Question 1

Information for decision-making:

Accepted Answer

A)  Is only produced inside an organization. 
B)  Includes estimates and predictions 
C)  Ensures certainty in the decision-making process 
D)  Is easy to identify 
A)  Is only produced inside an organization. 
B)  Includes estimates and predictions 
C)  Ensures certainty in the decision-making process 
D)  Is easy to identify B

Question 2

Uncertainties cause decision makers to ignore weaknesses in a preferred course of action.

Accepted Answer

A) True 
 B)False  False

Question 3

Management decisions require monitoring over time for all of the following reasons except:

Accepted Answer

A)  The economic environment may change 
B)  New opportunities may become available 
C)  To motivate employees to follow plans exactly, even if the plan results in poor performance 
D)  Unforeseen threats may arise 
A)  The economic environment may change 
B)  New opportunities may become available 
C)  To motivate employees to follow plans exactly, even if the plan results in poor performance 
D)  Unforeseen threats may arise C

Question 4

Relevant cash flows are:

Accepted Answer

A)  Avoidable 
B)  Incremental 
C)  Both of the above 
D)  None of the above 
A)  Avoidable 
B)  Incremental 
C)  Both of the above 
D)  None of the above

Question 5

Higher-quality reports are more:
I. Relevant
II. Understandable
III. Available

Accepted Answer

A)  I and II only 
B)  I and III only 
C)  II and III only 
D)  I, II, and III 
A)  I and II only 
B)  I and III only 
C)  II and III only 
D)  I, II, and III

Question 6

Which of the following is not true about information in an organization's databases?

Accepted Answer

A)  Information may be collected formally or informally 
B)  Access to database information is often restricted to specific individuals 
C)  Intellectual capital is usually captured in database information 
D)  The benefits of generating information should exceed the costs 
A)  Information may be collected formally or informally 
B)  Access to database information is often restricted to specific individuals 
C)  Intellectual capital is usually captured in database information 
D)  The benefits of generating information should exceed the costs

Question 7

Cost accounting information is used for:

Accepted Answer

A)  Financial reporting only 
B)  Management reporting only 
C)  Both financial and management reporting 
D)  Neither financial nor management reporting 
A)  Financial reporting only 
B)  Management reporting only 
C)  Both financial and management reporting 
D)  Neither financial nor management reporting

Question 8

Relevant information for decisions can focus both on learning from the past and anticipating the future.

Accepted Answer

A) True 
 B)False

Question 9

How are organizational strategies related to core competencies?

Accepted Answer

A)  Competencies are the tactics managers use to take advantage of strategies 
B)  Competencies and strategies are an integral part of organizational vision 
C)  Strategies help managers exploit competencies 
D)  Strategies and competencies are actually two ways of expressing the same idea 
A)  Competencies are the tactics managers use to take advantage of strategies 
B)  Competencies and strategies are an integral part of organizational vision 
C)  Strategies help managers exploit competencies 
D)  Strategies and competencies are actually two ways of expressing the same idea

Question 10

Financial statements are:

Accepted Answer

A)  External reports produced from an organization's information system 
B)  Never used for internal decision making 
C)  Only true when they are audited 
D)  Unimportant reports for most organizations 
A)  External reports produced from an organization's information system 
B)  Never used for internal decision making 
C)  Only true when they are audited 
D)  Unimportant reports for most organizations

Question 11

In a decision to lease or borrow money and build office space, which of the following is relevant?

Accepted Answer

A)  The cost of office space currently occupied by the company 
B)  The architect's fee for drawing the building 
C)  The number of employees currently working for the company 
D)  The personal preferences of the decision maker 
A)  The cost of office space currently occupied by the company 
B)  The architect's fee for drawing the building 
C)  The number of employees currently working for the company 
D)  The personal preferences of the decision maker

Question 12

Uncertainties are:

Accepted Answer

A)  Issues about which we have doubt 
B)  Foreseeable factors 
C)  Not usually part of decision-making 
D)  Biased information 
A)  Issues about which we have doubt 
B)  Foreseeable factors 
C)  Not usually part of decision-making 
D)  Biased information

Question 13

Conflicts of interest often compromise managers' ability to make ethical decisions. Which of the following situations most likely includes a conflict of interest?

Accepted Answer

A)  Selling goods and services at discounted prices to some clients based on historical volumes 
B)  Offering sales on credit only to creditworthy clients 
C)  Paying dividends to shareholders rather than investing in an environmental project 
D)  Using LIFO to report the cost of ending inventory on the balance sheet 
A)  Selling goods and services at discounted prices to some clients based on historical volumes 
B)  Offering sales on credit only to creditworthy clients 
C)  Paying dividends to shareholders rather than investing in an environmental project 
D)  Using LIFO to report the cost of ending inventory on the balance sheet

Question 14

Which of the following statement about biases is true?

Accepted Answer

A)  Biases can affect management accounting information, but not financial accounting information 
B)  Managers cannot work toward eliminating their biases 
C)  Biases reduce the quality of decisions 
D)  Biased managers are more likely to explore alternatives before making a decision 
A)  Biases can affect management accounting information, but not financial accounting information 
B)  Managers cannot work toward eliminating their biases 
C)  Biases reduce the quality of decisions 
D)  Biased managers are more likely to explore alternatives before making a decision

Question 15

Wong Company utilizes both strategic planning and operational budgeting. Which one of the following items would normally be considered in a strategic plan?

