1. The value chain includes which of the following activities?

Select one:

A Designing and developing products and services.

B Producing products and services.

C Marketing and delivering products and services.

D All of the above.

2. The role of management accounting is to:

Select one:

A provide information to parties outside the organisation

B provide information to managers within the organisation.

C provide information to government agencies.

D All of the given answers

3. Correcting errors by employees in a proof-reading company is

Select one:

A necessary to implement TQM.

B a non-value-added activity.

C a value-added activity.

D activity reduction.

4. Incremental and constant increases in the efficiency of an existing process is

Select one:

A a process creation.

B a process innovation.

C a process improvement.

D a process reduction.

5. Assuming one answer only can be chosen, which of the following is a non-value-added activity for a manufacturing firm?

Select one:

A Machining a metal plate in the factory.

B Packing finished product into cartons for delivery.

C Moving partly finished production to storage.

D Inserting a warranty-card and instruction booklet into the boxed product.

6. Which of the following activities are generally non-value-added activities?

i. Inspect work in process

ii. process sales orders

iii. Storage of finished goods

iv. Move raw material to the work station

Select one:

A i, iii and iv

B i, ii and iv

C i, ii and iii

D ii, iii and iv

7. Eldervale Winery is a producer of premium wine. Which of the following is NOT an example of a downstream cost?

Select one:

A The costs associated with random quality check during the wine production process

B The costs associated with the sales team travelling to a wine show to promote Eldervale wine

C The costs associated with delivering wine to customers

D The costs associated with answering customer inquiries on the differences between wine varieties

8. Mydas Ltd operates a large factory which manufactures three types of motor vehicles, including family cars, sports cars and motorcycles. If the cost object is a motorcycle, which of the following is a direct cost?

Select one:

A The costs of wheels on the motorcycle

B The salary of the factory general manager

C The salary of the factory quality inspector

D The windscreen wipers on a family car

9. Which of the following is an example of an engineered cost?

Select one:

A Direct materials

B Advertising

C Insurance

D Factory supervisor’s salary

10. The relevant range is that range of activity where:

Select one:

A management may not find it important to concern itself

B management does not expect the firm to operate