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ACCT3002 Advanced Management Accounting
Questions:
Please circle the correct answer (1 mark) and provide justification (1 mark) for your choice below: Total 2 marks each.
1. Strategy incorporates two levels-corporate level strategy and business level strategy. Which of Li these statements is not a consideration for a business when developing a business level strategy.?
a.Which customers should the business be targeting.
b.Developing a mission statement for the business.
c.Developing a Product differentiation strategy for the business
d.Developing a cost leadership strategy.
Provide your justification below
2. According to Womack and Jones’s lean thinking model, Step 1 of their model – ‘identify and define value in organisational offerings’, Value in this step is referring to?
Provide your Justification below:
a.The employees
b.The shareholders
c.The suppliers
d.The customer
3. PANA organic have seen considerable competition on supermarket shelves for their chocolate products. There are a larger number of competitors In the organic chocolate market than what there were 12 months ago. This is an example of what type of risk to PANA Organic.
a.Reputational
b.Strategic
c.Financial
d.Operational
4. Transfer pricing is effectively an internal selling price used by decentralised departments within an organisation. What would not be a consideration when determining an appropriate transfer price for the supplying department of the organisation?
a.Profits being made by the buying department
b.Profits being made by the supplying unit
c.Being able to cover the variable costs for the supplying unit
d.None of the above
5. Which of these Is not a factor that is required for successful implementation of sustainability practices in organisations?
a.Ensuring that cost cutting measures are in place.
b.Accounting both social and technical practice
c.Attention to the social environment
O. Communication of sustainability Initiatives throughout the organisation
6. Which of these statements demonstrates the features and strengths of a goad balanced Scorecard?
I It tells the story of a company’s overall strategy demonstrating the cause and effect
relationships among the obsetives of the business.
II Ensuring that there is clear communication of the balanced Scorecard witheveryone
in the organisation.
In The nonfinancial meawres are not relevant when evaluating an employee’s
performance
iv Managers should not seek improvements in performance measures Mien the
benefits will not outweigh the costs.
a.k II and iv only
b.I and ill only
i and ll only O. I, III. and iv
Provide your justification below:
5. Butterfly Moments are in the business of Selling children’s party decorations that are Owmed. They are loans at introducing pinatas to their westing party decoration range. market research indicates that these pinatas could be sold to customers for $60 each. The business budgets for a 40 per cent profit margin. The budgeted cost of the pinatas is expected to be 65 per cent of the target cost. A supplier has offered toprovide the pinatas for $40 each.
What pace reduction must be negotiated with the supplier to meet the expected cost?
a.$36.00
b.S16.60
C. $20.00
d. No cost reduction is required to moot the expected cost.
Provide your justification below:
7. What are the omilaritieS between target Costing and kaloen Costing?
a.Rely on goal setting to achieve reductions in costs
b.Communiabon with teams to determine where costs can be cut
c.Cows On continuous improvements in products and processes
d.All the abort`
8. which of these statements are key elements of the total quality management system?
I0 Customer driven
IM Maintaining strong relationships with Suppliers
Maximising the space in the warehouse
9. Focuses on the smooth flow of activity across the whole organisation
a. W and (h)
and (lit)
c.(ii)and (chi
d.NI or the above
Provide your husWkallon below:
11. ow of the most popular measures of financial performance for an investment centre is Return on investment. Which one of these is not a disadvantage of using this method to evaluate performance’
a.Discourages managers from investing in protects that will reduce their department’s return on investment
b.Does not incorporate measures of risk.
c.Holding the managers responsible means that they won’t overinvest in projects.
d.Managers can sometimes have only a short term focus.
ACCT3002 Advanced Management Accounting
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Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.
Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Hac habitasse platea dictumst vestibulum rhoncus est pellentesque. Amet dictum sit amet justo donec enim diam vulputate ut. Neque convallis a cras semper auctor neque vitae. Elit at imperdiet dui accumsan. Nisl condimentum id venenatis a condimentum vitae sapien pellentesque. Imperdiet massa tincidunt nunc pulvinar sapien et ligula. Malesuada fames ac turpis egestas maecenas pharetra convallis posuere. Et ultrices neque ornare aenean euismod. Suscipit tellus mauris a diam maecenas sed enim. Potenti nullam ac tortor vitae purus faucibus ornare. Morbi tristique senectus et netus et malesuada. Morbi tristique senectus et netus et malesuada. Tellus pellentesque eu tincidunt tortor aliquam. Sit amet purus gravida quis blandit. Nec feugiat in fermentum posuere urna. Vel orci porta non pulvinar neque laoreet suspendisse interdum. Ultricies tristique nulla aliquet enim tortor at auctor urna. Orci sagittis eu volutpat odio facilisis mauris sit amet.
Tellus molestie nunc non blandit massa enim nec dui. Tellus molestie nunc non blandit massa enim nec dui. Ac tortor vitae purus faucibus ornare suspendisse sed nisi. Pharetra et ultrices neque ornare aenean euismod. Pretium viverra suspendisse potenti nullam ac tortor vitae. Morbi quis commodo odio aenean sed. At consectetur lorem donec massa sapien faucibus et. Nisi quis eleifend quam adipiscing vitae proin sagittis nisl rhoncus. Duis at tellus at urna condimentum mattis pellentesque. Vivamus at augue eget arcu dictum varius duis at. Justo donec enim diam vulputate ut. Blandit libero volutpat sed cras ornare arcu. Ac felis donec et odio pellentesque diam volutpat commodo. Convallis a cras semper auctor neque. Tempus iaculis urna id volutpat lacus. Tortor consequat id porta nibh.
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