Exam 1: An Introduction to Managerial Accounting and Cost Concepts

Managerial Accounting reports are prepared for external users while Financial Accounting reports are prepared for internal users.

Among other things,companies using the just-in-time (JIT)approach,produce only in response to a customer order meaning that workers will not be idle whenever demand falls below the company's production capacity.

Process reengineering is usually strongly accepted by all employees within an organization.

Planning includes identifying alternatives and then selecting the one that does the best job of furthering the organization's objectives.

In order to eliminate waste,companies must adopt and implement one or more management practices that focus on different aspects of the lean business model such as:

A manufacturing business has four different departments involved in producing each unit of its product.Maximum daily production capacities of each are: Department A - 100 units;Department B - 135 units;Department C - 95 units,and Department D - 110 units.Which department would be considered first in looking at ways to improve output capacity?

Benchmarking begins with:

Describe factors that have led to an increase in worldwide competiveness as part of the globalization on business.

Defects can be tolerated in a just-in-time (JIT)system.

Which of the following statements is not true?

Strategy pertains to the general direction in which an organization plans to move to achieve its goals and objectives.

Managers assign tasks to employees,arbitrate disputes,answer questions,solve on the spot problems,and make many decisions that affect customers and employees,which in turn,will likely influence future financial and nonfinancial performance.

Planning involves selecting a course of action and specifying how the action will be implemented.

A manufacturing business has four different departments involved in producing each unit of its product.Maximum daily production capacities of each are: Department A - 100 units;Department B - 135 units;Department C - 95 units,and Department D - 110 units.A consultant has suggested some alternatives to increase output capacities as follows: Alternative A - increase Department B's output to 200 units per day. Alternative B - increase Department C's output to 120 units per day. Alternative C - increase both Department A's and Department C's outputs to 110 units per day. Alternative D - increase Department D's output to 300 units per day. Assuming the costs of each alternative are similar and that only one can be chosen,which alternative would yield the best results for the business?

List four major potential benefits of successfully implementing a just-in-time (JIT)system in a manufacturing company.

Activities that do not add value to a product or service that customers are willing to pay for are considered to be:

Financial accounting is primarily concerned with:

Many Canadian organizations have successfully implemented quality management principles and have received recognition from Excellence Canada (formerly the National Quality Institute)whose mission is to inspire excellence in Canada.

Codes of ethics almost always provide employees with very specific and detailed instructions about what they can do and not do.

Process reengineering diagrams a business process in detail,questions it,and then completely redesigns it to eliminate unnecessary steps,reduce opportunities for errors,and reduce costs.