Exam 1: Introduction to Managerial Accounting

Managerial accounting information tends to report on segments of the business.

Gilmore Corporation is investigating the possibility of adopting a lean thinking philosophy in its manufacturing facilities. The plant manager has done a cost-benefit analysis and has found that the costs of the lean production program exceed the benefits by $115,000. You analyze the situation and make some adjustments to the cost estimates. After doing your analysis, you find that costs still outweigh benefits by less than 5%. Which might be a sound course of action?

IFRS stands for "important financial reporting standards."

Which of the following people is most likely to only use financial accounting information?

Companies listed on the New York Stock Exchange (NYSE)are required to have an internal audit function by

The IMA's overarching ethical principles include: Honesty, Fairness, Objectivity, and Responsibility.

To ensure a profit in the current year a company ships out pre-ordered merchandise the last week of December, instead of in mid-January as the customer instructed. This early shipment could be a violation of which ethical standard?

What ethical standard would you violate if you take pens home from work for personal use?

Which person is hired directly by the board of directors to manage the daily operations of the company?

GAAP must be followed when preparing managerial accounting reports.

What would a company need to conduct when considering whether to install an ERP system or not?

Which of the following is an example of the IMA's credibility standard?

The design of a management accounting system should consider how reports affect employees' behavior.

The CFO is the person responsible for the day-to-day operations of the company.

What is the name of the professional association for managerial accountants?

The Sarbanes-Oxley Act was enacted

Creating budgets are part of which primary management responsibility?

According to the Sarbanes-Oxley Act, who is responsible for establishing and maintaining internal controls over financial reporting?

Movements toward sustainability and corporate responsibility often

Which ethical standard is demonstrated when you attend a class to maintain your professional knowledge?