CCA Strategic Management Accounting

Question 1

The Balanced Scorecard, developed by Kaplan and Norton, measures organizational performance across how many distinct perspectives?

Accepted Answer

Four

Answer

Two

Answer

Three

Answer

Five

Question 2

Which strategic cost analysis tool examines the full series of value-creating activities from raw materials through final delivery to the customer?

Accepted Answer

Value chain analysis

Answer

Activity-based costing

Answer

Life cycle costing

Answer

Target costing

Question 3

Target costing is most accurately calculated as:

Accepted Answer

Market price minus desired profit margin

Answer

Cost plus desired profit margin

Answer

Standard cost plus favorable variance

Answer

Total fixed cost divided by units produced

Question 4

In strategic management accounting, benchmarking is best described as:

Accepted Answer

Comparing performance metrics against best-in-class organizations

Answer

Setting financial targets based solely on historical data

Answer

Calculating cost variances from standard cost cards

Answer

Allocating overhead costs using activity cost drivers

Question 5

A 'cost driver' in activity-based management is defined as:

Accepted Answer

A factor that causes the cost of an activity to change

Answer

The total overhead allocated to a product line

Answer

The fixed cost absorbed per unit produced

Answer

The variable cost rate for direct materials

Question 6

Throughput accounting measures organizational performance primarily by focusing on:

Accepted Answer

The rate at which the system generates money through sales

Answer

The rate at which overhead costs are absorbed

Answer

The percentage reduction in direct labor costs

Answer

The variance between budgeted and actual contribution margin

Question 7

Strategic management accounting differs from traditional management accounting primarily because it:

Accepted Answer

Incorporates external market, competitor, and environmental information

Answer

Relies exclusively on historical cost data

Answer

Focuses only on internal operational data

Answer

Eliminates variance analysis entirely