@ MYRESULTS —@ MY COURSES Bg DASHBOARD 8 KNOWLEDGEQUITY IGEDE BAYU PRADNYANA Strategic Management Accounting ara sca eel hae > SUBJECT OVERVIEW AND FAQS > PRACTICE EXAMS > MODULE1 > MODULE 2 > MODULE 3 > QUICK FIRE QUIZ (M1-M3) > MODULE 4 > MODULES > MODULE 6 > QUICK FIRE QUIZ (M4 - M6) > CASE STUDY v REVISION (E 300T CAMP-SMA IE _EXAM PREFARATION 2024 7 SMA~QUICK FIRE QUIZ 7 SMA QUICK FIRE QUIZ 2 (7 SMA~REVISION QUIZ1 8988 7 SMA~ REVISION QUIZ 2 (7 SMA™ REVISION QUIZ 3 > EXTRA MILE > ACCESSIBILITYOut SMA - Revision Quiz 1 You have submitted the quiz. Back to Course SMA ~ Revision Quiz 1 a Total vial Module 1 1/8 = 13% | Weighting 53% Results by Module Module 2 | 0/7 = 0% | Weighting 47% o 10 20 30 40 50 6 70 You score 1 out or apossiste 15 [7%] Question 1 ¥ Marks: 1 0 0 100 Which one of the following is the defining characteristic of operational management? Answer Options You answered D. The correct answer is D © USERSELECTION @ CORRECT ANSWER A Itereates value by carrying out activities.B tis concerned only with specific objectives. C tis not concerned with organisational strategy. © Dj. Itis the implementation phase of strategic management. 9° Answer Explanation Dis correct because operational management is concerned with the implementation of strategy. Ais incorrect because carrying out activities does not guarantee value creation. Bis incorrect because the strategic management process is also concerned with creating specific objectives. Cis incorrect because operational management is guided by organisational strategy. Module: 1 > Part: B > The strategic management process Question 2 * Marks: 0 Kaaj is a management accountant working for a long-established taxi company. The company continues to use its older legacy systems, including relying solely on phone bookings, and has experienced a steacy decline in profit. Kaaj researches industry data for presentation at an upcoming management meeting. He discovers that increasingly, customers prefer to order their taxis via an app on their mobile phones. Which one of the following would be most useful for Kaaj to present at the management meeting? Answer Options You did not record an answer. The correct answer is C © USERSFLECTION @ CORRECT ANSWER A. A budget for the implementation of an online booking systemB Recommended discounts and incentives to attract customers C.. Proposal to conduct further market research °@ D_ Abenchmarking analysis for the taxi company Answer Explanation Cis correct because it focuses on the customer perspective and will provide appropriate information for management decision-making in this area. Ais incorrect because this option is too early in the process. The management accountant needs to convince management about the benefits of the online booking system first. 8 is incorrect because this option only focuses on the short term and does not address the underlying issue of customer preference for online bookings. Dis incorrect because it compares the company to other taxi companies but ignores the customer perspective. Module: 1 > Part: D > The key challenges facing management accountants Question 3 * Marks: 0 BigMineCo Pty Ltd (BigMineCo.) is a mining company. The company's management is in the process of developing the organisation's strategic plan. As BigMineCo.'s management accountant, which one of the following would be the most useful types of information to provide to the management team? Answer Options You did not record an answer, The correct answer is C © UsER SELECTION @ CORRECT ANSWER A Acapital budget and a corporate social responsibility report B A five-year operational budget including production forecastsCe report on competitors and emerging technology in the industry D__ Ananalysis of organisational activities that do not add value to the organisation Answer Explanation Cis correct because strategic planning is externally focussed and oriented towatds the long term. Competitors and emerging technologies are significant external and long-term influences ona mining company. Ais incorract because capital budgets focus on specific projects that may arise out of strategy. Bis incorrect because operational budgets arise out of strategy. Dis incorrect because activity analysis and activity-based management (ABM) ate focussed (on improving value, while strategy is about creating value. Module: 2 > Part: A > Types of information needed for stakeholder decision-making > The information needs of stakeholders > Page: 47 Question 4 * Marks: 0 An electronics retailer is concerned that their product lines may not be meeting their customers! ‘hara' or technical requirements. The company’s management accountant has collected information about substitute products that might provide a threat to, or an opportunity for, the organisation. Furthermore, the management accountant has obtained technical information from potential suppliers about their products’ features How would you characterise the information the management accountant has gathered? Answer Options You did not record an answer. The correct answer is D © UsER SELECTION @ CORRECT ANSWER A Domain, type and source 8 Primary, internal and financialC Upstream, strategic and historical D.. Non-financial, external and comparable °o Answer Explanation Dis correct. The product features are