Question 1

How can a manager evaluate the success of their strategy?

Accepted Answer

The manager must trace the sou...

Question 2

Why is it important for managers to further analyze the changes in operating income?

Accepted Answer

The changes in operating income could re...

Question 3

How could a manager consider downsizing a negative strategy at a company?

Accepted Answer

Managers and employees could c...

Question 4

Which of the following is not true about benchmarking data in the internal-business-process perspective?

Accepted Answer

A)  The data is gathered from published financial statements.
B)  The data is gathered from information about prevailing prices.
C)  The data is gathered from suppliers.
D)  The data is gathered from former employees.
E)  The data is gathered from a random research group.F) A) and E)
G) C) and D)

Question 5

Which of the following is not true about the five forces in industry analysis?

Accepted Answer

A)  The collective effect of the forces shapes an organization's profit potential.
B)  Profit potential decreases with greater competition.
C)  Profit potential decreases with stronger potential entrants.
D)  Profit potential decreases with products that are similar.
E)  Profit potential increases with products that are similar.F) A) and B)
G) C) and D)

Question 6

One difference between variance analysis and subdividing the change in operating income is that management accountants compare actual operating performance ________,not actual to budgeted numbers in the same period as in variance analysis.

Accepted Answer

A)  over one period
B)  over two different periods
C)  in one fiscal year
D)  in two fiscal years
E)  over three different periodsF) B) and E)
G) B) and C)

Question 7

Which of the following is not one of the four perspectives of the balanced scorecard?

Accepted Answer

A)  Financial perspective.
B)  Customer perspective.
C)  External control perspective.
D)  Learning and growth perspective.
E)  Internal business process perspective.F) B) and C)
G) All of the above

Question 8

Why is the relationship between discretionary costs and output referred to as a "black box"?

Accepted Answer

The relationship between discr...

Question 9

Which of the following is not a feature of a good balanced scorecard?

Accepted Answer

A)  It tells the story of a company's strategy.
B)  The balanced scorecard helps to communicate strategy to all members of the organization.
C)  In for-profit companies,the balanced scorecard must motivate managers to take actions that eventually result in improvements in financial performance.
D)  The balanced scorecard increases the number of measures,identifying smaller measures.
E)  The balanced scorecard highlights less-than-optimal tradeoffs that managers may make when they fail to consider operational and financial measures together.F) C) and E)
G) A) and B)

Question 10

Managers can achieve cost leadership if they build internal capabilities by reengineering the processes in an organization.

Accepted Answer

A) True 
 B)False

Question 11

In which step of the five-step decision-making framework does a manager decide to follow a cost-leadership rather than a product-differentiation strategy?

Accepted Answer

A)  Step 1: Identify the Problem and Uncertainties.
B)  Step 2: Obtain Information.
C)  Step 3: Make Predictions About the Future.
D)  Step 4: Make Decisions by Choosing Among the Alternatives.
E)  Step 5: Implement the Decision,Evaluate Performance and Learn.F) A) and E)
G) A) and D)

Question 12

Why do managers choose to form cross-functional teams?

Accepted Answer

Managers form cross-functional...

Question 13

In which step of the five-step decision-making framework does a manager develop a customer preference map and gather data on the internal capabilities of the company?

Accepted Answer

A)  Step 1: Identify the Problem and Uncertainties.
B)  Step 2: Obtain Information.
C)  Step 3: Make Predictions About the Future.
D)  Step 4: Make Decisions by Choosing Among Alternatives.
E)  Step 5: Implement the Decision,Evaluate Performance and Learn.F) None of the above
G) A) and B)

Question 14

How can a manager determine which strategy to follow?

Accepted Answer

Managers can develop a custome...

Question 15

Small profit margins and high capital costs in organizations can discourage potential new entrants into a market.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not a pitfall to avoid in implementing a balanced scorecard?

