STRATEGIC COST MANAGEMENT

Multiple Choices:

Q1. A set of policies, procedures and approaches that helps a firm attain and retain success for long is termed as

a)Benchmarking
b) Life cycle costing
c) Target costing
d) Strategy

Q2. A cost management tool that bring in its focus the activities performed to produced a product is called

 a)Target costing
b) Life cycle costing
c) ABC
d) Benchmarking

Q3. Cost incurred to the past that are not relevant to present decisions are a)
Fixed cost
b) Sunk cost
c) Opportunity cost
d) Indirect costs

Q4. In a process costing system, when items are sold, the cost of the item are moved from a)Work-in-progress to finished goods
b) Work-in-progress to Cost of goods sold
c) Cost of goods sold to finished good
d) Finished goods to cost of goods sold

Q5. Differential costs are sometimes referred to as a)
Incremental costs
b) Relevant costs
c) Avoidable costs
d) Both a& b

Q6. Customer service feature does not include a)
Warranty and repair service
b) Adherence to specifications
c) On-time delivery
d) Follow-up with customer after the sale.

Q7. Product cost are function of

a)Product design
b) Specific customers
c) Customer characteristics
d) Market segments

Q8. The company’s overall sales performance is influenced by factors such as a)
Sales volume
b) Sales Mix
c) Market size and share
d) All of the above

Q9. Customer life cycle cost includes

a)Purchases price
b) Start-up costs
c) Post-purchase cost
d) All of the above

Q10. Which stage of product life cycle is characterized by little competition and slowly increasing sales?
a) Introduction
b) Growth
c) Maturity
d) Decline

Part Two:

1. List the characteristics of Balance score card.

   2. What are the methods of Alternative costing?

   3. Differentiate between fixed cost and variable cost.

   4. Discuss the dissimilarities between job order costing & process costing systems.

Case let 1

1. Discuss why Vikram has an ethical responsibility to take some action against the MNC.
2. Which of the alternative courses would be the most appropriate in the given situation?

Case let 2

Questions:
1. Prepare an organizational structure of brilliant University.
2. List the name of the departments having under the university.

Section C: Long Questions 

1. What is “Cost management”? Explain the primary objectives of cost management?
2. Define “Target costing”; discuss the principles of target costing.