Strategic Cost Management

1. An artificial profit center

has no investment.

does not provide its goods or services outside the entity.

cannot control its costs.

could not be operated as a cost center.

None of the above

2. The manner of determining whether favorable results of an alternative are sufficient to justify the cost of taking that alternative

Cost behavior analysis

Cost center analysis

Cost benefit analysis

Cost control analysis

None of the above

3. The standard cost card contains quantities and costs for

direct material only.

direct labor only.

direct material and direct labor only.

direct material, direct labor, and overhead.

4. Contribution margin is the excess of revenue over the

Direct cost

Mfg cost

COGS

Fixed cost

None of the above

5. Which of the following is an example of an efficiency measure?

The rate of absenteeism

The goal of becoming a leader manufacturer

The number of insurance claims processed per day

The rate of customer complaints

None of the above

6. I. To achieve success, it is important to set nonfinancial objectives as well as financial objectives II. The primary purpose of the balanced scorecard is to obtain increased operating profits for the current year

Both statements are true

Only first statement is true

Only second statement is true

Both statements are false

7. What is a Key Performance Indicator?

A way to assess employee behavior.

A measurable value for tracking business goals.

A synopsis of a business' digital marketing.

A look back at all the previous year's objectives.

None of the above