Activity Based Costing A. is useful for distrubtion centers but not customers. B. can be comined with customer segmentation. C. is too sophisicated for many applications. D. is a very new management science.

B. can be combined with customer segmentation. More test answers on https://studyhippo.com/quiz-chapter-8/

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Activity Based Costing Closed Ended Question Root Cause Analysis Systems Analysis

Systems Analysis 3 & 4 – Flashcards 50 terms

Ashlynn Thompson

50 terms

Preview

Systems Analysis 3 & 4 – Flashcards

question

An interview report is prepared in which step of the interview process? Conducting the interview Designing interview questions Post interview following-up Preparing for the interview Selecting an interviewee

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Post interview following-up

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Generally beginning analysts should avoid unstructured interviews and likewise should avoid "winging it". True False

answer

True

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According to the authors, in moving "from here to there", an analyst needs: An understanding of corporate politics Knowledge on how to stop scope creep Joint Application Development facilitating skills Microsoft Project Management software skills Strong critical thinking skills

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Strong critical thinking skills

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In the interview report, what will probably NOT be included? Summary of what the interviewee said Interview's name; interviewee's name Details from crucial areas of the interview relating to the project at hand The actual questions that were asked as a permanent record Any materials, documents, etc. that the interviewee gave you relevant to the project at hand

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The actual questions that were asked as a permanent record

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A technique where the analyst watches how people perform their activities is _______ Document Analysis Interviews Joint Application Development (JAD) sessions Questionnaires / surveys Observation

answer

Observation

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Michael, a systems analyst, is preparing a closed wiki site for Northstate Bank. He has written permission from eight other companies to view their internal wiki sites, and also has approval from his manager and the project team to use these other sites for ideas and structure. This would be a form of: Business Process Automation Business Process Improvement Informal Benchmarking Formal Benchmarking Technology Analysis

answer

Formal Benchmarking

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An example of a functional requirement is _________ Access to the customer order system System should be available in English and Spanish System can be accessed through a Blackberry device Output can be displayed in Internet Explorer, in Firefox, or in Google Chrome browsers System is automatically updated every 5 seconds

answer

Access to the customer order system

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Danielle has asked some closed ended questions to start an interview; then some open ended questions. Now she wants to really wants to get a greater depth of information about the process. She would probably use _________ questions. More closed ended More open ended Probing Structured Boxing structure

answer

Probing

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Jorge, Vice President of Operations, has requested that the updated supply chain system keep a record of all 'stock-outs' for six years. This is an example of a functional requirement. True False

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True

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Marta wants to focus on 'why' a particular lockout situation occurs on a customer relationship management system, rather than just developing a work-around fix. She is doing activity elimination. True False

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False

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In RAD or agile development methodology (especially with BPR), a significant amount of time and effort is spent in understanding the as-is system. True False

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False

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In interviews, Ross has learned that the new order entry system must be available in at least three formats (mobile, web browser, and local area network based); that it must function in either English or Spanish; and that the system must return order forms and data in less than 2 seconds. He recognizes these as nonfunctional requirements. True False

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True

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Marta wants to collect facts and opinions from a wide range of geographically dispersed people quickly and with the least expense. She would probably want to use: Document analysis Interview JAD session Observation Questionnaires

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Questionnaires

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In preparing for an interview, TJ does research as to areas in which the interviewee has knowledge so that he does not ask questions that an interviewee cannot answer. True False

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True

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Blaine is using a requirements gathering technique that begins with non-threatening questions, avoids abbreviations, groups items into logically coherent sections, and might best be used with outside users. He probably is using: Document analysis Interview JAD session Observation Questionnaires

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Questionnaires

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After creating the interview report you should: Send a copy to the interviewee with a request to read it and correct or clarify Change the document into a unchangeable format (like a pdf file) so that it cannot be changed or edited Distribute the interview report to all others that are on the interview schedule so they will not have to go over the same materials Edit the report into a bulleted format for easier analysis Distribute the interview report to the interviewee's manager.

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Send a copy to the interviewee with a request to read it and correct or clarify

question

An example of a nonfunctional requirement is ____________ Supplier table is available The system must contain customer order history for three years System can be used in any of 100 offices worldwide SQL queries from customer table and order table are available Customer zipcode is formatted as character data

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System can be used in any of 100 offices worldwide

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Management of requirements and system scope is one of the hardest parts of managing a project. True False

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True

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Maria, a systems analyst, is tweaking the high-level explanation of the business requirements into a more precise list of requirements. This is called 'requirements detemination'. True False

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True

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In terms of reaching the most number of people in requirements gathering, interviews are considered better than questionnaires. True False

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False

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A technique where a set of written (or online) questions are distributed to people (frequently to a large number of people) is: _____. Document Analysis Interviews Joint Application Development (JAD) sessions Questionnaires / surveys Observation

answer

Questionnaires / surveys

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Hamid has selected one middle manager from each department that will be affected by the updated system and one lower-level manager from each department, along with a few senior staff as well as the project sponsor for a JAD session. He is trying to: _________ Balance the work load for departments so the regular day-to-day functions can still continue while the JAD team is off-site Create a new hybrid department that will beta test the final system Prevent domination by only a few individuals in the JAD session Have a broad mix of organizational levels in the JAD session Reduce the time necessary for the length of JAD session meetings

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Have a broad mix of organizational levels in the JAD session

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Generally 'system requirements' are developed in the analysis phase and evolve to more technical 'business requirements' in the design phase. True False

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False

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Gary has eight interviews to conduct over the next week. Once he has completed all interviews, he should then write up a summary report. Preparing interview reports prior to completing all interviews will generally be premature until Gary has talked to all interviewees. True False

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False

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Cindi Flores distributed 'white-papers' on RFID, ERP, GPS and SOA to a user-management group. She then asked them to 'think outside the box' on where these technologies could be used in the company. This would be an example of 'technology analysis'. True False

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True

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Special cases (like customer cancels an appointment or returns an item) are: ____________ Frequently overlooked by users Described on special 'exception' use cases Not of importance at this stage Written as exceptions at the bottom of the relevant use case Given use case ID's of "SC" (for special case) and a number

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Frequently overlooked by users

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Each use case contains a fairly complete description of all the activities that occur in response to a trigger event. True False

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True

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As a last step in building a use case for the study-abroad registration system, Brianna will: Ask Patrick in the study abroad office to confirm the use case Ask Wendy in the registrar's office to confirm the use case Ask Jonathan, a student who just completed a study-abroad experience, to confirm the use case Ask Drew in the students affairs office to confirm the use case Ask Taylor, another systems analyst to confirm the use case

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Ask Wendy in the registrar's office to confirm the use case

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A use case helps: Define interview questions Clarify ongoing costs for a system Identify risks with the project Refine project management milestones Understand system activities and requirements

answer

Understand system activities and requirements

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A Use Case is a formal way of representing how a business system interacts with its environment. True False

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True

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Barb is an analyst developing a use case. Which of the following will probably NOT be on her use case? Importance level Short Description Information for steps Destination for the major inputs Type of trigger

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Destination for the major inputs

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Role-playing the use case with actual users is a good way to: Identify the use case Identify the major steps within each use case Identify elements within steps Confirm the use case Identify the primary actor

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Confirm the use case

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Liang has identified the payroll authorization office as the primary actor in a use case. This would be incorrect as primary actors need to be singular like a customer or a patient or a student. True False

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False

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Each use case has a name and a number. True False

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True

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A trigger is based on cost/benefit analysis, like an employee labor report, a sale of an item, or the purchase of new hardware. True False

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False

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Ralph wants to illustrate how a system interacts with the environment. The best solution for him would be to use a ________: Requirements flow chart Storyboard HIPO chart (hierarchy, input, process, output) Use case Gantt chart

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Use case

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Austin is a systems analyst. Which of the follow people might be the most valuable to him in developing a use case for an accounts payable system upgrade? Beth, a software vendor for Peachtree Accounting Software Amy, a team manager in the accounts payable department Lisa, the project manager for the project Casey, a fellow analyst who is more experienced in making use cases Bill, a Java programmer in the applications development area

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Amy, a team manager in the accounts payable department

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A use case depicts a set of activities performed to produce some output result. True False

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True

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Marta has asked the users of a system to picture themselves performing the processes and to write down those processes in a sequential order. She should get a good idea of ________. The major steps for each use case The use case The elements within steps The temporal triggers The external actors

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The major steps for each use case

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The 'primary actor' is the external user that triggers the event to which the system responds. True False

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True

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A 'temporal' trigger might be which of the following: A patient calls to make an appointment with a doctor The accounting department needs information for a report The human resources department needs a tax withholding form to be filled out by a new employee The date changes to the first day of the month A new shipping of goods arrives and needs to be added to the inventory

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The date changes to the first day of the month

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A temporal trigger might be related to time, such as 30 days have passed and a late fee needs to be assessed. True False

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True

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Arianna is an analyst studying credit card fraud. She is working on developing a use case for when a stolen credit card is used. The trigger would be: Customer starts to buy gas Alarm is activated for stolen credit card use Gas attendant asks for customer's driver's license When the card-holder reports the card as stolen When car pulls into gas station

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Alarm is activated for stolen credit card use

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Destination would be described on a use case in which of the following areas?: Trigger Major inputs Major outputs Primary actor Importance level

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Major outputs

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External triggers might be something like a customer calling a doctor for an appointment or a student registering for a class. True False

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True

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Project managers, business analysts and systems analysts create all use cases without user input. True False

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False

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Barton is an analyst developing a use case. Which of the following will probably NOT be on his use case? Description of data flows Use case name A use case number Source for the major inputs Type of trigger

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Description of data flows

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After working with Chris (who is a staff member in the registrar's office) on major steps in the registration process, Maureen (a systems analyst) will: Discuss these steps with Thomas, the project manager Create data-entity maps Create use cases Create user interface screens Create narrative storyboards

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Create use cases

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Omar is an analyst building a use case. Which of the following project roles might be the most important in terms of getting information about building the use case? Users Programmers Other analysts Project Sponsor Equipment vendors

answer

Users

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Dr. O'Brien's dental office calls a patient three days before an appointment. This could be an example of a temporal trigger. True False

answer

True

STUDY

Accounting Activities Activity Based Costing Financial Accounting Managerial Accounting

Accounting 2302 – Flashcards 75 terms

Jay Barber

75 terms

Preview

Accounting 2302 – Flashcards

question

Cost

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Are assigned using direct tracing and resource drivers

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Overhead

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Type of cost poses the most problems in using an actual cost system

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Expenses

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Expired cost

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A home builder

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Least likely to use a process costing system

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Finished Goods

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Process costing, the cost of units finished in the last department will be transferred from work in process to:

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Overhead

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Indirect materials Supplies Indirect labor

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The order that cost elements flow through accounts until they are recognized as an expense

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Work in process Finished goods Cost of good sold

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Work in process

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At the time, they are used, raw materials, direct labor, and applied overhead costs are recorded in

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Chemical Plant

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Most likely to use process accounting

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Required activity

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Complying with the filing requirements of the IRS

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Production and Non-Production

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Cost are subdivided functional categories

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Production Cost

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Direct material Direct labor Overhead

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Work in Process Finished Goods

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Job is completed but not sold

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Types of inputs for process accounting

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Overhead labor Material

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An indirect cost

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Is hard to trace

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Activity-based accountinn

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Can help a company become more competitive by providing more accurate cost data

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Direct labor

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Chef in a restaurant

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Efficiency

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Focuses on the relationship of activity inputs to activity outputs

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Quality

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Is concerned with doing the activity right the first time it's performed

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Conversion Cost

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Direct labor Manufacturing overhead

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Cost production report

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The production report is the document that summarizes the manufacturing activity that takes place in a process department for a given period

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Activity based costing

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A costing system that first assigns cost to activities and then the products is:

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Activity based management

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Add new activities that increase value Increase the efficiency of necessary activities Identify and eliminate all unnecessary activities

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Process costing

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Large number of the same products

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Job order cost sheet

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Total cost of a single job

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Unit Cost Calculated

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By dividing total cost associated with the units produced by the number of units produced

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Labor Cost

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Direct Labor

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Sales Budget

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The starting point in preparing a master budget is the preparation of it

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For an activity base to be useful in cost behavior analysis

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There should be a correlation between changes in the level of activity and changes in cost

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Manufacturing overhead budget

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Not a financial budget

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The direct materials budget details

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The quantity of direct materials to be purchased The cost of direct materials to be purchased

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Margin of safety in dollars is

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Expected sales less break even sales

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Contribution margin

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Equals sales revenue minus variable cost

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Budget

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Communicate goals and provide basis for evaluation Aid to management

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Sales Forecast

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Show a forecast for the industry and for the firm

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Net income under absorption costing is higher than net income under variable costing

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When units produced exceed units sold

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Long range planning usually encompasses a period of at least

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5 years

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Budget needs to be accepted by

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Supervisors Division managers Department head

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Contribution margin ratio

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Contribution margin divided by sales

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Net income under absorption costing is gross profit less

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variable selling and administrative expenses and fixed selling and administrative expenses

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If a firm increases its activity level

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Some cost will change, others will remain the same

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Cost behavior analysis is a study of how a firm's costs

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Respond to changes in level of business activity

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Budget Period

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One year

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Cost structure

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Refers to the relative proportion of fixed versus variable costs that a company incurs

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CVP income statement classifies costs

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As variable or fixed and computes contribution margin

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The break even point is where

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Contribution margin equals total fixed cost

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In using the high-low method, the fixed cost

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May be determined by subtracting the total variable cost from either the total cost at the low or high activity level

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The financing section of a cash budget is needed if there is a cash deficiency or if the ending cash balance is less than

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Management's minimum required balance

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CVP analysis does not consider

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Fixed cost per unit

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A budget period should be

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Long enough to provide an obtainable goal under normal business conditions

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Variable Cost

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A cost which remains constant per unit at various levels of activity is a

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Firm operating at 100% capacity

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Are the exception rather than the rule

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Mixed cost

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A variable element and a fixed element

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Variable cost is a cost that

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Varies in total in proportion to changes in the level of activity

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Incremental analysis

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Both cost and revenues may be analyzed

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A distinguishing characteristics of an investment center that

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The profitability of the center is related to the funds invested in the center

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Profit Center

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A responsibility center that incurs cost and generates revenues

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Incremental revenue

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A revenue that differs between alternatives and makes a difference in decision making is called

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A major accounting contribution to the managerial decisions making process in evaluating possible courses of action is to

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Provide relevant revenue and cost data about each course of action

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Always a relevant cost

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Opportunity cost

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Ideal standards

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Reflect optimal performance under perfect operating conditions

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Capital budgeting is the process

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Of making capital expenditures decisions

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Standard cost

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Help establish expected future cost Are the budgeted cost per unit in the present May show past cost experience

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A product line should be eliminated whenever

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The product line generates a negative contribution margin

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Opportunity cost

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Is the potential benefit that may be obtained by following an alternative course of action Potential benefit

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Flexible budget

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Series of static budgets at different levels of activity Projects budget data for various levels of activity

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Relevant cost are always

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Avoidable costs

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Sunk cost

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Irrelevant cost

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Incremental Analysis would be appropriate

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Retain or replace equipment decision A sell or process further decision Acceptance of an order at a special price

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Using standard costs

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Provides a basis for evaluating cost control

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Standards cost may be used by

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Universities Government agencies Charitable organizations

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Incremental analysis is most useful

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In developing relevant information for management decisions

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Cost center

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Only incurs cost and does not directly generate revenues

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Standard Cost

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The amount management thinks should be incurred to produce cost

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Static budget

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Shows planned results at the original budgeted activity level

STUDY

Activity Based Costing Developmental Psychology Human Anatomy And Physiology 1 Human Growth And Development Planning And Analysis Project Team Members Systems Analysis

Chapter 1 (Dev.) – Flashcards 39 terms

Noah Thomson

39 terms

Preview

Chapter 1 (Dev.) – Flashcards

question

_______________ brings together a wide range of information on one person.

answer

The clinical, or case study, method

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The ethnographic method assumes that _________ will allow researchers to understand beliefs and behaviors.

answer

entering into close contact with a social group.

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In ________, researchers capitalize on opportunities to assign participants randomly to treatment conditions in natural settings.

answer

NOT correlational studies

question

Dr. Stein is conducting a study on individuals who witnessed or lost loved ones in the 2007 mass shooting at Virginia Tech. Dt. Stein finds that individuals who were directly affected by the shooting are far more likely than their peers to report intense fear, anxiety, and depression. This example illustrates

answer

cohort effects

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The _________ variable is the one the investigator expects to cause changes in another variable.

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NOT coefficient

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Research stimulated by Vygotsky's theory reveals that people in every culture

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NOT rely on heredity for most cognitive growth

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Unlike Piaget's theory, Vygotsky's theory emphasizes the

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NOT evolutionary roots of development

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Vygotsky viewed cognitive development as a socially mediated process that centers around

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assistance from adults and more expert peer as children tackle new challenges

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Which of the following theories seeks to understand the adaptive value of species wide cognitive, emotional, and social competencies as those competencies change with age?

answer

NOT Vygotsky's sociocultural theory

question

The most consistent asset of resilient children is

answer

a strong bond with a competent, caring adult

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Mara, though born to a homeless mother, has the ability to adapt effectively in the face of threats to development. Mara is a(n) __________ child.

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resilient

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Dr. Sanchez is a researcher who emphasizes plasticity. Dr. Sanchez is likely to believe that

answer

individual change can occur, especially when it is supported by new experiences

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Dr. Arce is interested in the relative importance of genetic and environmental factors on human development. This is known as the __________ controversy.

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nature-nurture

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The study of human development provides no ultimate truth because

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investigators do not always agree on the meaning of what they see

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Our knowledge of human development is interdisciplinary. What does this mean?

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Individuals from many fields of study have contributed to our knowledge of human development

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Our large storehouse of information about development

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is interdisciplinary

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Following an experiment, Dr. Caspen plans to post participant's names and test scores on the door of their classroom. This violates which of the following research rights?

answer

privacy

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_________ weigh the costs of proposed research to participants in terms of inconvenience and possibly psychological of physical injury against the study's value for advancing knowledge and improving conditions of life.

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NOT informed consent boards

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In the early 1900s, Alfred Binet's intelligence test sparked tremendous interest in

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individual differences in development

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Darwin's emphasis on ___________ found its way into important developmental theories.

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the adaptive value of physical characteristics and behavior

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A special strength of the psychoanalytic perspective is its

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emphasis on the individual's unique life history as worthy of study and understanding

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_____________ believe that directly observable events are the appropriate focus of study.

answer

Behaviorists

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The information-processing approach maintains that __________ experiences are critical to

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both early and later

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Sociocultural theorists believe that development is

answer

both continuous and discontinuous

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Which three theories of human development accept the continuous, but not the discontinuous view of developmental change?

answer

NOT evolutionary developmental psychology, sociocultural theory, and lifespan perspective NOT psychoanalytic perspective, behaviorism, and cognitive-developmental theory

question

Charles Darwin's theories prompted other researchers to study all aspects of children's behavior; therefore, Darwin is considered the forefather of

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scientific child study

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Hall and Gesell launched the __________ approach to the field of child development

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normative

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Which of the following statements about informed consent is true?

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NOT in most cases, researchers need only obtain the child's consent; parental consent is not required NOT The right to informed consent applies to all research participants except young children and the elderly

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Which of the following statements about the use of deception in studies with children is true?

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Children may experience serious emotional consequences after learning they have been deceived.

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_____________ is concerned with the adaptive, or survival, value o behavior and its evolutionary history

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ethology

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Ecological systems theory views the individual as

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both a product and producer of his or her environment

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_______________ influences explain why cohorts tend to be alike in ways that set them apart from people born at other times

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History-graded

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Central to Bandura's social learning theory is the concept of

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modeling

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In stage theories, development is like

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climbing a staircase

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Professor White believes that a child's ability to use language is similar to that of adults, only differing in amount and complexity of her knowledge of words. Professor White endorses a ____________ view of development

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continuous

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Findings on psychological adjustment in adolescent immigrants show that they are __________ likely to _____________ their native-born agemates

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less; be obese than

question

Dr. Nadir is conducting a study that includes the use of clinical interviews. Dr. Nadir should be aware that clinical interviews have which of the following major limitations?

answer

NOT They do not yield the same depth of information as structured interviews NOT participants cannot control the conditions under which they are observed

question

Which of the following is an assumption of the lifespan perspective?

answer

Development is affected by multiple, interacting forces

question

Today, the baby boomers are

answer

financially better off than any previous midlife cohort

STUDY

Accounting Activity Based Costing Direct Labor Cost Direct Labor Costs Finance Financial Accounting

Managerial Accounting Definitions – Flashcards 50 terms

Marie Florence

50 terms

Preview

Managerial Accounting Definitions – Flashcards

question

direct cost

answer

cost: the wages of a pediatric nurse cost object: the pediatric department

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direct cost

answer

cost: prescription drugs cost object: a particular patient

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indirect cost

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cost:heating the hospital cost object: the pediatric department

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direct cost

answer

cost: the salary of the head of pedes cost object: the pedes department

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indirect cost

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cost: the salary of the head of pedes cost object: a particular pede patient

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indirect cost

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cost: hospital chaplain's salary cost object: a particular patient

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direct cost

answer

cost: lab tests by outside contractor cost object: a particular patient

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direct cost

answer

cost: lab tests by outside contractor cost object:a particular department

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direct materials

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the cost of a hard drive installed in a computer

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selling

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the cost of advertising in the puget sound computer user newspaper

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direct labors

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the wages of employees who assemble computers from components

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selling

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sales commissions paid to the company's salespeople

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manufacturing overhead

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the wages of the assembly shop's supervisor

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administrative

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the wages of the company accountant

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manufacturing overhead

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depreciation on equipment used to test assembled computer before release to customer

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the rent would most likely be prorated on the basis of the amount of space occupied by manufacturing, selling, and administrative operations

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rent on the facility in the industrial park: a combination of manufacturing overhead, selling, and administrative

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period cost

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depreciation salepersons' cars

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product cost

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rent on equipment used in the factory

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product cost

answer

lubricants used for machine maintenance

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period cost

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salaries of personnel who work in the finished goods warehouse

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product cost

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soap and paper towels used by factory workers at the end of a shift

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product cost

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factory supervisors' salaries

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product cost

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heat, water and power consumed in the factory

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period cost

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materials used for boxing products for shipment overseas (units are not normally boxed)

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period cost

answer

advertising costs

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product cost

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workers' compensation insurance for factory lunchroom

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product cost

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depreciation on chairs and tables in the factory lunchroom

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period cost

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the wages of the receptionist in the administrative offices

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period cost

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cost of leasing the corporate jet used by the company's executives

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period cost

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the cost of renting rooms at a florida resort for the annual sales conference

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product cost

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the cost of packaging the company's product

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change in cost / change in activity

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variable cost

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sunk cost

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cost of the old X-ray machine

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none

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the salary of the head of the radiology department

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non

answer

salary of the head of Pedes

question

differential cost

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cost of the new laser color printer

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none

answer

rent on the space occupied by radiology

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differential cost

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the cost of maintaining the old machine

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opportunity cost

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benefits from a new DNA analyzer

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differential cost

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cost of electricity to run the x ray machines

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cost behavior: variable product cost

answer

hamburger buns at a wendy's outlet

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cost behavior: fixed selling & admin cost

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advertising by a dental office

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cost behavior: variable product cost

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apples processed and canned by Del Monte

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cost behavior: variable selling & admin cost

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shipping canned apples from a Del Monte plant to customers

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cost behavior: fixed selling & admin cost

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insurance on a Bausch & Lomb factory producing contact lenses

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cost behavior: fixed selling & admin cost

answer

insurance on IBM corporate headquarters

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cost behavior: fixed product cost

answer

salaries of a supervisor overseeing production of printers at Hewlett-Packard

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cost behavior:variable selling & admin cost

answer

commissions paid to automobile salespersons

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cost behavior: fixed product cost

answer

depreciation of factory lunchroom facilities at a general electric plant

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cost behavior: variable product cost

answer

steering wheels installed in BMWs

STUDY

Accounting Activity Based Costing Finance Financial Accounting Raw Materials Inventory

Managerial Accounting Ch 1-5 Answers – Flashcards 25 terms

Michael Seabolt

25 terms

Preview

Managerial Accounting Ch 1-5 Answers – Flashcards

question

A distinguishing feature of managerial accounting is

answer

Very detailed reports

question

What activities and responsibilities are NOT associated with management functions?

answer

Accountability

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Which of the following is Not a management function?

answer

Constraining

question

The work of factory employees that can be physically and directly associated with converting raw material into finished goods is

answer

Direct Labor

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Manufacturing costs include

answer

Direct materials, Direct Labor, and Manufacturing Overhead

question

A major purpose of cost accounting

answer

Measure, record, and report product costs

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The two basic types of cost accounting systems are

answer

Job order and process cost system

question

Processing cost is used when

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The production process is continuous

question

As December 31, 2008, Stand Still Industries had $1500 of raw materials inventory. At the beginning of 2008, there was $1,200, of raw material on hand. During the year the company purchased $183,000 of materials; However is paid for only $175,500. How much inventory was repositioned for use on jobs during 2008?

answer

$182,700 Beginning inventory- $1,200 Purchased- $183,000 Ending inventory- $1,500 Total- $183,000+ $1,200- $1,500= $182,700

question

Which of the following best describes a job cost sheet?

answer

It is a form used to record the costs chargeable to a specific job and to determine the total and units cost of the job completed.

question

In a process cost system,

answer

A work in process account is maintained for each process

question

Which of the following manufacturing cost elements occurs in a process cost system?

answer

ALL OF THEM (Direct Material, Direct Labor Manufacturing Overhead)

question

Material requisition are

answer

Generally used less frequently in process costing than job order costing

question

A product requires processing in two departments, Department A and then Department B, before it is completed. Costs transferred out of Department A will be transferred to

answer

Work in process- Department B

question

Granter company had the following department information about physical units and percentage of completion Physical Units Work in process, May 1 (60%) 36,000 Completed and transferred out 90,000 Work in process, May 31 (40%) 30,000 If material are added at the beginning of the production process, what is the total number of equivalent units for materials during May?

