Strategic Management Accounting MCQs with Solutions

Running head: STRATEGIC MANAGEMENT ACCOUNTING
Strategic Management Accounting
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1STRATEGIC MANAGEMENT ACCOUNTING
MCQ of the Module 4
Question 1
What is the current business strategy adopted by the business of the Sydney Seafood Bar
(SSB)?
a) Cost Differentiation Strategy
b) Product Differentiation Strategy
c) Growth Strategy
d) Cost Leadership
Correct answer: (b)
Explanation
Here in the above question the correct answer is the product differentiation strategy which
means that the Sydney Seafood Bar is trying to implement unique features to its food dishes
which will definitely attract the potential customers in the market. The main reason behind
this strategy is that the company improvises the features or the certain uniqueness which the
other competitors cannot afford.
Question 2
If the current NOPAT of the Sydney Seafood Bar is $118995, then if there is an increase in
the 7% over the last 10 years, then estimate such NOPAT?
a) 126584.33
b) 127000
c) 127324.65
d) 128665.33

2STRATEGIC MANAGEMENT ACCOUNTING
Correct answer: (c)
Solution
= $118995 * 107/100
= $ 127324.65
Explanation
In the above evaluation it can be said that, in the coming 10 years as the assumption there is
an estimated 7% increase which ,means that in the coming 10 years the Sydney Seafood Bar
will have an increase in the net operating cash flow of the company (Ball et al. 2016.). Thus
the business of the company will show an increase in the profitability of the company and
accordingly such estimation is made.
Question 3
What is the type of budget concept used in the undertaken kitchen proposal project in the
Sydney Seafood Bar?
a) Master Budget
b) Operating Budget
c) Cash Flow Budget
d) Financial Budget
Correct answer: (c)
Explanation
In case of the Kitchen proposal the cash flow budget and the forecast of such budget is made
in the project. The cash flow budget shows the inflow and outflow of the cash in the business.