Supporting Operational Management with Management Accounting Information

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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?

By using previous sales figures, consumer confidence, and profit targets to set plans Signup and view all the answers

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

Increase in production costs Signup and view all the answers

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

To motivate sales staff by aligning their goals with company profitability Signup and view all the answers

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

Actual versus budgeted figures Signup and view all the answers

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

It affected Alpha's January sales negatively Signup and view all the answers

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

Product being delivered late to retailers Signup and view all the answers

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

Reduce the selling price by 15% Signup and view all the answers

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

Marketing personnel Signup and view all the answers

What action did Alpha take to generate additional sales?

Increased advertising Signup and view all the answers

What is a key aspect of strategic management accounting?

Competitor analysis Signup and view all the answers

Which tool is NOT typically used in strategic management accounting?

Workforce happiness analysis Signup and view all the answers

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

Selling prices Signup and view all the answers

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

Allocating costs based on activities Signup and view all the answers

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

To compare internal performance against industry standards Signup and view all the answers

What role does value analysis play in strategic management accounting?

Evaluating the worth of intangible assets Signup and view all the answers