answer

120,000

question

An activity that has a direct cause-effect relationship with the resource consumed is an

answer

Cost driver

question

Activity based costing

answer

Allocates overhead to multiple activity cost pools and it assigns the activity cost pools to products and services by means of cost drivers

question

Ordering materials, setting up ,machines, assembling products, and inspecting products are examples of

answer

Overhead cost pools

question

The first step in activity based costing is to

answer

Identify and classify the major activities involved in the manufacturing of specific products

question

One of Jetson company cost pools is inspecting with estimated overhead of $100,000 Jetson products throw rugs (700 inspections) and area rugs (1,300 inspections). How much of the inspecting cost pools should be assigned to the throw rugs?

answer

$35,000 100,000/2000= $50 $50*700= $35,000

question

For an activity base to be useful in cost behavior analysis

answer

There should be a correlation between changes in the level of activity and change in costs

question

A variable cost is a cost that

answer

Varies in total in proportion to changes in the level of activity

question

Units variable cost Unit fixed cost (a) Increase Decrease (b) Remain constant Remain constant (c) Decrease Remain constant (d) Remain constant Decrease

answer

Remain Constant, Decrease

question

A fixed cost is a cost which

answer

Remains constant in total with changes in the level of activity

question

The equation which reflects a CVP income statement

answer

Sales- variable cost- Fixed cost= Net Income

STUDY

Accounting Activity Based Costing Activity Based Costing System Finance Financial Accounting Job Order Costing System Non Value Added

Managerial Accounting Chapter 4 Answers – Flashcards 32 terms

Carmen Dawson

32 terms

Preview

Managerial Accounting Chapter 4 Answers – Flashcards

question

True or False: A traditional costing system allocates overhead by means of multiple overhead rates.

answer

False

question

True or False: Activity-based costing allocates overhead costs in a two-stage process.

answer

True

question

True or False: Direct materials and direct labor costs are easier to trace to products that overhead.

answer

True

question

True or False: As manufacturing processes have become more automated, more companies have chosen to allocate overhead on the basis of direct labor costs.

answer

False

question

True or False: In activity-based costing, an activity is any event, action, transaction, or work sequence that incurs costs when producing a product.

answer

True

question

Value Added or Non-Value Added: Inspecting completed skis

answer

Non-value added

question

Value Added or Non-Value Added: Storing raw materials

answer

Non-value added

question

Value Added or Non-Value Added: Machine setups

answer

Non-value added

question

Value Added or Non-Value Added: Installing binding on skis

answer

Value added

question

Value Added or Non-Value Added: Packaging skis for shipment

answer

Value added

question

Value Added or Non-Value Added: Reworking defective skis

answer

Non-value added

question

Batch Level, Product Level, Unit Level, or Facility Level? Engineering Design

answer

Product-level

question

Batch Level, Product Level, Unit Level, or Facility Level? Machine Setup

answer

Batch-level

question

Batch Level, Product Level, Unit Level, or Facility Level? Toy Design

answer

Product-level

question

Batch Level, Product Level, Unit Level, or Facility Level? Interviews of Prospective Employees

answer

Facility-level

question

Batch Level, Product Level, Unit Level, or Facility Level? Inspection After Each Setup

answer

Batch-level

question

Batch Level, Product Level, Unit Level, or Facility Level? Polishing Parts

answer

Unit-Level

question

Batch Level, Product Level, Unit Level, or Facility Level? Assembling Parts

answer

Unit-level

question

Batch Level, Product Level, Unit Level, or Facility Level? Health and Safety

answer

Facility-level

question

Self-Test Question: Activity-based costing (ABC):

answer

focuses on activities performed to produce a product, and is a 2-stage overhead cost allocation system that identifies activity cost pools and cost drivers.

question

Self-Test Question: Any activity that causes resources to be consumed is called a __________

answer

cost driver.

question

Self-Test Question: The first step in the development of an activity-based costing system is:

answer

identify and classify activities and allocate overhead to cost pools.

question

Self-Test Question: Which of the follow would be the BEST cost driver for the assembling cost pool? A. Number of product lines B. Number of parts C. Number of orders D. Amount of square footage

answer

B. Number of parts

question

Self-Test Question: A frequently cited limitation of activity-based costing is:

answer

certain overhead costs remain to be allocated by means of come arbitrary volume-based cost driver such as labor or machine hours.

question

Self-Test Question: A company should consider using ABC if:

answer

its product lines differ greatly in volume and manufacturing complexity.

question

Self-Test Question: An activity that adds costs to the product but does not increase its perceived market value is a:

answer

non-value added activity

question

Self-Test Question: Which of the following activities is value-added activity? A. Storage of raw materials B. Moving parts from machine to machine C. Shaping a piece of metal on a lathe D. All of the above

answer

C. Shaping a piece of metal on a lathe

question

Self-Test Question: A relevant facility-level cost driver for heating cost is:

answer

Floor Space

question

Define: Batch-level activities

answer

Activities performed for each batch of products rather than for each unit.

question

Define: Facility-level activities

answer

Activities required to support or sustain an entire production process.

question

Define: Product-level activities

answer

Activities performed in support of an entire product line, but not always performed every time a new unit or batch of products is produced.

question

Define: Unit-level activities

answer

Activities performed for each unit of production.

STUDY

Accounting Activity Based Costing Finance Financial Accounting Finished Goods Inventory

Managerial Accounting Glossary Terms – Flashcards 172 terms

Charlotte Small

172 terms

Preview

Managerial Accounting Glossary Terms – Flashcards

question

Activity-based costing (ABC)

answer

A method of allocating overhead based on each product's use of activities in making the product.

question

Balanced scorecard

answer

A performance-measurement approach that uses both financial and nonfinancial measures, tied to company objectives, to evaluate a company's operations in an integrated fashion.

question

Board of directors

answer

The group of officials elected by the stockholders of a corporation to formulate operating policies, select officers, and otherwise manage the company

question

Chief executive officer (CEO)

answer

Corporate officer who has overall responsibility for managing the business and delegates responsibilities to other corporate officers

question

Chief financial officer (CFO)

answer

Corporate officer who is responsible for all of the accounting and finance issues of the company.

question

Controller

answer

Financial officer responsible for a company's accounting records, system of internal control, and preparation of financial statements, tax returns, and internal reports

question

Corporate social responsibility

answer

The efforts of a company to employ sustainable business practices with regard to its employees and the environment

question

Cost of goods manufactured

answer

Total cost of work in process less the cost of the ending work in process inventory

question

Direct labor

answer

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods.

question

Direct materials

answer

Raw materials that can be physically and directly associated with manufacturing the finished product

question

Enterprise resource planning (ERP) system

answer

Software that provides a comprehensive, centralized, integrated source of information used to manage all major business processes

question

Indirect labor

answer

Work of factory employees that has no physical association with the finished product, or for which it is impractical to trace the costs to the goods produced

question

Indirect materials

answer

Raw materials that do not physically become part of the finished product or for which it is impractical to trace to the finished product because their physical association with the finished product is too small

question

Just-in-time (JIT) inventory

answer

Inventory system in which goods are manufactured or purchased just in time for sale

question

Line positions

answer

Jobs that are directly involved in a company's primary revenue-generating operating activities.

question

Managerial accounting

answer

A field of accounting that provides economic and financial information for managers and other internal users

question

Manufacturing overhead

answer

Manufacturing costs that are indirectly associated with the manufacture of the finished product

question

Period costs

answer

Costs that are a necessary and integral part of producing the finished product

question

Product costs

answer

Costs that are a necessary and integral part of producing the finished product

question

Sarbanes-Oxley Act (SOX)

answer

Law passed by Congress intended to reduce unethical corporate behavior

question

Staff positions

answer

Jobs that support the efforts of line employees

question

Theory of constraints

answer

A specific approach used to identify and manage constraints in order to achieve the company's goals

question

Total cost of work in process

answer

Cost of the beginning work in process plus total manufacturing costs for the current period

question

Total manufacturing costs

answer

The sum of direct materials, direct labor, and manufacturing overhead incurred in the current period

question

Total quality management (TQM)

answer

Systems implemented to reduce defects in finished products with the goal of achieving zero defects

question

Treasurer

answer

Financial officer responsible for custody of a company's funds and for maintaining its cash position

question

Triple bottom line

answer

The evaluation of a company's social responsibility performance with regard to people, planet, and profit

question

Value chain

answer

All activities that a business processes with providing a product or service

question

Cost accounting

answer

An area of accounting that involves measuring, recording, and reporting product costs

question

Cost accounting system

answer

Manufacturing-cost accounts that are fully integrated into the general ledger of a company

question

Job cost sheet

answer

A form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job

question

Job order cost system

answer

A cost accounting system in which costs are assigned to each job or batch

question

Materials requisition slip

answer

A document authorizing the issuance of raw materials from the storeroom to production

question

Overapplied overhead

answer

A situation in which overhead assigned to work in process is greater than the overhead incurred

question

Predetermined overhead rate

answer

A rate based on the relationship between estimated annual overhead costs and expected annual operating activity, expressed in terms of a common activity base

question

Process cost system

answer

A cost accounting system used when a company manufactures a large volume of similar products

question

Time ticket

answer

A document that indicates the employee, the hours worked, the account and job to be charged, and the total labor cost

question

Underapplied overhead

answer

A situation in which overhead assigned to work in process is less than the overhead incurred

question

Conversion costs

answer

The sum of labor costs and overhead costs

question

Cost reconciliation schedule

answer

A schedule that shows that the total costs accounted for equal the total costs to be accounted for

question

Equivalent units of production

answer

A measure of the work done during the period, expressed in fully completed units

question

Operations costing

answer

A combination of a process cost and a job order cost system, in which products are manufactured primarily by standardized methods, with some customization

question

Physical units

answer

Actual units to be accounted for during a period, irrespective of any work performed

question

Production cost report

answer

An internal report for management that shows both production quantity and cost data for a production department

question

Total units (costs) accounted for

answer

The sum of the units (costs) transferred out during the period plus the units (costs) in process at the end of the period

question

Total units (costs) to be accounted for

answer

The sum of the units (costs) started (or transferred) into production during the period plus the units (costs) in process at the beginning of the period

question

Unit production costs

answer

Costs expressed in terms of equivalent units of production

question

Weighted-average method

answer

Method of computing equivalent units of production which considers the degree of completion (weighting) of the units completed and transferred out and the ending work in process

question

Activity

answer

Any event, action, transaction, or work sequence that incurs cost when producing a product or providing a service

question

Activity-based costing (ABC)

answer

An overhead cost-allocation system that allocates overhead to multiple activity cost pools and assigns the activity cost pools to products or services by means of cost drivers that represent the activities used

question

Activity-based management (ABM)

answer

Extends ABC from product costing to a comprehensive management tool that focuses on reducing costs and improving processes and decision-making

question

Activity cost pool

answer

The overhead cost attributed to a distinct type of activity or related activities

question

Batch-level activities

answer

Activities performed for each batch of products rather than for each unit

question

Cost driver

answer

Any factor or activity that has a direct cause-effect relationship with the resources consumed. In ABC, cost drivers are used to assign activity cost pools to products or services

question

Facility-level activities

answer

Activities required to support or sustain an entire production process

question

Just-in-time (JIT) processing

answer

A processing system dedicated to having the right amount of materials, parts, or products arrive as they are needed, thereby reducing the amount of inventory

question

Non—value-added activity

answer

An activity that, if eliminated, would not hinder the company's operations or reduce the perceived worth of its product or service

question

Product-level activities

answer

Activities performed in support of an entire product line, but not always performed every time a new unit or batch of products is produced

question

Unit-level activities

answer

Activities performed for each unit of production

question

Value-added activity

answer

An activity that increases the perceived worth of a product or service to a customer

question

Activity index

answer

The activity that causes changes in the behavior of costs

question

Break-even point

answer

The level of activity at which total revenues equal total costs

question

Contribution margin (CM)

answer

The amount of revenue remaining after deducting variable costs

question

Contribution margin per unit

answer

The amount of revenue remaining per unit after deducting variable costs; calculated as unit selling price minus unit variable cost

question

Contribution margin ratio

answer

The percentage of each dollar of sales that is available to apply to fixed costs and contribute to net income; calculated as contribution margin per unit divided by unit selling price

question

Cost behavior analysis

answer

The study of how specific costs respond to changes in the level of business activity

question

Cost-volume-profit (CVP) analysis

answer

The study of the effects of changes in costs and volume on a company's profits

question

Cost-volume-profit (CVP) graph

answer

A graph showing the relationship between costs, volume, and profits

question

Cost-volume-profit (CVP) income statement

answer

A statement for internal use that classifies costs as fixed or variable and reports contribution margin in the body of the statement

question

Fixed costs

answer

Costs that remain the same in total regardless of changes in the activity level

question

High-low method

answer

A mathematical method that uses the total costs incurred at the high and low levels of activity to classify mixed costs into fixed and variable components

question

Margin of safety

answer

The difference between actual or expected sales and sales at the break-even point

question

Mixed costs

answer

Costs that contain both a variable- and a fixed-cost element and change in total but not proportionately with changes in the activity level.

question

Relevant range

answer

The range of the activity index over which the company expects to operate during the year

question

Target net income

answer

The income objective set by management

question

Variable costs

answer

Costs that vary in total directly and proportionately with changes in the activity level

question

Absorption costing

answer

A costing approach in which all manufacturing costs are charged to the product

question

Cost structure

answer

The relative proportion of fixed versus variable costs that a company incurs

question

Degree of operating leverage

answer

A measure of the extent to which a company's net income reacts to a change in sales. It is calculated by dividing contribution margin by net income

question

Operating leverage

answer

The extent to which a company's net income reacts to a change in sales. Operating leverage is determined by a company's relative use of fixed versus variable costs

question

Sales mix

answer

The relative percentage in which a company sells its multiple products

question

Variable costing

answer

A costing approach in which only variable manufacturing costs are product costs, and fixed manufacturing costs are period costs (expenses)

question

Incremental analysis

answer

The process of identifying the financial data that change under alternative courses of action

question

Joint costs

answer

For joint products, all costs incurred prior to the point at which the two products are separately identifiable (known as the split-off point)

question

Joint products

answer

Multiple end-products produced from a single raw material and a common production process

question

Opportunity cost

answer

The potential benefit that is lost when one course of action is chosen rather than an alternative course of action

question

Relevant costs

answer

Those costs and revenues that differ across alternatives

question

Sunk cost

answer

A cost that cannot be changed or avoided by any present or future decision.

question

Budget

answer

A formal written statement of management's plans for a specified future time period, expressed in financial terms

question

Budgetary slack

answer

The amount by which a manager intentionally underestimates budgeted revenues or overestimates budgeted expenses in order to make it easier to achieve budgetary goals

question

Budget committee

answer

A group responsible for coordinating the preparation of the budget

question

Budgeted balance sheet

answer

A projection of financial position at the end of the budget period

question

Cash budget

answer

A projection of anticipated cash flows

question

Direct labor budget

answer

A projection of the quantity and cost of direct labor necessary to meet production requirements

question

Direct materials budget

answer

An estimate of the quantity and cost of direct materials to be purchased

question

Financial budgets

answer

Individual budgets that focus primarily on the cash resources needed to fund expected operations and planned capital expenditures

question

Long-range planning

answer

A formalized process of identifying long-term goals, selecting strategies to achieve those goals, and developing policies and plans to implement the strategies

question

Manufacturing overhead budget

answer

An estimate of expected manufacturing overhead costs for the budget period

question

Master budget

answer

A set of interrelated budgets that constitutes a plan of action for a specific time period

question

Merchandise purchases budget

answer

The estimated cost of goods to be purchased by a merchandiser to meet expected sales

question

Operating budgets

answer

Individual budgets that result in a budgeted income statement

question

Participative budgeting

answer

A budgetary approach that starts with input from lower-level managers and works upward so that managers at all levels participate

question

Production budget

answer

A projection of the units that must be produced to meet anticipated sales

question

Sales budget

answer

An estimate of expected sales revenue for the budget period

question

Sales forecast

answer

The projection of potential sales for the industry and the company's expected share of such sales

question

Selling and administrative expense budget

answer

A projection of anticipated selling and administrative expenses for the budget period

question

Budgetary control

answer

The use of budgets to control operations

question

Controllable cost

answer

A cost over which a manager has control

question

Controllable margin

answer

Contribution margin less controllable fixed costs

question

Cost center

answer

A responsibility center that incurs costs but does not directly generate revenues

question

Decentralization

answer

Control of operations is delegated to many managers throughout the organization

question

Direct fixed costs

answer

Costs that relate specifically to a responsibility center and are incurred for the sole benefit of the center

question

Flexible budget

answer

A projection of budget data for various levels of activity

question

Indirect fixed costs

answer

Costs that are incurred for the benefit of more than one profit center

question

Investment center

answer

A responsibility center that incurs costs, generates revenues, and has control over decisions regarding the assets available for use

question

Management by exception

answer

The review of budget reports by top management focused entirely or primarily on differences between actual results and planned objectives

question

Noncontrollable costs

answer

Costs incurred indirectly and allocated to a responsibility center that are not controllable at that level

question

Profit center

answer

A responsibility center that incurs costs and also generates revenues

question

Residual income

answer

The income that remains after subtracting from the controllable margin the minimum rate of return on a company's average operating assets

question

Responsibility accounting

answer

A part of management accounting that involves accumulating and reporting revenues and costs on the basis of the manager who has the authority to make the day-to-day decisions about the items

question

Responsibility reporting system

answer

The preparation of reports for each level of responsibility in the company's organization chart

question

Return on investment (ROI)

answer

A measure of management's effectiveness in utilizing assets at its disposal in an investment center

question

Segment

answer

An area of responsibility in decentralized operations

question

Static budget

answer

A projection of budget data at one level of activity

question

Customer perspective

answer

A viewpoint employed in the balanced scorecard to evaluate the company from the perspective of those people who buy and use its products or services

question

Direct labor price standard

answer

The rate per hour that should be incurred for direct labor

question

Direct labor quantity standard

answer

The time that should be required to make one unit of product

question

Direct materials price standard

answer

The cost per unit of direct materials that should be incurred

question

Direct materials quantity standard

answer

The quantity of direct materials that should be used per unit of finished goods

question

Financial perspective

answer

A viewpoint employed in the balanced scorecard to evaluate a company's performance using financial measures

question

Ideal standards

answer

Standards based on the optimum level of performance under perfect operating conditions

question

Internal process perspective

answer

A viewpoint employed in the balanced scorecard to evaluate the effectiveness and efficiency of a company's value chain, including product development, production, delivery, and after-sale service

question

Labor price variance

answer

The difference between the actual hours times the actual rate and the actual hours times the standard rate for labor

question

Labor quantity variance

answer

The difference between actual hours times the standard rate and standard hours times the standard rate for labor

question

Learning and growth perspective

answer

A viewpoint employed in the balanced scorecard to evaluate how well a company develops and retains its employees

question

Materials price variance

answer

The difference between the actual quantity times the actual price and the actual quantity times the standard price for materials

question

Materials quantity variance

answer

The difference between the actual quantity times the standard price and the standard quantity times the standard price for materials

question

Normal capacity

answer

The average activity output that a company should experience over the long run

question

Normal standards

answer

Standards based on an efficient level of performance that are attainable under expected operating conditions

question

Overhead controllable variance

answer

The difference between actual overhead incurred and overhead bud geted for the standard hours allowed

question

Overhead volume variance

answer

The difference between normal capacity hours and standard hours allowed times the fixed overhead rate

question

Standard cost accounting system

answer

A doubleentry system of accounting in which standard costs are used in making entries, and variances are recognized in the accounts

question

Standard costs

answer

Predetermined unit costs which companies use as measures of performance

question

Standard hours allowed

answer

The hours that should have been worked for the units produced

question

Standard predetermined overhead rate

answer

An overhead rate determined by dividing budgeted overhead costs by an expected standard activity index

question

Total labor variance

answer

The difference between actual hours times the actual rate and standard hours times the standard rate for labor

question

Total materials variance

answer

The difference between the actual quantity times the actual price and the standard quantity times the standard price of materials

question

Total overhead variance

answer

The difference between actual overhead costs and overhead costs applied to work done, based on standard hours allowed

question

Variances

answer

The differences between total actual costs and total standard costs

question

Annual rate of return method

answer

The determination of the profitability of a capital expenditure, computed by dividing expected annual net income by the average investment

question

Capital budgeting

answer

The process of making capital expenditure decisions in business

question

Cash payback technique

answer

A capital budgeting technique that identifies the time period required to recover the cost of a capital investment from the net annual cash flow produced by the investment

question

Cost of capital

answer

The average rate of return that the firm must pay to obtain funds from creditors and stockholders

question

Discounted cash flow technique

answer

A capital budgeting technique that considers both the estimated net cash flows from the investment and the time value of money

question

Discount rate

answer

The interest rate used in discounting the future net cash flows to determine present value

question

Internal rate of return (IRR)

answer

The interest rate that will cause the present value of the proposed capital expenditure to equal the present value of the expected net annual cash flows

question

Internal rate of return (IRR) method

answer

A method used in capital budgeting that results in finding the interest yield of the potential investment

question

Net present value (NPV)

answer

The difference that results when the original capital outlay is subtracted from the discounted net cash flows

question

Net present value (NPV) method

answer

A method used in capital budgeting in which net cash flows are discounted to their present value and then compared to the capital outlay required by the investment

question

Post-audit

answer

A thorough evaluation of how well a project's actual performance matches the original projections

question

Profitability index

answer

A method of comparing alternative projects that takes into account both the size of the investment and its discounted future net cash flows. It is computed by dividing the present value of net future cash flows by the initial investment

question

Required rate of return

answer

The rate of return management expects on investments; also called the discount rate or cost of capital

question

Annuity

answer

A series of equal dollar amounts to be paid or received at evenly spaced time intervals (periodically).

question

Compound interest

answer

The interest computed on the principal and any interest earned that has not been paid or withdrawn

question

Discounting the future amount

answer

The process of determining present value

question

Future value of an annuity

answer

The sum of all the payments or receipts plus the accumulated compound interest on them

question

Future value of a single amount

answer

The value at a future date of a given amount invested, assuming compound interest

question

Interest

answer

Payment for the use of another person's money

question

Present value

answer

The value now of a given amount to be paid or received in the future assuming compound interest.

question

Present value of an annuity

answer

The value now of a series of future receipts or payments, discounted assuming compound interest

question

Principal

answer

The amount borrowed or invested

question

Simple interest

answer

The interest computed on the principal only

STUDY

Activity Based Costing Returns And Allowances

LSCM 3960 ch 8 test bank – Flashcards 34 terms

Rebecca Mallory

34 terms

Preview

LSCM 3960 ch 8 test bank – Flashcards

question

Customer service is anything that touches the customer. t/f

answer

true

question

Most organizations employ all six definitions of customer service in their order management process.t/f

answer

false

question

Customer relationship management is a new concept only recently receiving attention. t/f

answer

false

question

Firms today are beginning to use techniques such as activity-based costing to more accurately allocate costs to customers based on the specific costs of servicing a customer's orders relative to how, how much, what, and when a customer orders. t/f

answer

true

question

The identification of the product/service package for each customer segment is one of the easier activities in the CRM process. t/f

answer

false

question

Activity-based costing works well in warehouse-type environments but does not work for customer service applications. t/f

answer

false

question

With the proper information on how a customer's interaction with the shipper drives the firm's costs, the firm can then segment its customers by profitability. t/f

answer

true

question

"Order to cash" and "order cycle" are the same. t/f

answer

true

question

"Order to cash" and "replenishment cycle" are the same. t/f

answer

false

question

The buyer and seller look at order time from the same perspective. t/f

answer

false

question

Process D1: Deliver Stocked Product in the Supply Chain Council SCOR Model is the same as the OTC cycle model. t/f

answer

true

question

There are ten principal activities to the OTC model. t/f

answer

false

question

Reserve Inventory and Determine Delivery Date has traditionally been referred to as order processing. t/f

answer

true

question

A driving force behind the attention to OTC cycle variability is safety stock. The absolute length of the order cycle will influence demand inventory. t/f

answer

true

question

Customer service is of equal importance to both logistics and marketing. t/f

answer

true

question

From a marketing perspective, logistics customer service can be thought of as a feature of the augmented product that adds value for the customer. t/f

answer

true

question

Dependability is not as important to a buyer as is absolute length of lead time. t/f

answer

false

question

There are four types of communications that exist between a buyer and a seller t/f

answer

false

question

There are five logistics performance metrics from the buyer's point of view. t/f

answer

true

question

A stockout always results in a back order. t/f

answer

false

question

For the best service, all products should be available at all levels regardless of cost. t/f

answer

false

question

Customer service can be defined as

answer

anything that touches the customer

question

Customer relationship management is the art and science of

answer

positioning customers to improve the profitability of the org.

question

What are the steps in the CRM process?

answer

segment customer base, identify service/package, then measure service and improve

question

Activity Based Costing

answer

can be combined with customer segmentation

question

Traditional customer profitability analyses would start with ______ less returns and allowances (net sales) and subtract the cost of goods sold.

answer

gross sales

question

Those customers who are in the "Danger Zone" segment are

answer

the least profitable

question

Order management system represents the principal means by which

answer

buyers and sellers communicate info relating to individual orders of products

question

The term replenishment cycle refers to

answer

the acquisition of additional inventory

question

While interest has traditionally focused more on the overall length of the OTC cycle, recent attention has been centered on

answer

variability or consistency of this process

question

Applying Internet technology to the order management process has allowed organizations to not only take time out of the process but also to

answer

increase the velocity of cash back to the selling org.

question

The traditional role of customer service at the interface between marketing and logistics manifests itself through the ______ dimension of the marketing mix

answer

place

question

Which is NOT part of dependability?

answer

consistent pricing

question

The SCOR model provides suggested metrics

answer

across multiple dimensions for each of the five level one process

STUDY

Across The Globe Activity Based Costing Benefits And Costs Business Buying Process Sports Marketing Vertical Marketing System

chapters 1,2,3,4, and 5 – Flashcards 201 terms

Paulina Ratliff

201 terms

Preview

chapters 1,2,3,4, and 5 – Flashcards

question

Which of the following statements about marketing is TRUE? A) It is of little importance when products are standardized. B) It can help create jobs in the economy by increasing demand for goods and services. C) It helps to build a loyal customer base but has no impact on a firm's intangible assets. D) It is not needed in an Internet-fueled environment. E) It is seldom used by nonprofit organizations.

answer

B) It can help create jobs in the economy by increasing demand for goods and services.

