Question 1

Which of the following characteristics does NOT pertain to management accounting?

Accepted Answer

A)  provides information and estimates about future activity 
B)  generates specific-purpose financial statements and reports 
C)  provides financial and operating data multidisciplinary in scope 
D)  has externally imposed standards 
A)  provides information and estimates about future activity 
B)  generates specific-purpose financial statements and reports 
C)  provides financial and operating data multidisciplinary in scope 
D)  has externally imposed standards

Question 2

Setting the selling price of a company's product is an example of

Accepted Answer

A)  planning. 
B)  control. 
C)  decision making. 
D)  all of the above. 
A)  planning. 
B)  control. 
C)  decision making. 
D)  all of the above.

Question 3

What is customer orientation? Why is it important in a global environment? What role does cost management play in serving customers?

Accepted Answer

Organizations are concerned with the imp

Question 4

The primary objective of management accounting is

Accepted Answer

A)  to provide shareholders and potential investors with useful information for decision making. 
B)  to provide banks and other creditors with information useful in making credit decisions. 
C)  to provide management with information useful for planning and control of operations. 
D)  to provide the relevant taxation authorities with information about taxable income. 
A)  to provide shareholders and potential investors with useful information for decision making. 
B)  to provide banks and other creditors with information useful in making credit decisions. 
C)  to provide management with information useful for planning and control of operations. 
D)  to provide the relevant taxation authorities with information about taxable income.

Question 5

The setting of objectives and the identification of methods to achieve those objectives is called

Accepted Answer

A)  planning. 
B)  controlling. 
C)  performance evaluation. 
D)  decision making. 
A)  planning. 
B)  controlling. 
C)  performance evaluation. 
D)  decision making.

Question 6

Software that has integrated system capability using real time data is

Accepted Answer

A)  enterprise resource planning software. 
B)  on-line analytic programs. 
C)  computer-assisted engineering software. 
D)  none of the above. 
A)  enterprise resource planning software. 
B)  on-line analytic programs. 
C)  computer-assisted engineering software. 
D)  none of the above.

Question 7

Discuss how the goal of profit maximization is affected by ethical considerations. What incentives are there for managers to manipulate accounting data in unethical ways in order to increase profits?

Accepted Answer

The objective of profit maximization sho

Question 8

Financial accounting information is least useful in providing:

Accepted Answer

A)  information for stating corporate wide goals. 
B)  information for internal decision makers. 
C)  periodic reports for shareholders. 
D)  aggregate information about an organization's assets, obligations and performance. 
A)  information for stating corporate wide goals. 
B)  information for internal decision makers. 
C)  periodic reports for shareholders. 
D)  aggregate information about an organization's assets, obligations and performance.

Question 9

One advantage of employee empowerment is

Accepted Answer

A)  it frees up some of the time of upper management for more strategic decision making. 
B)  workers can improve production processes in a timely manner. 
C)  employees closest to the work can provide valuable input in increasing efficiency. 
D)  all of the above are advantages 
A)  it frees up some of the time of upper management for more strategic decision making. 
B)  workers can improve production processes in a timely manner. 
C)  employees closest to the work can provide valuable input in increasing efficiency. 
D)  all of the above are advantages

Question 10

Which of the following statements correctly distinguishes between financial and management accounting?

Accepted Answer

A)  Management accounting reports on the whole organization. 
B)  Financial accounting is oriented toward the future. 
C)  Financial accounting is primarily concerned with providing information for internal users. 
D)  Management accounting is oriented more toward the planning and control aspects of management. 
A)  Management accounting reports on the whole organization. 
B)  Financial accounting is oriented toward the future. 
C)  Financial accounting is primarily concerned with providing information for internal users. 
D)  Management accounting is oriented more toward the planning and control aspects of management.

Question 11

World-class companies must continuously struggle to improve performance in the dimensions of:

Accepted Answer

A)  price/cost. 
B)  service. 
C)  quality. 
D)  all of the above. 
A)  price/cost. 
B)  service. 
C)  quality. 
D)  all of the above.

Question 12

Setting the company's profit targets for the upcoming year is an example of the management function of

Accepted Answer

A)  planning. 
B)  control. 
C)  variance analysis. 
D)  internal auditing. 
A)  planning. 
B)  control. 
C)  variance analysis. 
D)  internal auditing.

Question 13

Which of the following does NOT describe management accounting?

