Management Accounting – Set 7 January 29, 2025 by aasi 0% Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950 Management Accounting – Set 7 Dear ! This is Management Accounting – Set 7 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) Method, which calculates time to recoup initial investment of project in form of expected cash flows is known as net value cash flow method payback method single cash flow method lean cash flow method 2 / 50 2) Net initial investment is divided by uniform increasing in future cash flows to calculate discounting period investment period payback period earning period 3 / 50 3) If real rate is 16% and an inflation rate is 8%, then nominal rate of return will be 27.28% 25.28% 22.28% 21.28% 4 / 50 4) An approach is used to manage unused capacity is reengineering downsizing upgrading none of these 5 / 50 5) In operating income strategic analysis, strategic component which measures change in operating income, attributed for change in price of outputs and inputs is classified as internal process component growth component price recovery component productivity component 6 / 50 6) In response to challenges arisen by competitors and new entrants, strategy which must be considered by company does include cost leadership demand inelasticity differentiated products both a and c 7 / 50 7) Quantity of produced output is divided with cost of all used inputs to calculate engineered productivity targeted productivity partial productivity total factor productivity 8 / 50 8) Considering two years 2013 and 2014, quantity of output produced in 2014 is divided by cost of input used in 2013, to produce output in 2014 to calculate benchmark engineered productivity benchmark total factor productivity benchmark partial productivity benchmark total productivity 9 / 50 9) In strategy formulation, forces that must be focused for industry analysis include potential entrants in market customer's bargaining power supplier's bargaining power all of these 10 / 50 10) Value added manufacturing time is divided by total manufacturing is to calculate value chain efficiency value chain effectively manufacturing cycle effectively manufacturing cycle efficiency 11 / 50 11) If net initial investment is $985000, returned working capital is $7500, then an average investment over five years will be $596,300 $485,300 $496,250 $486,250 12 / 50 12) An example of direct engineered cost is indirect material cost direct material cost direct labour cost indirect labour cost 13 / 50 13) If manufacturing cycle efficiency is 0.725 and total manufacturing time is 45 minute, then value added manufacturing time will be 42.625 36.724 32.625 41.625 14 / 50 14) In operating income strategic analysis, a component which measures change in operating income attributed to change in output quantity is classified as internal process component growth component price recovery component productivity component 15 / 50 15) Vertically upward dimension of cost analysis is also called project dimension accounting-period dimension back-flush accounting dimension lean accounting dimension 16 / 50 16) Delivery of goods by time it is contracted to be delivered is known as effective performance efficient performance in-time performance on-time performance 17 / 50 17) Considering two fiscal years 2013 and 2014, if selling price in 2013 and 2014 is $55 and $60 per unit respectively and actual units sold in 2013 are 25000 units, then revenue effect of price recovery will be $14,500 $135,000 $125,000 $12,500 18 / 50 18) Which of following is an example of internal business perspective in balanced scorecard? employee turnover rates operating capabilities and number of patents operating income and revenue growth customer satisfaction and market share 19 / 50 19) An amount of available capacity other than employed capacity, to meet customer’s demand, is classified as targeted capacity budgeted capacity recovery capacity unused capacity 20 / 50 20) Dimensional analysis of cost includes horizontally across dimension horizontally upward dimension vertically upward dimension both a and c 21 / 50 21) Considering balanced scorecard, perspective in which performance of organization includes is financial perspective learning and growth perspective customer perspective all of these 22 / 50 22) An example of customer perspective in balanced scorecard is employee turnover rates operating capabilities and number of patents operating income and revenue growth customer satisfaction and market share 23 / 50 23) Considering two fiscal years 2013 and 2014, actual units sold in 2013 and 2014 are 11000 and 12500 units respectively, and selling price in year 2013 is $50, then revenue effect of growth will be $70,000 $75,000 $65,000 $73,000 24 / 50 24) An example of learning and growth perspective in balanced scorecard is employee turnover rates operating capabilities and number of patents operating income and revenue growth customer satisfaction and market share 25 / 50 25) In operating income strategic analysis, strategic component which measures change in cost attributed to price of input in current year, relative to price of input material in last year can be classified as internal process component growth component price recovery component productivity component 26 / 50 26) If net initial investment is $6850000 and