CCA Strategic Management Accounting 3

Question 1

The 'Beyond Budgeting' management model primarily advocates for:

Accepted Answer

Replacing fixed annual budgets with adaptive, rolling forecasts and decentralized decision-making

Answer

Beyond Budgeting replaces the rigid annual budget with dynamic, forward-looking forecasts and empowers frontline managers to respond to changing conditions.

Question 2

Shareholder Value Analysis (SVA), as developed by Alfred Rappaport, defines value creation as maximizing:

Accepted Answer

The present value of expected future free cash flows

Answer

SVA holds that a company creates value only when it generates free cash flows whose present value exceeds the capital invested.

Question 3

In the Balanced Scorecard framework, the 'learning and growth' perspective primarily measures:

Accepted Answer

Employee skills, information systems, and organizational culture

Answer

The learning and growth perspective addresses the intangible assets — human capital, information capital, and organizational capital — that enable strategy execution.

Question 4

Strategic variance analysis extends traditional variance analysis by:

Accepted Answer

Identifying variances attributable to changes in strategic assumptions, competitive position, and market conditions

Answer

Strategic variance analysis separates performance variances into those caused by operational execution versus those caused by shifts in the competitive environment or strategic assumptions.

Question 5

Lean accounting supports lean manufacturing environments by:

Accepted Answer

Eliminating non-value-added accounting activities and using value-stream costing

Answer

Lean accounting removes wasteful accounting processes and replaces product-level standard costing with value-stream income statements that better reflect lean operations.

(CCA) Certified Corporate Accountant Practice Test

(CCA) Certified Corporate Accountant Practice Test

CCA Strategic Management Accounting 3