Chapter 1
What are the two types of competitive strategies?
What is Cost Leadership and Differentiation
What is strength, weaknesses, opportunities, and threats
An example of an indirect cost
depreciation, supervisor salary, insurance, property taxes
Formula to calculate pre-determined OH rate
estimated OH / estimate CD
What is the cost driver is time based ABC
time
Exam taken for a cost management accountant
What is the CMA exam
A benefit of implementing a balanced scorecard
What is tracking progress on implementing strategy
An example of a variable cost
direct material, direct labor, small tools
Formula to calculate applied OH
OH rate x CD actual activity
Name a benefit of ABC
more accurate costing
The person a management accountant reports to
What is the controller
What is a strategy map?
What is a cause and effect diagram linking the CSF from the balanced scorecard
What is a cost driver
assigns cost to cost objects
Explain overapplied overhead
when OH applied is higher then actual OH
What is an activity analysis
identifies the work performed to carry out a firms activities- either questionnaire or survey
The most important function of management
Strategic management
What is a value chain analysis?
to identify where value can be added to customers or costs reduced
How do you calculate total manufacturing costs
DM used + DL + factory OH
The account we adjust over/under applied OH through
What is COGS
Two types of Activity Based Management
Operational and strategic
The 5 stages of cost management information
Events- data- information- knowledge- decisions
The four perspectives of the balanced scorecard
What is financial, customer, internal, learning & growth
The three qualitative characteristics of cost information
accuracy, timeliness, cost value
specification, measurement, aggregation
Name an extension that can be made to ABC
RCA, time driven ABC, multiple stage ABC