non- financial; they come from an external source; and technical features will generally be comparable/measurable Ais incorrect because this refers to general categories of information. These categories are not specific to the information the management accountant has collected. B is incorrect because the information has none of these characteristics. Cis incorrect because these characteristics are inconsistent with the framework in the Stucy guide. Rather than upstream, we should say ‘external’, which is a more general category associated with the reliability of information. And the information on product features is unlikely to be strategic. Module: 2 > Part: B > Information, information systems and their effect on organisational decision-making and performance > Characteristics and limitations of different kinds of information > Page: 63 Question 5 * Marks: 0 ExpandMines Pty Ltd (ExpandMines) is a major mining company that is seeking to secure debt finance for a new iron ote mine. As ExpandMine’s management accountant, which one of the following is the most useful type of information to include in the can application? Answer Options You did not record an answer, The correct answer is A © USER SELECTION @ CORRECT ANSWER 9° Cash flow, liquidity and securityCustomer demand and competitors Profitability, net assets and turnover Expansion strategy, technology and the iron ore market Answer Explanation Ais correct because financiers are mainly interested in a company's ability to pay interest and repay capital. They will require security in the case of default. Bis incorrect because market information, while useful, is not the most important information required for the loan approval. Cis incorrect because this information is financial accounting and is publicly available to the bank. In addition, the information, while useful, is not critical to the loan approval Dis incorrect because financiers will not rely on projections but on existing cash flows and assets that can service the debt. Module: 2 > Part: B > Information, information systems and their effect on organisational decision-making and performance > Characteristics and limitations of different kinds of information > Page: 63 Question 6 * Marks: 0 Which one of the following is not an activity that would be part of the strategic management process? Answer Options You did not record an answer. The correct answer is 8 @ USER SELECTION @ CORRECT ANSWER Measuring and monitoring progressB., Setting up clear and detailed operational goals to be achieved within a year 9° ° Designing an appropriate organisational structure to implement the desited strategy Scanning the organisational environment using various management tools, such as 8CG matrix and PEST analysis Answer Explanation Bis correct because setting up specific operational goals is not part of the strategic management process. Instead, it belongs to operational management. Strategic goals are often long-term oriented (more than one year), high-level and can be ambiguous at times. Ais incorrect because the final stage of the process is a strategic evaluation, which involves measuring and reviewing performance to ensure the organisation is progressing in the right track. A is one of the activities during the strategic management process. Cis incorrect because crafting an effective organisational structure, processes and culture is considered a necessary step in strategy implementation (also known as the third stage of the strategic management process). C is one of the activities during the strategic management process, Dis incorrect because examining organisational environment must encompass both internal and external scanning to obtain a comprehensive view. The BCG matrix is usually used for internal analysis, while the PEST analysis is for external analysis. Both of them ate common management tools for strategic analysis. D is one of the activities during the strategic management process Module: 1 > Part: B > The strategic management process > Strategic management > Page: 6 Question 7 * Marks: 0 Which one of the following statements is correct in relation to the strategic management process? Answer Options You did not record an answer. The correct answer is 8@ USER SELECTION © CORRECT ANSWER Understanding and interpreting the performance strategy is an important part of the strategic analysis phase Operational management must execute strategies set by strategic management to © achieve the desired outcome The phases in the strategic management process are distinct steps, where one is completed before the next commences A key tool in the strategy planning and choice stage is the use of a strength, weaknesses, opportunities and threats (SWOT) analysis Answer Explanation B is correct because once strategies are set by strategic management at the higher levels of the organisation, operational management must execute those strategies on a dey- to-dey basis if the desired outcomes are to be achieved Ais incorrect because understanding and interpreting the performance of a strategy occurs in the strategy evaluation phase. Cis incorrect because the phases are closely interwoven rather than being clearly separate events Dis incorrect because the SWOT analysis is used in the strategic analysis phase, not the strategic planning and