Question 1

Why is it more difficult to brand services than to brand goods?

Accepted Answer

It is harder to make a service consistent

Answer

It is impossible to develop a positioning statement for a service

Answer

There is no packaging to put a logo on

Answer

There is no way to measure service quality

Question 2

Services cannot be stored. This describes the _______________ characteristic of services

Accepted Answer

Perishability

Answer

Intangibility

Answer

No Transfer of ownership

Answer

Simultaneity

Answer

Variability

Question 3

Services are typically produced and consumed simultaneously. This is an example of the ____________________ characteristic of services.

Accepted Answer

Simultaneity

Answer

Variability

Answer

Intangibility

Answer

No Transfer of ownership

Answer

Perishability

Question 4

A guest’s stay at a hotel only gives them right of access to use the hotel facilities for a limited period. This is an example of the ____________________ characteristic of services.

Accepted Answer

No Transfer of ownership

Answer

Intangibility

Answer

Variability

Answer

Perishability

Answer

Simultaneity

Question 5

A resort does not sell a physical product, but night stays. This particular characteristic is know as:

Accepted Answer

Intangibility

Answer

Perishability

Answer

No Transfer of ownership

Answer

Variability

Answer

Simultaneity

Question 6

Whatever business structure is adopted there needs to be integration between the various parts. This integration is required to ensure:

• Coordinated activities and processes

• Goal congruence

• Value creation.

Integration is achieved by linking all the following EXCEPT:

Accepted Answer

Economy

Answer

People

Answer

Organization

Answer

Technology

Answer

Strategy

Question 7

Both McKinsey 7S framework and Porter's Value chain are business integration tools

Accepted Answer

true

Answer

false

Question 8

Which of the statements about McKinsey 7S model is correct? (Select ALL that applies)

Question 9

The four "soft" elements of the 7S model can be harder to describe, less tangible, and more influenced by company culture. Which is NOT a SOFT "S"?

Accepted Answer

Systems

Answer

Staff

Answer

Skills

Answer

Shared values

Answer

Style

Question 10

The three 'hard" elements of the 7S framework are relatively easy to identify, and management can influence them directly. Which of the following is NOT a HARD "S"

Accepted Answer

Style

Answer

Strategy

Answer

Structure

Answer

System

Question 11

What is meant by the element of ''style'' in the 7-S framework?

Accepted Answer

How the company's managers lead

Answer

Whether a business is online or offline

Answer

Why customers prefer the company

Answer

How the company is perceived by stakeholders

Question 12

The McKinsey 7-S Framework highlights the _____ of the seven hard and soft elements.

Accepted Answer

interconnectivity

Answer

interchangeability

Answer

intermittence

Answer

independence

Question 13

This McKinsey 7S relates to talent management and all HR relating to company decisions, such as training, recruiting and rewards.

Accepted Answer

Staff

Answer

Skills

Answer

Style

Answer

Shared values

Question 14

This McKinsey 7S forms the capabilities and competences of a company that enables its employees to achieve it's objectives

Accepted Answer

Skills

Answer

Shared values

Answer

Staff

Answer

Style

Question 15

Which statement below is NOT TRUE about the Value Chain?

Accepted Answer

The secondary activities do not directly create value and can be ignored

Answer

The value chain is a model of business integration showing the way that business activities are organised and linked

Answer

The value chain emphases that it is activities which create value and incur costs

Answer

The activities are split into two groups: primary ones which the customer interacts with directly and can ‘see’ the value being created and secondary ones which support the primary activities

Answer

The value chain model uses activities rather than traditional functional departments (such as finance) to describe the business

Answer

Another important feature of the value chain is the idea of value creation through a chain linking activities to each other. Where linkage is absent, so is value.

Question 16

In value chain analysis, the process of obtaining goods or services is called

Accepted Answer

Procurement

Answer

Inbound logistics

Answer

Technology

Answer

Outbound logistics

Question 17

The support activities in Porter's value chain are which of the following?

Accepted Answer

Infrastructure, HRM, technology & procurement

Answer

Procurement, operations, inbound logistics and marketing & sales

Answer

Marketing &sales, Infrastructure and inbound logistics

Answer

Infrastructure, technology, procurement and service

Question 18

Value chain activities can create competitive advantage through

Accepted Answer

optimization and coordination

Answer

focus and selective removal

Answer

skills and shared values

Answer

primary and secondary

Question 19

SELECT the best definition of business process reengineering from the options below:

Accepted Answer

This is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service and speed

Answer

This involves removing the gaps and disconnects that causes business processes to fail or operate inefficiently

Answer

This is removing redundant processes and removing process complexities

Answer

Complex and dynamic processes that provide competitive advantages and should get most of management time.

Question 20

One statement below on business process reengineering (BPR) is FALSE. SELECT this statement

Accepted Answer

Business process reengineering is about making staff redundant and reducing the company's major fixed cost

Answer

BPR may lead to shareholders wealth maximization

Answer

Using BPR may require a shift in culture

Answer

It starts by asking questions such as: ‘why do we do things this way?’ and ‘would we do things exactly the same way if we were starting again?’

