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

The Balanced Scorecard uses four perspectives: Financial, Customer, Internal Business Processes, and Learning & Growth.

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

Value chain analysis, introduced by Michael Porter, maps every activity that adds value from supplier inputs to end-customer delivery.

Question 3

Target costing is most accurately calculated as:

Accepted Answer

Market price minus desired profit margin

Answer

Target cost equals the competitive market price minus the profit margin management requires, establishing a cost ceiling for the product.

Question 4

In strategic management accounting, benchmarking is best described as:

Accepted Answer

Comparing performance metrics against best-in-class organizations

Answer

Benchmarking identifies performance gaps by comparing an organization's processes and results against industry leaders or best-practice peers.

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

A cost driver is any factor whose change causes a corresponding change in the total cost of a related activity.

(CCA) Certified Corporate Accountant Practice Test