Question 1

All of the following are service organizations, except _____.

Accepted Answer

A) a dry cleaners 
B) a public accounting firm 
C) a manufacturer of sporting goods 
D) a real estate brokerage 
A) a dry cleaners 
B) a public accounting firm 
C) a manufacturer of sporting goods 
D) a real estate brokerage

Question 2

A management audit would be performed by all of the following except _____.

Accepted Answer

A) the General Accounting Office 
B) a hospital 
C) a sneaker manufacturer 
D) all of these answers are correct 
A) the General Accounting Office 
B) a hospital 
C) a sneaker manufacturer 
D) all of these answers are correct

Question 3

Which scorecard function is associated with planning and control?

Accepted Answer

A) Scorekeeping is associated with planning and control. 
B) Attention directing is associated with planning and control. 
C) Problem solving is associated with planning and control. 
D) None of these answers is correct. 
A) Scorekeeping is associated with planning and control. 
B) Attention directing is associated with planning and control. 
C) Problem solving is associated with planning and control. 
D) None of these answers is correct.

Question 4

A clerk records a transaction in the accounting system.This activity would be classified as _____.

Accepted Answer

A) problem solving 
B) scorekeeping 
C) planning 
D) attention directing 
A) problem solving 
B) scorekeeping 
C) planning 
D) attention directing

Question 5

The primary purpose of accounting information is to help managers make decisions.

Accepted Answer

A) True 
 B)False

Question 6

Production is the function of a value chain that includes _____.

Accepted Answer

A) the generation of, and experimentation with, ideas related to new products, services, or processes 
B) the detail and engineering of products 
C) the coordination and assembly of resources to produce a product or deliver a service 
D) the manner by which individuals or groups learn about the value and features of products or services 
A) the generation of, and experimentation with, ideas related to new products, services, or processes 
B) the detail and engineering of products 
C) the coordination and assembly of resources to produce a product or deliver a service 
D) the manner by which individuals or groups learn about the value and features of products or services

Question 7

Below is a statement from the Institute of Management Accountants' Statement of Ethical Professional Practice. "Refrain from disclosing confidential information acquired in the course of their work except when authorized, unless legally obligated to do so."
It is an example of _____.

Accepted Answer

A) competence 
B) confidentiality 
C) integrity 
D) objectivity 
A) competence 
B) confidentiality 
C) integrity 
D) objectivity

Question 8

Which of the following statements is not true?

Accepted Answer

A) Management accounting does not play a vital role in the achievement of a company's goals and objectives. 
B) Management accounting information is used across the entire value chain of activities. 
C) Management accounting information is used throughout the life cycle of products and services. 
D) External accountants are expected to adhere to standards of ethical conduct. 
A) Management accounting does not play a vital role in the achievement of a company's goals and objectives. 
B) Management accounting information is used across the entire value chain of activities. 
C) Management accounting information is used throughout the life cycle of products and services. 
D) External accountants are expected to adhere to standards of ethical conduct.

Question 9

Staff authority is authority to advise but not command.

Accepted Answer

A) True 
 B)False

Question 10

The Bluto Fraternity held a Homecoming party.The fraternity prepared the following budget for 25 expected attendees: $$\begin{array} { l r } 
\text { Roomrental } & \$ 150 \
\text { Food } & 250 \
\text { Entertainment } & 150 \
\text { Decorations } & 75 \
\text { Totals }& \$ 625
\end{array}$$ After all bills for the party were paid, the total came to $660.Details are: $140 for room rental; $320 for food; $125 for entertainment; and $75 for decorations.Twenty-five persons attended the party. What is the total budget variance?

Accepted Answer

A) $10 unfavorable is the total budget variance. 
B) $35 unfavorable is the total budget variance. 
C) $10 favorable is the total budget variance. 
D) $70 unfavorable is the total budget variance. 
A) $10 unfavorable is the total budget variance. 
B) $35 unfavorable is the total budget variance. 
C) $10 favorable is the total budget variance. 
D) $70 unfavorable is the total budget variance.

Question 11

Staff authority may be exerted _____.

Accepted Answer

A) downward and laterally, but not upward 
B) upward and downward, but not laterally 
C) laterally and upward, but not downward 
D) downward, upward, and laterally 
A) downward and laterally, but not upward 
B) upward and downward, but not laterally 
C) laterally and upward, but not downward 
D) downward, upward, and laterally

Question 12

One of the treasurer's responsibilities is risk management.

Accepted Answer

A) True 
 B)False

Question 13

Reviewing the output of the department is an example of _____.

Accepted Answer

A) planning 
B) controlling 
C) budgeting 
D) analyzing 
A) planning 
B) controlling 
C) budgeting 
D) analyzing

Question 14

_____ is a review to determine whether the policies and procedures specified by top management have been implemented.

Accepted Answer

A) The Foreign Corrupt Practices Act 
B) A management audit 
C) Generally Accepted Accounting Principles GAAP) 
D) The Robinson-Patman Act 
A) The Foreign Corrupt Practices Act 
B) A management audit 
C) Generally Accepted Accounting Principles GAAP) 
D) The Robinson-Patman Act

Question 15

An accountant earns the designation of certified public accountant CPA) by _____.

