on this analysis and implementing the chosen strategy II It is based on military traditions and principles III It requires a bottom-up approach to ensure people feel empowered IV Strategic choices are more likely to be made on an incremental basis V The strategic process is more likely to be planned, sequential and orderly rather than a fragmented and incremental process i. III, IV and V. ii. I and II. iii. III and V. iv. I, II and III. v. I, II and V. 20. Which of the following statements are true in relation to the term "economies of scale"? I. Economies of scale normally requires large capital investment II. Economies of scale occur whenever a new product enters the market III. The introduction of a new supplier generally encourages economies of scale IV. Achieving economies of scale reduces the risk of new entrants V. Economies of scale are important for companies following a cost leadership strategy i. I only. ii. I and IV. iii. II only. iv. I, IV and V. v. V only. 21. Which of the following is not true in relation to the value of strategic thinking and planning within an organisation: I To provide a language and a means of thinking and analysis for working through complex strategic issues II Helps to clarify and communicate strategy through the organization III Provides a framework and a roadmap for action based agreed strategic intent and organizational values IV Harnesses the drive of an organization behind a considered and well communicated strategic direction V Enables an organization to be proactive in positioning and re-positioning itself in a changing market place i. I only. ii. III only. iii. II and IV. iv. IV only. v. None of the above. 22. To describe a company choosing a strategy which is as "being all things to all people" is representative of: i. having a fuzzy strategy. ii. having a lowest cost leadership strategy. iii. using value disciplines to develop differentiation strategy. iv. being stuck in the middle. v. having a competitive scope of a broad target market. 23. Which of the following statements are true: I To create effective strategy, strategic thinkers need to have linear thinking, rigid processes and established routines II Two capabilities critical for continuous improvement are innovation and strong values III Values are important in developing existing strategy, in implementing it and in constraining future strategy development options IV Rational strategy is often the same as the actual strategy followed by an organisation V Planned strategy needs to be flexible and opportunistic so that it goes with the flow i. III and V. ii. II and III. iii. III only. iv. IV and V. v. IV only. 24. Companies group customers to gain a competitive advantage. Which of the following is best described by this strategy? Select one: i. Positioning. ii. Market segmentation. iii. Product differentiation. iv. Customer differentiation. 25. ACTIVE Medical is a manufacturer of crutches and wheelchairs. It currently holds 25% share in crutches and 10% in wheelchairs. Market growth is 6% for crutches and 20% in wheelchairs. Which of the following options best describes Bishop Medical's portfolio? Select one: i. Crutches = Cash Cow; Wheelchairs = Question Mark. ii. Crutches = Star; Wheelchairs = Cash Cow. iii. Crutches = Question Mark; Wheelchairs = Dog. iv. Crutches = Question Mark; Wheelchairs = Cash Cow. v. None of the above