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
c. ABC emphasizes tracing costs to cost objects, while ABM
emphasizes tracing costs and managing processes and work.
2. In Johnson's ABM model the emphasis is on
c. activity management.
3. Which of the following is not part of one of the ABM models?
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.
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?
b. Production managers and workers.
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?
c. Marketing, and product managers.
7. According to Johnson, which type of analysis below maps the connections along the value chain?
a. process analysis.
8. Which of the following inventory valuation methods is not consistent with any of the ABM models?
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
c. components 3 and 4.
10. Tom Johnson’s main complaint concerning the CAM-I-Turney ABM model is that
d. it continues to support the financial accounting mentality.
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