Supporting Operational Management with Management Accounting Information
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Questions and Answers

What is the purpose of setting a budget for the next quarter in mid December?

  • To communicate the plan and expected performance levels to staff (correct)
  • To achieve a minimum return above the cost of capital
  • To determine the cost of producing each unit
  • To evaluate the sales performance for the current quarter

Why was there doubt about achieving the sales target for the whole quarter despite meeting the sales target in January?

  • Consumer confidence in the economy was high
  • Raw material price increases due to favorable foreign exchange fluctuations
  • Previous sales figures were not taken into account
  • Unfavorable foreign exchange fluctuations causing increased production costs (correct)

Why did it appear that there would be no bonuses for the sales staff for quite some time?

  • Consumer confidence in the economy was low
  • Sales targets were revised for a higher revenue goal
  • Sales staff failed to achieve the revenue target
  • Production costs increased due to favorable foreign exchange fluctuations (correct)

How does management accounting support operational management in planning at Alpha Pty Ltd?

<p>By using previous sales figures, consumer confidence, and profit targets to set plans (B)</p> Signup and view all the answers

What impact do unfavorable foreign exchange fluctuations have on the cost of producing each unit?

<p>Increase in production costs (A)</p> Signup and view all the answers

Why are bonuses tied to both revenue and profit targets at Alpha Pty Ltd?

<p>To motivate sales staff by aligning their goals with company profitability (C)</p> Signup and view all the answers

What method was used to evaluate performance in the given situation?

<p>Actual versus budgeted figures (D)</p> Signup and view all the answers

What was the impact of Zeta Pty Ltd heavily discounting a similar toy during the Christmas period?

<p>It affected Alpha's January sales negatively (D)</p> Signup and view all the answers

What internal issue caused a loss of several days' worth of sales for Alpha?

<p>Product being delivered late to retailers (D)</p> Signup and view all the answers

What decision did Alpha make to address the sales variance issue?

<p>Reduce the selling price by 15% (B)</p> Signup and view all the answers

Which function was NOT involved in the series of meetings arranged by Alpha to address the situation?

<p>Marketing personnel (B)</p> Signup and view all the answers

What action did Alpha take to generate additional sales?

<p>Increased advertising (C)</p> Signup and view all the answers

What is a key aspect of strategic management accounting?

<p>Competitor analysis (B)</p> Signup and view all the answers

Which tool is NOT typically used in strategic management accounting?

<p>Workforce happiness analysis (D)</p> Signup and view all the answers

In strategic costing, what is the focus of target costing?

<p>Selling prices (B)</p> Signup and view all the answers

What is an essential element of activity-based costing in strategic management accounting?

<p>Allocating costs based on activities (B)</p> Signup and view all the answers

What is the main purpose of applying external benchmarking in strategic management accounting?

<p>To compare internal performance against industry standards (C)</p> Signup and view all the answers

What role does value analysis play in strategic management accounting?

<p>Evaluating the worth of intangible assets (A)</p> Signup and view all the answers

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