choice phase Module: 1 > Part: B > The strategic management process > Strategic management > Page: 6 Question 8 * Marks: 0 Which one of the following statements best describes the major reason driving the change of the management accountants’ role in today's business environment? Answer Options You did not record an answer. The correct answer is D@ USER SELECTION @ CORRECT ANSWER Technological advancement requires management accountants to increasingly act A ; as business partners 3 Theneed to communicate with stakeholders requires management accountants to switch to being business partners © A equirement placed on all professional accountants by the International Accounting Education Standards Board (IAESB) The uncertain environment requires management accountants to stay up to date Dg withthe latest knowledge and changes to continuousy create value forthe organisation Answer Explanation Dis correct because the role change is triggered by the significant changes resulting from globalisation, digital transformation, regulations and competition. All these uncertainties demand management accountants step up and become involved with strategic decisions while protecting the bottom line Ais incorrect because technological advances, such as electronic data capturing and automatic system updates, allow management accountants to step away from routine tasks, and provide them with the opportunity to focus on strategic issues. Hence, technological advancement is a facilitator but not a major driving force for the role change on its wn. In comparison, uncertain environment (see Rationale D) better summarises the key driver. Bis incorrect because communicating with internal and external stakeholders is one of the role requirements for management accountants, but not the driving reason for the role change. Cis incorrect because IAESB details a matrix of skills to be achieved by professional accountants, but there is no requirement for management accountants to change their role and become business partners. Module: 1 > Part: C > The role of the management accountants in strategic management > The role of management accountants > Page: 11 Question 9 * Marks: 0Bearconn is a key manufacturing partner for a leading American electronic technology company, ABC, that specialises in smartphone technology. Bearconn is currently considering setting up a new manufacturing facility in India to assemble ABC's top-end smartphone models, instead of using its existing production base in China. This is considered as a critical step for both companies to mitigate the risk of the Sino-American trade war and also allow ABC to enter the world's fastest-growing mobile phone market. However, market investors were taken back by the lower-than-expected forecast released by ABC for the October-December quarter, and the news certainly unsettled the parts suppliers across the world. The management accountant at Bearconn has performed a stakeholder grid analysis to determine the information need and support for various stakeholder groups. Which of the following group of stakeholders is one that the management accountant needs to provide relevant information and keep them informed? Answer Options You did not record an answer. The correct answer is A @ UsER SELECTION @ CORRECT ANSWER A. Part suppliers 9 B Senior management of Bearconr C ABC Board of Directors D___ Bearconn's employees working on the low-end phone model Answer Explanation Ais correct because part suppliers need to be informed and supported as they often heve highly valuable insights and high interest into organisational functioning, but little power to enact changes. Bis incorrect because senior management will be considered as one of the key players for the decision, and as a result, management accountants must provide this group of stakeholders with detailed information and comprehensive analysis. Cis incorrect because although the Board of Directors is not the ultimate decision maker, they will be considered as one of the key players due to the strategic partnership between the twoorganisations. They have high interest in the future direction of Bearconn and also possess high power to influence Bearconr’s decision. Dis incorrect because Bearconr's current employees working on the low-end phones will be unaffected by the decision, as they have low power and low interest in moving the high-end production facility to India. They are the group of stakeholders that would require minimal effort. Module: 2 > Part: A > Stakeholder management > Stakeholder grid > Page: 50 Question 10 * Marks: 0 XYZ Ltd has been manufacturing only one type of 3D printer, the Plain model. The company is, considering making some modifications in order to produce a more advanced model to meet the market needs Two options are available: Wireless and Colour. Both the Wireless and Colour models will start with the same processes as the Plain model, but with additional advanced functions. The Wireless model and the Colour model can both connect the printer wirelessly, and the Colour model has the inkjet technology to create bright and colourful 3D models. The senior management team of XYZ Ltd needs to choose between making the Wireless or the Colour model. What is the most relevant information the management accountant should provide