question

________ management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. A) Marketing B) Knowledge C) Operations D) Strategic E) Distribution

answer

A) Marketing

question

As economies advance, a growing proportion of the economy's activities focuses on the production of ________. A) products B) events C) experiences D) luxury goods E) services

answer

E) services

question

Car rental firms, hair dressers, and management consultants provide ________. A) goods B) experiences C) events D) services E) information

answer

D) services

question

Soccer's World Cup is promoted aggressively to both companies and fans. This is an example of marketing a(n) ________. A) idea B) place C) luxury item D) event E) service

answer

D) event

question

The "Malaysia, Truly Asia" ad campaign that showcased Malaysia's beautiful landscape and its multicultural society in order to attract tourists is an example of ________ marketing. A) event B) property C) service D) place E) idea

answer

D) place

question

People in emerging countries today are becoming increasingly health conscious and are seeking healthy food choices. As a result, demand for health foods is rising steadily, creating an opportunity for marketers to exploit this ________ market. A) demographic B) business C) need D) geographic E) service

answer

C) need

question

Four key customer markets are the consumer, business, global, and ________ market. A) demographic B) physical C) nonprofit D) product E) exclusive

answer

C) nonprofit

question

For marketers, the term market refers to which of the following? A) a set of touch points such as store layouts and package designs B) a physical place where buyers and sellers gather C) a collection of buyers and sellers who transact over a particular product D) consumers and not businesses E) customer groups

answer

E) customer groups

question

The responses marketers seek from prospects include all of the following EXCEPT ________. A) decampment B) attention C) a purchase D) a vote E) a donation

answer

A) decampment

question

In marketing cosmetics, laundry detergent, and products like Pringles to consumers, P&G manages ________ such as eye-catching package designs and innovative product functions. A) events B) prospects C) markets D) brands E) touch points

answer

E) touch points

question

Which of the following is NOT a consumer touch point? A) store layouts B) package designs C) product functions D) shipping and logistics E) All of these are touch points.

answer

E) All of these are touch points.

question

________ are basic human requirements, while ________ are the ways in which those requirements are satisfied. A) Wants; needs B) Demands; wants C) Needs; wants D) Needs; demands E) Demands; needs

answer

C) Needs; wants

question

When Frank buys his own house, he would like to have a home theater system and a Jacuzzi. He plans to save enough money in the next three years so that he can fulfill his wish. Frank's desire for the home theater and the Jacuzzi is an example of a(n) ________. A) need B) want C) demand D) market E) prospect

answer

B) want

question

When companies measure the number of people who are willing and able to buy their products, they are measuring ________. A) demand B) price elasticity C) real needs D) standard of living E) disposable income

answer

A) demand

question

A(n) ________ need is one that the consumer is reluctant or unwilling to explicitly verbalize. A) secondary B) unstated C) delight D) secret E) stated

answer

D) secret

question

Companies address needs by putting forth a ________, a set of benefits that they offer to customers to satisfy their needs. A) brand B) value proposition C) deal D) marketing plan E) demand

answer

B) value proposition

question

Marketers identify which segments of buyers present the greatest opportunity. These segments are called ________ markets. A) target B) capital C) tertiary D) demographic E) developing

answer

A) target

question

________ reflects a customer's judgment of a product's performance in relation to his or her expectations. A) Brand equity B) Satisfaction C) Value D) Perception E) Brand image

answer

B) Satisfaction

question

The value of an offering is described as the ________. A) price consumers are charged for a product B) cost of manufacturing a product C) degree to which consumer demand for a product is positive D) sum of the tangible and intangible benefits and costs to customers E) intangible benefits gained from a product

answer

D) sum of the tangible and intangible benefits and costs to customers

question

When Volvo runs ads suggesting that its cars are the safest that money can buy, it is trying to ________. A) segment the market B) provide a service C) enter a new market D) develop brand loyalty E) position its product

answer

E) position its product

question

If a marketer uses warehouses, transportation companies, banks, and insurance companies to facilitate transactions with potential buyers, the marketer is using a ________ channel. A) service B) distribution C) communication D) relationship E) standardized

answer

A) service

question

The ________ is the channel from raw materials to components to final products that are carried to final buyers. A) communication channel B) distribution channel C) supply chain D) service chain E) marketing chain

answer

C) supply chain

question

The actual and potential rival offerings and substitutes that a buyer might consider are referred to as the ________. A) supply chain B) global market C) value proposition D) competition E) marketing environment

answer

D) competition

question

The ________ environment includes the actors involved in producing, distributing, and promoting an offering. The main actors are the company, suppliers, distributors, dealers, and the target customers. A) economic B) management C) strategic D) task E) tactical

answer

D) task

question

Chipotle engages customers through Facebook, Twitter, and other social media via its grassroots "Food with Integrity" digital strategy, which puts the focus on what it sells and where it comes from. These are examples of ________ media. A) owned B) earned C) paid D) service E) marketing

answer

A) owned

question

In an attempt to create greater competition and growth opportunities, countries often ________. A) increase trade barriers B) protect industries C) deregulate industries D) encourage intermediation E) reduce privatization

answer

C) deregulate industries

question

Which of the three transformative forces mentioned in the chapter is associated with the Boston Consulting Group believing brand marketers must enhance their "digital balance sheets"? A) demographics B) accountability C) social responsibility D) globalization E) technology

answer

E) technology

question

The three central trends in Marketing 3.0 are collaborative marketing, globalization, and ________. A) cultural relevance B) horizontal marketing C) consumer well-being D) the rise of a creative society E) sustained technological development

answer

D) the rise of a creative society

question

The Body Shop, Timberland, and Patagonia behave in environmentally responsible ways that differentiate them from competitors, build consumer preference, and achieve notable sales and profit gains. This is an example of ________. A) social responsibility B) technology C) globalization D) collaboration E) goodwill

answer

A) social responsibility

question

The success of online purchasing resulted in ________ in the delivery of products and services by intervening in the traditional flow of goods through distribution channels. A) disintermediation B) diversification C) reduced competition D) deregulation E) privatization

answer

A) disintermediation

question

In response to threats from such companies as Amazon.com, established manufacturers and retailers became "brick-and-click" oriented by adding online services to their existing offerings. This is known as ________. A) reintermediation B) disintermediation C) retail transformation D) e-collaboration E) new-market synchronization

answer

A) reintermediation

question

Managers of ________ businesses concentrate on achieving high manufacturing efficiency, low costs, and mass distribution. A) selling-oriented B) product-oriented C) production-oriented D) marketing-oriented E) consumer-oriented

answer

C) production-oriented

question

Tracy's is a chain of hair dressing salons for women. They use television, magazines, radio, and newspapers to advertise their services. The owners ensure that all communication channels deliver a common message to prospective customers. In so doing, Tracy's is practicing ________ marketing. A) internal B) integrated C) socially responsible D) global E) relationship

answer

B) integrated

question

The ultimate outcome of relationship marketing is a unique company asset called the ________, consisting of the company and its supporting stakeholders. A) brand B) supply chain C) marketing network D) value proposition E) service channel

answer

C) marketing network

question

Which of the following statements is most consistent with the integrated marketing approach? A) A good product will sell itself. B) If left alone, consumers are inclined to purchase only inexpensive products. C) All communication to consumers must deliver a consistent message irrespective of the medium. D) In order to succeed, the main focus should be on having an efficient production process in place. E) Online marketing is less important than traditional marketing efforts.

answer

C) All communication to consumers must deliver a consistent message irrespective of the medium.

question

Which of the following reflects the "people" component of the marketing mix? A) the creativity, discipline, and structure brought to marketing management B) the development of new products by the marketers C) the firm's consumer-directed activities D) the right set of processes to guide activities and programs within the firm E) the internal marketing of the firm

answer

E) the internal marketing of the firm

question

Which of the four new Ps encompasses the old four Ps as well as a range of other marketing activities that might not fit well into the old view of marketing? A) programs B) processes C) promotion D) people E) performance

answer

A) programs

question

At the heart of any marketing program is the firm's ________, its tangible offering to the market. A) strategy B) product C) brand D) value E) people

answer

B) product

question

________ activities include those the company undertakes to make the product accessible and available to target customers. A) Line extension B) Segmentation C) Marketing research D) Channel E) New-product development

answer

D) Channel

question

The task of any business is to ________. A) create customer needs B) differentiate in terms of cost of production C) deliver customer value at a profit D) reduce competition E) communicate similar value as provided by competitors

answer

C) deliver customer value at a profit

question

The value delivery process can be divided into three phases, out of which "choosing the value" implies ________, which is the essence of strategic marketing. A) segmentation, developing, and delivering B) targeting, positioning, and communicating C) targeting, positioning, and delivering D) segmentation, targeting, and positioning E) researching, developing, and delivering

answer

D) segmentation, targeting, and positioning

question

James Frank has been put in charge of gathering marketing intelligence, disseminating it within his organization, and eventually directing action on the information. Mr. Frank's task is best described as part of the ________ process. A) market-sensing B) new-offering realization C) customer acquisition D) customer relationship management E) fulfillment management

answer

A) market-sensing

question

When a customer places an order at BookBox.com, the company processes the customer's payment information, sends the order to the nearest warehouse, and ships the order via FedEx. This is best described as the ________ process. A) market-sensing B) customer acquisition C) customer relationship management D) fulfillment management E) new-offering realization

answer

D) fulfillment management

question

What is the second phase of the value creation and delivery sequence? A) choosing the value B) providing the value C) communicating the value D) calculating the value E) calibrating the value

answer

B) providing the value

question

Angelo made the decision to outsource the software components of his consulting company so he could focus on the company's ________, which are sources of competitive advantage, make a contribution to perceived customer benefits, have application in a wide variety of markets, and are difficult to imitate. A) core competencies B) infrastructure C) market-sensing processes D) fulfillment management processes E) outbound logistics

answer

A) core competencies

question

The ________ in the value chain cover the sequence of bringing materials into the business (inbound logistics), converting them into final products (operations), shipping out final products (outbound logistics), marketing them (marketing and sales), and servicing them (service). A) operations processes B) manufacturing processes C) primary activities D) secondary activities E) tertiary activities

answer

C) primary activities

question

Which of the following can be considered a primary activity in the value chain process? A) procurement B) human resource management C) technology development D) inbound logistics E) firm infrastructure

answer

D) inbound logistics

question

Activities involved in building deeper understanding of existing consumers and what the product offerings mean to them would be a part of the ________ process. A) customer acquisition B) customer relationship management C) customer prospecting D) customer integrating management E) customer equity

answer

B) customer relationship management

question

Another way to describe a supply chain, where companies partner with specific suppliers and distributors to ensure a smooth functioning of the system, is to call it a ________. A) teamwork group B) horizontal integration C) domestic power center D) value exploration E) value delivery network

answer

E) value delivery network

question

The key to utilizing organizational core competencies is to ________ that make up the essence of the business. A) force organizational departments to justify the budgetary components B) vertically integrate and own all intermediaries C) own and nurture the resources and competencies D) emphasize global promotions E) segment the workforces

answer

C) own and nurture the resources and competencies

question

The ________ lays out the target markets and the value proposition that will be offered, based on an analysis of the best market opportunities. A) organizational plan B) strategic marketing plan C) corporate tactical plan D) corporate mission E) customer-value statement

answer

B) strategic marketing plan

question

Juan Garcia plans the daily promotional releases about his company's products and services. He can be described as a(n) ________ planner. A) strategic B) selective C) tactical D) niche E) operational

answer

C) tactical

question

In the cycle of complete strategic planning, taking corrective action is a part of ________. A) planning B) implementation C) controlling D) organizing E) analyzing

answer

C) controlling

question

"Enriching Women's Lives" is a three-word mantra that is used by Mary Kay. This is an example of which of the following characteristics of good mission statements? A) It is focused on a limited number of goals. B) It is short, memorable, and meaningful. C) It defines the major competitive spheres in which the company will operate. D) It takes a long-term view. E) It stresses the company's major policies and values.

answer

B) It is short, memorable, and meaningful.

question

The ________ sphere is the number of channel levels, from raw materials to final product and distribution, in which a company will participate. A) industry B) vertical C) product/application D) competence E) market segment

answer

B) vertical

question

What are hollow corporations? A) companies that market their products through franchisees B) companies that have liabilities exceeding their assets C) companies that outsource all production to suppliers D) companies that do not have any physical presence and only operate online E) companies that are horizontally integrated

answer

C) companies that outsource all production to suppliers

question

Which of the following is an example of growth by diversification? A) a company introducing its existing products in a new market B) a company introducing new product category in a new market C) a company increases its product line in an existing market D) a company introducing a new product category in an existing market E) a company integrates backward to cut costs

answer

B) a company introducing new product category in a new market

question

Once Starbucks established its presence in thousands of cities internationally, the company sought to increase the number of purchases by existing customers with a ________ strategy that led to new in-store merchandise, including compilation CDs, and high-speed wireless access. A) product-development B) market-penetration C) diversification D) market-development E) conglomerate

answer

A) product-development

question

A(n) ________ is when a company might seek new businesses to purchase that have no relationship to its current technology, products, or markets. A) concentric strategy B) conglomerate strategy C) horizontal strategy D) intensive growth strategy E) integrative strategy

answer

B) conglomerate strategy

question

Which of the following terms can be defined as "the shared experiences, stories, beliefs, and norms that characterize an organization"? A) organizational dynamics B) a business mission C) an ethical/value statement D) customer relationships E) corporate culture

answer

E) corporate culture

question

When a firm aims to underprice competitors and win market share, it is using a(n) ________ strategy that requires relatively less marketing skills as compared to other strategies. A) product differentiation B) overall cost leadership C) focus D) domestic customer relationship E) price skimming

answer

B) overall cost leadership

question

Unlike its competitors in the online air travel industry, Travelocity provides its customers with a greater variety of services such as cruise reservations, package tours, hotel bookings, and car rentals. This is an example of a(n) ________ strategy. A) overall cost leadership B) focus C) differentiation D) diversification E) promotional

answer

C) differentiation

question

When a business gets to know market segments intimately and pursues either cost leadership or differentiation within the target segment, it is employing a ________ strategy. A) defined B) focus C) value-added D) competitive advantage E) customer-focused

answer

B) focus

question

To keep their strategic alliances thriving, corporations have begun to develop organizational structures to support them and have come to view the ability to form and manage strategic alliances as core skills. This is called ________. A) value managed partnership B) decentralized partnership C) centralized partnership D) partner relationship management E) intensive growth management

answer

D) partner relationship management

question

Which of the following elements of a marketing plan outlines the marketing activities such as pricing, channels, and communications? A) the situation analysis B) the marketing strategy C) the marketing tactics D) the financial projections E) the short-term targets

answer

C) the marketing tactics

question

The most frequently cited shortcomings of current marketing plans, according to marketing executives, are lack of realism, insufficient competitive analysis, and a ________ focus. A) long-term B) profit C) short-run D) product E) price

answer

C) short-run

question

The ________ is the last section of the marketing plan. It spells out the goals and budget for each month or quarter so management can review each period's results and take action as needed. A) executive summary B) situation analysis C) marketing strategy D) financial projections E) implementation controls

answer

E) implementation controls

question

In a marketing plan, the financial projections include a sales forecast, expense forecast, and ________. A) situation analysis B) list of tactics C) communications strategy D) break-even analysis E) implementation controls

answer

D) break-even analysis

question

Pegasus writes about its target market and demographics in the ________ section of its marketing plan. A) Executive summary B) Implementation C) Situation analysis D) Strategy E) Tactics

answer

C) Situation analysis

question

________ is the process that turns marketing plans into action assignments and ensures that such assignments are executed in a manner that accomplishes the plan's stated objectives. A) Marketing implementation B) Marketing research C) Marketing analysis D) Brand management E) Product management

answer

A) Marketing implementation

question

A marketing dashboard should display ________. A) implementation controls B) plans for each marketing audit C) the company's marketing-mix models D) the instrument panel of all vehicles sold by a dealership E) a customer-performance scorecard and a stakeholder-performance scorecard

answer

E) a customer-performance scorecard and a stakeholder-performance scorecard

question

The purpose of profitability control is to ________. A) examine whether the planned results are being achieved B) examine where the company is making and losing money C) evaluate and improve the spending efficiency and impact of marketing expenditures D) examine whether the company is pursuing its best opportunities with respect to markets, products, and channels E) understand the efficiency of the sales force, advertising, sales promotion, and distribution

answer

B) examine where the company is making and losing money

question

Marketing effectiveness rating instruments and marketing audits are approaches to ________ control. A) annual-plan B) profitability C) efficiency D) strategic E) statistical

answer

D) strategic

question

Which of the following is TRUE regarding annual-plan control? A) This control process begins by identifying the causes of serious performance deviations. B) The tools used for this purpose are sales analysis, market share analysis, marketing expense-to-sales analysis, and financial analysis. C) The marketing controller has the primary responsibility for annual-plan control. D) Its purpose is to evaluate and improve the spending efficiency and impact of marketing expenditures. E) It measures profitability by product, territory, customer, segment, trade channel, and order size.

answer

B) The tools used for this purpose are sales analysis, market share analysis, marketing expense-to-sales analysis, and financial analysis.

question

Your firm has experienced a decline in sales over the last three quarters. You have traced the problems to distribution inefficiencies. Which of the following should you track to ensure that the firm's distribution efficiency is maximized? A) average sales per point of sale B) sales from new products C) trial rate D) repurchase rate E) new customer gains

answer

A) average sales per point of sale

question

A ________ is a comprehensive, systematic, independent, and periodic examination of a company's or business unit's marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve the company's marketing performance. A) marketing plan B) test market C) marketing audit D) market-based scorecard analysis E) marketing metric

answer

C) marketing audit

question

Which of the following is TRUE regarding a marketing audit? A) It focuses primarily on a firm's macromarketing environment. B) It identifies the most-needed improvements and incorporates them into a corrective-action plan with short- and long-run steps. C) It is less effective at locating the real source of a problem than a functional audit. D) It analyzes only those marketing activities that have failed to produce adequate results. E) It relies solely on company managers for data and opinions.

answer

B) It identifies the most-needed improvements and incorporates them into a corrective-action plan with short- and long-run steps.

question

Which of the four characteristics of a marketing audit is described by the fact that outside consultants can bring necessary objectivity to the process? A) comprehensive B) systematic C) independent D) periodic E) opinion-based

answer

C) independent

question

Annual-plan control requires making sure the company isn't overspending to achieve sales goals. To do this, management sets monthly or quarterly goals, monitors marketing performance in the marketplace, ________, and takes corrective action. A) conducts a SWOT analysis B) develops tactical plans C) conducts a marketing audit D) hires a marketing controller E) determines the cause of serious performance deviations

answer

E) determines the cause of serious performance deviations

question

As the manager of an organization that is attempting to build a marketing information system (MIS), you have been informed that an MIS is built upon three fundamental information sources. The sources are ________, marketing intelligence activities, and marketing research. A) external records and documents B) databases found on the Internet C) consultant reports D) internal company records E) secondary data from government sources such as the Better Business Bureau

answer

D) internal company records

question

The heart of the internal records system is the ________ because customers favor firms that can promise timely delivery. A) sales information system B) data mining system C) order-to-payment cycle D) information needs probe E) data warehouse

answer

C) order-to-payment cycle

question

The ________ begins with sales representatives and dealers sending orders to the firms and is followed by the sales department preparing invoices, and finally generating shipping and billing documents. A) payroll system B) market research process C) human resources system D) expense cycle E) order-to-payment cycle

answer

E) order-to-payment cycle

question

Companies can practice targeted marketing by using ________, which are records of Web site usage stored on personal browsers. A) plug-ins B) data warehouses C) cookies D) trolls E) Big Data

answer

C) cookies

question

The internal records system supplies results data, but the marketing intelligence system supplies ________ data. A) internal B) revenue C) thematic D) happenings E) process

answer

D) happenings

question

A ________ is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. A) data warehousing system B) viral marketing campaign C) product management system D) marketing intelligence system E) sales information system

answer

D) marketing intelligence system

question

A company can take several steps to improve the quality of its marketing intelligence. One company purchases competitive products for study, attends open houses and trade shows, and reads competitors' published reports and stockholder information. This company is ________. A) taking advantage of government data B) motivating intermediaries to share intelligence C) networking internally and externally D) setting up customer advisory panels E) buying information from research firms

answer

C) networking internally and externally

question

When gathering marketing intelligence, companies often use the U.S. census, which provides an in-depth look at the population swings, demographic groups, regional migrations, and changing family structure of the more than 281 million people living in the United States. Which of the following steps to improve the quality of a company marketing intelligence system would be most closely associated with this illustration? A) A company can purchase information from outside suppliers. B) A company can take advantage of government data sources. C) A company can use online customer feedback systems to collect data. D) A company can network externally. E) A company can use its sales force to collect and report data.

answer

B) A company can take advantage of government data sources.

question

When a company acquires consumer-panel data from firms like A.C. Nielsen Company and Information Resources Inc., which of the following steps to improve the quality of a company marketing intelligence system is the company resorting to? A) training and motivating the sales force to spot and report new developments B) motivating distributors, retailers, and other intermediaries to pass along important intelligence C) hiring external experts to collect intelligence D) using external network E) purchasing information from outside research firms and vendors

answer

E) purchasing information from outside research firms and vendors

question

Elance.com is a service provider that allows contractors to describe their level of satisfaction with subcontractors. This is an example of a ________. A) government source of data B) public blog C) customer complaint site D) combo site offering customer reviews and expert opinions E) distributor feedback site

answer

E) distributor feedback site

question

When ConAgra learned that stores were selling more time-saving meals and snacks when school started, it launched its "Seasons of Mom" campaign to help grocers adjust to seasonal shifts in household needs. Which of the eight possible actions to improve the quantity and quality of its marketing intelligence yielded this insight? A) Train and motivate the sales force to spot and report new developments. B) Motivate distributors, retailers, and other intermediaries to pass along important intelligence. C) Hire external experts to collect intelligence. D) Network internally and externally. E) Set up a customer advisory panel.

answer

B) Motivate distributors, retailers, and other intermediaries to pass along important intelligence.

question

________ provide diagnostic information about how and why we observe certain effects in the marketplace, and what that means to marketers. A) Marketing insights B) Marketing metrics C) Marketing channels D) Marketing information systems E) Marketing-mix models

answer

A) Marketing insights

question

Anne, a beautician by profession, owns a salon in the small town of Franklin, New Jersey. Every weekend, she makes it a point to visit the other salons in Franklin to find out about the beauty services they offer to customers. Anne is attempting to conduct marketing research by ________. A) studying customer behavior B) forming alliances with competing firms C) using experimental research techniques D) checking out rivals E) tapping into marketing partner expertise

answer

D) checking out rivals

question

Which of the following types of marketing research firms gathers consumer and trade information and then sells it for a fee (e.g., Nielsen Company)? A) custom marketing research firms B) syndicated-service research firms C) specialty-line marketing research firms D) generic marketing research firms E) focused marketing research firms

answer

B) syndicated-service research firms

question

When American Airlines decided to review new ideas aimed at first-class passengers on very long flights, like an ultra high-speed Wi-Fi service and 124 channels of high-definition satellite cable TV, their first step in the marketing research process was to ________. A) develop the research plan B) define the problem and research objectives C) collect the information D) analyze the information E) make the decision

answer

B) define the problem and research objectives

question

When American Airlines asked "1) What types of first-class passengers would respond most to ultra high-speed Wi-Fi service and 2) How many are likely to use it at different price levels?", it was ________. A) setting specific research objectives B) conducting exploratory research C) outlining decisions D) defining the problem E) designing a research plan

answer

A) setting specific research objectives

question

Which of the following is considered to be the last step in the marketing research process? A) presenting findings B) analyzing information C) controlling the environment D) arriving at a decision E) drafting the report

answer

D) arriving at a decision

question

If the goal of marketing research is to shed light on the real nature of a problem and to suggest possible solutions or new ideas, the research is said to be ________. A) descriptive B) quantitative C) primary D) secondary E) exploratory

answer

E) exploratory

question

Unistar Inc., is an FMCG company that produces a wide range of offerings such as grocery items and personal care products. If Unistar wants to estimate the demand for its new line of body moisturizers, which are all priced at $18, it should opt for ________ research. A) descriptive B) exploratory C) prescriptive D) causal E) qualitative

answer

A) descriptive

question

Researchers usually start their investigation by examining some of the rich variety of low-cost and readily available ________ data, then collect ________ data if the needed data don't existing or are dated, inaccurate, incomplete or unreliable. A) primary; secondary B) secondary; primary C) primary; econometric D) secondary; econometric E) exploratory; econometric

answer

B) secondary; primary

question

Designing a research plan calls for decisions on all of the following EXCEPT ________. A) research objectives B) data sources C) research approaches D) research instruments E) sampling plans

answer

A) research objectives

question

Primary data can be collected in several ways. Installing cameras in a retail store to unobtrusively record shopping behavior is an example of ________ research. A) focus group B) survey C) observational D) behavioral E) experimental

answer

C) observational

question

________ research approach uses concepts and tools from anthropology and other social science disciplines to provide deep cultural understanding of how people live and work. A) Cognitive B) Inductive C) Archaeological D) Ethnographic E) Deductive

answer

D) Ethnographic

question

As the marketing manager of Cominform Pvt. Ltd., a manufacturer of health drinks, you have selected 10 individuals who match the profile of your target customer, to participate in a discussion on changing lifestyle trends related to health. You have also hired a skilled moderator to facilitate the discussion and ensure that everyone participates and stays focused on the topic. The moderator provides questions and probes based on the "script" prepared by you. The discussions are also recorded for further analysis. Which of the following methods of acquiring primary data is being used in this case? A) observational research B) surveys C) behavioral data D) experiments E) focus groups

answer

E) focus groups

question

Which of the following is used to assess people's knowledge, beliefs, preferences, and satisfaction and to measure these magnitudes in the general population? A) observational research B) descriptive research C) quantitative research D) survey research E) experimental research

answer

D) survey research

question

________ research is designed to capture cause-and-effect relationships by eliminating competing explanations of the observed findings. A) Experimental B) Behavioral C) Observational D) Focus group E) Descriptive

answer

A) Experimental

question

________ questions allow respondents to answer in their own words and often reveal more about how people think. A) Open-end B) Dichotomous C) Likert scale D) Multiple-choice E) Semantic differential

answer

A) Open-end

question

With respect to the sampling plan, three decisions must be made: 1) the sampling unit—who is to be surveyed; 2) sample size—how many people should be surveyed; and 3) ________. A) sample cost-how much does sampling cost B) surveyor skill-who should conduct the survey C) sample security-how should the sample data be protected D) sampling procedure-how should respondents be chosen E) sample supervisor-who leads the sampling effort

answer

D) sampling procedure-how should respondents be chosen

question

Which of the following is considered to be the most versatile of all the contact methods? A) mail questionnaires B) telephone interviews C) personal interviews D) online interviews E) field trials

answer

C) personal interviews

question

The ________ market is the set of consumers with an adequate interest, income, and access to a particular offer. A) potential B) available C) target D) penetrated E) reserve

answer

B) available

question

________ for a product is the total volume that would be bought by a defined customer group in a defined geographical area in a defined time period in a defined marketing environment under a defined marketing program. A) Company demand B) Area market potential C) Market demand D) Company sales potential E) Total market potential

answer

C) Market demand

question

With an increase in marketing expenditure, market demand ________. A) continues to rise at an increasing rate B) initially increases and then declines C) increases first at an increasing rate, then at a decreasing rate D) decreases first and then spikes E) continues to increase at a decreasing rate.