Accepted Answer

A)  Setting a target of 12% return on sales 
B)  Maintaining the image of the company as the industry leader 
C)  Setting a market price per share of stock outstanding 
D)  Distributing monthly reports for departmental variance analysis 
A)  Setting a target of 12% return on sales 
B)  Maintaining the image of the company as the industry leader 
C)  Setting a market price per share of stock outstanding 
D)  Distributing monthly reports for departmental variance analysis

Question 16

Ethical decision-making:

Accepted Answer

A)  Does not include ongoing improvement 
B)  Considers the well-being of those affected by the decision 
C)  Has little to do with professional reputation 
D)  Is not important for accountants 
A)  Does not include ongoing improvement 
B)  Considers the well-being of those affected by the decision 
C)  Has little to do with professional reputation 
D)  Is not important for accountants

Question 17

Ethical behaviour is required of every employee within an organization.

Accepted Answer

A) True 
 B)False

Question 18

Employees will always make ethical decisions if they act in the best interests of shareholders.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following can influence ethical behavior in organizations?
I. Employee personal values
II. Systems for measuring, monitoring and motivating
III. Organizational culture

Accepted Answer

A)  I only 
B)  I and II only 
C)  I and III only 
D)  I, II, and III 
A)  I only 
B)  I and II only 
C)  I and III only 
D)  I, II, and III

Question 20

How does the use of sophisticated information systems affect managerial decision-making?

Accepted Answer

A)  Sophisticated information systems always improve managerial decision-making 
B)  Sophisticated information systems always provide better information 
C)  Managers may rely more on information reports than on their own biases 
D)  The cost of sophisticated information systems may exceed their benefit 
A)  Sophisticated information systems always improve managerial decision-making 
B)  Sophisticated information systems always provide better information 
C)  Managers may rely more on information reports than on their own biases 
D)  The cost of sophisticated information systems may exceed their benefit

Information for decision-making:

Uncertainties cause decision makers to ignore weaknesses in a preferred course of action.

Management decisions require monitoring over time for all of the following reasons except:

Relevant cash flows are:

Higher-quality reports are more: I. Relevant II. Understandable III. Available

Which of the following is not true about information in an organization's databases?

Cost accounting information is used for:

Relevant information for decisions can focus both on learning from the past and anticipating the future.

How are organizational strategies related to core competencies?

Financial statements are:

In a decision to lease or borrow money and build office space, which of the following is relevant?

Uncertainties are:

Conflicts of interest often compromise managers' ability to make ethical decisions. Which of the following situations most likely includes a conflict of interest?

Which of the following statement about biases is true?

Wong Company utilizes both strategic planning and operational budgeting. Which one of the following items would normally be considered in a strategic plan?

Ethical decision-making:

Ethical behaviour is required of every employee within an organization.

Employees will always make ethical decisions if they act in the best interests of shareholders.

Which of the following can influence ethical behavior in organizations? I. Employee personal values II. Systems for measuring, monitoring and motivating III. Organizational culture

How does the use of sophisticated information systems affect managerial decision-making?

Cost Concepts, Behaviour, and Estimation

Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Job Costing

Process Costing

Activity-Based Costing and Management

Measuring and Assigning Support Department Costs

Joint Product and By-Product Costing

Static and Flexible Budgets

Standard Costs and Variance Analysis

Strategic Investment Decisions

Pricing Decisions

Strategic Management of Costs

Measuring and Assigning Costs for Income Statements

Performance Evaluation and Compensation

Filters

Exam 1: The Role of Accounting Information in Ethical Management Decision Making

Information for decision-making:

Uncertainties cause decision makers to ignore weaknesses in a preferred course of action.

Management decisions require monitoring over time for all of the following reasons except:

Relevant cash flows are:

Higher-quality reports are more: I. Relevant II. Understandable III. Available

Which of the following is not true about information in an organization's databases?

Cost accounting information is used for:

Relevant information for decisions can focus both on learning from the past and anticipating the future.

How are organizational strategies related to core competencies?

Financial statements are:

In a decision to lease or borrow money and build office space, which of the following is relevant?

Uncertainties are:

Conflicts of interest often compromise managers' ability to make ethical decisions. Which of the following situations most likely includes a conflict of interest?

Which of the following statement about biases is true?

Wong Company utilizes both strategic planning and operational budgeting. Which one of the following items would normally be considered in a strategic plan?

Ethical decision-making:

Ethical behaviour is required of every employee within an organization.

Employees will always make ethical decisions if they act in the best interests of shareholders.

Which of the following can influence ethical behavior in organizations? I. Employee personal values II. Systems for measuring, monitoring and motivating III. Organizational culture

How does the use of sophisticated information systems affect managerial decision-making?

Cost Concepts, Behaviour, and Estimation

Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Job Costing

Process Costing

Activity-Based Costing and Management

Measuring and Assigning Support Department Costs

Joint Product and By-Product Costing

Static and Flexible Budgets

Standard Costs and Variance Analysis

Strategic Investment Decisions

Pricing Decisions

Strategic Management of Costs

Measuring and Assigning Costs for Income Statements

Performance Evaluation and Compensation

Filters