to support this decision-making? Answer Options You did not record an answer, The correct answer is C © UsER SELECTION @ CORRECT ANSWER A. The cost of building the Wireless model B The cost of producing the Plain mode! C.», The cost of developing the colour inkjet technology °@ D The price of a basic 3D printer from other competitorsAnswer Explanation Cis correct because the cost of developing the colour inkjet technology is specific to the Colour model, and hence, it is important to consider the information when making the decision. Ais incorrect because the management accountant is the ideal person to identify potentially useful information and make it available to stakeholders. In this case, both the Wireless mode! and the Colour model have a wireless feature, so A is not useful for the senior management to make a decision. 8 is incorrect because both the Wireless model and the Colour model share the same manufacturing process as the Plain model at the start, so B is not useful for the senior management to make a decision. Dis incorrect because the price of a basic model is not relevant for the decision of choosing between the Wireless and the Colour model. Module: 2 > Part: A > The information needs of stakeholders > Identifying users with different information needs > Page: 47 Question 11 * Marks: 0 Lyon is a sandwich bar that advocates fresh and healthy eating. The store bakes its baguettes in house with a filling of grilled chicken and fresh salad. Due to its popularity, Lyon's owner wanted to conduct a trial to extend the opening hours by two hours from the beginning of the month, The business hours are new from 12pm to Spm after the change. As a result, an additional 2,000 sandwiches were sold at the regular price during additional opening hours this month, and the business had to hire one extra kitchen hand to deal with the demand. What is the most appropriate information assessment when preparing the monthly performance report to the shop owner? Answer Options You did not record an answer. The correct answer is C © USER SELECTION © CORRECT ANSWERItis acceptable to compare actual results to budget because the decision to extend ‘the opening hours could be temporary. 5 The additional hours should be cancelled, as the net profit margin is likely to decrease due to the extra labour cost. c__ Acomparison of the differential revenue and costs of the additional business hours @ should be undertaken to assess the success of the change. There is no need to verify with customers about the sustainability of the extra hours, as the additional sales speak for itself. Answer Explanation Cis correct because it integrates relevant financial data and undertakes further analysis. Ais incorrect because the budget should be adjusted for the additional opening hours ang enable comparability. Bis incorrect because the net profit margin is likely to decrease due to the extra labour cost. However, it may still generate positive net income for the business. Further analysis is needed before making any recommendation D is incorrect because there is still a need to survey customers and evaluate whether the extension of hours is appropriate from a customer's perspective, Module: 2 > Part: B > Characteristics and limitations of different kinds of information > Characteristics of information > Page: 65 Question 12 * Marks: 0 Silom Llc (Silom) manufactures window frames in Singapore for the housing market. Senior management at Silom are considering expanding their manufacturing facilities due to growing demand both domestically and internationaly. They are considering whether to build the new facilities in Singapore or Malaysia. Senior management requested Silom's management accountant, Sam Elboc, to prepare oudgets for each location, including budgeted sales, gross margin and overhead allocation, and to present these at the next senior management meeting in one month's time. Knowing that senior management are financialy literate and experienced, Sam prepares the requestedpudgets, using current information and consistent accounting methods in each budget. He also includes information to support his calculations. Which one of the following options lists the characteristics of the budgeted information provided by Sam? Answer Options You did not record an answer, The correct answer is C @ UsERSELECTION @ CORRECT ANSWER A Reliable, timely, valic 8B Comparable, timely, valid C., Comparable, timely, understandable ° D Comparable, reliable, understandable Answer Explanation Cis correct as the information is comparable, timely and understandable. The information is comparable as Sam has used consistent accounting methods in each budget, which means they can be compared against each other. The information is also timely as it is based on current estimates and has been provided in a timely manner as requested by the management team The information is understandable because Sam has considered the users of the information and ensured that they will be able to understand it. A, B and D are incorrect as the information provided by Sam cannot be regarded as valid or reliable. Validity tefers to accuracy. Being both budgeted information based on estimates of future events, as well as containing overhead allocations, the information provided by Sam cannot be