Provided by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida
Relevance Regained Main Page | Relevance
Regained Discussion Questions | Grad MA Course
1. What is Tom Johnson referring to when he uses the term "management by remote control"?
a. The use of budgets and standard costs to evaluate and
control performance.
b. The top down management approach.
c. The use of responsibility accounting.
d. a. and b.
e. a., b. and c.
2. In the book Relevance Regained Johnson explains how American management changed the production environment by decoupling the line. This means that
a. processes were balanced for a continuous work flow.
b. processes were allowed to produce at different rates.
c. processes were evaluated as responsibility centers.
d. a. and c.
e. b. and c.
3. After the production environment was changed, as indicated in the previous question processes were measured in terms of
a. throughput maximization.
b. cost minimization.
c. contribution margin.
d. production volume.
e. none of the above.
4. Johnson argues that decoupling the line tends to cause
a. more efficient operations.
b. inventory buffers and excess.
c. optimization of the parts.
d. a. and c.
e. b. and c.
5. In Johnson's discussion of the bottom up versus top down type of management structure, bottom up refers to which of the following?
a. flat organization structure.
b. vertical organization structure.
c. emphasis on cost improvement.
d. a. and c.
e. b. and c.
6. Johnson argues that to become globally competitive companies need to
a. adopt activity-based costing.
b. generate information about the causes of waste.
c. use target costing.
d. a. and b.
e. b. and c.
7. According to Johnson the language of business is
a. information related to customers and processes.
b. information related to financial accounting.
c. information related to variation.
d. a. and b.
e. a. and c.
8. Johnson view of accounting information is that it should be used for
a. planning.
b. control.
c. to develop ABC.
d. a. and b.
e. a. and c.
9. Johnson argues that companies should
a. eliminate the constraints that cause a need for non-value added activities.
b. eliminate non-value added activities.
c. use the concept of limited production.
d. a. and c.
e. all of the above.
10. In Johnson's opinion what should be managed?
a. work.
b. costs.
c. processes.
d. a. and b.
e. a. and c.
11. From Johnson's perspective cost-volume-profit analysis (break-even) and cost behavior analysis
a. support the mass production cost minimization strategy.
b. cause overhead creep.
c. ignore the drivers of support services.
d. a. and b.
e. all of the above.
12. Johnson's view of responsibility accounting is that
a. cost centers are needed to manage work.
b. functional boundaries or silos should be eliminated.
c. cost centers should be evaluated as profit centers.
d. a. and b.
e. b. and c.
13. Johnson recommends which of the following for the management accounting curriculum?
a. eliminate financial accounting.
b. eliminate the emphasis on financial planning.
c. eliminate the concept of constrained optimization.
d. a. and b.
e. b. and c.
14. According to Johnson which of the following refers to a system where a company produces only what it can sell?
a. lean production.
b. limited production.
c. optimized production.
d. a. and b.
e. a. and c.
15. In Tom Johnson’s comparison of Plato’s Allegory to modern management, the men chained to the wall in the cave represent
a. management accountants.
b. external auditors.
c. accounting information.
d. production workers.
e. managers.
16. In Tom Johnson’s comparison of Plato’s Allegory to modern management, the puppeteers in the cave represent
a. management accountants.
b. external auditors.
c. accounting information.
d. production workers.
e. managers.
17. In Tom Johnson’s comparison of Plato’s Allegory to modern management, the shadows on the wall in the cave represent
a. a true picture of performance.
b. actual operating activities and processes.
c. traditional accounting information.
d. reflections of the production workers.
e. reflections of the managers.
18. In Tom Johnson’s comparison of Plato’s Allegory to modern management, what is outside cave?
a. activity based costing information.
b. actual operating activities and processes.
c. traditional accounting information.
d. knowledge of how to satisfy customers.
e. external auditors.
19. In Tom Johnson’s comparison of Plato’s Allegory to modern management, the light outside the cave represents
a. activity based costing information.
b. actual operating activities and processes.
c. traditional accounting information.
d. knowledge of how to satisfy customers.
e. external auditors.
20. What does Tom Johnson indicate is needed for improvement?
a. accurate product costs.
b. information on the causes of waste.
c. more emphasis on management control.
d. activity based cost information.
e. customer wants.
21. According to Tom Johnson, the language of business is defined by
a. customer needs and how to satisfy them.
b. knowledge of variation.
c. accounting information.
d. a. and b.
e. a. and c.
22. According to Tom Johnson, what is the most important information needed by management?
a. How to create customers and keep them satisfied.
b. How to control cost.
c. How to control processes.
d. How to properly rank employees.
e. None of these.
23. According to Tom Johnson, which of the following should professors eliminate from management education?
a. Budgeting.
b. Financial control.
c. Constrained optimization techniques.
d. a. and b.
e. b. and c.
24. Management by means is consistent with the concept and principles of
a. management by results.
b. management by objectives.
c. management of living systems.
d. a. and c.
e. b. and c.
25. Johnson's view of how a company should be managed includes
a. an emphasis on individual behavior.
b. an emphasis on team behavior.
c. an emphasis on responsibility center behavior.
d. an emphasis on cost behavior.
e. none of the above.
Relevance Regained MC Solution
See the ABM MC Questions for a few more questions related to Johnson's views.