Accepted Answer

A)  evaluation of segments or products within the firm 
B)  emphasis on the future 
C)  externally focused 
D)  detailed information 
A)  evaluation of segments or products within the firm 
B)  emphasis on the future 
C)  externally focused 
D)  detailed information

Question 14

Factors that have led to a global market for manufacturing and service firms are

Accepted Answer

A)  improved transportation and communications systems. 
B)  improved telemarketing and communications. 
C)  improved distribution and transportation systems. 
D)  None of these factors have contributed. 
A)  improved transportation and communications systems. 
B)  improved telemarketing and communications. 
C)  improved distribution and transportation systems. 
D)  None of these factors have contributed.

Question 15

Personal computers significantly increase a manager's capabilities to process and use accounting information. Do you agree? Explain.

Accepted Answer

Yes. Personal computers allow

Question 16

____ is devoted to providing information for external users.

Accepted Answer

A)  Management accounting 
B)  Financial accounting 
C)  Internal accounting 
D)  Cost accounting 
A)  Management accounting 
B)  Financial accounting 
C)  Internal accounting 
D)  Cost accounting

Question 17

Describe the connection between planning, controlling, and feedback.

Accepted Answer

Planning establishes performan

Question 18

Management accounting is the branch of accounting concerned with reporting to

Accepted Answer

A)  internal managers. 
B)  shareholders. 
C)  the government. 
D)  bankers. 
A)  internal managers. 
B)  shareholders. 
C)  the government. 
D)  bankers.

Question 19

The planning process includes

Accepted Answer

A)  setting objectives. 
B)  identifying means of achieving the objectives. 
C)  making decisions. 
D)  all of the above. 
A)  setting objectives. 
B)  identifying means of achieving the objectives. 
C)  making decisions. 
D)  all of the above.

Question 20

Which of the following emerging themes in cost accounting deals with managers striving to create an environment that will enable workers to manufacture perfect (zero-defect) products?

Accepted Answer

A)  advances in information technology 
B)  time as a competitive element 
C)  global competition 
D)  total quality management 
A)  advances in information technology 
B)  time as a competitive element 
C)  global competition 
D)  total quality management

Exam 1: Introduction to Management Accounting

Which of the following characteristics does NOT pertain to management accounting?

Setting the selling price of a company's product is an example of

What is customer orientation? Why is it important in a global environment? What role does cost management play in serving customers?

The primary objective of management accounting is

The setting of objectives and the identification of methods to achieve those objectives is called

Software that has integrated system capability using real time data is

Discuss how the goal of profit maximization is affected by ethical considerations. What incentives are there for managers to manipulate accounting data in unethical ways in order to increase profits?

Financial accounting information is least useful in providing:

One advantage of employee empowerment is

Which of the following statements correctly distinguishes between financial and management accounting?

World-class companies must continuously struggle to improve performance in the dimensions of:

Setting the company's profit targets for the upcoming year is an example of the management function of

Which of the following does NOT describe management accounting?

Factors that have led to a global market for manufacturing and service firms are

Personal computers significantly increase a manager's capabilities to process and use accounting information. Do you agree? Explain.

____ is devoted to providing information for external users.

Describe the connection between planning, controlling, and feedback.

Management accounting is the branch of accounting concerned with reporting to

The planning process includes

Which of the following emerging themes in cost accounting deals with managers striving to create an environment that will enable workers to manufacture perfect (zero-defect) products?

An Introduction to Cost Terms and Concepts

Cost Assignment

Accounting Entries for a Job Costing System

Process Costing

Joint and By-Product Costing

Income Effects of Alternative Cost Accumulation Systems

Cost-Volume-Profit Analysis

Measuring Relevant Costs and Revenues for Decision-Making

Activity-Based Costing

Pricing Decisions and Profitability Analysis

Decision-Making Under Conditions of Risk and Uncertainty

Capital Investment Decisions: Appraisal Methods

Capital Investment Decisions: the Impact of Capital Rationing, Taxation, Inflation and Risk

The Budgeting Process

Management Control Systems

Standard Costing and Variance Analysis 1

Standard Costing and Variance Analysis 2: Further Aspects

Divisional Financial Performance Measures

Transfer Pricing in Divisionalized Companies

Cost Management

Strategic Management Accounting

Cost Estimation and Cost Behaviour

Quantitative Models for the Planning and Control of Stocks

The Application of Linear Programming to Management Accounting

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