QUIZ 1 Management Accounting III (AAM20303) SESSION 201609

Balance scorecard have four perspective which are:

Financial, Customer, Internal Business Process, Learning and Growth

Sales, Customer satisfaction, Employee turnover, Product Quality

Market share, Profit margin, Employee satisfaction, Product variety

Revenue, Customer complaint, Employee Training, Service Efficiency

Definition of benchmark is:

A comprehensive and structured approach tp organisational management that seeks to improve the quality of products and services

Comparing one's business processes and performance metrics to industry bests and best practices from other companies

The practice of a continuous improvement

A manufacturing system in which materials or components are delivered on the time when it is needed

Division A of Harkin Company has the capacity for making 3,000 motors per month and regularly sells 1,950 motors each month to outside customers at a contribution margin of RM62 per motor. The variable cost per motor is RM35.70. Division B of Harkin Company would like to obtain 1,400 motors each month from Division A. What should be the lowest acceptable transfer price from the perspective of Division A?

RM51.20

RM26.57

RM35.70

RM62.00

Part WY4 costs the Eastern Division of Tyble Corporation RM26 to make-direct materials are RM10, direct labor is RM4, variable manufacturing overhead is RM9, and fixed manufacturing overhead is RM3. The Eastern Division can sell all of Part WY4 they can make to other companies for RM30. The Western Division of Tyble Corporation can use Part WY4 in one of its products. What is the lowest transfer price at which the Eastern Division would be willing to sell Part WY4 to the Central Division?

RM30

RM26

RM23

RM27

Straus Company, a manufacturer of electronic products, wants to introduce a new calculator. To compete effectively, the calculator could not be priced at more than RM40. The company requires a 20% rate of return on investment on all new products. In order to produce and sell 30,000 calculators each year, the company would have to make an investment of RM850,000. The target cost per calculator would be:

RM16.50

RM23.50

RM28.33

RM34.33

Why it is important to calculate customer profitability analysis?

To check whether the firm may be better off (more profitable) without these customer

To understand customer relationship

To identify the profit the firm makes from serving a customer or customer group over a specified period of time

All answers are correct

Abu and Ali are two partners in a business selling stationery in a local university campus in Penang. They have just been consigned with 500 boxes of marker pens totaling 5,000 units which cost RM7,500. Abu suggested that they use a markup percentage of 40%. The markup percentage has taking into consideration the expected return on investment that the company has made. The selling price of one unit of marker is:

RM0.90

RM2.10

RM1.10

RM2.00

Lagging indicator means:

Measures of the final outcomes of earlier management plans and their execution.

Future non-financial measures which guide management decision- making.

Changes in business environment relates to the following except:

Globalization and technology advancement

Growing shift and businesses are moving away from manufacturing to services and Towards the provision of services

Changes of focus from cost leadership to customer focused in business strategy

Changes in the preferences of the organisation's employee

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QUIZ 1 Management Accounting III (AAM20303) SESSION 201609

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