answer

C) increases first at an increasing rate, then at a decreasing rate

question

During a recession, the market demand curve, which is a function of marketing expenditure, ________. A) shifts upward B) becomes vertical C) remains unaffected D) shifts downward E) slopes downward

answer

D) shifts downward

question

The sales goal set for a product line, company division, or sales representative of an organization is called ________. A) sales budget B) company sales forecast C) sales quota D) company sales potential E) market potential

answer

C) sales quota

question

Suppose an individual buyer purchases three pairs of shoes each year at $50 each pair and that there are 50 million such consumers in the economy. Compute the total market potential for shoes. A) $5,000 million B) $6,500 million C) $7,500 million D) $10,000 million E) $75 billion

answer

C) $7,500 million

question

Which of the following is TRUE about trends in worldwide population growth? A) Birthrates are on the rise in developed countries. B) Overall, the world population growth is declining. C) Birthrates are on the rise in developing countries. D) Death rates are rising in developing countries. E) Population growth is highest in developing countries.

answer

E) Population growth is highest in developing countries.

question

Which of the following elements of sociocultural environment can be associated with the growing demand for "social surrogates" like social networking sites, television, etc.? A) views of ourselves B) views of organizations C) views of others D) views of nature E) views of the universe

answer

C) views of others

question

________ beliefs and values are passed from parents to children and reinforced by social institutions-schools, churches, businesses, and governments; they are very difficult to change. A) Transient B) Secondary C) Protected D) Core E) Variable

answer

D) Core

question

Which of the following is TRUE about the technology trends that marketers should monitor? A) A growing portion of U.S. R&D expenditures are going toward the research side as opposed to the development side. B) Today, the time between idea and implementation is expanding. C) China leads the world in spending on research and development. D) The pace of change is accelerating today. E) The government has decreased regulation of technological change.

answer

D) The pace of change is accelerating today.

question

A possible unintended effect of business legislation is ________. A) restricting fair competition in the market B) encouraging unbridled business behavior C) reducing the social cost of producing a particular commodity D) exposing consumers to unfair trade practices E) slowing economic growth

answer

E) slowing economic growth

question

________ is the difference between the prospective customer's evaluation of all benefits and all costs of an offering and the perceived alternatives. A) Perceived usefulness B) Failure avoidance rate C) Total customer benefit D) Customer-perceived value E) Competitors' market share rate

answer

D) Customer-perceived value

question

When a consumer considers a product or service, he or she will choose whichever product or service delivers the highest ________. A) customer-perceived value B) customer-perceived cost C) customer profitability analysis D) customer equity E) customer lifetime value

answer

A) customer-perceived value

question

________ is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a given market offering. A) Total customer cost B) Total customer benefit C) Total benefits of ownership D) Value proposition E) Value delivery system

answer

B) Total customer benefit

question

The bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of a market offering is called the ________. A) activity-based cost B) customer profitability analysis C) total customer cost D) product life-cycle cost E) direct product profitability

answer

C) total customer cost

question

Which of the following is TRUE for customer-perceived value? A) It is the perceived monetary value of the bundle of economic, functional, and psychological benefits customers expect from a product. B) It is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives. C) It is the perceived bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given market offering. D) It is the net present value of the stream of future profits expected over the customer's lifetime purchases. E) It is the process of investigating the hierarchy of attributes consumers examine in choosing a brand if they use phased decision strategies.

answer

B) It is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering and the perceived alternatives.

question

Which of the following is a way for companies to increase customer-perceived value? A) increase the psychological investment associated with buying B) increase the buyer's time and energy investment C) increase total customer benefit by improving economic and functional benefits D) decrease total customer benefit by replacing psychological benefits of the product E) decrease the difference between total customer benefit and total customer cost

answer

C) increase total customer benefit by improving economic and functional benefits

question

________ can be defined as a deeply held commitment to rebuy or repatronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior. A) Value proposition B) Loyalty C) Satisfaction D) Respect E) Customer value

answer

B) Loyalty

question

TBS Bikes has recently introduced a series of bikes called Surami. The core positioning of TBS Bikes is "speed." Surami is a five-gear bike, and apart from speed, the company promises to include other features such as safety, good performance, and pollution control features. This describes the ________ of the bike. A) total customer cost B) customer-perceived value C) value-delivery system D) value proposition E) total customer benefit

answer

D) value proposition

question

A company's ________ includes all the experiences the customer will have on the way to obtaining and using the offering. A) value proposition B) value delivery system C) customer-value analysis D) total customer benefit E) total customer cost

answer

B) value delivery system

question

Sammy's is a fast food chain that offers burgers, sandwiches, and shakes. It focuses its marketing efforts on all the experiences the customers will have on the way to obtaining their food order and eating it. Hence, Sammy's is focusing its marketing efforts on its ________ system. A) horizontal marketing B) cost versus benefit C) consumption D) marketing channel E) value delivery

answer

E) value delivery

question

Total customer satisfaction is measured based on the relationship of ________. A) expected value and total customer benefit B) perceived performance and expectation C) advertised outcomes and real outcomes D) past experience and present experience E) customer attitude and salesperson's attitude

answer

B) perceived performance and expectation

question

Of customers who register a complaint, ________. A) all will do business with the company again because they are unwilling to dedicate the effort required to find another vendor B) none will do business with the company again C) customers whose complaints are satisfactorily resolved are more likely to provide publicity than those who are dissatisfied D) the speed of resolution has no impact on the likelihood of repeat business E) some will do business with the company again if their complaint is resolved

answer

E) some will do business with the company again if their complaint is resolved

question

Which of the following is the best method of recovering customer goodwill? A) sending service people to conduct door-to-door surveys B) contacting the complaining customer as quickly as possible C) identifying prospective customers from the customer database D) customizing products according to individual customer need E) defining and measuring the customer retention rate

answer

B) contacting the complaining customer as quickly as possible

question

Rade and Talion are competitors in the business of manufacturing wrist watches. While Rade promises to deliver design and quality to its customers, Talion promises to deliver durability and cost effectiveness. When both these companies deliver their respective promised qualities, they are delivering ________. A) performance quality B) customer support C) unique quality D) accuracy quality E) conformance quality

answer

E) conformance quality

question

The Net Promoter Score is calculated by subtracting ________ from ________. A) promoters; detractors B) detractors; promoters C) detractors; passively satisfied customers D) passively satisfied customers; detractors E) passively satisfied customers; promoters

answer

B) detractors; promoters

question

________ lines up customers along columns and products along rows to show the profitability of selling a product to a customer. A) Mystery shopping B) Activity-based costing C) Customer profitability analysis D) Customer lifetime value E) American Customer Satisfaction Index

answer

C) Customer profitability analysis

question

The 80-20 rule reflects the idea that ________. A) 20 percent of the company's profits are generated by the top 80 percent of customers B) the top 20 percent of customers are highly satisfied and 80 percent of customers will recommend the company to a friend C) 20 percent of customers are unprofitable, and 80 percent make up a company's profits D) the top 20 percent of customers often generate 80 percent of the company's profits E) any new product will be accepted by 20 percent of the customers immediately, but 80 percent of the customers will be up for grabs throughout the product's life cycle

answer

D) the top 20 percent of customers often generate 80 percent of the company's profits

question

A profitable customer yields a ________. A) cost stream that exceeds by an acceptable amount his revenue stream B) revenue stream that exceeds the company's cost stream C) cost stream that exceeds the company's revenue stream D) revenue stream that exceeds by an acceptable amount his cost stream E) revenue stream that equals the company's cost stream

answer

B) revenue stream that exceeds the company's cost stream

question

A ________ is a person, household, or company that over time yields a revenue stream that exceeds by an acceptable amount the company's cost stream of attracting, selling, and servicing that customer. A) prospector B) profitable customer C) market challenger D) market nicher E) pioneer customer

answer

B) profitable customer

question

Customer profitability analysis is best conducted with the tools of an accounting technique called ________. A) input-output analysis B) factor analysis C) revenue-based costing D) activity-based costing E) future date costing

answer

D) activity-based costing

question

Which of the following is TRUE for activity-based costing (ABC)? A) ABC considers the real costs associated with each product. B) With ABC, the company can estimate all costs coming from the customer, less revenue. C) The tools of ABC can be used to conduct customer profitability analysis. D) It identifies the costs of products and services based on the revenue they generate. E) ABC allocates indirect costs in proportion to direct costs.

answer

C) The tools of ABC can be used to conduct customer profitability analysis.

question

________ describes the net present value of the stream of future profits expected over the customer's lifetime purchases. A) Activity-based costing B) Customer lifetime value C) Customer value analysis D) Customer-perceived value E) Customer profitability analysis

answer

B) Customer lifetime value

question

Cable TV operators and cellular carriers suffer from high levels of ________, or customer defections. A) customer retention B) customer churn C) detraction D) share-of-wallet E) customer complaints

answer

B) customer churn

question

The aim of customer relationship management is to produce high customer ________. A) integrity B) loyalty C) innovation D) liability E) equity

answer

B) loyalty

question

________ is the process of carefully managing detailed information about individual customers and all customer "touch points" to maximize loyalty. A) Customer relationship management B) Customer lifetime value C) Customer profitability analysis D) Customer satisfaction analysis E) Customer-value delivery

answer

A) Customer relationship management

question

A customer ________ is any occasion on which a customer encounters the brand and product from actual experience to personal or mass communications to casual observation. A) touch point B) point of order C) point of difference D) pivot point E) point of parity

answer

A) touch point

question

A customer touch point for Abacus Airlines would be an item such as ________. A) ease of access to the airport B) a mechanic's ability to service the airplanes C) the reservations desk D) the value of air travel versus surface transportation E) competency of a travel agent

answer

C) the reservations desk

question

Rachel and Josh are on vacation in Hawaii. When they arrived at the hotel, they were offered chilled juice. Their check-in formalities were handled by the staff. When they entered their room, they saw that chocolates had been placed on the pillows and a flower arrangement on the table. These are examples of customer ________. A) lifetime value B) perceived value C) value analysis D) profitability analysis E) touch points

answer

E) touch points

question

________ marketing is the practice of sending messages only when consumers express a willingness to become more involved with the brand. A) Relationship B) Permission C) Cause D) Defensive E) Horizontal

answer

B) Permission

question

Another term for high customer ________ is customer churn. A) retention B) defection C) value D) perception E) belief

answer

B) defection

question

Which of the following can a company do to reduce defection? A) Attract new customers to try out the company's products. B) Increase customer lifetime value by increasing the non-monetary costs of products. C) Enhance the growth potential of existing customers through cross-selling and up-selling. D) Distinguish the causes of customer attrition and identify those that can be managed better. E) Make low-profit customers more profitable or terminate the relationship.

answer

D) Distinguish the causes of customer attrition and identify those that can be managed better.

question

The Marketing Funnel (Scenario) Amy and Jack were loyal customers of GreenFoods, a local grocery store. However, after a couple of incidents where they had to return products that were stale and out of date, the couple decided to try out VeggiesNmore, a chain store that recently opened in town. Both Amy and Jack must move through each stage in the marketing funnel before becoming loyal customers. Jack has shopped at VeggiesNmore. He was happy with the experience and thought that this could be an alternative to GreenFoods. However, he is also eager to try out other stores in the neighborhood. He is in the ________ stage of the marketing funnel as far as shopping at VeggiesNmore is concerned. A) aware B) open to trial C) most often used D) nonrejecter E) regular user

answer

D) nonrejecter

question

The Marketing Funnel (Scenario) Amy and Jack were loyal customers of GreenFoods, a local grocery store. However, after a couple of incidents where they had to return products that were stale and out of date, the couple decided to try out VeggiesNmore, a chain store that recently opened in town. Both Amy and Jack must move through each stage in the marketing funnel before becoming loyal customers. Amy is in the "aware" stage of the marketing funnel when she says ________. A) she can try shopping at VeggiesNmore while simultaneously exploring other stores in the neighborhood B) she was informed about VeggiesNmore by her colleague at work C) she regularly shops from VeggiesNmore D) she shops from VeggiesNmore as far as the store is easily accessible E) she was happy with the experience of shopping at VeggiesNmore

answer

B) she was informed about VeggiesNmore by her colleague at work

question

Many banks and phone companies now charge fees for once-free services to ensure minimum customer revenue levels. This helps banks to ________. A) reduce the rate of customer defection B) make low-profit customers more profitable C) enhance the growth potential for each customer through cross-selling D) increase the longevity of the customer relationship E) focus disproportionate effort on high-value customers

answer

B) make low-profit customers more profitable

question

Which of the following is a policy a store can adopt to make low-profit customers more profitable? A) 2Wheels sends birthday greetings to its best customers and gives them discounts on merchandise. B) 2Wheels has a club for its regular customers, organizing cycling events and parties for them. C) Though 2Wheels previously offered free delivery, it now charges for deliveries made outside the city. D) 2Wheels allows existing customers to upgrade to a newer model at less than the sticker price by trading in their older model. E) 2Wheels encourages customers to send in their suggestions for product improvement.

answer

C) Though 2Wheels previously offered free delivery, it now charges for deliveries made outside the city.

question

Companies provide rewards to customers who buy often and in substantial amounts. These reward schemes are referred to as ________ programs. A) benefit B) frequency C) satisfaction D) profitability E) quality

answer

B) frequency

question

Club membership programs that are open to everyone who purchases a product or service ________. A) are more powerful long-term loyalty builders than limited-membership clubs B) will not help a company attract customers from competitors C) prevent those with only a fleeting interest in a company's products from joining D) are useful for building a database of customers but are not very good as long-term loyalty builders E) are useless unless there are fees and membership conditions

answer

D) are useful for building a database of customers but are not very good as long-term loyalty builders

question

Some customers inevitably become inactive or drop out. The challenge for marketers is to reactivate them through ________ strategies. A) win-back B) retention C) defection D) sell-out E) recuperation

answer

A) win-back

question

BMW is ________ the customer experience when it offers 500 side-mirror combinations, 1,300 front bumper combinations, and 9,000 center-console combinations and provides new buyers a video link to watch their car being "born" while waiting for delivery. A) identifying B) synthesizing C) integrating D) acknowledging E) personalizing

answer

E) personalizing

question

To exploit the power of social media, marketers need to create tangible value for consumers, which can come from all of the following EXCEPT ________. A) discounts B) coupons C) information D) solicitations E) special offers

answer

D) solicitations

question

________ marketing is about making sure the brand and its marketing are as personally relevant as possible to as many customers as possible-a challenge, given that no two customers are identical. A) Personalizing B) Permission C) Identification D) Database E) Integrated

answer

A) Personalizing

question

________ is the study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. A) Target marketing B) Mind mapping C) Consumer activism D) Consumer behavior E) Product differentiation

answer

D) Consumer behavior

question

The relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior constitute a ________. A) culture B) subculture C) social class D) family E) group

answer

C) social class

question

Joe is a computer service technician. People in his neighborhood usually depend on his suggestions for purchasing any computer accessory or hardware, as they believe that he has access to far more information on computer technology than the average consumer. The neighbors are also aware that Joe has the required knowledge and background for understanding the technical properties of the products. Within this context, Joe can be called a(n) ________. A) transactional leader B) opinion leader C) role model D) gate-keeper E) international marketer

answer

B) opinion leader

question

________ refers to a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli. A) Image B) Personality C) Psychological transformation D) Lifestyle E) Acculturation

answer

B) Personality

question

________ portrays the "whole person" interacting with his or her environment. A) Attitude B) Personality C) Lifestyle D) Self-concept E) Subculture

answer

C) Lifestyle

question

Marketers who target consumers on the basis of their ________ believe that they can influence purchase behavior by appealing to people's inner selves. A) time famine B) sophistication C) money constrain D) social class E) core values

answer

E) core values

question

The starting point for understanding consumer behavior is the ________ model in which marketing and environmental stimuli enter the consumer's consciousness, and a set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions. A) self-reliance B) self-perception C) psychogenic D) stimulus-response E) projective

answer

D) stimulus-response

question

________ can work to the advantage of marketers with strong brands when consumers make neutral or ambiguous brand information more positive. A) Selective attention B) Selective distortion C) Selective retention D) Selective choice E) Selective embellishment

answer

B) Selective distortion

question

________ is the tendency to interpret information in a way that will fit our preconceptions. A) Selective retention B) Cognitive dissonance C) Selective distortion D) Subliminal perception E) Selective embellishment

answer

C) Selective distortion

question

Anne is a frequent purchaser of Yoplait strawberry yogurt. For once, she decides to try a different flavored yogurt. Instead of trying out the flavors offered by competing brands, Anne selects a different flavor offered by Yoplait. Here, her past experience with the brand prompts her to make the choice. Anne's behavior can be best described as ________. A) fallacy of proposition B) associative networking C) generalization D) heuristic thinking E) self-actualization

answer

C) generalization

question

The associative network memory model views long-term memory as ________. A) a subliminal perception B) the interplay of drives C) a strong internal stimulus impelling action D) a temporary and limited repository of information E) a set of nodes and links

answer

E) a set of nodes and links

question

Amtex Electronics, a consumer products brand, frequently advertises its products inside supermarkets and retail stores to promote the process of memory ________ and stimulate purchase. A) verification B) retrieval C) decoding D) formation E) augmentation

answer

B) retrieval

question

The milder information search state where a person simply becomes more receptive to information about a product is called ________. A) active information search B) information search C) heightened attention D) purchase decision E) dynamic information search

answer

C) heightened attention

question

Brands that meet consumers' initial buying criteria are called the ________ set. A) total B) awareness C) consideration D) choice E) decision

answer

C) consideration

question

________ are a person's enduring favorable or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea. A) Discriminations B) Values C) Beliefs D) Feelings E) Attitudes

answer

E) Attitudes

question

The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their ________. A) needs B) wants C) desires D) brand beliefs E) consuming attitudes

answer

D) brand beliefs

question

________ are rules of thumb or mental shortcuts in the decision process. A) Attitudes B) Beliefs C) Heuristics D) Discriminations E) Biases

answer

C) Heuristics

question

Even if consumers form brand evaluations, two general factors can intervene between the purchase intention and the purchase decision: one is unanticipated situational factors; what is the other factor? A) amount of purchasing power B) attitudes of others C) short-term memory capabilities D) ability to return merchandise E) the self-concept

answer

B) attitudes of others

question

When a marketer tries to alter consumers' beliefs about her company's brand to get the consumers to rethink a purchase decision, she is using ________. A) psychological repositioning B) competitive depositioning C) positioning D) repositioning E) biased positioning

answer

A) psychological repositioning

question

A key driver of sales frequency is the product ________ rate. A) consumption B) disposal C) refusal D) utility E) option

answer

A) consumption

question

A consumer tells another consumer, "Every time I eat at Big Bill's Steakhouse, I get poor service." Whether this is true or not, it is the consumer's perception. This is an example of consumers basing future predictions on the quickness and ease with which a particular example of an outcome comes to mind. This scenario would be an illustration of the ________ heuristic. A) discrimination B) differentiation C) availability D) screening E) representativeness

answer

C) availability

question

________ refers to the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers. A) Marketing channels B) Organizational buying C) Corporate retailing D) Brand auditing E) Inventory control

answer

B) Organizational buying

question

Which of the following is TRUE for business marketers? A) They deal with more and larger buyers than consumer marketers. B) They deal with more and smaller buyers than consumer marketers. C) They deal with fewer and larger buyers than consumer marketers. D) They deal with fewer and smaller buyers than consumer marketers. E) They deal with the same kind of buyers as consumer marketers.

answer

C) They deal with fewer and larger buyers than consumer marketers.

question

Pittsburgh-based Consol Energy's coal business largely depends on orders from utilities and steel companies which, in turn, depend on broader economic demand from consumers for electricity and steel-based products like automobiles and appliances because of ________. A) fluctuating demand B) derived demand C) professional purchasing D) multiple buying influences E) multiple sales calls

answer

B) derived demand

question

The purchasing department buys office supplies on a routine basis from a pre-approved list of suppliers. This type of purchase is classified as a ________. A) straight rebuy B) modified rebuy C) new task D) secondary purchase E) procure-to-pay

answer

A) straight rebuy

question

Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor will they buy much less leather if the price rises, unless they can find satisfactory substitutes. This is an example of ________. A) inelastic demand B) direct purchasing C) decision framing D) a modified rebuy E) a straight rebuy

answer

A) inelastic demand

question

In a ________ purchasing situation, the buyer wants to make some change to existing product specifications, prices, delivery requirements, or other terms. A) new rebuy B) regular buy C) straight rebuy D) modified rebuy E) new task

answer

D) modified rebuy

question

________ is composed of all parties who participate in the purchasing decision-making process and share common goals and risks associated with their decisions. A) The buying center B) The marketing sales team C) Strategic management D) Engineering support E) The logistics center

answer

A) The buying center

question

If you performed the role of the ________ in a buying center, you would be the person that has the power to prevent sellers or information from reaching other members of the buying center. A) initiator B) influencer C) decider D) gatekeeper E) approver

answer

D) gatekeeper

question

In which of the following is a person performing the role of an influencer? A) Dan decides on the product requirements and makes the final choice of suppliers. B) Luke has the authority to pick out the supplier and negotiate the terms of purchase. C) Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives. D) LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG. E) Dana authorizes the actions of the deciders and buyers in LKG.

answer

C) Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives.

question

Small sellers to a buying center should first concentrate their marketing efforts on reaching ________. A) approvers B) initiators C) influencers D) users E) initiators

answer

C) influencers

question

If you were an upper-level marketing executive of a large seller of trucks, which of the following strategies would be most appropriate in reaching buying center targets? A) Concentrate on key buying influencers. B) Use multilevel in-depth selling. C) Use trade-based promotions. D) Concentrate sales efforts on the support staff. E) Move all operations to the Internet.

answer

B) Use multilevel in-depth selling.

question

Patrick J. Robinson and his associates have identified eight stages in the business buying-decision process. This model is called the ________ framework. A) buygrid B) buying/selling C) seller-centered D) commercial E) buy-analysis

answer

A) buygrid

question

In reordering office supplies, the only stages that the buyer passes through are the product specification stage and the ________ stage. A) problem recognition B) general need description C) order-routine specification D) supplier search E) performance review

answer

E) performance review

question

The approach to cost reduction that studies whether components can be redesigned or standardized or made by cheaper methods of production without adversely impacting product performance is termed as ________. A) maintenance, repair, and operating (MRO) B) product value analysis (PVA) C) vendor managed inventories (VMI) D) supplier performance management (SPM) E) supplier added value effort (SAVE)

answer

B) product value analysis (PVA)

question

Which of the following is an example of a functional hub? A) Plastics.com allows plastics buyers to search the best prices among thousands of plastics sellers. B) ChemConnect.com is an online exchange for buyers and sellers of bulk chemicals. C) SteelMart.com concentrates on steel buyers from the United States. D) SupplyLink.com offers manufacturers from different industries information on ensuring workplace safety. E) PaperTiger.com offers paper buyers a comprehensive look at the prices and quality in the paper market.

answer

D) SupplyLink.com offers manufacturers from different industries information on ensuring workplace safety.

question

Many business buyers prefer to buy a total solution to a problem from one seller. This process is also known as ________. A) channel consolidation B) systems buying C) vertical buying D) horizontal buying E) supply buying

answer

B) systems buying

question

Value Central has a partnership of high trust and commitment with certain suppliers and gives them access to its sophisticated and detailed daily, individual store-based sales data. In exchange, those suppliers are responsible for managing Value Central's inventory of their products. This relationship is best described as ________. A) basic buying and selling B) contractual transaction C) collaborative D) customer supply E) customer is king

answer

C) collaborative

question

In the ________ category of buyer-supplier relationship, although bonded by a close, cooperative relationship, the seller adapts to meet the customer's needs without expecting much adaptation or change on the part of the customer in exchange. A) contractual transaction B) cooperative system C) collaborative D) mutually adaptive E) customer is king

answer

E) customer is king

question

Which of the following is a form of cheating or undersupply relative to an implicit or explicit contract which usually takes place when buyers cannot easily monitor supplier performance? A) institutional sale B) business buying C) opportunism D) vertical integration E) contractual transactionism

answer

C) opportunism

STUDY

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BUSN Test Chap. 8, 10, 11, 12, 13, 16 – Flashcards 144 terms

Sara Graham

144 terms

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BUSN Test Chap. 8, 10, 11, 12, 13, 16 – Flashcards

question

The heavy reliance on accounting information by business stakeholders has led to sometimes being called the

answer

Language of business

question

Which of the following is a key external user of a company's accounting information?

answer

Competitors

question

Matt is asked by Clint Publishers to carry out an external audit of its books. He is also asked to prepare the tax returns for another client, Mrs. Zhirkov. Matt is a _____.

answer

public accountant

question

______ is a branch of accounting that addresses the needs of external stakeholders, including stockholders, creditors, and government regulators.

answer

Financial accounting

question

Through the generally accepted accounting principles (GAAP), the Financial Accounting Standards Board (FASB) aims to ensure that financial statements are _____.

answer

Relevant, reliable, consistent, and independent

question

The _____ reports the financial position of a firm by identifying and reporting the value of the firm's assets, liabilities, and owners' equity.

answer

Balance sheet

question

Assets refer exclusive to ______

answer

The resources owned by a firm

question

Kyra Inc. has applied for a business loan in the United Bank. In order to best assess the loan case, the loan officer at the bank, Sirigu, decides to look at the company's net income figure. Sirigu will find this information in Kyra's _____.

