Provided by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida
ABM Main Page | ABM
Discussion Questions | Graduate Management Accounting Course
1. The main difference between ABC and ABM is that
a. ABC emphasizes tracing costs to cost objects, while ABM emphasizes performance
evaluation.
b. ABC emphasizes product costs, while ABM emphasizes managing processes and work.
c. ABC emphasizes tracing costs to cost objects, while ABM
emphasizes tracing costs and managing processes
and work.
d. ABC includes activity based costing, while ABM excludes activity based costing.
e. ABC includes activity management, while ABM excludes activity management.
2. In Johnson's ABM model the emphasis is on
a. activity costing.
b. cost allocations.
c. activity management.
d. cost analysis.
e. none of these.
3. Which of the following is not part of one of the ABM models?
a. standard cost variance analysis.
b. direct or variable costing.
c. traditional overhead cost allocations.
d. a. and b.
e. all of the above.
4. Which of the audiences listed below is given the least emphasis in the various ABM models?
a.
Outside investors, creditors, IRS and SEC.
b. Production managers and workers.
c. Marketing, and product managers.
d. Customers.
5. All of the ABM models generate both non-financial and as well as financial information. Which of the audiences listed below is mainly benefited by the non-financial information?
a.
Outside investors, creditors, IRS and SEC.
b. Production managers and workers.
c. Marketing, and product managers.
d. Customers.
6. All of the ABM models generate both non-financial and as well as financial information. Which of the audiences listed below is mainly benefited by the financial information?
a.
Outside investors, creditors, IRS and SEC.
b. Production managers and workers.
c. Marketing, and product managers.
d. Customers.
7. According to Johnson, which type of analysis below maps the connections along the value chain?
a. process analysis.
b. cross functional activity analysis.
c. activity based analysis.
d. activity based cost analysis.
e. none of the above.
8. Which of the following inventory valuation methods is not consistent with any of the ABM models?
a. full absorption costing.
b. direct or variable costing.
c. throughput costing.
d. a. and b.
e. all of the above.
The main components of activity-based management include the following:
1. Defining activities.
2. Identifying drivers.
3. Assigning costs to activities.
4. Assigning costs
from activities to cost objects.
5. Developing performance measures.
6. Managing processes and work.
9. Johnson's conceptual ABM model of activity management does not include
a. components 1 and 2.
b. components 2 and 3.
c. components 3 and 4.
d. components 4 and 5.
e. components 5 and 6.
10. Tom Johnson’s main complaint concerning the CAM-I-Turney ABM model is that
a. it produces product costs that are not needed for management decisions.
b. it emphasizes products rather than activities.
c. it produces product costs that are still too late, too aggregated and too distorted.
d. it continues to support the financial accounting mentality.
e. it is not consistent GAAP.
_______________________________________________________________