1-Your supervisor at a consulting firm asks you to allocate the time you actually spent on jobs now in danger of exceeding their cost estimates to other jobs less likely to overrun cost estimates. Which of the following statements is true?

A. This practice misleads managers who rely on accurate cost information for pricing, cost control, and other decisions.B. This practice cheats people who may be paying for a job on a cost-plus-fee basis, where the job has cost less than the producer claims.C. This practice avoids the appearance of cost overruns on some jobs and is unethical. D. All of the answers are correct.

2- Bush Enterprises adopts Strategic activity-based costing and management techniques which would most likely shift the mix of activities and products away from

	a.	less complex to more complex applications.
	b.	less prestigious to more prestigious applications.
	c.	high volume to low volume applications.
	d.	less profitable to more profitable applications.

3- Decreasing the order receipt time, order waiting time, order manufacturing time, and order delivery time will reduce the delivery cycle time and the

	a.	delivery time.
	b.	customer response time.
	c.	throughput time.
	d.	order fulfillment time.

4- Which of the following is the performance evaluation tool that measures performance by integrating financial measures, internal business process measures, learning and growth measures, and customer measures?

	a.	balanced scorecard.
	b.	PERT chart.
	c.	Pareto chart.
	d.	control chart.

5- How can budgets motivate people to perform because?

	a.	Budgets are mandated by the Department of Labor and included in labor union contracts.
	b.	Budgets are authorized by generally accepted accounting principles.
	c.	Budgets are required by the Securities and Exchange Commission.
	d.	Budgets are standards or targets for people to achieve.