answer

Statement of retained earnings

question

A(n) _____ opinion is issued if an external auditor does not find any problems with the way a firm prepares and presents its financial statements.

answer

Unqualified

question

Annual reports include _____ that disclose additional information about a firm's operations and special circumstances that clarify and supplement the numbers reported on the financial statements.

answer

Notes

question

Is the comparison of account values reported on financial statements over two or more years.

answer

Horizontal analysis

question

_____ is a management tool that explicitly shows how a firm will acquire and use the resources needed to achieve its goals over a specific time period.

answer

Budgeting

question

provides reports and analysis to managers to help them make informed business decisions.

answer

Managerial accounting

question

The value of what is given up in exchange for something else

answer

Cost

question

_________ are costs that are incurred as the result of some specific cost object.

answer

Direct costs

question

A(n) _____ is an example of a depository institution

answer

Commercial bank

question

A(n) _____ is a financial intermediary that specializes in helping firms raise financial capital by issuing securities in primary markets.

answer

Investment banking

question

The _____ of 2010 expanded the Fed's regulatory authority over non-depository financial institutions, such as hedge funds and mortgage brokers that had previously operated with little regulatory oversight or accountability.

answer

Dobb-Frank act

question

_____ to common stockholders of a company are a distribution of earnings that are paid only if declared by the company's board of directors.

answer

Dividends

question

The price at which shares of an open-end mutual fund are issued and redeemed is based on the fund's _____.

answer

Face value per share

question

One drawback of exchange traded funds (ETFs) is that investor is that they are not able to ____

answer

Diversify their investments

question

The first time a company issues stock that may be bought by the general public

answer

Initial public offering

question

The advantage of electronic communication networks (ECNs) is that they _____

answer

Speed up transactions

question

(True or False) In general, riskier investment strategies offer the potential for higher returns.

answer

True

question

The _____ tracks the stock prices of some of the largest and most actively traded companies listed on the Tokyo Stock Exchange.

answer

Nikkei 225

question

A _________ is the most common depository institution.

answer

Commercial bank

question

Which of the marketing strategies can be best employed for attracting tourists?

answer

Place marketing

question

While driving to work, Noel hears an advertisement on the radio about the annual blood donation camp organized by the American Red Cross. The American Red Cross emphasizes the importance of blood donation for the donor and recipient. This is an example of _____ marketing.

answer

Idea

question

The _____ is a philosophy that makes customer satisfaction the central focus of an entire organization.

answer

Marketing concept

question

Walt owns a local chain of auto repair shops in Northern Rottawa. He goes the extra mile in pleasing his customers by providing comfortable and attractive waiting rooms, friendly service, and an exceptional warranty on all repair work. Which of the following philosophies has Walt employed to make all his customers highly satisfied?

answer

Marketing concept

question

_____ is the ongoing process of acquiring, maintaining, and growing profitable customer associations by delivering unmatched value.

answer

Customer relationship management

question

Which of the following is the scope of relationship of marketers who actively gather data and pursue a connection with customers who initiate contact.

answer

Limited partnership

question

A firm selling a high-ticket product to a small customer base is most likely to pursue a full partnership with each of its key clients

answer

Customer relationship management

question

_____ is based on a customer's perception that a product has a better relationship between the cost and the benefits than its competitors.

answer

Value

question

Lawrence recently bought a brand new '69 Mustang, but he is not completely satisfied with it. He wished he had bought something that made a bigger impression on his colleagues at his posh Wall Street office. Lawrence's friend Howard, on the other hand, bought a Porsche 911 and is extremely happy with it. Howard becomes even more proud of his purchase when his friends compliment his car. From the marketing point of view, which of the following concepts has contributed to Howard feeling satisfied with this car?

answer

Perceived value

question

In the context of customer satisfaction, which of the following happens when a marketer falls into the trap of underpromising?

answer

Less customers try a product

question

Which of the following can be achieved by marketers by acquiring customer loyalty?

answer

Acquisition of new customers

question

Peter is starting a new business. He has to develop a marketing strategy by identifying similar characteristics, attributes, and behaviors of the target market, and then group the customers according to these characteristics, attributes, and behaviors. The term used to describe Peter's strategy is:

answer

Market segmentation

question

Which of the following is one of the characteristics of a well-chosen target market

answer

Good accessibility

question

Neon Bolt is an energy drink manufacturer. The marketing strategies of Neon Bolt are focused on males in the age group of 16-25 years who enjoy sports and other outdoor activities. The company advertises its product at skateboard parks, basketball venues, and ski resorts. The customer group that Neon Bolt focuses on is called its _____.

answer

Target market

question

Demographic segmentation divides the market based on measurable characteristics about _________

answer

People

question

It is the blend of marketing strategies for product, price, distribution, and promotion.

answer

Marketing mix

question

Jim works in the marketing department of a smartphone manufacturing firm. He is currently working on new package design ideas for the company's latest range of smartphones. In the context of the company's marketing mix, Jim's ideas contribute to the _____.

answer

Product strategy

question

_____ is the process of continually collecting information from the external marketing surroundings.

answer

Environmental scanning

question

Analysis of market share is a key to understanding a firm's

answer

Competitive environment

question

What is a drawback of primary data

answer

More expensive

question

In an effort to expand its business, music retailer MovNow offers DVD rentals online. In order to spot trends in consumer interest, MovNow has decided to evaluate the data of the hyperlinks that customers click on when they visit its website. This is an example of how a company can obtain _____ data.

answer

Primary

question

_______ demands that marketers actively contribute to the needs of the broader community.

answer

Social responsibility

question

Granite Inc. is a reputable company that has contributed a lot toward the social welfare of the public. Granite has improved working conditions in its overseas factories and has cut its waste emissions by half. To highlight these achievements, the company can publish a(n)

answer

Corporate responsibility report

question

Refers to the development and promotion of products with ecological benefit

answer

Green marketing

question

Claire sells solar-powered watches.

answer

Green marketing

question

Horizon Inc., an automobile designer and developer, conducted a survey and built cars that suit the needs of its customers. Its newly designed cars let customers choose the color of the interiors. The company also designed touchscreens to control the entertainment, navigation, and climate in the vehicle, instead of knobs or buttons. Which of the following concepts is being illustrated in this scenario?

answer

Mass customization

question

The type of marketing where public and private organizations market thoughts that are meant to change how people think or act is known as _________ marketing.

answer

Idea

question

Idea marketing is often combined with _________ marketing to market ideas that are meant to change how people think or act.

answer

Event

question

Customer relationship management (CRM) works best when marketers combine marketing communication with _______.

answer

Psychographic market segmentation

question

Andrew has spent a lot of time gathering information about his top two clients and has decided to make them participate in his latest product development project. Andrew is trying to establish a _________ with his clients.

answer

Full partnership

question

In the context of business market segmentation, _________ refers to dividing the market based on the concentration of customers.

answer

Geography-based segmentation

question

A management consulting firm offers a management training program that instructs students on utilizing various tools for effective time management and aims to improve their risk management skills. Which form of product is the firm offering?

answer

Pure services

question

EatOut Pizzeria is a food joint that serves pizza, and Pure Magic is a luxury beauty salon that sells beauty products. What do EatOut Pizzeria and Pure Magic have in common?

answer

Both a mix of goods and services

question

What do gasoline for cars, ketchup for fries, and scarves have in common?

answer

Pure goods

question

Jane bought a new car from Yollanda Motors, and the company offered her an exciting package that included free car washes for the first month. This package represents a _____.

answer

Pure services

question

______ provides a tool for analyzing the relationship between goods and services.

answer

Goods and services spectrum

question

Core benefit, actual product, augmented product

answer

Product layers

question

The physical good or delivered service that provides a core benefit is called the _____ product.

answer

Actual

question

Andrew's parents want him to get a good education and, therefore, send him to the best school in the town. In this case, Andrew's education is the _____ his parents were looking for when they got him admitted in the school.

answer

Core benefit

question

_____ are the inexpensive goods and services that consumers buy frequently with limited consideration and analysis.

answer

Convenience products

question

Which of the following business product categories refers to large capital purchases designed for a long productive life and the marketing of which emphasizes personal selling and customization?

answer

Installations

question

Marketing of raw materials, one of the business product categories, primarily emphasizes

answer

Price and service

question

______ requires that a product is not only different from those of its competitors but is also better

answer

Successful product differentiation

question

Which of the following identifies how reliably a product delivers its promised level of quality?

answer

Product consistency

question

The characteristics of a product that a marketer offers are known as _____.

answer

Product features

question

OrgoDiet, a dietary food manufacturer, recently started producing organic food products. Which of the following customer benefits does OrgoDiet contribute to with this newly added feature of producing organic food items?

answer

A healthier planet

question

Crunch Lite produces six different flavors of sugar-free cookies for the diabetic population. The company also produces a large assortment of sugar-free chocolates targeted at the same population. The sugar-free cookies and chocolates that Crunch Lite produces represent the _____ of the company.

answer

Product lines

question

Which of the following can happen when a company launches a new product that is lower in price than the current products of the company?

answer

Cannibalization

question

The overall value of a brand to an organization—the extra money that consumers will spend to buy that brand—is called _____.

answer

Brand equity

question

Shirtzter, a manufacturer of men's shirts and jackets, has just reached an agreement to pay Kwasiaki a substantial fee for the right to use the company's name and logo on some of its clothing lines. This type of arrangement is known as.

answer

Licensing

question

Which of the following scenarios leads to the consumer backlash hitting the core brand rather than the producer of the licensed product?

answer

Poor quality

question

United Airlines recently announced that it would promote Golden Brew's cocoa coffee on its flights. This is an example of _____.

answer

Cobranding

question

Most car dealers allow test-driving of the cars they sell to increase the _____ of their product.

answer

Trialability

question

Enhancing the benefits of the product compared to existing ones enhances the _________

answer

Product diffusion rate

question

In the introduction stage of the product life cycle, marketing efforts are primarily focused on:

answer

Building consumers awareness

question

_____ begins as firms introduce their own versions of a product in the growth stage

answer

Competition

question

Companies used to _______ to coordinate their messages through every promotional vehicle

answer

Integrated marketing communication

question

A firm's _____ is a brief statement articulating how it wants the target market to envision its product relative to the competition.

answer

Positioning statement

question

Sponsorship is a deep association between a marketer and a partner, whereas sales promotion is designed to stimulate immediate sales activity through specific short-term programs.

answer

Difference between sponsorship and sales promotion

question

Both are focused toward enhancement and promotion of immediate sales are similarity's between ________

answer

Sales promotion and consumer promotion

question

Which of the following traditional promotional tools focusses on creating positive associations to generate a favorable impression about a company or its products?

answer

Public relations and personal selling

question

In the context of product layers, at the most fundamental level, consumers buy a ___________ that satisfies their needs

answer

Core benefit

question

Marketers wrap their actual products in additional goods and services, called the_________, that sharpen their competitive edge.

answer

Augmented product

question

_________ is defined by how well a product performs its core function.

answer

Quality level

question

A _________ is a product's identity that sets it apart from other players in the same category.

answer

Brand

question

It is a plan for delivering the right product to the right person at the right place at the right time.

answer

Distribution strategy

question

Channels of distribution and physical distribution

answer

Elements of distribution strategy

question

It is the path that a product takes from the producer to the consumer.

answer

Channel of distribution

question

Hansel owns and runs a fruit juice manufacturing company. He decides that the company will sell packaged fruit juices through wholesalers and retailers. In this scenario, which of the following distribution strategies is Hansel planning to use?

answer

Channel intermediaries

question

Which of the following statements is true of distributors in a channel of distribution?

answer

They add value

question

Three things about members of a distribution channel

answer

Retailers, other wholesalers, or business users

question

80% of all wholesalers

answer

Independent wholesalers

question

Merchant wholesalers can develop their own marketing strategies, including pricing strategies, because they take __________ to the goods they help distribute.

answer

Legal title

question

Newton Coal Supply takes possession of coal from the local mining companies. However, it does not store a single ounce of coal on its premises. Instead, it simply arranges for the coal to be shipped directly from the mining company to its customers. This type of arrangement suggests that Newton Coal Supply is a _____.

answer

Drop shipper

question

First Bake delivers fresh cakes, breads, pies, and muffins to several small grocery stores in Central Radisova. In addition to delivering baked goods, First Bake's employees help the small store owners keep track of what they need to order, and they even remove outdated baked goods from the shelves. First Bake is an example of a _______

answer

Truck jobber

question

A _______ sells a wide selection of merchandise within a narrow category

answer

Specialty store

question

_____ involves placing a producer's products such as low-cost convenience goods in as many stores as possible.

answer

Intensive distribution

question

_____ means establishing only one retail outlet in a given area.

answer

Exclusive distribution

question

Disadvantage of online retailing

answer

No immediate delivery

question

What statement is true of online retailing

answer

Lack of security

question

A form of non store retailing

answer

Direct selling

question

_____ involves hiring independent contractors to sell products to their personal network of friends and colleagues and to recruit new salespeople in return for a percentage of their commissions.

answer

Multilevel marketing

question

The _____ includes all organizations, processes, and activities involved in the flow of goods from the raw materials to the final consumer.

answer

Supply chain

question

Gregory works for Ocan Foods, a food supplier. His main responsibility is to make tactical decisions involving the actual movement of goods along his company's supply chain. In this case, Gregory is involved in

answer

Logistics

question

Transportation by _______ is the fastest but most expensive means of transport.

answer

Planes

question

A company using the strategy of penetration pricing makes a huge profit from the sheer volume of sales is true of _________

answer

Penetrating pricing

question

Pentogreen, a company that manufactures soda, offers its latest products at very low prices. Pentogreen's strategy is based on the assumption that more customers will be willing to buy its products if they're offered at lower prices. Pentogreen has adopted this strategy to attract a larger customer base and increase its sales volume even though it will only gain a small profit on each individual sale. In this scenario, Pentogreen has implemented the _____ strategy.

answer

Penetration pricing

question

Joanne works in the marketing department of a toy manufacturing company. Her company offers discounts for soft toys but sells electronic toys at a price higher than that of its competitors. In this scenario, Joanne's company is adopting the strategy of _______

answer

High/low pricing

question

Rancone Technologies, a laptop manufacturer, released a new laptop model that was priced at $800 to attract customers who could afford to pay a higher price. After a few months, it introduced low-priced versions of the same laptop to attract new buyers. By doing so, it maximized profitability by targeting different segments of the market. In this scenario, Rancone Technologies has used the _____ strategy.

answer

Skimming pricing

question

Mopsun, a garment store, sells customized hoodies at $7 per unit. The total fixed costs add up to $8000 per year, and the variable costs add up to $3 per unit. How many hoodies should Mopsun sell every year in order to cover all costs?

answer

2000

question

_____ remain constant regardless of how many products are sold.

answer

Fixed costs

question

_________ determines price by adding a fixed margin to the per-unit cost of the product.

answer

Cost based pricing

question

In _____, marketers determine prices based on what consumers are willing to pay and then subtract desired margins to yield target costs.

answer

Demand based pricing

question

_________ refers to the practice of charging prices that fall slightly below even dollars and cents in order to create a perception of greater value.

answer

Odd pricing

question

It is the idea that if a television costs $599 instead of $600, consumers perceive the first one to be far cheaper than it actually is.

answer

Odd pricing

question

_________ are distribution organizations—informally called "middlemen"—that facilitate the movement of products from the producer to the consumer.

answer

Channel intermediaries

question

A(n) _________ takes legal possession of the goods to be distributed.

answer

Merchant wholesaler

question

The _________ is a classic distribution theory which suggests that retail firms and retail categories become more upscale as they go through their life cycles.

answer

Wheel of retailing

question

The _________ involves determining how a product will flow through the distribution channel from producer to consumer.

answer

Physical distribution strategy

question

Sending products by _________ is the least expensive option available to producers.

answer

Ship

question

_____ refers to the physical components used to collect, input, store, and process data, and to display and distribute information.

answer

Hardware

question

The two broad categories of software are:

answer

System and application

question

_____ is often referred to as the world's largest computer network.

answer

The internet

question

Firms create _____ by offering limited access to certain areas of their intranets to select groups of people.

answer

Extranets

question

The benefit that ________ provides to individual users is that it allows them to store large files without taking up valuable space on their computers' hard drives.

answer

Cloud computing

question

_____ is most likely to allow companies access to a vast array of computing resources without the need to invest heavily in IT personnel.

answer

Cloud computing

question

Data become _____ when they are processed, organized, and presented in a way that makes them useful to a decision maker in a company.

answer

Information

question

_____ are files of related facts and figures organized according to a logical system and stored on hard drives or some other computer-accessible storage media.

answer

Databases

question

_____ refers to marketing, buying, selling, and servicing of products over a network, usually the Internet.

answer

E-commerce

question

It involves businesses selling supplies, components, machinery, equipment, or services to other businesses. (B2B)

answer

Businesses-to-business e-commerce

question

_____ are best described as specialized Internet sites, which provide a platform to interact for businesses, specifically those involved in business-to-business (B2B) transactions.

answer

E-marketplaces

question

_____ is a technology that stores information on a microchip—such as a unique serial number—and transmits it to a reader when it is within range.

answer

Radio frequency identification

question

_____ is software that installs itself on a computer without permission and then tracks its behavior in some way.

answer

Spyware

question

Which of the following refers to programs that install themselves on computers without the users' knowledge or permission and spread by attaching themselves to other files that are transferred from computer to computer?

answer

Computer viruses

question

_____ refers to unsolicited commercial emails, usually sent to a large number of people with little regard for the users' interest in the product or its promotion.

answer

Spam

question

Recently, Candice found it difficult to find legitimate email messages due to the hundreds of unsolicited commercial emails in her inbox. To prevent this from occurring in the future, Candice should install a _____.

answer

Spam filter

question

_____ is a scam in which official-looking emails are sent to individuals in an attempt to get them to divulge private information such as passwords, usernames, and account numbers.

answer

Phishing

question

Security experts suggest that organizations restrict access to computer resources by requiring users to have strong _____.

answer

Passwords

STUDY

Accounting Activity Based Costing Activity Based Costing System Finance Marketing

ACCT Module 7 – Flashcards 15 terms

Candace Young

15 terms

Preview

ACCT Module 7 – Flashcards

question

Which of the following does not rely on managerial decisions involving accurate product costing?

answer

product constraints

question

The Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data for the products and departments are listed below. Product # of units Labor hrsper unit Machine hours per unit Blinks 1,000 4 5 Dinks 2,000 2 8 All of the machine hours take place in the Fabrication department, which has an estimated overhead of $84,000. All of the labor hours take place in the Assembly department, which has an estimated total overhead of $72,000. The Ramapo Company uses a single overhead rate to apply all overhead costs based on labor hours. What is the overhead cost per unit for Dinks?

answer

$39.00 Overhead cost per unit for Dinks = Single plantwide factory overhead rate × Direct labor hours per unit of Dinks Overhead rate per unit for Dinks = $19.50* per direct labor hour × 2 hours = $39 Single Plantwide Factory Overhead Rate = Total Budgeted Factory Overhead ÷ Total Budgeted Plantwide Allocation Base Single Plantwide Factory Overhead Rate = ($84,000 + $72,000) ÷ 8,000** direct labor hours = $19.50* per direct labor hour

question

Challenger Factory produces two similar products - regular widgets and deluxe widgets. The total plant overhead budget is $675,000 with 300,000 estimated direct labor hours. It is further estimated that deluxe widget production will need 3 direct labor hours for each unit and regular widget production will require 2 direct labor hours for each unit. Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Challenger Factory allocate to regular widget production if budgeted production for the period is 75,000 units and actual production for the period is 72,000 units?

answer

$324,000 Overhead allocated to regular widget = Single plantwide factory overhead rate × Actual direct labor hours for the period for regular widget production = $2.25* × 144,000** direct labor hours = $324,000 Single Plantwide Factory Overhead Rate = Total Budgeted Plant Overhead ÷ Total Budgeted Plantwide Allocation Base Single plantwide factory overhead rate = $675,000 ÷ 300,000 direct labor hours = $2.25* per direct labor hour Actual direct labor hours for the period for regular widget production = Direct labor hours per unit × Total number of units = 2 direct labor hours × 72,000 units = 144,000** direct labor hours

question

The Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: Setups Inspections Assembly (dlh) Hooks - 4,000 units 1 3 1 Nooks - 8,000 units 2 2. 3 Activity Pool Activity Base Budgeted Amount Setups 20,000 $ 60,000 Inspections 24,000 120,000 Assembly (dlh). 28,000 420,000 Calculate the total factory overhead to be charged to Nooks.

answer

$488,000 The total factory overhead to be charged to Nooks = $61* × 8,000 units = $488,000

question

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. Activity Cost Activity Base Procurement $370,000 # of purchase orders Scheduling 250,000 # of production orders Materials handling 500,000 # of moves Product development 730,000 # of engineering changes Production 1,500,000 Machine hours Number of Purchase Orders Number of Production Orders Number of Moves Number of Engineering Changes Machine Hours Number of Units Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500 Determine the activity-based cost for each disk drive unit.

answer

$279.57

question

Shubelik Company is changing to an activity-based costing method. They have determined that they will use three cost pools: setups, inspections, and assembly. Which of the following would not be used as the activity base for any of these three activities?

answer

number of units to be produced

question

Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Overhead Direct LaborHours (dlh) Product A B Painting Dept. $248,000 10,000 dlh 16 dlh 4 dlh Finishing Dept $72,000. 10,000 4 16 Totals $320,000. 20,000 dlh 20 dlh 20 dlh Determine the overhead in the Painting Department for each unit of Product B if Blue Ridge Marketing Inc. uses a multiple department rate system.

answer

$99.20 per unit Overhead rate per hour for the Painting Department = Total estimated overhead of the Painting Department ÷ Total estimated direct labor hours = $248,000 ÷ 10,000 direct labor hours = $24.80 per direct labor hour Overhead rate per unit for the Painting Department = Overhead rate per hour × Direct labor hours used per unit of Product B = $24.80 × 4 direct labor hours = $99.20 per unit

question

The Beauty Beyond Words Salon uses an activity-based costing system in its beauty salon to determine the cost of services. The salon has determined the costs of services by activity as follows: Activity Activity Rate Hair washing $4.00 Conditioning $3.50 Chemical treatment $25.00 Styling $10.00 Hair WashingConditioningChemical Treatment Styling Haircut 1 1 0 0 Complete style 1 1 0 1 Perm 2 3 1 1 Highlights 3 4 2 1 Calculate the cost of services for a haircut.

answer

$7.50

question

Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Overhead Direct Labor Hours (dlh). Product A B Painting Dept. $248,000 10,000 dlh 16 dlh 4 dlh Finishing Dept. 72,000. 10,000 4 16 Totals $320,000 20,000 dlh 20 dlh 20 dlh Determine the overhead from both production departments allocated to each unit of Product A if Blue Ridge Marketing Inc. uses a multiple department rate system.

answer

$425.60 Production Department Factory Overhead Rate = Budgeted Department Factory Overhead ÷ Budgeted Department Allocation Base Overhead rate per hour for the Painting Department = $248,000 ÷ 10,000 estimated direct labor hours = $24.80* Overhead rate per hour for the Finishing Department = $72,000 ÷ 10,000 estimated direct labor hours = $7.20**

question

The Botosan Factory has determined that its budgeted factory overhead budget for the year is $13,500,000 and budgeted direct labor hours are 10,000,000. If the actual direct labor hours for the period are 350,000, how much overhead would be allocated to the period?

answer

$472,500 Single Plantwide Factory Overhead Rate = Total Budgeted Factory Overhead ÷ Total Budgeted Plantwide Allocation Base Single plantwide factory overhead rate = $13,500,000 ÷ 10,000,000 budgeted direct labor hours = $1.35 per direct labor hour Overhead allocated to the period = Single plantwide factory overhead rate × Actual direct labor hours for the period = $1.35 × 350,000 direct labor hours = $472,500 Overhead allocated to the period is $472,500.

question

The Roget Factory has determined that its budgeted factory overhead budget for the year is $15,500,000. They plan to produce 2,000,000 units. Budgeted direct labor hours are 1,050,000 and budgeted machine hours are 750,000. Using the single plantwide factory overhead rate based on direct labor hours, calculate the factory overhead rate for the year.

answer

$14.76 Single Plantwide Factory Overhead Rate = Total Budgeted Factory Overhead ÷ Total Budgeted Plantwide Allocation Base Single Plantwide Factory Overhead Rate = $15,500,000 ÷ 1,050,000 direct labor hours = $14.76 per direct labor hour

question

Everest Co. uses a plantwide factory overhead rate based on direct labor hours. Overhead costs would be overcharged to which of the following departments?

answer

A labor-intensive department

question

Blackwelder Factory produces two similar products - small lamps and desk lamps. The total plant overhead budget is $640,000 with 400,000 estimated direct labor hours. It is further estimated that small lamp production will require 275,000 direct labor hours and desk lamp production will need 125,000 direct labor hours. Using the single plantwide factory overhead rate with an allocation base of direct labor hours, how much factory overhead will Blackwelder Factory allocate to desk lamp production if actual direct hours for the period is 118,000?

answer

$188,800 Single Plantwide Factory Overhead Rate = Total Budgeted Plant Overhead ÷ Total Budgeted Plantwide Allocation Base Single Plantwide Factory Overhead Rate= $640,000 ÷ 400,000 direct labor hours = $1.60 per direct labor hour Overhead allocated to the period = Single plantwide factory overhead rate × Actual direct labor hours for the period for desk lamp production = $1.60 × 118,000 direct labor hours = $188,800 The factory overhead allocated to desk lamp production is $188,800.

question

All of the following can be used as an allocation base for calculating factory overhead rates except:

answer

total units produced

question

Which of the following is not a factory overhead allocation method?

answer

factory costing

STUDY

Activities Activity Based Costing Direct Labor Cost Finance Product Costs Consist Of

accy 202 test 2 – Flashcards 38 terms

Brad Bledsoe

38 terms

Preview

accy 202 test 2 – Flashcards

question

Activity-based costing often shifts overhead costs from large volume, standardized products to low-volume, specialty products that consume disproportionate resources.

answer

true

question

ABC can be used to assign costs to any cost object that is of management interest.

answer

true

question

The final step of activity-based costing assigns overhead costs to pools rather than to products.

answer

true

question

An advantage of using the plantwide overhead rate method?

answer

The necessary information is readily available.

question

what company would be best served by a plantwide overhead rate?

answer

A company that manufactures few products and whose operations are labor intensive.

question

A system of accounting in which the costs of each process are accumulated separately and then assigned to the units of product that passed through the process is a:

answer

process cost accounting

question

A company that applies process costing is most frequently characterized by:

answer

Homogeneous

question

An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:

answer

Production Department

question

Direct material costs are recorded:

answer

Directly to Goods in Process Account

question

Direct labor and indirect labor are recorded, respectively, to:

answer

Goods in Process and Factory Overhead

question

In a process costing operation, the direct labor of a production department includes

answer

All labor used exclusively by that department, even if the labor is not applied to the product itself.

question

All labor used exclusively by that department, even if the labor is not applied to the product itself.

answer

There may be over or underapplied overhead.

question

To compute an equivalent unit of production, one must be able to reasonably estimate:

answer

The percentage of completion

question

A method of assigning overhead costs to a product using a single overhead rate is:

answer

plantwide overhead rate method

question

Which types of overhead allocation methods result in the use of more than one overhead rate during the same time period?

answer

Departmental overhead rate method and activity-based costing

question

Which of the following would not be considered a product cost?

answer

cost accountants salary

question

Overhead costs:

answer

Cannot be traced to units of product in the same way that direct labor can.

question

The cost object of the plantwide overhead rate method is:

answer

The unit of product

question

Which of the following statements is true with regard to the plantwide overhead rate method?

answer

The rate is determined using volume-related measures.

question

The cost object(s) of the departmental overhead rate method is

answer

The production departments in the first stage and the unit of product in the second stage.

question

Which of the following statements is true with regard to the departmental overhead rate method?

answer

It is logical to use this method when overhead resources are consumed by various products in substantially different ways throughout multiple departments.

question

The cost object(s) of the activity-based costing method is(are):

answer

The production activities in the first stage and the unit of product in the second stage.

question

From an ABC perspective, what causes costs to be incurred?

answer

Activities

question

Which of the following statements is true with regard to activity-based costing rates?

answer

The premise of ABC is that activities are what cause costs to be incurred.

question

What is the reason for pooling costs?

answer

Determining a pool rate for all costs incurred by the same activity reduces the number of cost assignments required.

question

Which of the following are advantages of using the plantwide overhead rate method?

answer

The necessary information is readily available.

question

Which of the following is a disadvantage of the departmental overhead rate method?

answer

The departmental overhead rate method assigns overhead on the basis of volume-related measures.

question

What are three advantages of activity-based costing over traditional volume-based allocation methods?

answer

More accurate product costing, more effective cost control, and better focus on the relevant factors for decision making.

question

What are the main advantages of traditional volume-based allocation methods compared to activity-based costing?

answer

Traditional volume-based methods are easier to use and less costly to implement and maintain

question

A cost that remains the same in total even when volume of activity varies is a

answer

Fixed cost

question

A cost that changes in total proportionately to changes in volume of activity is a(n):

answer

variable cost

question

A cost that can be separated into fixed and variable components is called a:

answer

Mixed cost

question

A target income refers to:

answer

income planned for a future period

question

The margin of safety is the excess of:

answer

Expected sales over break-even sales.

question

The excess of expected sales over the sales level at the break-even point is known as the:

answer

Margin of Safety

question

Using a traditional costing approach, which of the following manufacturing costs are assigned to products?

answer

Variable manufacturing overhead, direct materials, direct labor, and fixed manufacturing overhead.

question

Which of the following statements is true regarding absorption costing?

answer

It assigns all manufacturing costs to products.

question

Which of the following statements is true regarding variable costing?

answer

Only manufacturing costs that change in total with changes in production level are included in product costs.