Accepted Answer

A) meeting an education requirement 
B) meeting a qualifying experience requirement 
C) passing an examination 
D) all of these answers are correct 
A) meeting an education requirement 
B) meeting a qualifying experience requirement 
C) passing an examination 
D) all of these answers are correct

Question 16

Feedback is usually not crucial in controlling.

Accepted Answer

A) True 
 B)False

Question 17

The Beta Sorority held a party.The sorority prepared the following budget for 25 expected attendees: $$\begin{array} { l r } 
\text { Roomrental } & \$ 150 \
\text { Food } & 310 \
\text { Entertainment } & 150 \
\text { Decorations } & 75 \\
\text { Totals }& \$ 685
\end{array}$$ After all bills for the party were paid, the total came to $760.Details are: $240 for room rental; $320 for food; $145 for entertainment; and $75 for decorations.Twenty-five persons attended the party. Which of the following costs deserves further examination assuming the sorority uses the management-by-exception rule?

Accepted Answer

A) Room rental deserves further examination. 
B) Food deserves further examination. 
C) Entertainment deserves further examination. 
D) Decorations deserve further examination. 
A) Room rental deserves further examination. 
B) Food deserves further examination. 
C) Entertainment deserves further examination. 
D) Decorations deserve further examination.

Question 18

Broad concepts or guidelines and detailed practices that together make up accepted accounting practice at a given time are referred to as _____.

Accepted Answer

A) accounting rules and regulations 
B) accounting conventions 
C) Generally Accepted Accounting Principles GAAP) 
D) Internal Revenue Systems regulations 
A) accounting rules and regulations 
B) accounting conventions 
C) Generally Accepted Accounting Principles GAAP) 
D) Internal Revenue Systems regulations

Question 19

Below is a statement from the Institute of Management Accountants' Statement of Ethical Professional Practice. "Communicate information fairly and objectively."
It is an example of _____.

Accepted Answer

A) competence 
B) confidentiality 
C) integrity 
D) objectivity 
A) competence 
B) confidentiality 
C) integrity 
D) objectivity

Question 20

Timken Industries held a Christmas party.Timken expected attendance of 100 persons and prepared the following budget: $\begin{array}{lr}
\text { Hotel room rental } & \$ 600 \
\text { Food } & 500 \
\text { Entertainment } & 800 \
\text { Decorations } & 300 \
& \
\text { Total s } & \$ 2,200
\end{array}$ After all bills for the party were paid, the total came to $2,315.Details are: $575 for hotel room rental; $640 for food; $750 for entertainment; and $350 for decorations.One hundred persons attended the party. What is the variance in hotel room rental?

Accepted Answer

A) $70 unfavorable is the hotel room rental variance. 
B) $70 favorable is the hotel room rental variance. 
C) $25 favorable is the hotel room rental variance. 
D) $140 unfavorable is the hotel room rental variance. 
A) $70 unfavorable is the hotel room rental variance. 
B) $70 favorable is the hotel room rental variance. 
C) $25 favorable is the hotel room rental variance. 
D) $140 unfavorable is the hotel room rental variance.

All of the following are service organizations, except _____.

A management audit would be performed by all of the following except _____.

Which scorecard function is associated with planning and control?

A clerk records a transaction in the accounting system.This activity would be classified as _____.

The primary purpose of accounting information is to help managers make decisions.

Production is the function of a value chain that includes _____.

Below is a statement from the Institute of Management Accountants' Statement of Ethical Professional Practice. "Refrain from disclosing confidential information acquired in the course of their work except when authorized, unless legally obligated to do so." It is an example of _____.

Which of the following statements is not true?

Staff authority is authority to advise but not command.

Staff authority may be exerted _____.

One of the treasurer's responsibilities is risk management.

Reviewing the output of the department is an example of _____.

_____ is a review to determine whether the policies and procedures specified by top management have been implemented.

An accountant earns the designation of certified public accountant CPA) by _____.

Feedback is usually not crucial in controlling.

Broad concepts or guidelines and detailed practices that together make up accepted accounting practice at a given time are referred to as _____.

Below is a statement from the Institute of Management Accountants' Statement of Ethical Professional Practice. "Communicate information fairly and objectively." It is an example of _____.

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 1: Managerial Accounting, the Business Organization, and Professional Ethics

All of the following are service organizations, except _____.

A management audit would be performed by all of the following except _____.

Which scorecard function is associated with planning and control?

A clerk records a transaction in the accounting system.This activity would be classified as _____.

The primary purpose of accounting information is to help managers make decisions.

Production is the function of a value chain that includes _____.

Below is a statement from the Institute of Management Accountants' Statement of Ethical Professional Practice. "Refrain from disclosing confidential information acquired in the course of their work except when authorized, unless legally obligated to do so." It is an example of _____.

Which of the following statements is not true?

Staff authority is authority to advise but not command.

Staff authority may be exerted _____.

One of the treasurer's responsibilities is risk management.

Reviewing the output of the department is an example of _____.

_____ is a review to determine whether the policies and procedures specified by top management have been implemented.

An accountant earns the designation of certified public accountant CPA) by _____.

Feedback is usually not crucial in controlling.

Broad concepts or guidelines and detailed practices that together make up accepted accounting practice at a given time are referred to as _____.

Below is a statement from the Institute of Management Accountants' Statement of Ethical Professional Practice. "Communicate information fairly and objectively." It is an example of _____.

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters