Management Accounting & Strategy Flashcards
7 cards from real CGA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Management Accounting & Strategy flashcards as text
Which costing method assigns overhead based on the actual activities that drive costs rather than a single plant-wide rate?
Answer: Activity-based costing (ABC)
Activity-based costing assigns overhead by identifying cost drivers for each activity pool, giving more accurate product costs than a single allocation base.
A company has fixed costs of $200,000, a selling price of $50 per unit, and variable costs of $30 per unit. What is the break-even point in units?
Answer: 10,000 units
Break-even units = Fixed costs ÷ Contribution margin per unit = $200,000 ÷ ($50 − $30) = 10,000 units.
In the balanced scorecard framework, the 'internal business process' perspective primarily focuses on:
Answer: Efficiency and quality of key operational processes
The internal process perspective examines how well the company performs critical operations that create customer and shareholder value.
A firm follows a cost leadership strategy. Which of the following actions is MOST consistent with that strategy?
Answer: Continuously improving production efficiency to lower unit costs
Cost leadership requires relentless focus on reducing costs below competitors while maintaining acceptable quality and margins.
What does the term 'relevant cost' mean in managerial decision-making?
Answer: A future cost that differs between decision alternatives
Relevant costs are future-oriented and differ between alternatives, making them the only costs that should influence a decision.
Which variance measures the difference between the actual hours worked and the standard hours allowed, multiplied by the standard labor rate?
Answer: Labor efficiency variance
Labor efficiency variance = (Actual hours − Standard hours allowed) × Standard rate, reflecting how efficiently labor was used.
A strategic map in the balanced scorecard is best described as:
Answer: A visual diagram showing cause-and-effect links among strategic objectives
A strategy map illustrates how objectives across the four BSC perspectives connect causally to drive overall organizational performance.