STUDY

Activity Based Costing Chief Executive Officer Finance Principles Of Marketing

Managerial Accounting Chapter 12 – Flashcards 22 terms

Bettina Hugo

22 terms

Preview

Managerial Accounting Chapter 12 – Flashcards

question

define goal congruence

answer

results when the managers of subunits throughout an organization strive to achieve the goals set by top management

question

how can an organization's managerial accounting system promote goal congruence?

answer

refers to the various concepts and tools used by managerial accountants to measure the performance of people and departments in order to foster goal congruence

question

define responsibility center

answer

it is a subunit in an organization whose manager is held accountable for specified financial results of the subunit's activities.

question

what are the four common types of responsibility centers?

answer

cost, revenue, profit and investment center

question

define cost center

answer

an organizational subunit, such as a department or division, whose manager is held accountable for the costs incurred in the subunit

question

what is an example of a cost center?

answer

the painting department in an automobile plant

question

define revenue center

answer

the manager of a revenue center is held accountable for the revenue attributed to the subunit

question

what is an example of a revenue center?

answer

the reservations department of an airline and the sales department of a manufacturer are revenue centers

question

define profit center

answer

an organizational subunit whose manager is held accountable for profit. since profit is equal to revenue minus expenses, profit-center managers are held accountable for both the revenue and expenses attributed to their subunits.

question

what is an example of a profit center?

answer

a company owned restaurant in a fast food chain

question

define investment center

answer

the manager of an investment center is held accountable for the subunit's profit and the invested capital used by the subunit to generate its profit

question

what is an example of an investment center?

answer

a division of a large corporation is typically designated as an investment center

question

list the parts of a segmented income statement

answer

sales revenue-variable operating expenses = segment contribution margin - FC controllable by segment manager = profit margin controllable by segment manager - FC, traceable to segment, but controllable by others = segment profit margin - common fixed expenses = income before taxes - income tax expense = net income

question

what are the three key features of segmented reporting?

answer

contribution format, controllable versus uncontrollable expenses, segmented income statement

question

define contribution format in segmented reporting

answer

these income statements use the contribution format. the statements subtract VC from sales revenue to obtain the contribution margin

question

define controllable versus uncontrollable expenses in segmented reporting

answer

the income statements highlight the costs that can be controlled, or heavily influenced, by each segment manager. this approach is consistent with responsibility accounting

question

define segmented income statement

answer

segmented reporting shows income statements for the company as a whole and for its major segments

question

what four types of costs for ensuring high quality are monitored?

answer

prevention, appraisal, internal failure and external failure costs

question

define prevention costs

answer

the costs of preventing defects

question

define appraisal costs

answer

the costs of determining whether defects exists

question

define internal failure costs

answer

costs of repairing defects found prior to product delivery

question

define external failure costs

answer

costs incurred after defective products have been delivered

STUDY

Accounting Activity Based Costing Finance Financial Accounting Job Order Costing System Managerial Accounting Total Variable Costs

Accounting 211 Final (Pt 1) – Flashcards 12 terms

Adrien Vincent

12 terms

Preview

Accounting 211 Final (Pt 1) – Flashcards

question

According to your professor, which of the following career paths represents the largest percentage of professional accountants in business

answer

Management Accountants

question

Which of the following is NOT one of the primary responsibilities of management

answer

Adhering to GAAP

question

Which of the following is being fulfilled when management compares the budget to actual results

answer

Controlling

question

The Institute of Management Accountants (IMA) offers which of the following certifications

answer

Certified Management Accountant (CMA)

question

Which of the following relates primarily to the field of Managerial Accounting

answer

ALL of the above relate primarily to the field of Managerial Accounting (Focused on reporting relevant information for decision making, is NOT governed by Generally Accepted Accounting Principals, Primary users of information are internal users, e.g., managers and employees)

question

Which of the following IS NOT a characteristic of financial accounting

answer

Focus is on providing relevant information to internal decision makers

question

Direct Labor is defined as

answer

Conversion Cost (Yes) Product Cost (Yes) Prime Cost (Yes)

question

The three basic elements of manufacturing costs are

answer

Direct Materials Direct Labor Manufacturing Overhead

question

Prime costs consist of

answer

Direct Labor plus Direct Material

question

An example of a product cost is (are)

answer

All of the above (Depreciation expense on machinery used in production, freight in on raw materials, fire insurance on the plant facility)

question

Within relevant range, the difference between variable costs and fixed costs is

answer

Total variable costs fluctuate and total fixed costs are constant

question

An example of a period cost is (are)

answer

Product distribution costs

STUDY

Activity Based Costing Cost Accounting Finance Per Unit Cost

ACCT 302 Chap 17 – Flashcards 38 terms

Alden Wolfe

38 terms

Preview

ACCT 302 Chap 17 – Flashcards

question

1) Costing systems that are used for the costing of like or similar units of products in mass production are called ________. A) inventory-costing systems B) job-costing systems C) process-costing systems D) weighted-average costing systems Answer:

answer

C) process-costing systems

question

2) Which of the following companies is most likely to use process costing? A) Crimpson Color, a company selling customized garments for niche customers B) Effel & Associates, a consulting firm providing various audit and related services C) Red Paste Inc., a company manufacturing and selling toothpaste on a large scale D) Grimpy Corp., a company manufacturing furniture for customers as per their requirements Answer:

answer

C) Red Paste Inc., a company manufacturing and selling toothpaste on a large scale

question

3) Process costing should be used to assign costs to products when ________. A) the units produced are similar B) cost reduction is the top most priority C) the units produced are dissimilar D) cost reduction is not the primary objective Answer:

answer

A) the units produced are similar

question

4) Which of the following statements is true? A) In a job-costing system, average production cost is calculated for all units produced. B) In a process-costing system, each unit uses approximately the same amount of resources. C) In a job-costing system, overheads are allocated to all units equally. D) In a process-costing system, individual jobs use different quantities of production resources. Answer:

answer

B) In a process-costing system, each unit uses approximately the same amount of resources.

question

5) Which of the following statements is true of conversion costs? A) In process costing, they include all the factors of production. B) They include all manufacturing costs including direct materials, direct labor, and other direct and indirect manufacturing costs. C) In process costing, they are usually considered to be added evenly throughout the production process. D) They include only direct materials and excludes all other manufacturing and non-manufacturing costs. Answer:

answer

C) In process costing, they are usually considered to be added evenly throughout the production process.

question

6) An example of a business which would *have no beginning or ending inventory *but which could use process costing to compute unit costs would be a ________. A) clothing manufacturer B) corporation whose sole business activity is processing the customer deposits of several banks C) manufacturer of custom houses D) manufacturer of large TVs Answer:

answer

B) corporation whose sole business activity is processing the customer deposits of several banks

question

7) Which of the following statements best describes conversion costs? A) Conversion costs are all manufacturing and nonmanufacturing cost. B) Conversion costs are all manufacturing costs other than direct materials costs. C) Conversion costs are all nonmanufacturing costs including marketing costs. D) Conversion costs are all nonmanufacturing costs other than fixed selling and distribution costs. Answer:

answer

B) Conversion costs are all manufacturing costs other than direct materials costs.

question

Object 17.2 1) In a process-costing system average unit costs are calculated ________. A) by dividing total costs in a given accounting period by total units produced in that period B) by multiplying total costs in a given accounting period by total units produced in that period C) by dividing total costs in a given accounting period by units started in that period D) by multiplying total costs in a given accounting period by units started in that period Answer:

answer

A) by *dividing total costs* in a given accounting period by *total units produced* in that period

question

2) Vital Industries manufactured 1,200 units of its product Huge in the month of April. It incurred a total cost of $120,000 during the month. Out of this $120,000, $45,000 comprised of direct materials used in the product and the rest was incurred because of the conversion cost involved in the process. Ryan had no opening or closing inventory. What will be the total cost per unit of the product, assuming conversion costs contained $10,000 of indirect labor? A) $100 B) $90 C) $70 D) $30 Answer:

answer

A) $100

question

3) Serile Pharma places 900 units in production during the month of January. All 900 units are completed during the month. It had no opening inventory. Direct material costs added during January was $81,000 and conversion costs added during January was $9,000.What is the total cost per unit of the product produced during January? A) $100 B) $90 C) $80 D) $10 Answer: A

answer

A) $100

question

4) When a company has no opening or ending inventory during the month, the cost per unit is calculated by dividing the total costs incurred in the period by the total units produced during the period. Answer: TRUE

answer

question

Objective 17.3 1) The purpose of the equivalent-unit computation is to ________. A) convert completed units into the amount of partially completed output units that could be made with that quantity of input B) assist the business in determining the cost assigned to ending inventory and work-in-process inventory C) predict the future production capabilities of the organization D) satisfy the GAAP requirements which requires all partially completed goods to be reported as equivalent-units Answer:

answer

B) assist the business in determining the cost assigned to ending inventory and work-in-process inventory

question

2) In a process-costing system, the calculation of equivalent units is used for calculating ________. A) the dollar amount of sales affected during the period B) the dollar amount of the cost of goods sold for the accounting period C) the dollar price earned for a particular job D) the dollar amount of revenue for the period including the revenue estimated to be received from the sale of equivalent units Answer:

answer

B) the dollar amount of the *cost of goods sold* for the accounting period

question

3) When a Bakery transfers goods from the Mixing Department to the Baking Department, the accounting entry is ________. A) Work in Process — Mixing Department Work in Process — Baking Department B) Work in Process — Baking Department Accounts Payable C) Work in Process — Baking Department Work in Process — Mixing Department D) Work in Process — Mixing Department Accounts Payable Answer:

answer

C) Work in Process — Baking Department Work in Process — Mixing Department

question

8) Which of the following entries is used to record direct materials purchased and used in production during a month in the Assembly department, before transferring the goods to Testing department? A) Work in Process—Assembly Wages Payable Control B) Accounts Payable Control Work in Process—Assembly C) Work in Process—Assembly Accounts Payable Control D) Accounts Payable Control Cash Answer:

answer

C) Work in Process—Assembly Accounts Payable Control

question

13) Which of the following statements is true of conversion costs? A) Estimating the degree of completion is usually easier for direct material costs than for conversion costs. B) The calculation of equivalent units is relatively easy for the textile industry. C) The conversion cost needed for a completed un0it and the conversion cost in a partially completed unit can be measured accurately. D) If conversion costs are added evenly during the assembly we can conclude that there are more than one indirect-cost category. Answer:

answer

A) Estimating the degree of completion is usually easier for direct material costs than for conversion costs.

question

Objective 17.4 1) The weighted-average process-costing method calculates the equivalent units by ________. A) considering only the work done during the current period B) the units started during the current period minus the units in ending inventory C) the units started during the current period plus the units in ending inventory D) the equivalent units completed during the current period plus the equivalent units in ending inventory Answer:

answer

D) the equivalent units completed during the current period plus the equivalent units in ending inventory

question

5) In the computation of the cost per equivalent unit, the weighted-average method of process costing considers all the costs ________. A) entering work in process from the units in beginning inventory plus the costs for the work completed during the current accounting period B) costs that have entered work in process from the units started or transferred in during the current accounting period C) that have entered work in process during the current accounting period from the units started or transferred in minus the costs associated with ending inventory D) that have entered work in process during the current accounting period from the units started or transferred in plus the costs associated with ending inventory Answer:

answer

A) entering work in process from the units in beginning inventory plus the costs for the work completed during the current accounting period

question

6) If there was *no beginning* work in process and *no ending* work in process under the weighted-average process costing method, the number of equivalent units for direct materials, if direct materials were added at the start of the process, would be ________. A) more than the units started or transferred in during the period B) equal to the units completed during the period C) less than the units completed during the period D) equal to total of units started and units completed during the period Answer:

answer

B) equal to the units completed during the period

question

7) Under the weighted-average method, the stage of completion of beginning work in process ________. A) is relevant in determining the equivalent units B) must be combined with the work done during the current period to determine the equivalent units C) is irrelevant in determining the equivalent-unit calculation D) can almost always be determined with a high degree of precision Answer:

answer

C) is irrelevant in determining the equivalent-unit calculation

question

25) A distinct feature of the FIFO process-costing method is that the ________. A) work done on beginning inventory before the current period is blended with the work done during the current period in the calculation of equivalent units B) work done on beginning inventory before the current period is kept separate from the work done during the current period in the calculation of equivalent units C) work done on ending inventory is kept separate from the work done during the current period in the calculation of equivalent units and is usually not included in the calculation D) FIFO process-costing method is only minimally different from the weighted-average process-costing method Answer:

answer

B) work done on beginning inventory before the current period is kept separate from the work done during the current period in the calculation of equivalent units

question

26) On occasion, the FIFO and the weighted-average methods of process costing will result in the same dollar amount of costs being transferred to the next department. Which of the following scenarios would have that result? A) when the beginning and ending inventories are equal in terms of unit numbers B) when the beginning and ending inventories are equal in terms of the percentage of completion for both direct materials, and conversion costs C) when there is no ending inventory D) when there is no beginning inventory Answer:

answer

D) when there is no beginning inventory

question

27) An assumption of the FIFO process-costing method is that ________. A) the units in beginning inventory are not necessarily assumed to be completed by the end of the period B) the units in beginning inventory are assumed to be completed first C) ending inventory will always be completed in the next accounting period D) no calculation of conversion costs is possible Answer:

answer

B) the units in beginning inventory are assumed to be completed first

question

36) Which of the following is true of weighted-average process-costing? A) It does not represent the average cost of units when inputs prices fluctuates markedly from month to month. B) It facilitates period-to-period comparisons and hence is very useful in analyzing the performances of managers for different periods. C) It arrives at the same unit costs as arrived under FIFO method, but the computations are easier under weighted-average process-costing. D) It calculates the cost per equivalent unit of all work done to date, regardless of the accounting period in which it was done. Answer:

answer

D) It calculates the cost per equivalent unit of all work done to date, regardless of the accounting period in which it was done.

question

37) Which of the following is an assumption under FIFO process-costing method? A) It assumes some of the higher-cost units are placed in ending work in process. B) It assumes that all the lower-cost units from the previous period in beginning work in process are the first to be completed and transferred out of the process. C) It assumes that unit inputs costs are constant and do not fluctuate in the short run. D) It assumes that the ending work in process consists of only the lower-cost current-period units. Answer:

answer

D) It assumes that the ending work in process consists of only the lower-cost current-period units.

question

38) A major advantage of using the FIFO process-costing method is that ________. A) FIFO makes the unit cost calculations simpler B) in contrast with the weighted-average method, FIFO is considered GAAP C) FIFO provides managers with information about changes in the costs per unit from one period to the next D) in the period of rising prices, it leads to lower operating income and lower tax payments, saving the company cash and increasing the company's value Answer:

answer

C) FIFO provides managers with information about changes in the costs per unit from one period to the next

question

39) A disadvantage of the weighted-average method compared to the FIFO process-costing method is that ________. A) FIFO is computationally simpler B) FIFO provides better management information for planning and control purposes C) when unit cost per input prices fluctuate markedly from month to month, its per unit cost is less representative than FIFO D) the information it provides about changes in unit prices from one period to the next is less useful than the information provided by FIFO Answer:

answer

D) the information it provides about changes in unit prices from one period to the next is less useful than the information provided by FIFO

question

40) Which of the following statements is true of process costing? A) In the period of rising prices, weighted-average process-costing method will result in higher operating income as compared to FIFO process-costing method. B) The operating income and the tax payments of a company are not affected by the method of process-costing being followed by the company. C) In the period of rising prices, weighted-average process-costing method will result in lower cost of goods sold as compared to FIFO process-costing method. D) In a period of falling prices, weighted-average process-costing method will increase tax payments as compared to FIFO process-costing method. Answer:

answer

D) In a period of falling prices, weighted-average process-costing method will increase tax payments as compared to FIFO process-costing method.

question

42) Which of the following entries is correct to record depreciation expense of Assembly Department? A) Work in Process—Assembly Finished Goods B) Work in Process—Assembly Accumulated Depreciation C) Finished Goods Work in Process—Assembly D) Accumulated Depreciation Work in Process—Assembly Answer:

answer

B) Work in Process—Assembly Accumulated Depreciation

question

Objective 17.5 1) In a process-costing system when goods move from department to department, the accounting for such transfers is relatively simple under ________. A) standard costing B) FIFO costing C) weighted-average costing D) operations costing Answer:

answer

C) weighted-average costing

question

2) Which of the following best describes transferred-in costs in process costing? A) These costs are incurred in previous departments that are carried forward to subsequent departments. B) These costs are transferred in to the company by an external vendor. C) These costs are incurred in transferring raw materials and labor from the place of availability to the factory. D) These costs cannot be controlled by an organization as they are transferred to the organization from the market participants. Answer:

answer

A) These costs are incurred in previous departments that are carried forward to subsequent departments.

question

3) Transferred-in costs are treated as if they are ________. A) conversion costs added at the beginning of the process B) costs of beginning inventory added at the beginning of the process C) direct labor costs added at the beginning of the process D) a separate direct material added at the beginning of the process Answer:

answer

D) a separate direct material added at the beginning of the process

question

4) Direct Disk Drive Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were for June 20X5: Work in process, beginning inventory 25,000 units Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (90% complete) Transferred in during current period 165,000 units Completed and transferred out 185,000 units Work in process, ending inventory 5,000 units Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (65% complete) How many units must be accounted for during the period? A) 215,000 units B) 190,000 units C) 169,500 units D) 140,000 units

answer

B) 190,000 units

question

5) Direct Disk Drive Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were for August 20X5: Work in process, beginning inventory 150,000 units Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (90% complete) Transferred in during current period 450,000 units Completed and transferred out 400,000 units Work in process, ending inventory 200,000 units Transferred-in costs (100% complete) Direct materials (0% complete) Conversion costs (65% complete) Calculate equivalent units for conversion costs using the FIFO method. A) 401,500 units B) 350,000 units C) 300,000 units D) 395,000 units Answer: D

answer

question

Objective 17.6 1) Which of the following companies is most likely to use an operation-costing system? A) a company involved in manufacture of ball bearing on a large scale B) a company that has been awarded a contract to construct a bridge for the government C) a company that makes suits for which the basic design is same, but depending on specifications, each batch of suits varies somewhat from other batches D) a furniture making company which makes furnitures as per the specifications of the customers Answer:

answer

C) a company that makes suits for which the basic design is same, but depending on specifications, each batch of suits varies somewhat from other batches

question

2) Which of the following companies is likely to use a hybrid-costing system? A) Best Fit Corp., which manufactures pharmaceuticals B) Rida Corp., which processes and sells, after import, a single variant of Turkish marble to real estate companies C) Fast run, which sells a limited range of televisions, which go through similar manufacturing process D) Karoline Corp., which manufactures and sells a single model of cap Answer:

answer

C) Fast run, which sells a limited range of televisions, which go through similar manufacturing process

question

3) Managers find operation costing useful in cost management because it ________. A) often results in profit maximization B) results in cost minimization C) focuses on control of physical processes of a given production system D) uses job costing to account for the conversion costs and process costing for the material and customizable components Answer:

answer

C) focuses on control of physical processes of a given production system

question

2) Which of the following entries is used to record the standard costs of direct materials assigned to units worked on and total direct materials variances? A) Work in Process (at standard costs) Direct Materials Variances Direct Materials Control B) Work in Process (at actual costs) Direct Materials Variances Direct Materials Control C) Direct Materials Variances Direct Materials Control Work in Process (at standard costs) D) Direct Materials Variances Direct Materials Control Work in Process (at actual costs)

answer

A) Work in Process (at standard costs) Direct Materials Variances Direct Materials Control

STUDY

Accounting Accounting And Finance Activity Based Costing Certified Public Accountant Customer Relationship Management Software Information Systems Internal Revenue Service

ACCY 310 Chapter 1 – Flashcards 49 terms

Patrick Turner

49 terms

Preview

ACCY 310 Chapter 1 – Flashcards

question

Accounting and Finance is a primary activity in the value chain

answer

False

question

Accounting Information Systems at this date are all computerized

answer

false

question

Business value includes all those items, events and interactions that determine the financial health and well being of the firm

answer

true

question

The certified information technology professional (CITP) is a professional designation for those with broad range of technology knowledge and does not require a CPA.

answer

false

question

The Certified Information Systems Auditor (CISA) is a professional designation generally sought by those performing IT audits.

answer

True

question

Information is defined as being data organized in a meaningful way to be useful to the user.

answer

true

question

Data is defined as being information organized in a meaningful way to the user.

answer

false

question

A systems analyst analyzes a business problem that might be addressed by an information system and recommends software or systems to address that problem.

answer

true

question

a value chain is defined as the flow of materials, information, payments, and services from customer to supplier.

answer

false

question

Relevant information is that information that is free from bias and error.

answer

false

question

the characteristics of relevant information include predictive value, feedback value, and timeliness

answer

true

question

the characteristics of reliable information are that the information is verifiable, without bias and timely.

answer

false

question

information overload is defined as the difficulty a person faces in understanding a problem and making a decision as a consequence of too much information.

answer

true

question

the main financial benefit of Customer Relationship Management practices reduces the cost of goods sold.

answer

false

question

an efficient Enterprise System can significantly lower the cost of support processes included in sales, general, and administrative expenses.

answer

true

question

an accounting information system (AIS) is defined as being an information system that records, processes and reports on transactions to provide financial information for decision making and control

answer

true

question

an enterprise system is a centralized database that collects data from throughout the firm. this includes data from orders, customers, sales, inventory and employees.

answer

true

question

outbound logistics are the activities associated with receiving and storing raw materials and other partially completed materials, and distributing those materials to manufacturing where and where they are needed.

answer

false

question

service activities as defined in the value chain are those activities that provide the support of customers after the products and services are sold to them.

answer

true

question

a well designed and well functioning AIS can be expected to create value by providing relevant information helpful to management to increase revenues and reduce expenses.

answer

true

question

Production of a 1040 tax form from the AIS to be delivered to the Internal Revenue Service is an example of discretionary information

answer

false

question

an enterprise system is primarily used to manage and nurture a firm's interactions with its current and potential clients

answer

false

question

The Sarbanes Oxley Act of 2002 is a federal law in the United States that set new and enhanced standards for all U.S. public companies, management and public accounting firms.

answer

true

question

CRM software includes the use of database marketing tools to learn more about the customers and to develop strong firm to customer relationships

answer

true

question

The Certified Information Technology Professional is the position created by the AICPA to recognize CPA's who have the ability to provide skilled professional services on information technology.

answer

true

question

accounting information systems are

answer

records, processes, and reports

question

which of the following are not a characteristic of useful information

answer

easy to understand

question

which of the following are considered to be mandatory information required by a regulatory body?

answer

financial reports for the securities and exchange commission

question

the correct order of effects in the value chain are

answer

inbound logistics-operations-outbound logistics

question

which designation would most appropriate for those professionals possessing an IT audit control and security skills?

