Exam 1: Business Planning and Analysis: An Integrative Framework for Management Accounting

The customer/market domain includes decisions and activities that affect a specific segment of the firm's customers or markets.

Employee A observes that Employee B is improperly altering department records to meet month-end goals. These records are for internal use only and do not impact the company's financial records. Employee A notifies her supervisor of the impropriety, and the supervisor advises Employee A that she instructed Employee B to alter the records and that an adjustment would be made the subsequent month to correct the records. Employee A should:

Which of the following is part of the process domain?

Match the term on the right with the definition on the left.

Identifying and implementing best practices is most often performed by:

Use the following information to answer questions 20-24: -What do the numbers suggest?

Management accounting takes an external perspective in evaluating a firm's performance.

Based on the IMA Statement of Ethical Professional Practice, all of the following are ways that management accountants can try to resolve ethical issues except:

WestJet, an airline company based in Western Europe, is a small regional air carrier, struggling to achieve profitability in a limited niche market. WestJet's executive team is expected to make significant cost cuts and show positive changes in the airline's financial situation. Newly appointed Onboard Services Manager Tom Jones recently joined the company. Part of Tom's job is to check all the monthly invoices received for onboard services, verifying that they correspond to the services provided, approving the invoices, and forwarding them to the accounting department for payment. One of its vendors is Air Catering, a local airline catering company that was the only licensed catering service with all the required certifications for WestJet's base airport. Enjoying a monopoly position there, Air Catering charged high prices yet made sure to negotiate favorable terms in its agreements with airlines, especially WestJet. Going through the invoices, Tom noticed an unusual invoice from Air Catering for "general catering services." Tom was unsure what services these were for or why they were all invoiced on a separate bill. Tom decided to share his concerns with his direct supervisor. His supervisor said that the invoice referred to a separate verbal agreement between WestJet's and Air Catering's accounting departments. "These are some complicated accounting matters you shouldn't worry about," his boss said. "They know better how to properly invoice everything." She advised Tom to just sign his approval of the invoice and forward it to the accounting department for payment. Using the IMA Statement of Ethical Professional Practice, analyze the situation Tom is facing. Does Tom have an obligation to do more to address this ethical situation? What other actions could he take to successfully resolve this ethical conflict?

Developing a marketing strategy for a new cell phone product is an example of which stage in the PDCA management process?

Which of the following sequences match the four stages of the PDCA management process?

Management accounting practice is affected by the products or services offered by an organization to its customers.

Process managers oversee the work of operational managers and coordinate their efforts with top management.

Traditional management accounting emphasizes the entire management process, while business planning and analysis (BPA) tends to focus more on cost and profitability analysis.

Use the following information to answer questions 20-24: -What is the annual revenues' absolute size, or magnitude, of change from 2017 to 2018?

Use the following information to answer questions 20-24: -What is the percentage change of the number of iPhone 7 units sold from 2017 to 2018?

Use the following information to answer questions 20-24: -What is the percentage change of the number of iPhone 6 units sold from 2018 to 2019?

Top management is responsible for assigning responsibilities for achieving organizational objectives.

Rebecca Marlor is the managing partner of McGill, Graviet, and Johnson (MGJ), an audit and management advisory consulting firm. MGJ has three types of clients: audit, business consulting, and government consulting. Although the firm has increased its total number of clients the past few years, Rebecca is concerned because revenues and profits have been lagging. Although the audit business is booming as more companies have moved to the area, the consulting business has been slow to catch on. Many of the business consulting clients are manufacturing companies that have been long-term clients. Rebecca has asked John McGill, founding partner who is semi-retired, to look at the following results and make initial suggestions. Required:

Providing only the positive news the boss wants to hear is a violation of the credibility standard of the IMA Statement of Ethical Professional Practice.