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Advanced Management Accounting Questions 103–167 (page: 19)

Updated On: 31-Jan-2026

Which of the following activities are included within activity based management (ABM)?

1. Cost reduction

2. Product design decisions

3. Variance analysis

4. Operational control

5. Performance evaluation

  1. 3, 4 and 5 only.
  2. 1, 2 , 4 and 5 only.
  3. 1, 3, 4 and 5 only
  4. All of them.

Answer(s): B



A not-for-profit organization measures performance using the three Es.

If the organization has been acquiring the resources it needs as cheaply as possible it should be described as having been:

  1. Efficient
  2. Effective
  3. Economic
  4. Enterprising

Answer(s): C



DRAG DROP (Drag and Drop is not supported)

Using the Value Chain model for a manufacturing company, place the correct primary activity classification against each of the activities described.

  1. See Explanation section for answer.

Answer(s): A

Explanation:



A large company that sells a single product has many customers. The contribution per unit of the product is $40. Data for the company as a whole are given below.



Using customer profitability analysis, what is the total annual profit for this customer?

  1. $1,660,000
  2. $1,780,000
  3. $1,460,000
  4. $2,340,000

Answer(s): A



Which TWO of the following are examples of management information made possible by the availability of big data?

  1. Customer profitability analysis to identify key strategic customers
  2. Customer information harvested from social media to target products
  3. Production cycle time analysis to improve production efficiency
  4. Real-time inventory management information shared with producers to influence their production plans
  5. A five year history of a company's aged debtor list to assess the long-run effectiveness of credit control

Answer(s): B,D



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