Chapter OneClicker Quiz

A. Reliable Techniques B. Continous Improvement C. Proactive- all costs stem from

management decisions D. Strategic decision making

–philosophy of improvement because it prmotes the idea of continually. Pg 5

A. Reliable Techniques B. Continous Improvement C. Proactive- all costs stem from

management decisions D. Strategic decision making

A proactive attitude that ll costs of products and operations result from management decisions. Pg 5

A. Reliable Techniques B. Continous Improvement C. Proactive- all costs stem from

management decisions D. Strategic decision making

– Reliable techniquest. A cost management system is the set of cost-management techniques that function together to support the organization’s goals and activities. Pg 5

A. Reliable Techniques B. Continous Improvement C. Proactive- all costs stem from

management decisions D. Strategic decision making

Strategic decision making determine “where” and “how” by choosing the implementing actions. Page 10

A. Limitations B. Authorization C. Independent Vertification D. Prohibiting Behavior E. Sound Personnel practices F. Separation of Duties

Rotating personnel and requiring employees to take vacations

A. Limitations B. Authorization C. Independent Vertification D. Prohibiting Behavior E. Sound Personnel practices F. Separation of Duties

Setting limits on the amount of expenditures

A. Limitations B. Authorization C. Independent Vertification D. Prohibiting Behavior E. Sound Personnel practices F. Separation of Duties

Not accepting gifts from present and prospective vendors

A. Limitations B. Authorization C. Independent Vertification D. Prohibiting Behavior E. Sound Personnel practices F. Separation of Duties

Reconciling bank statement, reconciling A/R, reconciling Inventory

A. Limitations B. Authorization C. Independent Vertification D. Prohibiting Behavior E. Sound Personnel practices F. Separation of Duties

Requiring management authorization for the use of a company car.

A. Limitations B. Authorization C. Independent Vertification D. Prohibiting Behavior E. Sound Personnel practices F. Separation of Duties

Collusion can beat this internal control.

Integrity Competence Creditability Keep information confidential

2002 Managers are expected to be particularly

diligent in measuring costs and other financial data.

Pay attention to cost benefit.

Where Do We Want to Go? How Do We Want to Get There?

Which measure is called a Cash Cow. A.Build B.Hold C.Harvest D.Divest

Need to maintain cash flow Mature market Need to maintain volume Focus on cutting costs Low-Medium Risk: Low-Medium Reward

Which measure is required when the market is declining?

A.Build B.Hold C.Harvest D.Divest

Need to exit at lower cost Bad fit Minimize Losses Focus on finding a buyer quickly Low Risk: Low Rewards

Which measure is needed when a new market is potentially high.

A.Build B.Hold C.Harvest D.Divest

Need to achieve growth Important to early entrance Focus on capturing market share High Risk High Rewards

Which measure is needed to maintain growth?

A.Build B.Hold C.Harvest D.Divest

Market Continuing Need to be a major player Focus on protecting market share Medium-High Risk: Medium-High Reward

Competive advantage –something that gives more value than competitors

Process – tasks that transform inputs into identifiable outputs

Value Chain – Starts with resources and ends with product or services pg 12

Pg 19 What we want to happen (Plan) What actually happened. Calculate the difference Explain why there is a difference

Problem 1-33 example pg 29

Problem 1.36 CMA Adapted Problem 1.37 Real Life