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Accounting Information System And Strategic View And Market Leader Losing Market Share

Question

1. Which of the following accounting information system attributes support a strategic view?

I. Unit level cost allocation

II. Cost objects defined by customer value

III. Products and departments as the main focus of reporting

IV. Cost management achieved through cost driver management.

A. I and IV only
B. II and III only
C. II and IV only
D. I, III and IV only

2.  Jones Pty Ltd has a significant level of market share in its industry. If Jones Pty Ltd begins to lose market share in the current year, it is most likely that Jones Pty Ltd’s:

A. total profit will increase while net assets decrease;
B. Investment in capital assets will decline while profitability will remain stable;
C. Net cash flow will remain stable and then decline after a lag;
D. Competitors will experience improved cash flow in the longer term.

Summary

These multiple choice questions belong to Corporate Strategy and the 1st question discusses about accounting information system attributing to support strategic view and the 2nd question discusses about drop in the market share of a market leader.

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