regarded as valid. Further the information mey also not be reliable. Reliability requires information from different sources to tell the same story. Again, being estimates of future sales and costs, different preparers may determine differing amounts for these, thereby reducing the information's reliability. The information is timely as it is based on current estimates and has been provided in a timey manner as requested by the management team.Module: 2 > Part: B > Characteristics and limitations of different kinds of information > Characteristics of information > Page: 65 Question 13 * Marks: 0 Which of the following best describes the major difference between traditional and strategic management accounting? Traditional management accounting Strategic management accounting | Focuses on the manufacturing environment. Focuses on the public sector and service organisations. Il Focuses on planning, evaluating anc Focuses solely on strategic-level issues. controlling, IIl_ Focuses on product costing. Incorporates both financial and non- financial performance measures. IV Provides useful information to support Broadens the role to focus on value managers. creation for all significant stakeholders. Answer Options You did not record an answer, The correct answer is D © USER SELECTION @ CORRECT ANSWER A tis correct B llis correct C Mis correct D,. Vis correct 9 Answer Explanation Dis correct because it emphasises the key importance of value creation for all significant stakeholders (both internal and external) in strategic management accounting, Ais incorrect because traditional management accounting originated in manufacturing environments, but its focus broadened as the economy changed. Strategic managementaccounting still supports manufacturing companies. Bis incorrect because strategic management accounting does more than focus solely on strategic issues. In addition, strategic issues require planning, evaluating and controlling. Cis incorrect because traditional management accounting covers more than just product costing. Two major topics are budgeting and variance analysis. Module: 1 > Part: C > The role of management accountants in strategic management > The role of management accountants > Table 1.2 > Page: nN Question 14 * Marks: 0 Which of the following is a form of strategic management accounting support for the operational management task of planning? Answer Options You did not record an answer, The correct answer is 8 © USER SELECTION @ CORRECT ANSWER A Measuring individual, departmental, team and organisational performance. Preparing budgets and forecasts, using costing systems and providing historical @ data. Using budgets to coordinate various departments and communicate organisational priorities to employees. 1p ldentifying causes of variance, establishing performance incentives and criteria, reconciliations and internal controls. Answer Explanation Bis correct because budgeting is a tool used by management accountants to support operational management in creating and enhancing value. Budgeting is strategic when it is focused on value creation.A, Cand D are incorrect because they refer to aspects of operational management other than olanning: A—evaluating; C—coordinating and communicating; and D—controlling. Module: 1 > Part: E > Part E: Analytical techniques available to management accountants > Table 1.7 > Page: 31-32 Question 15 * Marks: 0 The role of the management accountant has evolved to have a more strategic focus. Which of the following activities is not appropriate to the role of the strategically orientec management accountant? Answer Options You did not record an answer. The correct answer is D © USERSELECTION @ CORRECT ANSWER Designing information systems that enable users to access information for themseves, Designing control systems that promote ethical behaviour and corporate social responsibility (CSR). Acting as a business partner and consultant to management with a focus on improving results and creating value. Acting as the overseer of management, and évoiding any involvement in activities Pe that might create a conflict of interest, Answer Explanation Dis correct. While the Stucy guide points to some controversy in this area, it is clear that the management accountant's role is that of a business partner, with a focus on enhancing performance. D is an important consideration for accountants, but this is a control function and, as such, applicable to an accountant's conformance responsibilities rather than their strategic role. The conformance role is often assigned to financial accountants rather thanmanagement accountants. These matters are discussed further in the section of Module 2 on governance. Ais incorrect because it is important to management performance and effective decision- making, as it ensures that users have timely access to information and are familiar with the information systems relevant to their role Bis incorrect because it is strategically important as it has a strong external stakeholder focus. Cis incorrect because it is the cverriding consideration for guiding strategic management accounting activities. Module: 1 > Part: C > The role of management accountants in strategic management > The role of management accountants > Page: 11 4... @KNOWLEDGEQUITY ABN 80 128 394 472