uniform increases yearly cash flows is $2050000, then payback period will be 3.34 years 4.34 years 5.34 years 6.34 years 27 / 50 27) Balanced scorecard perspective focuses on all operations, which leads to value creation process for customers, can be categorized as learning perspective financial perspective internal business process perspective customer perspective 28 / 50 28) If an initial investment is $765000, payback period is 4.5 years, then increase in future cash flow will be $5,645,000 $6,442,500 $3,442,500 $5,442,500 29 / 50 29) If quantity of manufactured jackets is 2250000 units and leather used to produce output is 3500000 sq.m, then direct materials’ partial productivity will be 0.642 unit of jacket per sq.m of leather 0.342 unit of jacket per sq.m of leather 0.442 unit of jacket per sq.m of leather 0.542 unit of jacket per sq.m of leather 30 / 50 30) If payback period is 4 years and uniform increases in cash flows per year is $2750000, then net initial investment can be $10,511,000 $12,105,000 $1,100,000 $11,000,000 31 / 50 31) Categories of cash flows include net initial investment cash flow from operations after paying taxes cash flow from terminal disposal after paying taxes all of these 32 / 50 32) If nominal rate is 26% and inflation rate is 12%, then real rate can be 13.75% 11.65% 12.50% 13.50% 33 / 50 33) Fundamental redesigning and rethinking of business processes to improve critical measures such as quality, speed, cost and customer satisfaction is called reengineering differentiation bargaining targeting 34 / 50 34) A concept which explains a received money in present time, is more valuable than money received in future is called lead value of money storage value of money time value of money cash value of money 35 / 50 35) Considering two fiscal years 2013 and 2014, an input price in 2013 and 2014 are $9 and $11 per unit respectively and input required units in 2013 to produce output in 2014 are 30000 units, then cost effect of price recovery will be $60,000 $6,000 $65,000 $6,500 36 / 50 36) Chart which represents how regularly defect occurs in production process is classified as relevant costing diagram cause and effect diagram control chart Pareto chart 37 / 50 37) An approach is used to manage unused capacity is reengineering downsizing upgrading none of these 38 / 50 38) An ability of an organization, to offer its services or products that must be perceived by customers as unique and superior, in comparison to its competitors is called inelastic demand product differentiation cost leadership elastic demand 39 / 50 39) Factors identified by cause and effect diagrams include component and material factors machine-related factors human factors all of these 40 / 50 40) Time a company takes until a good is produced after order placement is known as manufacturing lead time manufacturing cycle efficiency customer response time system process time 41 / 50 41) Translation of organization strategy, and mission into performance measures to provide framework for strategy implementation is termed as differentiation scorecard bargaining scorecard leadership scorecard balanced scorecard 42 / 50 42) Rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as nominal rate of return accrual accounting rate of return real rate of return required rate of return 43 / 50 43) Balanced scorecard perspective, which measures strategy profitability and amount of operating income results from cost reduction is classified as learning perspective financial perspective internal business process perspective customer perspective 44 / 50 44) Process of making long term decisions, for capital investment in projects is called lead budgeting lean budgeting capital budgeting relevant budgeting 45 / 50 45) Balanced scorecard perspective measures company’s success in targeted segments of customers, this perspective can also be classified as internal business process perspective customer perspective learning perspective financial perspective 46 / 50 46) Quantity of produced output is divided by quantity of used input to calculate targeted productivity total factor productivity partial productivity unused productivity 47 / 50 47) Way an organization matches its capabilities with available opportunities to accomplish its goals is called elasticity incurrence off shoring strategy engineering 48 / 50 48) In an innovation process, operation process and post sales services are all sub processes of a perspective named internal business process perspective external business process perspective leadership perspective reengineering perspective 49 / 50 49) An example of financial perspective in balanced scorecard is employee turnover rates operating capabilities and number of patents operating income and revenue growth customer satisfaction and market share 50 / 50 50) An organization’s ability to offer market offerings at lower prices, in comparison with its competitors is known as inelastic demand product differentiation cost leadership elastic demand Your score isThe average score is 0%🎉 Challenge alert! 💡 Share this quiz with your friends and see who scores the highest! 🏆🤩🔥 LinkedIn Facebook Follow Us @ 0% Restart quiz Exit We’d love to hear your thoughts! 📝 Share your valuable review with us. 🙌 🌟 Thank you for your support! 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