answer

CISA

question

which designation is for CPAs with a broad range of technology knowledge and experience?

answer

CITP

question

A supply chain

answer

refers to the flow of materials, information, payments, and services

question

a supply chain system does not include information about

answer

prospective customers

question

the income statement line item most likely affected by an AIS investment in enterprise systems would be

answer

selling, general and administrative expenses

question

the income statement line item most likely affected by AIS investment in supply chain that would interface with suppliers would be

answer

Cost of Goods Sold

question

the IT strategic roles of AIS investments are classified as

answer

Automate, Informate, Transform

question

according to a recent study the transform IT strategic role is defined as systems that

answer

fundamentally redefine business processes and relationships

question

according to a recent study, the informal up IT strategic role is defined as systems that

answer

provide information about business activities to senior management.

question

the income statement account most likely affected by an AIS investment in customer relationship management would be

answer

revenues

question

many hospitals and doctors offices are beginning to digitize the medical records of their patients. this is an example of the _____ strategic role

answer

automate

question

EBay uses information technology to sell goods on the internet. this would be an example of the _____ strategic role

answer

transform

question

the information value chain is defined as

answer

the overall transformation of data from a business need to the ultimate decision.

question

business value is defined as

answer

Items, events and interactions that determine the financial health and well being of the firm

question

customer relationship management is defined as

answer

a system used to manage and nurture a firms interactions with its current and potential customers

question

support activities in the value chain does not inclue

answer

accounting and finance

question

the role of accountants in accounting information systems include all except

answer

operator

question

a simple information system includes all but the following elements except

answer

reporting

question

activity based costing is an example of

answer

discretionary information

question

an example of an AIS that primarily addresses internal business processes includes:

answer

enterprise systems

STUDY

Activity Based Costing Business Management Debt Equity Ratio Electrical Engineering Management Profit And Loss

CH 15 3319 – Flashcards 31 terms

Livia Baldwin

31 terms

Preview

CH 15 3319 – Flashcards

question

Which of the following is a symptom of an out-of-control company?

answer

Lack of periodic reviews

question

Control has been called one of the Siamese twins of management. The other twin is ____.

answer

planning

question

The use of rules, regulations, and authority to guide performance is referred to as _____ control.

answer

bureaucratic

question

Using budgeting, statistical reports, and performance appraisals to regulate behavior and results is considered a component of ____.

answer

bureaucratic control

question

Control based on the use of pricing mechanisms and economic information to regulate activities within organizations is referred to as _____ control.

answer

market

question

Control based on the norms, values, shared goals, and trust among group members is referred to as _____ control.

answer

clan

question

Which of the following is the first major step in the formal control process?

answer

Setting standards

question

The final step in the control process is:

answer

taking corrective action.

question

A(n) _____ is the level of expected performance for a given goal; it is a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed.

answer

standard

question

Which of the following is one of the factors based on which performance standards can be set?

answer

Time used

question

Which of the following is a commonly used source for obtaining performance data?

answer

Personal observation

question

A managerial principle stating that control is enhanced by concentrating on the significant deviations from the expected result or standard is referred to as the principle of ____.

answer

exception

question

Jeremy is in charge of production at Tech Farm Equipment. His job responsibilities include eliminating defects in the equipment parts the factory produces. However, he has advised his crew to alert him only when defects exceed 200 per million, which he considers a serious deviation from standards. In this case, Jeremy is using:

answer

the principle of exception.

question

Which of the following controls takes place before operations begin?

answer

Feedforward control

question

Which of the following controls is future oriented and aims to prevent problems before they arise?

answer

Feedforward control

question

At Performance Instruments, all assembly workers must wear specialized gear to reduce possible injuries from minute particles in the manufacturing environment. This requirement best reflects _____ control.

answer

feedforward

question

The control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed, is referred to as _____ control.

answer

concurrent

question

Electronic monitoring of telemarketers' conversations with potential clients is an example of _____ control.

answer

concurrent

question

_____ is in effect when supervisors watch employees to ensure they work efficiently and avoid mistakes.

answer

Concurrent control

question

Control that focuses on the use of information about previous results to correct deviations from the acceptable standard is referred to as _____ control.

answer

feedback

question

Which of the following statements about six sigma is true?

answer

It indicates how often defects in a process are likely to occur.

question

An evaluation of the effectiveness and efficiency of various systems within an organization is called a(n) _____ audit.

answer

management

question

An evaluation conducted by one organization on another organization is referred to as a(n) _____ audit.

answer

external

question

External audits are generally used for:

answer

investigating possible targets for mergers or acquisitions.

question

Periodically assessing a company's own planning, organizing, leading, and controlling efforts is the essential function of ____.

answer

internal audits

question

The process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences is referred to as ____.

answer

budgeting

question

The _____ budget is used for areas of an organization that incur expenses but no revenue, such as human resources and other support departments.

answer

cost

question

Kate is a financial manager at Nature Feeds, a manufacturer of cattle feed. She makes a budget that shows the anticipated receipts and expenses of the company. The budget also shows her the amount of working capital available and whether the company will need loans. This is the last budget that Kate creates for the upcoming year. Which of the following types of budget is exemplified in this scenario?

answer

Cash budget

question

_____ budget is used for the cost of fixed assets, such as plants and equipment, that are usually treated not as regular expenses but as investments.

answer

Capital

question

_____ budget is commonly expressed in physical units, and it can be prepared with information including types and capacities of machines, economic quantity, and availability of materials.

answer

Production

question

Procedures used to verify accounting reports and statements are referred to as ____.

answer

accounting audits

STUDY

Activity Based Costing Business Management Finance Information Technology Project Cost Management Project Management: Leadership And Managing The Project Team

IT Project Management Exam 3 Review Ch 7-8 – Flashcards 41 terms

Oscar Hall

41 terms

Preview

IT Project Management Exam 3 Review Ch 7-8 – Flashcards

question

Analogous estimates are called activity-based costing.

answer

False

question

_____ addresses how well a product or service performs the customer's intended use.

answer

Performance

question

Which of the following is an input of the process of controlling costs?

answer

Work performance data

question

Budgetary estimates are made even before a project is officially started.

answer

False

question

Only in-house auditors can perform quality audits.

answer

False

question

If an important supplier goes out of business, management reserves can be set aside to cover the resulting costs.

answer

True

question

A(n) _____ is done to test each individual component (often a program) to ensure that it is as defect-free as possible.

answer

Unit Test

question

_____ are the system's special characteristics that appeal to users.

answer

Features

question

Analogous estimates are also known as _____ estimates

answer

Top-Down

question

The quality assurance process involves taking responsibility for quality throughout the project's life cycle.

answer

True

question

Which of the following reserves allows for future situations that are unpredictable?

answer

Management Reserves

question

A budgetary estimate is the most accurate of the three types of estimates

answer

False

question

Which of the following is an output of the process of controlling costs?

answer

Cost Forecasts

question

Supporting details for an estimate include the ground rules and assumptions used in creating the estimate.

answer

True

question

_____ is a cost that relates to all errors not detected and not corrected before delivery to the customer.

answer

External Failure Costs

question

A rough order of magnitude estimate can be referred to as a _____ estimate.

answer

Ballpark

question

Which of the following is true of a rough order of magnitude estimate?

answer

It provides an estimate of what a project will cost.

question

Testing as a stage is important only at the end of an information technology product development.

answer

False

question

Which of the following is true of bottom-up estimates?

answer

They are time-intensive and expensive to develop.

question

The _____ process is often associated with the technical tools and techniques of quality management, such as Pareto charts, quality control charts, and statistical sampling.

answer

Quality Control

question

Contingency reserves are also known as unknown unknowns.

answer

False

question

Which of the following is true of earned value?

answer

It is an estimate of the value of the physical work actually completed.

question

The Six Sigma approach works best for a project where a quality problem is identified between the current and desired performance.

answer

True

question

Newtech Inc. hires John for the position of a software programmer to work on their new project. Salary paid to John by Newtech Inc. would be an example of _____ costs.

answer

Direct

question

_____ is a method for determining the estimated annual costs and benefits for a project.

answer

Cash Flow Analysis

question

Determining the budget involves allocating the project cost estimate to individual work items over time.

answer

True

question

The design of experiments technique cannot be applied to project management issues such as cost and schedule trade-offs.

answer

False

question

It is important for project managers to focus on indirect costs because they can be easily controlled.

answer

False

question

TA run chart is a bar graph that depicts data points and their order of occurrence.

answer

False

question

The project management plan and project funding requirements are inputs of the process of controlling costs.

answer

True

question

Spreadsheets are a common tool for cost estimating, cost budgeting, and cost control.

answer

True

question

One of the main outputs of the _____ process is a cost baseline.

answer

Cost budgeting

question

Intangible costs can be easily measured in monetary terms.

answer

False

question

Gantt charts cannot be used to aid project quality management

answer

False

question

A(n) _____ is any instance where the product or service fails to meet customer requirements.

answer

Defect

question

The primary output of the planning cost management process is a change request.

answer

False

question

_____ uses project characteristics in a mathematical model to estimate project costs.

answer

Parametric estimating

question

Profits may be defined as:

answer

revenues minus expenditures

question

Validated changes and validated deliverables are the outputs of the quality assurance process.

answer

True

question

_____ addresses the ease of performing maintenance on a product.

answer

Maintainability

question

_____ addresses the ease of performing maintenance on a product.

answer

Maintainability

STUDY

Activity Based Costing Human Resource Management Mapping Materials Operations Management

MGT 325 Operations MGT – Flashcards 236 terms

Matilda Campbell

236 terms

Preview

MGT 325 Operations MGT – Flashcards

question

Lean Operation

answer

A flexible system that uses minimal resources and produces high-quality goods or services

question

Just-In-Time (JIT)

answer

A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed

question

Muda

answer

Waste and Inefficiency

question

Pull System

answer

Replacing material or parts based on demand

question

Kanban

answer

A manual system that signals the need for parts or materials

question

Heijunka

answer

workload leveling

question

Kaizen

answer

Continuous improvement of the system

question

Jidoka

answer

quality at the source (automation)

question

Supporting Goals

answer

1. Eliminate disruptions 2. Make the System Flexible 3. Eliminate waste, especially excess inventory

question

Seven wastes of Lean Philosophy

answer

Inventory Overproduction Waiting time unnecessary transporting processing waste inefficient work methods product defects

question

The Kaizen Philosophy for Eliminating Waste:

answer

1. Waste is the enemy, and to eliminate waste it is neccessarty to get that hands dirty. 2. Improvement should be done gradually and continuously 3. Everyone should be invovled: Top managers, middle and workers 4. Kaizen is build on a cheap strategy, and it does not require spending great sums of technology or consultants

question

Building Blocks

answer

1. Product Design 2. Process Design 3. Personnel/Organizational Elements 4. Manufacturing planning and control.

question

Single-Minute exchange of die (SMED)

answer

a system for reducing changeover time

question

Autonomation

answer

Automatic detection of defects during production

question

Takt Time

answer

The cycle time needed to match customer demand for final product

question

Poke-Yoke

answer

Safeguards built into a process to reduce the possibility

question

Andon

answer

System of lights used at each workstation to signal problems or slowdowns

question

Activity-based costing

answer

Allocation of overhead to specific jobs based on their percentage of activities

question

Push System

answer

Work is pushed to the next station as it is completed

question

Pull System

answer

A workstation pulls output from the preceding station as it is needed.

question

Kanban

answer

Card or other device that communicates demand for work or materials from the preceding

question

P-Kanban / Production Kanban

answer

Signals the need to produce parts

question

Conveyance Kanban (C- kanban)

answer

Signals the need to deliver parts to the next work center

question

Preventive Maintenance

answer

maintaining equipment i good operating condition and replacing parts that have tendency to fail before they actually do fail.

question

Housekeeping

answer

maintaining a workplace that is clean and free of unnecessary

question

Value Stream mapping

answer

a visual tool to systematically examine the flow of materials and information

question

Supply Cain Management

answer

the strategic coordination of the supply chain for the purpose of integrating supply and demand

question

Logistics

answer

The part of a supply chain involved with the forward and reverse flow of goods, services, cash, ad information

question

Manufacturing Supply Chain

answer

Supplier, Mfg, Storage, Distributor, Retailer, Customer

question

Service Supply Chain

answer

Supplier, Storage, Service, Customer

question

Purchasing cycle

answer

Series of steps that begin with a request for purchase and end with notification of shipment received in satisfactory condition

question

Centralized Purchasing

answer

Purchasing is handled by one special department

question

Decentralized purchasing

answer

Individual departments or separate locations handle their own purchasing requirements

question

Strategic Partnering

answer

Two or more business organizations that have complementary products or services join so tat each may realize a strategic benefit

question

Inventory velocity

answer

The speed at which goods move through a supply chain

question

Bullwhip effect

answer

Inventory oscillations become progressively larger looking backward through the supply chain

question

Vendor-Managed inventory

answer

Vendors monitor goods and replenish retail inventories when supplies are low

question

Order Fulfillment

answer

the processes involved in responding to customers orders.

question

Logistics

answer

The movement of materials, services, cash, and information in a supply chain

question

Traffic management

answer

Over-seeing the shipment of incoming and outgoing goods

question

Radio Frequency Identification (RFID)

answer

A technology that uses radio waves to identify objects, such as goods in supply chains

question

Third-party logistics (3-PL)

answer

The outsourcing of logistics management

question

Strategic sourcing

answer

Analyzing the procurement process to lower costs by reducing waste and non-value-added, activities, increase profits, reduce risk, and improve supplier performance

question

Information Velocity

answer

The speed at which information is communicated in a supply chain

question

Supply chain visibility

answer

A major trading partner can connect to its supply cian to access data in real time

question

Event management

answer

The ability to detect and respond to unplanned events

question

Fill rate

answer

the percentage of demand filled from stock on hand

question

Reverse Logistics

answer

the process of transporting returned items

question

Gatekeeping

answer

Screening returned goods to prevent incorrect acceptance of goods

question

Avoidance

answer

Finding ways to minimize the number of items that are returned

question

Closed-Loop Supply Chain

answer

A manufacturer controls both the forward and reverse shipment of product

question

Cross-Docking

answer

a technique whereby goods arriving at a warehouse from a supplier are unloaded from the supplier's truck and loaded onto outbound trucks, thereby avoiding warehouse storage

question

Delayed differentiation

answer

Production of a standard components and sub assemblies, which are held until late in the process to add differentiating features

question

disintermediation

answer

reducing one or more steps in a supply chain by cutting out one or more intermediaries

question

Scheduling

answer

Establishing the timing of the use of equipment, facilities, and human activities in an organization

question

Flow System

answer

High volume system in which jobs all follow the same sequence

question

Flow-shop scheduling

answer

Scheduling for flow systems

question

Job-shop scheduling

answer

Scheduling for low-volume systems with many variations in requirements

question

answer

The assignment of jobs to processing centers

question

Gantt Chart

answer

Chart used as a visual aid for loading and scheduling purposes

question

Load Chart

answer

A gannt chart that shows the loading and idle times for a group of machines or list of departments

question

Infinite loading

answer

Jobs are assigned to work centers with-out regard to the capacity of the work center

question

Finite loading

answer

Jobs are assigned to work centers taking into account the work center capacity and job processing times.

question

Forward scheduling

answer

Scheduling ahead from a point in time

question

Backward scheduling

answer

scheduling backward from a due date

question

Scheduling Chart

answer

A gannt chart that shows the orders or jobs in progress and whether they are on schedule

question

Input/output (I/O) Control

answer

Managing work flow and queues at work centers

question

Assignment model

answer

A linear programming model for optimal assignment of tasks and resources

question

Hungarian method

answer

Method of assigning jobs by a one-for-one matching to identify the lowest-cost solution

question

Sequencing

answer

Determining the order in which jobs at a work center will be processed

question

Workstation

answer

an area where one or a few workers and/or machines perform similar work

question

Priority rules

answer

Simple heuristics used to select the order in which jobs will be processed

question

Job time

answer

Time needed for setup and processing of a job

question

Local priority rules

answer

Focus on information pertaining to a single workstation when establishing a job sequence

question

Global priority rules

answer

Incorporate information from multiple workstations when establishing a job sequence

question

Job Flow time

answer

The amount of time from when a job arrives until it is finished

question

Job lateness

answer

The difference between the actual completion date and the due date

question

Makespan

answer

Total time needed to complete a group of jobs from the beginning of the first job to the completion of the last job

question

Johnson's Rule

answer

Technique for minimizing makespan for a group of jobs to be processed on two machines or at two work centers

question

Process batch

answer

The economical quantity to produce upon the activation of a given operation

question

Transfer Batch

answer

The quantity to be transported from one operation to another, assumed to be smaller than the first operation's process batch

question

Theory of Constraints

answer

Production planning approach that emphasizes balancing flow throughout a system, and pursues a perpetual five-step improvement process centered around the system's currently most restrictive constraint

question

Yield Management

answer

The application of pricing strategies to allocate capacity among various categories demand

question

Project Champion

answer

A person who promotes and supports a project

question

Work Breakdown Structure (WFBS)

answer

a hierarchical listing of what must be done during a project

question

PERT (program evaluation and review technique)

answer

Planning and coordinating large projects

question

CPM (Critical Path method)

answer

Critical path method, for planning and coordinating large projects

question

Networking Diagram

answer

Diagram of project activities that shows sequential relationships by use of arrows and nodes

question

Activity-on-Arrow (AOA)

answer

Network diagram convention in which arrows designate activities

question

Activity-on-Node (AON)

answer

Network diagram convention in which nodes designate activities

question

Activities

answer

Project steps that consume resources and/or time

question

Events

answer

The starting and finishing of activities, designated by nodes in the AOA convention

question

Path

answer

A sequence of activities that leads from the starting node to the finishing node

question

Critical Path

answer

The longest path; determines the expected project duration

question

Critical Activities

answer

Activities on the critical path

question

Slack

answer

Allowable slippage for a path; the difference between the length of a path and the length of the critical path

question

Deterministic

answer

Time estimates that are fairly certain

question

Probabilistic

answer

Estimates of times that allow for variation

question

Optimistic times

answer

The length of time required under optimal conditions

question

Pessimistic time

answer

The length of time required under the worst conditions

question

Most Likely Time

answer

The most probable length of time that will be required

question

Beta Distribution

answer

Used to describe the inherent variability in activity time estimates

question

Independence

answer

Assumption that path duration times are independent of each other; requiring that activity times be independent, and that each activity is on only one path

question

Crashing "Project Crashing"

answer

Shortening activity durations. By spending more money and expediting the project

question

Which of the following is not one of the assumptions of the basic EOQ model?

answer

D. Quantity discounts are available

question

Which is an application for RFID tags?

answer

A. Monitoring the temperature of fruit during shipment

question

A non-linear cost related to order size is the cost of

answer

D. Receiving

question

In a two-bin inventory system, the amount contained in the second bin is equal to the:

answer

A. ROP

question

When carrying costs are stated as a percentage of unit price, the minimum points on the total curves .....

answer

C. Do not line up

question

Dairy items, fresh fruit, and newspapers are items that

answer

C. are subject to deterioration and spoilage

question

Which is not included in order costs?

answer

E. temporary storage of delivered goods

question

In an ABC system, the typical percentage of the number of items in inventory for A items is about:

answer

A. 10

question

In the ABC classificiation system, items which account for fifteen percent of the total dollar-volume for a majority of the inventory items would be classified as:

answer

C. C items

question

Dairy items, fresh fruit, and newspapers are items that

answer

C. are subject to deterioration and spoilage

question

In the ABC classificiation system, items which account for sixty percent of the total dollar volume for few inventory items would be classified as:

answer

A. A items

question

The purpose of "cycle counting" is to:

answer

C. reduce discrepancies between inventory records and actual

question

The EOQ model is most relevant for which of the following?

answer

E. determining fixed order quantities

question

In a supermarket, the every Monday morning restocking of shelves by a bread vendor is an example of

answer

D. Fixed order interval

question

A cycle count program will usually require that 'A' items be counted:

answer

E. more frequently than annually

question

A risk avoider would want ___ safety stock

answer

B. More

question

In the basic EOQ model, if annual demand doubles, the effect on the EOQ is:

answer

E. It increases by about 40 percent

question

In the basic EOQ model, if lead time increases from five to 10 days, the EOQ will:

answer

D. remain the same

question

In the basic EOQ model, an annual demand of 40 units, an ordering cost of $5, and a holding cost of $1/unit per year will result in

answer

A. 20

question

In the basic EOQ model, if D= 60 per month, S=$12, and H = $10 per unit per month, EOQ is:

answer

B. 10

question

In the basic EOQ model, if annual demand is 50, carrying cost is $2, and ordering cost is $15, EOQ is approximately:

answer

D. 28

question

Which of the following is not true for the EOQ with incremental replenishment model?

answer

D. THere are no ordering or set up costs

question

The introduction of quantity discounts will cause the optimum order quantity to be:

answer

E. unchanged or greater

question

A fill rate is the percentage of____ filled by stock on hand

answer

B. Demand

question

In the quantity discount model, with carrying cost stated as a percentage of unit purchase price, in order for the EOQ of the lowest curve to be optimum, it must:

answer

B. be in a feasible range

question

Which of the following is not generally a determinant of the reorder point?

answer

E. purchase cost

question

If no variations in demand or lead time exist, the ROP will equal:

answer

B. expected usage during the lead time

question

If average demand in an inventory item is 200 units per day, lead time is three days, and safety stock is 100 units, the reorder point is:

answer

E. 700 units

question

Which of the following is implied by a "lead time" service level of 95 percent?

answer

D. The probability is 95 percent that demand during lead time will not exceed the amount on hand at the beginning of lead time

question

The management of supply chain inventories focuses on:

answer

C. both internal and external inventories

question

An operations strategy for inventory management should work towards:

answer

B. decreasing lot sizes

question

The Japanese manufacturing strategy of recognizing the numerous opportunity costs of carrying inventories result in:

answer

D. decreased lot sizes

question

An operations strategy which recognizes high carrying costs and reducces ordering costs will result in:

answer

C. greatly decreased order quantities

question

The need for safety stocks can be reduced by an operations strategy which:

answer

E. decreases lead time variability

question

If average demand for an item is 20 units per day, safety stock is 50 units, and lead time is four days, the ROP will be:

answer

E. 130 days

question

With an ABC system, an item that had a high demand but a low annual dollar volume would probably be classified as:

answer

C. C

question

Which item would be least likely to be ordered under a fixed order interval system?

answer

B. auto parts at an assembly plant

question

Which one of these would not be a factor in determining the reorder point?

answer

A. the EOQ

question

Which of the follwoing most closely describes dependent deman?

answer

C. derived demand

question

ERP implementation probably won't require:

answer

B. more than three or four months to install

question

A computer based information system designed to handle ordering and scheduling of dependent-demand inventories is:

answer

D. material requirements planning (MRP)

question

The development and application of MRP depnded upon two developments: (1) the recognition of the difference between independent and dependent demand, and (2):

answer

A. computers

question

The output of MRP is:

answer

C. a schedule of requirements for all parts and end items

question

Which one of the following is not an input in an MRP system?

answer

A. planned-order schedules

question

The MRP input stating which end items are to be produced, when they are neeeded, and what quantities are needed, is the:

answer

A. master schedule

question

In an MRP master schedule, the planning horizon is often separated into a series of times periods called:

answer

D. time buckets

question

The MRP input listing the assemblies, subassemblies, parts, and raw materials needed to produce one unit of finished product is the:

answer

B. bill-of-materials

question

A visual depiction of the subassemblies and components that are needed to produce and/or assemble a product is called a(n):

answer

B. product struture tree

question

The MRP input storing information on the status of each item by time period (e.g., scheduled receipts, lead time, lot size) is the:

answer

C. inventory-records

question

Which one of the following most closely describes net material requirements?

answer

A. gross requirements-amount on hand - scheduled receipts

question

In MRP, "scheduled receipts" are:

answer

C. open orders (that is, ordered before the first time bucket, but not delivered yet)

question

In MRP under lot-for-lot ordering, "planned-order receipts" are:

answer

B. identicial to "planned-order releases"

question

Under lot-for-lot, order sizes for component parts are essentially determined directly from which one of the following?

answer

B. net requirements

question

In MRP, the gross requirements of a given component part are calculated from:

answer

E. planned orders of the immediate parent

question

The identification of parent items is called:

answer

B. Pegging

question

Periodic updating of an MRP system to account for all changes which have occurred within a given time interval is called:

answer

D. regenerative

question

An MRP system whose records are updated continuously is referred to as a(n):

answer

D. net-change system

question

Which is true of a net-change system?

answer

C. the basic production plan is modified to reflect changes as they occur

question

Which one of the following most closely describes the MRP approach that is used for components or subassemblies to compensate for variations in lead time?

answer

D. safety time

question

Which of the following lot sizing methods does not attempt to balance ordering (or setup) and holding costs?

answer

C. lot for lot

question

When MRPII systemes include feedback, they are known as:

answer

E. closed up MRP

question

The multiplication process used by MRP to determine lower level requirements is called:

answer

E. exploding

question

____ is choosing how many to order or make

answer

C. Lot sizing

question

Which of the following is not usually necessary in order to have an effective MRP system?

answer

C. lot-for-lot ordering

question

The ___ of ERP makes it valuable as a strategic planning tool.

answer

D. Real-time aspect

question

A recent effort to expand the scope of production resource planning by invlving other functional areas in the planning process has been:

answer

C. manufacturing resources planning

question

Which statement concerning MRP II is flase?

answer

E. it produces a production plan which includes all resources required

question

Which of these items would be most likely to have dependent demand?

answer

A. X-box batteries

question

Which of these products would be most likely to have dependent demand?

answer

B. automobile engines

question

JIT in its conceptual sense:

answer

ALL THE ABOVE (is a lean production system, has no idle items wainging to be processed, has no idel workers, and has no idle workstations waiting to process work)

question

JIT philosophy suggests that workers are ...

answer

A. Assets

question

The ultimate goal of JIT is to have:

answer

C. a smooth, rapid flow of materials through the system

question

Which one of the following is not one of the building blocks that is the foundation of JIT?

answer

E. kanban

question

Building up an inventory of standard parts or modules instead of immediately producing the finished end items is the essence of:

answer

A. delayed differentiation

question

Which of the wolloing would you not expect to see in JIT?

answer

E. a signficant number of daily schedule changes

question

The comprehensive approach used in JIT systems to deal with quality includes:

answer

D. A, B and C

question

Which of the following is not a benefit of small lot sizes in JIT systems?

