1. As the term is used by CAM-I, proactive CMS means that accountants place more emphasis on
    a. measuring cost and cost variances during the production stage of the product life cycle.
    b. the design and development stages of the product life cycle.
    c. target costing.
    d. b and c.
    e. a, b and c.

2. Which of the following trends support the need for the CAM-I CMS program?
    a. Less labor intensive manufacturing.
    b. More automation.
    c. Indirect costs becoming a larger proportion of total costs.
    d. a. and b.
    e. a., b. and c.

3. As defined by CAM-I, which of the following represents value added costs?
    a. Materials movement.
    b. Materials processing.
    c. Materials storage.
    d. Materials inspection.
    e. All of the above.

4. From the CMS perspective, the main implication of a "lights out factory" is that
    a. a great deal of savings are obtained in the cost of electricity.
    b. robots do not need lights.
    c. a greater proportion of costs become indirect.
    d. labor efficiency is not an issue.
    e. none of the above.

5. According to CAM-I, traditional cost accounting places emphasis on cost. CMS on the other hand, places emphasis on
    a. cost and quality.
    b. quality and functionally.
    c. quality, functionally and timing.
    d. functionally and timing.
    e. all of the above.

6. Imputed costs were, or are recognized in
    a. Dupont’s accounting system developed in the early 1900's.
    b. traditional cost accounting.
    c. the CAM-I CMS design, or redesign for accounting.
    d. a. and b.
    e. a. and c.

7. According the CAM-I CMS design, depreciation on equipment should be
    a. traced to time periods, then to products based on direct labor time.
    b. traced to time periods, then to products based on machine time or cycle time.
    c. traced directly to products based on machine time or cycle time.
    d. traced to time periods, then pooled with other overhead costs and traced to products.
    e. none of the above.

8. The CAM-I CMS objectives are stated in absolute terms. This conflicts with the concept of
    a. continuous improvement.
    b. constrained optimization.
    c. quality at the source.
    d. just-in-time.
    e. all of the above.

9. CAM-I refers to target cost as
    a. accounting driven.
    b. engineer driven.
    c. market driven.
    d. cycle driven.
    e. none of these.

10. Traditional manufacturing focused on which type of strategy?
    a. product differentiation.
    b. customer responsiveness and flexibility.
    c. cost minimization.
    d. quality.
    e. none of the above.

11. The CAM-I CMS approach treats technology costs as
    a. traditional overhead.
    b. period costs.
    c. a separate cost pool.
    d. an expense.
    e. none of these.

12. Which of the measurements below would not be supported by CAM-I?
    a. material price variances.
    b. machine utilization percentages.
    c. lead time.
    d. a and b.
    e. all of the above.

13. According to CAM-I automation should follow which sequence below?
    a. Traditional manufacturing, islands of automation, process simplification, optimized manufacturing, 
        computer integrated manufacturing.
    b. Traditional manufacturing, process simplification, islands of automation, computer integrated 
        manufacturing, optimized manufacturing.   
    c.  Traditional manufacturing, computer integrated manufacturing, islands of automation, computer
        integrated manufacturing, process simplification.
    d. Traditional manufacturing, optimized manufacturing, process simplification, islands of automation,
        computer integrated manufacturing.

14. Lead time includes
    a. process time. 
    b. inspection time. 
    c. move time. 
    d. wait time. 
    e. all of the above.

 15. Value added activity includes
    a. process time.
    b. inspection time. 
    c. move time. 
    d. wait time. 
    e. all of the above.

16. Strategies for implementing CAM-I CMA program include: revolutionary, evolutionary, and green field. Which of the following descriptions describes the green field strategy?
    a. All parts of the company are changed simultaneously.
    b. One part of the company is changed at a time.
    c. A pilot company is started based on the new model.
    d. none of the above.

17. Which of the following is a key measurement in the CAM-I CMS program?
    a. labor efficiency.
    b. machine efficiency.
    c. production volume.
    d. manufacturing cycle efficiency.
    e. none of these.

18. According to the CAM-I conceptual design, which of the following measurements causes excess inventory?
    a. purchase price.
    b. machine utilization.
    c. standard cost overhead absorption.
    d. a. and b.
    e. all of the above.

19. Which of the concepts or techniques below promotes a push rather than pull mentality?
    a. target cost.
    b. kanban
    c. standard cost
    d. drum-buffer-rope
    e. all of the above.

20. Robin Cooper has been critical of the term non-value added activities. He prefers to use the terms
    a. value added and non-valued work.
    b. productive and unproductive activities.
    c. activity and non-activity costs.
    d. essential and non-essential activities. 
    e. none of the above.

21. Which of the following concepts or techniques is not emphasized in the CAM-I conceptual design?
    a. capital budgeting.
    b. traceability of costs.
    c. life cycle costing.
    d. pull systems.
    e. none of the above.

22. According to CAM-I, cost management systems should be designed around
    a. functions.
    b. main activities.
    c. sub activities.
    d. task.
    e. sub task.

23. Which of the items below do not represent cost objects?
    a. products.
    b. projects.
    c. services.
    d. customers.
    e. none of the above.

24. Homogeneous activities are defined as
    a. activities that follow each other.
    b. activities that have the same driver.
    c. value added activities.
    d. simultaneous activities.
    e. none of these.

25. According to the CAM-I conceptual design, which of the following should be deemphasized?
    a. inventory costing for matching purposes.
    b. the functional form of organization.
    c. direct labor reporting.
    d. a. and b.
    e. all of the above.