Accepted Answer

A)  Managers always assume the cause-and-effect linkages are precise.
B)  Manages should not assume the cause-and-effect linkages are precise.
C)  Managers should not seek improvements across all of the measures all of the time.
D)  Managers should not use only objective measures in the balanced scorecard.
E)  Despite challenges of measurement,top management should not ignore nonfinancial measures when evaluating managers and other employees.F) B) and E)
G) A) and E)

Question 17

Which of the following components measures the change in operating income attributable solely to changes in prices of inputs and outputs?

Accepted Answer

A)  Growth.
B)  Strategy.
C)  Organic.
D)  Productivity.
E)  Price recovery.F) B) and E)
G) A) and C)

Question 18

In for-profit companies,the primary goal of the balanced scorecard is to implement short-run successful financial performance.

Accepted Answer

A) True 
 B)False

Question 19

Why are more companies in the manufacturing,merchandising,and service sectors giving greater weight to nonfinancial measures when employees are promoted?

Accepted Answer

Managers believe that those no...

Question 20

Which of the following is not a measure of the internal-business process perspective?

Accepted Answer

A)  Yield.
B)  On-time delivery.
C)  Order-delivery time.
D)  Service response time.
E)  Employee-satisfaction ratings.F) A) and C)
G) D) and E)

Exam 14: Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Which of the following is not true about benchmarking data in the internal-business-process perspective?

Correct AnswerverifiedShow Answer

How could a manager consider downsizing a negative strategy at a company?

Correct AnswerverifiedManagers and employees could c...View AnswerShow Answer

Why are more companies in the manufacturing,merchandising,and service sectors giving greater weight to nonfinancial measures when employees are promoted?

Correct AnswerverifiedManagers believe that those no...View AnswerShow Answer

Why is the relationship between discretionary costs and output referred to as a "black box"?

Correct AnswerverifiedThe relationship between discr...View AnswerShow Answer

Which of the following is not one of the four perspectives of the balanced scorecard?

Correct AnswerverifiedShow Answer

In for-profit companies,the primary goal of the balanced scorecard is to implement short-run successful financial performance.

Correct AnswerverifiedShow Answer

How can a manager determine which strategy to follow?

Correct AnswerverifiedManagers can develop a custome...View AnswerShow Answer

In which step of the five-step decision-making framework does a manager decide to follow a cost-leadership rather than a product-differentiation strategy?

Correct AnswerverifiedShow Answer

Which of the following is not true about the five forces in industry analysis?

Correct AnswerverifiedShow Answer

In which step of the five-step decision-making framework does a manager develop a customer preference map and gather data on the internal capabilities of the company?

Correct AnswerverifiedShow Answer

Small profit margins and high capital costs in organizations can discourage potential new entrants into a market.

Correct AnswerverifiedShow Answer

Which of the following components measures the change in operating income attributable solely to changes in prices of inputs and outputs?

Correct AnswerverifiedShow Answer

Why do managers choose to form cross-functional teams?

Correct AnswerverifiedManagers form cross-functional...View AnswerShow Answer

Which of the following is not a measure of the internal-business process perspective?

Correct AnswerverifiedShow Answer

Which of the following is not a feature of a good balanced scorecard?

Correct AnswerverifiedShow Answer

How can a manager evaluate the success of their strategy?

Correct AnswerverifiedThe manager must trace the sou...View AnswerShow Answer

Managers can achieve cost leadership if they build internal capabilities by reengineering the processes in an organization.

Correct AnswerverifiedShow Answer

Why is it important for managers to further analyze the changes in operating income?

Correct AnswerverifiedThe changes in operating income could re...View AnswerShow Answer

One difference between variance analysis and subdividing the change in operating income is that management accountants compare actual operating performance ________,not actual to budgeted numbers in the same period as in variance analysis.

Correct AnswerverifiedShow Answer

Which of the following is not a pitfall to avoid in implementing a balanced scorecard?

Correct AnswerverifiedShow Answer

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Managers and employees could c...
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Managers believe that those no...
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The relationship between discr...
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Managers can develop a custome...
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Correct Answer
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Correct Answer
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Managers form cross-functional...
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Correct Answer
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The manager must trace the sou...
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The changes in operating income could re...
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Correct Answer
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Correct Answer
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