1. The value chain includes which of the following activities?
A Designing and developing products and services.
B Producing products and services.
C Marketing and delivering products and services.
D All of the above.
2. The role of management accounting is to:
A provide information to parties outside the organisation
B provide information to managers within the organisation.
C provide information to government agencies.
D All of the given answers
3. Correcting errors by employees in a proof-reading company is
A necessary to implement TQM.
B a non-value-added activity.
C a value-added activity.
D activity reduction.
4. Incremental and constant increases in the efficiency of an existing process is
A a process creation.
B a process innovation.
C a process improvement.
D a process reduction.
5. Assuming one answer only can be chosen, which of the following is a non-value-added activity for a manufacturing firm?
A Machining a metal plate in the factory.
B Packing finished product into cartons for delivery.
C Moving partly finished production to storage.
D Inserting a warranty-card and instruction booklet into the boxed product.
6. Which of the following activities are generally non-value-added activities?
i. Inspect work in process
ii. process sales orders
iii. Storage of finished goods
iv. Move raw material to the work station
A i, iii and iv
B i, ii and iv
C i, ii and iii
D ii, iii and iv
7. Eldervale Winery is a producer of premium wine. Which of the following is NOT an example of a downstream cost?
A The costs associated with random quality check during the wine production process
B The costs associated with the sales team travelling to a wine show to promote Eldervale wine
C The costs associated with delivering wine to customers
D The costs associated with answering customer inquiries on the differences between wine varieties
8. Mydas Ltd operates a large factory which manufactures three types of motor vehicles, including family cars, sports cars and motorcycles. If the cost object is a motorcycle, which of the following is a direct cost?
A The costs of wheels on the motorcycle
B The salary of the factory general manager
C The salary of the factory quality inspector
D The windscreen wipers on a family car
9. Which of the following is an example of an engineered cost?
A Direct materials
B Advertising
C Insurance
D Factory supervisor's salary
10. The relevant range is that range of activity where:
A management may not find it important to concern itself
B management does not expect the firm to operate
C fixed costs remain unchanged
D the expected costs exceed the benefits from the activity.