Answer

BPR focuses on processes not departments or functions.

Question 21

The MENDELOW framework explains the appropriate management strategy per category of stakeholders. Which of the following is not an appropriate combination of stakeholders and management strategy?

Accepted Answer

low power, low interest - high effort

Answer

high power, low interest - keep satisfied

Answer

high power, high interest - key players

Answer

low power, high interest - keep informed

Question 22

Stakeholders can change quadrants within Mendelow's matrix

Accepted Answer

true

Answer

false

Question 23

Which of the following is NOT true about stakeholders and conflicts?

Accepted Answer

Managers vs customers: - :Cost management vs profit

Answer

Employees vs management: - :Wages vs bonus

Answer

Managers vs shareholders: - :Profit vs Wealth maximization

Answer

Customers vs shareholders: - :Service levels vs profit

Question 24

What are the two major elements in stakeholder analysis?

Accepted Answer

Interest and power

Answer

Power and influence

Answer

Influence and interest

Answer

Power and money

Question 25

SELECT the statement on environmental management accounting from the options below that is FALSE

Accepted Answer

EMA uses conventional systems, as these systems can apportion environmental costs to products or processes and can manage them, reducing the need for additional expense of changing the system

Answer

Environmental management accounting (EMA) relates to the production and analysis of financial and non-financial information to help a business identify environment-related costs and manage its performance in respect of the environment

Answer

EMA can be used to set targets for improving performance in respect of the environment, for example, by reducing environment‑related costs and footprint, fines or taxes.

Answer

By the use of techniques such as environmental activity-based costing, input/output analysis and lifecycle costing, EMA can be used to develop a clearer understanding of costs, particularly environment-related costs, meaning that budgets will be more realistic.

Answer

EMA helps to capture these hidden costs such as fines, as well as contingent costs, for example, in cleaning up contaminated sites after production ceases

Answer

EMA will help a business to understand all of the costs in the product’s lifecycle and what drives them. These will include environment-related costs which are incurred before or after production begins or after it ends, such as decommissioning or clean-up costs. This allows for more informed pricing of products.

Question 26

Environmental management accounting information can be used to:

Accepted Answer

all the choices are correct

Answer

assist in identifying cost savings

Answer

provide data for integrated reporting

Answer

avoid future costs associated with long-term investment decisions

Question 27

The following are types of management accounting techniques:

(i) Flow cost accounting

(ii) Input/output analysis

(iii) Life-cycle costing

(iv) Environmental activity-based costing

Which of the above techniques could be used by a company to account for its environmental costs?

Accepted Answer

All of the above

Answer

(i) only

Answer

(i) and (ii) only

Answer

(i), (ii) and (iii) only

Question 28

Which explanation below matches with Lifecycle costing

Accepted Answer

This is a costing system that collates the total costs of a product, over its lifetime rather than by accounting period. This includes design, development, market launch, production, sales and eventual withdrawal from the market

Answer

This records material inflows and balances them with outflows on the basis that what comes in must go out or be stored.

Answer

This allocates internal costs to cost centres and cost drivers on the basis of the activities that give rise to the costs.

Question 29

Which statement below is not related to environmental activity-based costing?

Accepted Answer

ABC is the complete cost of a product from introduction to withdrawal including the environmental consequences such as decommissioning

Answer

In an environmental accounting context, it distinguishes between environment-related costs, which can be attributed to joint cost centres such as sewage and waste filtration

Answer

In an environmental accounting context, it distinguishes between environment-driven costs, which tend to be hidden on general overheads

Answer

ABC allocates internal costs to cost centres and cost drivers on the basis of the activities that give rise to the costs.

Question 30

Which statement below is not related to input/output analysis

Accepted Answer

Within the context of environmental accounting, input/output analysis is a technique which requires the full environmental consequences, and therefore costs, arising from production of a product

Answer

By accounting for outputs in this way, both in terms of physical quantities and, at the end of the process, in monetary terms too, businesses are forced to focus on environmental costs

Answer

This records material inflows and balances them with outflows on the basis that what comes in must go out or be stored.

Answer

Material not used or stored is waste. Waste should be minimized

Question 31

Which of the statements below is NOT part of environmental-driven cost?

Accepted Answer

A waste filtration plant

Answer

High electricity usage

Answer

Costs that are generally hidden in overheads but relate to environmental drivers

Answer

Shorter working life of equipment (in order to avoid excess pollution in the later years of its working life).

Question 32

Which of the statements below is NOT part of environmental-related cost?

Accepted Answer

Increased depreciation

Answer

These costs can be accumulated for a cost centre, such as an incineration plant, then charged to the products on the basis of use.

Answer

Environment related costs can be collected together in one cost centre (joint cost centre) – so (for example) all costs relating to waste

Answer

A waste filtration plant

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