answer

B. Each product is produced less frequently

question

In the JIT philosophy, the ideal lot size is:

answer

C. one unit

question

Which of the following does not contribute to reduced setup time and cost?

answer

C. custom setup procedures for each product

question

A conveyance ____ signals parts movement

answer

D. Kanban

question

The term that refers to the automatic detection of defects is:

answer

C. autonomation

question

A basic requirement for operating with low inventories present in JIT systems is:

answer

D. major problems must have been solved

question

Which of the following is not characteristic of preventive maintenance in JIT systems?

answer

D. eliminating supplies of spare parts to reduce capital investment

question

The Five S's don't include ...

answer

C. Sanitize

question

The Kaizen Philosophy applies to ....

answer

C. Waste

question

A kanban card is used to signal that:

answer

A. work is needed at the work center

question

With regard to suppliers, JIT systems typically require:

answer

D. long-term relationships and commitments

question

Which of the following is characteristic of the JIT philosophy?

answer

C. Vendors are co workers, essentially other departments of our organization

question

The activities controlled in the same way by kanban and MRP II is the determination of

answer

B. products to be built

question

Process design supporting JIT doesn't include...

answer

B. Duplicate facilities

question

Allowing suppliers to manage the restocking of their products in our inventories is part of:

answer

C. JIT II

question

A suffessful conversion to a JIT system requires that the conversion:

answer

C. convert vendors to JIT as one of the last steps

question

A potenetial obstacle to conversion to a JIT system is:

answer

D. all of the above

question

A system of lights used at each workstation to signal problems or slowdowns is:

answer

C. andon

question

Which of the following contributes to the competitive advantage enjoyed by firms using JIT/lean production?

answer

E. Greater flexibility to cope with change

question

With regard to suppliers, JIT systems typically involve:

answer

C. long-term relationships

question

A common objective of both MRP and JIT is to:

answer

B. minimize inventory

question

The ultimate objective in a JIT system is:

answer

D. balanced and rapid flow

question

Which of the following is not a goal of supply chain management?

answer

D. lowest possible transportation costs

question

Logistics includes all of these except:

answer

D. customer selection

question

Small changes in consumer demand can result in large variations in orders placed because of the ...

answer

D. Bullwhip effect

question

RFID chips: (I) are used to track goods in distribution (II) are used to track job progress in production (III) may provide special instructions to operators (IV) can be used in invetory record keeping

answer

D. I, II, and IV

question

Which of the following is not a benefit of RFID?

answer

C. frequent deliveries of smaller shipments

question

A factor that makes it desirable for business organizations to actively manage their supply chains is;

answer

B. increasing globalization

question

Which of the following is not a benefit of effect supply chain management?

answer

E. larger number of suppliers

question

Which of the following is not a measure of the reliability of the supply chain?

answer

A. supply chain response time

question

The automatic identification of material is part of:

answer

B. RFID

question

Which of the following is not an application of E-business?

answer

E. universal product codes

question

Which of the following is an advantage of e-business? (I) reduction of transaction costs (II) shortened supply chain response time (III) greater customer loyalty

answer

C. I and II

question

Which of the following is a barrier to integration of separate organizations in the supply chain? (I) conflicting objectives of the companies in the chain (II) different level of capacity of the companies in the chain (III) reluctance of the organizations in the chain to allow other organizations access to their data.

answer

D. I and III

question

_____ has helped business concentrate on their core business.

answer

C. Outsourcing

question

Outsourcing followed by ________ is not simple.

answer

C. backsourcing

question

The interface between the firm and its suppliers is:

answer

A. purchasing

question

The two types of decisions that are relevant to supply chain management are:

answer

E. Strategic, operational

question

One important object of purchasing is to:

answer

B. be knowledgeable about new products

question

The purchasing cycle begins with:

answer

E. receiving a requisition

question

Examination of the sources of a supply for purchased parts or materials in order to improve performance is called:

answer

A. vendor analysis

question

Vendor analysis has the greates potential for savings for items which have:

answer

E. high annual cost-volume

question

Which of the following is not true of vendor analysis?

answer

A. It involves an examination of the function of purchased parts or raw materials

question

Which of the following is not a performance dirver?

answer

C. Stability

question

Which of the following would not usually be a mian factor in selecting a vendor?

answer

D. inventory turnover

question

Which of the following is part of the purchasing cycle? (I) Purchasing selects a supplier (II) Orders from vendors are received (III) Purchasing receives a requisition

answer

B. I, II, and III

question

Which of the following is not a key consideration when a company chooses a supplier?

answer

C. value analysis

question

Which of the following is not a benefit of centralized purchasing?

answer

C. quick response to local needs

question

The purchasing perspective of the supplier as a partner is characterized by:

answer

B. one or a few suppliers

question

Vendor Analysis is the examination of the ____ of purchased materials.

answer

B. Source

question

A system for inventory management involving multi-echelon warehouse is called:

answer

E. DRP

question

Which of the following is a principle required for ethical behavior in purchasing?

answer

D. all of the above (loyalty to employer, justice to those you deal with, faith in your profession)

question

The activity which begins with a request from within the organization is:

answer

B. Purchasing cycle

question

Our organization can obtain visibility to potential trading partners on the internet by using:

answer

C. B2B

question

Real time information about product movement on store shelves could benefit from the use of:

answer

D. radio frequency identification tags

question

The webiste and order fulfillment are essential features of :

answer

B. e-commerce

STUDY

Activity Based Costing Business Management Finance Human Resource Management Management Project Management Project Team Members

MGT 461 Exam 2 – Flashcards 97 terms

Tara Rose

97 terms

Preview

MGT 461 Exam 2 – Flashcards

question

"Unknown unknowns" is a term used to describe events which occur that are totally unexpecteD) All of the following accurately describe an implication associated with unknown unknowns EXCEPT:

answer

They are usually discovered during risk identification

question

There is often terrific pressure to complete a project as quickly as possible. To confront this pressure, a project manager should quickly promise to meet the deadlines requested by the sponsor and then assemble a team to create the corresponding schedule.

answer

FALSE

question

Since activities represent work that needs to be performed, it doesn't matter how the verb-noun is listed.

answer

FALSE

question

Faced with significant schedule challenges, the project manager has several responsibilities. All of the following are among the project manager's responsibilities EXCEPT:

answer

willingly accept end dates dictated by customers or sponsors

question

While the lowest level of decomposition in a Work Breakdown Structure is the work package, work packages can still be decomposed further into project activities.

answer

TRUE

question

For activities to be useful as schedule building blocks, they should have what characteristic(s)?

answer

All of these

question

The critical path is the sequence of activities that form the shortest path through the project network and determine the duration of the project.

answer

FALSE

question

Estimates of the likely amount a project will cost should always include an indication of accuracy.

answer

TRUE

question

The length of time to perform an activity is often dependent upon who will do that work.

answer

TRUE

question

Milestones are important points in a project schedule that can serve as check points for project managers and sponsors. All of the following reasons might justify the decision to establish a milestone EXCEPT:

answer

updating status reports

question

Estimating the number of work periods that will be needed to complete individual schedule activities characterizes which of the following time management processes?

answer

Estimate activity duration

question

A successor activity follows a predecessor activity based on their logical relationship.

answer

TRUE

question

The process of estimating the types and quantities of resources required to perform each scheduled activity is called a "project staffing analysis."

answer

FALSE

question

The staffing management plan addresses all of the following except:

answer

how to create project organization charts

question

A milestone is a typical measuring point used when establishing cost control. Which of the following accurately describes the use of cost control milestones?

answer

all of these

question

When estimating resource needs, project teams should consider all the following EXCEPT:

answer

scoring models

question

When determining resource availability, project managers need only consider full-time, internal resources.

answer

FALSE

question

When identifying people to work on the project, it is helpful to consider their professional disciplines, skill levels and their physical location.

answer

TRUE

question

Project managers often confront the challenge of reducing excessive time commitments and overloads among project resources. All of the following methods represent a potentially viable strategy to reduce work overloads EXCEPT:

answer

Require all project resources to work overtime

question

In order to avoid project delays, project managers confronted with resource overloads will naturally seek to exploit the slack associated with non-critical activities.

answer

TRUE

question

Resource leveling is a network scheduling technique that seeks to assign nearly equivalent work units to each member of the project team.

answer

FALSE

question

When resource overloads are extreme, project managers may need to consider the acquisition of additional resources, reductions in scope or extensions to the project schedule.

answer

TRUE

question

The critical chain method is a schedule network analysis technique that modifies the project schedule to account for limited resources.

answer

TRUE

question

There are many causes of variation in project costs. Which of the following accurately describes the nature of this variation?

answer

Variation occurs in all work processes and the novelty associated with most projects creates many opportunities for variation.

question

The document that establishes the activities and criteria for planning, structuring and controlling the project costs is the project financial plan.

answer

FALSE

question

Recurring costs tend to occur during project planning and closing while nonrecurring costs tend to occur during project execution.

answer

FALSE

question

Project managers are encouraged to avoid overly conservative cost estimates because the resulting estimate may be too high to approve.

answer

TRUE

question

The cost management plan establishes the format and criteria for planning and controlling the project costs.

answer

TRUE

question

Fixed costs remain constant over time, whereas variable costs may change directly as a function of time.

answer

FALSE

question

A project manager needs to ensure that the cumulative amount of cash coming into the project either from internal budgeting or from customer payments meets or exceeds the demands for paying cash out.

answer

TRUE

question

Except in rare circumstances, project teams should not attempt to decompose work packages into project activities because work packages provide sufficient detail to develop a project schedule.

answer

False

question

All of the following items describe an aspect of life cycle costing EXCEPT:

answer

Life cycle cost only includes the project cost from initiating through closing

question

Cost estimating is linked very closely with scope, schedule and resource planning.

answer

True

question

If a project manager delays the start of an activity on the critical path, than the expected completion date of the project will occur at a later date than originally planned.

answer

True

question

While a "RACI"chart may be very useful for assigning activities to core team members and project managers, the sheer number of subject matter experts on many projects renders the RACI chart impractical for large projects.

answer

False

question

Consider the programmers resource histogram presented in Figure 8-3. How many programmers are required during the fifth week of this project?

answer

7 programmers

question

Activity based costing allocates indirect costs based on different types of cost drivers. Which of the following cost drivers serve as a basis of allocation when activity based costing is used?

answer

number of units produced

question

One approach to identify which activities contribute to work overload for a particular resource is to compare the resource histogram to the Gantt chart.

answer

True

question

Typically, expedited costs are preferred over regular costs.

answer

False

question

The first process in developing a project schedule is to identify all the resources available to work on the project.

answer

False

question

The sequencing of activities is often based upon dependencies between the activities. The dependencies that should guide activity sequencing can be either

answer

Mandatory or discretionary

question

Even when a project team does not identify individual activities, it will still need to determine how many resources are needed to complete the project

answer

True

question

When recruiting resources to support a project, it is always best to bring team members and experts on board as soon as possible.

answer

True

question

On small projects, the cost management plan may simply address the accuracy of estimating, the source of funding and cost reporting procedures.

answer

True

question

In order for activities to be useful as schedule building blocks, they should have tangible output that can be verified.

answer

True

question

Creating a realistic schedule is often an iterative process because several factors can limit how fast a project can be completed. All of the following factors can limit how fast a project can be scheduled and completed EXCEPT

answer

quality control

question

The first draft of the project schedule can be drafted once the WBS has been constructed.

answer

True

question

Consider the time-phased budget presented in Figure 9-1. What is the cumulative project budget through the end of April?

answer

$46,000

question

Monte Carlo Analysis is a technique that computes activity durations based on three time estimates: one optimistic, one pessimistic and one most likely.

answer

False

question

One precondition that must be met for a project kick-off meeting is that the project manager needs to set clear directions during the planning phase and does not need to collaborate with the sponsor before doing so.

answer

FALSE

question

Risk is often considered in terms of impact to project success. Which of the following is a valid measure of project success?

answer

all of these

question

It is impossible to remove all sources of risk on a project.

answer

TRUE

question

All of the following are benefits that can be attributed to the effective use of a risk management plan EXCEPT:

answer

It enables the project manager to identify and eliminate all risks

question

The risk management plan is the document that describes how project risk management will be structured and performed on a project.

answer

TRUE

question

All of the following items are valid reasons to conduct a project kick-off meeting EXCEPT:

answer

to emphasize that all decisions will be made exclusively by the project manager

question

A risk is anything that may impact the project team's ability to achieve the general project success measures and the specific project stakeholder priorities.

answer

TRUE

question

Which of the following describes the effective use of a risk register?

answer

Items such as the probability of occurrence and impact are typically added to the risk register subsequent to risk identification.

question

Project teams can often identify risks by conducting any of several types of reviews. Which of the following illustrates a valuable type of risk review?

answer

review the communication plan to determine where poor communications could cause a problem

question

The risk register is a living document and new risks can be added as they are identified.

answer

TRUE

question

The formality of a kick-off meeting can vary considerably depending on the size and type of project.

answer

TRUE

question

All of the following criteria can be used to categorize project risks EXCEPT:

answer

whether the risk is a known known

question

All of the following methods have proven to be useful techniques to help project teams identify the risks that might impact the project EXCEPT:

answer

deriving lessons learned

question

Generally, once risks have been identified and analyzed, the project team decides how to handle each risk.

answer

TRUE

question

All of the following are among the classic risk response strategies EXCEPT:

answer

share a threat

question

When an overall plan becomes or appears impractical, the key stakeholders often will determine their priorities and tradeoffs prior to proceeding.

answer

TRUE

question

In some cases, project teams will elect to reduce a threat rather than eliminate it because the effort to completely eliminate a threat is unjustified.

answer

TRUE

question

Sometimes the risks posed by a project are so great that an appropriate risk response is to not perform the project at all.

answer

TRUE

question

Which of the following describes the appropriate use of a cause and effect diagram to support project risk analysis?

answer

It is often easier to alter the effect by changing the underlying cause.

question

Project stakeholders will judge the quality of project work processes as well as project deliverables.

answer

TRUE

question

It is important that there is an atmosphere of trust and relationship building prior to kicking off the project amongst all parties involved.

answer

TRUE

question

All of the following reasons explain why it is better to design quality into processes than to find problems through inspections EXCEPT:

answer

The best inspectors should find every variation and defect

question

DMAIC is typically used as a method of implementing continuous improvement and can thus be practiced repeatedly within a single process to further improve process performance.

answer

TRUE

question

The decision process for developing relevant quality standards on a project includes all of the following activities EXCEPT:

answer

design work systems

question

The four core project quality concepts include which of the following?

answer

stakeholder satisfaction

question

The quality policy on a specific project should defer the quality policies of the parent organization when major customer needs and policies create a conflict

answer

FALSE

question

Which of the following documents describes how the project management team will implement the performing organization's quality policy?

answer

the quality management plan

question

The project manager is responsible for selecting appropriate quality standards for the project. Typically, these standards apply to all of the following EXCEPT:

answer

team selection criteria

question

Project quality tools such as a histogram, Pareto chart, and Failure Mode and Effect Analysis (FMEA) are generally used in support of which of the following DMAIC phases?

answer

Analyze

question

The quality management plan describes how the project management team will implement the performing organization's quality policy.

answer

TRUE

question

Which of the following activities illustrates a risk response strategy designed to mitigate a threat?

answer

train a team member to cover for a potentially unavailable key resource.

question

The International Organization for Standardization developed a quality management standard that relies upon several quality management areas including management, resources and realization.

answer

True

question

The primary questions project teams use in qualitative risk analysis are "What is the nature of this risk?" and "Who will be responsible for addressing it?"

answer

False

question

The cost per risk for risks discovered early in the project is often more than the cost per risk for risks discovered late because there is more opportunity for the risk to impact several dimensions of the project.

answer

False

question

All of the following activities are appropriate upon completion of risk response planning EXCEPT:

answer

The risk register should be baselined after planning is completed, and should not be updated once the project is in flight.

question

A risk management plan should define who has responsibility for causing each risk and hold the responsible party directly accountable for developing an appropriate solution.

answer

False

question

Project managers can identify risks by learning and understanding the cause and effect relationships that bear on risk events. All of the following approaches rely upon an understanding of cause and effect relationships to identify risks EXCEPT:

answer

list all in a risk register

question

Identifying risk involves a process of determining which risk might affect the project without having to having to document the nature or characteristics of the risk.

answer

False

question

On many small, simple projects the quality planning is performed concurrently with other planning and the quality plan is seamlessly incorporated into the project plan.

answer

True

question

All of the following describe the appropriate application of Perform Quantitative Risk Analysis in project management EXCEPT:

answer

Brainstorming techniques are used by the team and other stakeholders to identify as many project risks as possible.

question

After completing detailed planning for a project, it is often helpful for the project manager and team to apply a sanity test to the project plan. Which of the following accurately describes the application of a sanity test?

answer

It should include questions to ensure budgets, schedules and resource plans are reasonable and achievable.

question

All of the following actions play constructive roles in an organization when project managers are considering process improvements EXCEPT:

answer

Organizations focus exclusively on short term results.

question

Which of the following activities are typically included in a project kick-off meeting?

answer

The project manager outlines the project goals.

question

The process of deciding how to approach, plan and execute risk management activities for a project is known as Project Risk Absorption Methodology (PRAM).

answer

False

question

When the impact of an event is negative, it is considered a risk; when the impact is positive, the event is considered an opportunity.

answer

True

question

Risk response strategies such as acceptance and conducting further research apply to both threats and opportunities.

answer

True

question

The primary output of risk identification is the Risk Identification Matrix (RIM)

answer

False

question

The primary output of risk identification is the Risk Identification Matrix (RIM)

answer

False

STUDY

Activity Based Costing Business Management Earned Value Management Finance Project Cost Management

Project Management Final (BCONLINE) – Flashcards 40 terms

Tilly Wilkinson

40 terms

Preview

Project Management Final (BCONLINE) – Flashcards

question

It is important for project managers to focus on indirect costs because they can be easily controlled.

answer

False

question

A project's stakeholders includes its customers, users, and suppliers.

answer

True

question

An activity is an element of work that has an expected duration, cost, and resource requirements.

answer

False, Task

question

Project scope management includes the processes involved in defining and controlling what is or is not included in a project.

answer

True

question

Project schedules grow out of basic documents such as the project charter.

answer

True

question

The only responsibility of a project manager is to meet the specific scope, time, and cost goals of a project.

answer

False

question

In project time management, the primary output of defining activities is a schedule management plan.

answer

False

question

It is important for the activity list and activity attributes to be in agreement with the work breakdown structure.

answer

True

question

In project time management, the next step after sequencing activities is to define these activities.

answer

False

question

Projects should be developed in increments

answer

True

question

Questions about how a team will track schedule performance is related to a project's scope.

answer

False

question

Deliverables are only product-related, such as a piece of hardware or software.

answer

False

question

A project manager's primary role is to provide the funding for a project.

answer

False

question

To define activities, the project team should start with reviewing the schedule management plan, scope baseline, enterprise environmental factors, and organizational processes.

answer

True

question

Extrinsic motivation causes people to participate in an activity for their own enjoyment.

answer

False

question

The primary output of the planning cost management process is a change request.

answer

False

question

A difference between operations and projects is that operations end when their objectives have been reached, whereas projects do not.

answer

False

question

Risks can have both negative and positive effects on meeting project objectives.

answer

True

question

Intangible costs can be easily measured in monetary terms.

answer

False

question

One of the main reasons why project management is challenging is because of the factor of uncertainty.

answer

True

question

Milestones are easy to achieve and are always achieved through one main activity

answer

False

question

After defining project activities, the next step in project time management is developing the schedule

answer

False

question

Project managers must conduct cash flow analysis to determine net present value.

answer

True

question

Maslow suggests that each level of the hierarchy of needs is not necessarily a prerequisite for the levels above.

answer

False

question

Overrun is the additional percentage amount by which estimates exceed actual costs.

answer

False

question

When deciding what projects to invest in or continue, one should include sunk costs.

answer

False

question

IT project managers must be able to present and discuss project information both in financial and technical terms.

answer

True

question

The project's size, complexity, importance, and other factors will not affect how much effort is spent on collecting requirements for scope planning.

answer

False

question

Assignment, budget, promotion, money, and penalty influence bases are automatically available to project managers as part of their position.

answer

False

question

If an important supplier goes out of business, management reserves can be set aside to cover the resulting costs.

answer

True

question

Managing the triple constraint primarily involves making trade-offs between resources and quality.

answer

False

question

Scope refers to all the work involved in creating the products of the project and the processes used to create them

answer

True

question

A schedule management plan includes information which describes the format and frequency of schedule reports required for the project.

answer

True

question

Contingency plans are predefined actions that the project team will take if an identified risk event occurs.

answer

True

question

In order to be realistic, a project manager should always set discrete goals instead of a range of objectives.

answer

False

question

Unknown risks can be managed proactively.

answer

False

question

Opponents of a project do not belong to the category of stakeholders.

answer

False

question

Resources in a project should be used effectively because they are limited.

answer

True

question

Every project should have a well-defined objective.

answer

True

question

The scope management plan can be informal and broad or formal and detailed, based on the needs of the project.

answer

True

STUDY

Activity Based Costing Customer Relationship Management Definitions Management Marketing Returns And Allowances

Supply Chain Management Chapter 8 – Flashcards 35 terms

Ember Wagner

35 terms

Preview

Supply Chain Management Chapter 8 – Flashcards

question

Customer service is anything that touches the customer.

answer

question

Most organizations employ all six definitions of customer service in their order management process.

answer

question

Customer relationship management is a new concept only recently receiving attention.

answer

question

Firms today are beginning to use techniques such as activity-based costing to more accurately allocate costs to customers. It's based on the specific costs of servicing a customer's orders relative to how, how much, what, and when a customer orders.

answer

question

The identification of the product/service package for each customer segment is one of the easier activities in the CRM process.

answer

question

Activity-based costing works well in warehouse-type environments but does not work for customer-service applications.

answer

question

With the proper information on how a customer's interaction drives firm's costs, the firm can then segment its customers by profitability.

answer

question

"Order to cash" and "order cycle" are the same.

answer

question

"Order to cash" and "replenishment cycle" are the same.

answer

question

The buyer and seller look at order time from the same perspective.

answer

question

Deliver Stocked Product in the Supply Chain Council SCOR Model is the same as the OTC model.

answer

question

There are ten principal activities to the OTC model.

answer

question

Reserve Inventory and Determine Delivery Date has traditionally been referred to as order processing.

answer

question

A driving force behind the attention to OTC cycle variability is safety stock. The absolute length of the order cycle will influence demand inventory.

answer

question

Customer service is of equal importance to both logistics and marketing.

answer

question

From a marketing perspective, logistics customer service can be thought of as a feature of the augmented product that adds value for the customer product.

answer

question

Dependability is not as important to a buyer as is absolute length of lead time.

answer

question

There are four types of communications that exist between a buyer and a seller.

answer

question

There are five logistics performance metrics from the buyer's point of view.

answer

question

A stockout always results in a back order.

answer

question

For the best service, all products should be available at all levels regardless of cost.

answer

question

"Customer service can be defined as A. a philosophy. B. order fulfillment. C. the SCOR model. D. anything that touches the customer.

answer

" "Customer service can be defined as D. anything that touches the customer.

question

" "Customer relationship management is the art and science of A. demand management. B. positioning customers to improve the profitability of the organization. C. management discipline. D. customer profitability.

answer

" "Customer relationship management is the art and science of B. positioning customers to improve the profitability of the organization.

question

" "What are the steps in the CRM process? A. segment customer base, then measure service and improve B. segment customer base, then identify service/package C. measure service, then improve D. segment customer base, then identify service/package, then measure service and improve

answer

" "What are the steps in the CRM process? D. segment customer base, then identify service/package, then measure service and improve

question

" "Activity Based Costing A. is useful for distributions centers but not customers. B. can be applied to customer segmentation. C. is too sophisticated for many applications. D. is a very new management science.

answer

" "Activity Based Costing B. can be applied to customer segmentation.

question

" "Traditional customer profitability analyses would start with ____ less returns and allowances (net sales) and subtracts the cost of goods sold. A. gross sales B. back orders C. the forecast D. gross margin

answer

" "Traditional customer profitability analyses would start with ____ less returns and allowances (net sales) and subtracts the cost of goods sold. A. gross sales

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" "Those customers who are in the ""Danger Zone"" segment are A. likely to switch to a competitor. B. have been a customer for less than a year. C. the least profitable. D. are using ABC to drive down the price.

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" "Those customers who are in the ""Danger Zone"" segment are C. the least profitable.

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" "Order management system represents the principal means by which A. price and lead time add value. B. buyers and sellers communicate relating to individual orders of product. C. orders are handled inside the company. D. customers are segmented.

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" "Order management system represents the principal means by which B. buyers and sellers communicate relating to individual orders of product.

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" "The term replenishment cycle refers to A. orders for raw material. B. material management. C. the acquisition of additional inventory. D. inventory and material management.

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" "The term replenishment cycle refers to C. the acquisition of additional inventory.

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" "While interest has traditionally focused more on the overall length of the OTC cycle, recent attention has been centered on A. customer segmentation. B. the use of the ABC process. C. the use of the SCOR process. D. variability or consistency within this process.

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" "While interest has traditionally focused more on the overall length of the OTC cycle, recent attention has been centered on D. variability or consistency within this process.

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" "Applying Internet technology to the order management process has allowed organizations to not only take time out of the process but also to A. increase the velocity of cash back to the selling organization. B. attract new customers. C. develop ""Clicks"" and ""Bricks"" firms. D. manage inventory more effectively.

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" "The traditional role of customer service at the interface between marketing and logistics. This relationship manifests itself through the ____ dimension of the marketing mix. A. price B. place C. product D. promotion

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" "The traditional role of customer service at the interface between marketing and logistics. This relationship manifests itself through the ____ dimension of the marketing mix. B. place

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" "Which is not part of dependability? A. cycle time B. correct orders and cycle time C. convenience D. cycle time, correct order, and convenience

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" "Which is not part of dependability? D. cycle time, correct order, and convenience

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" "The SCOR model provides suggested metrics A. across multiple dimensions for each of the five Level One processes. B. to segment customers. C. for proving a base for ABC costing. D. that allow marketing to evaluate channel selection

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" "The SCOR model provides suggested metrics A. across multiple dimensions for each of the five Level One processes.

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