Question 1

Managerial accounting information often assists management through its:

Accepted Answer

A) financial-directing role. 
B) attention-directing role. 
C) planning and controlling role. 
D) organizational role. 
E) problem-solving role. 
A) financial-directing role. 
B) attention-directing role. 
C) planning and controlling role. 
D) organizational role. 
E) problem-solving role.

Question 2

Which of the following positions does the controller occupy in an organization?

Accepted Answer

A) A line position. 
B) A staff position. 
C) Neither a line nor a staff position, since the accounting department must be independent. 
D) The position of internal auditor. 
E) The position of treasurer. 
A) A line position. 
B) A staff position. 
C) Neither a line nor a staff position, since the accounting department must be independent. 
D) The position of internal auditor. 
E) The position of treasurer.

Question 3

The chief managerial and financial accountant of an organization is the:

Accepted Answer

A) chief executive officer. 
B) treasurer. 
C) vice-president of accounting. 
D) internal auditor. 
E) chief financial officer. 
A) chief executive officer. 
B) treasurer. 
C) vice-president of accounting. 
D) internal auditor. 
E) chief financial officer.

Question 4

Managerial accounting:

Accepted Answer

A) focuses only on historical data. 
B) is governed by GAAP. 
C) focuses primarily on the needs of personnel within the organization. 
D) provides information for parties external to the organization. 
E) focuses on financial statements and other financial reports. 
A) focuses only on historical data. 
B) is governed by GAAP. 
C) focuses primarily on the needs of personnel within the organization. 
D) provides information for parties external to the organization. 
E) focuses on financial statements and other financial reports.

Question 5

Which of the following is not an ethical standard of managerial accounting?

Accepted Answer

A) Competence. 
B) Confidentiality. 
C) Efficiency. 
D) Integrity. 
E) Credibility. 
A) Competence. 
B) Confidentiality. 
C) Efficiency. 
D) Integrity. 
E) Credibility.

Question 6

Which of the following employees at WestJet Airlines would not be considered as holding a line position?

Accepted Answer

A) Pilot. 
B) Chief financial officer (CFO). 
C) Flight attendant. 
D) Ticket agent. 
E) Baggage handler. 
A) Pilot. 
B) Chief financial officer (CFO). 
C) Flight attendant. 
D) Ticket agent. 
E) Baggage handler.

Question 7

After careful planning, Nelson Manufacturing Corporation has decided to switch to a just-in-time inventory system. At the beginning of this switch, Nelson has 30 units of product in inventory. Nelson has 2,000 labour hours available in the first month of this switch. These hours could produce 500 units of product. Customer demand for this first month is 400 units. If just-in-time principles are correctly followed, how many units should Nelson plan to produce in the first month of the switch?

Accepted Answer

A) 370 
B) 400 
C) 430 
D) 470 
E) 500 
A) 370 
B) 400 
C) 430 
D) 470 
E) 500

Question 8

Many professions have adopted a series of ethical standards to provide guidance for their memberships. The Society of Management Accountants (CMA), for example, has published standards that focus on competence, confidentiality, integrity, and credibility. In light of these standards, consider the three cases that follow:
Case A-Leston Corporation has experienced serious financial difficulties in recent years. John Young, the company's chief financial officer, has just learned that a major competitor was likely to file for bankruptcy; however, he failed to disclose this information at a board meeting held later that day when a plant closure decision was being discussed. The board evaluated several proposals during the session that focused on improving Leston's financial position.
Case B-QBX Company manufactures fertilizer from various raw materials, including a raw material know as Felstar. Paul Kelly, the firm's purchasing manager, purposely acquired a lower grade of Felstar than normal because of a very attractive price. The lower-grade product resulted in increased usage during the manufacturing process but had no effect on the fertilizer's overall quality. An end-of-period report showed that QBX profited from Kelly's actions, with the overall savings in purchase price more than offsetting the cost of added consumption.
Case C-Central Distributing has a participative budgeting process, allowing employees to have a say in projected sales targets for the upcoming period. These targets are reflected in a series of performance reports that compare actual sales achieved against targeted amounts. Hillary Baxter submitted very low sales targets because, as she confided in a colleague, "I always want to look good in terms of meeting targets, even if anticipated sales and closures don't materialize."
Required:
Evaluate the three cases and determine the ethical issues, if any, that are involved. Cite the CMA's standards if appropriate.

Accepted Answer

Case A: Young had an obligation to infor

Question 9

Which of the following characteristics relates more to managerial accounting than to financial accounting?

Accepted Answer

A) A focus on reporting to personnel within an organization. 
B) A focus on reporting to external parties. 
C) An area of accounting that is heavily regulated. 
D) A focus on providing information that assists shareholders in making investment and credit decisions. 
E) A focus on providing information for the benefit of financial institutions. 
A) A focus on reporting to personnel within an organization. 
B) A focus on reporting to external parties. 
C) An area of accounting that is heavily regulated. 
D) A focus on providing information that assists shareholders in making investment and credit decisions. 
E) A focus on providing information for the benefit of financial institutions.

Question 10

In order for a company to achieve a sustainable competitive advantage, it must perform value chain activities:

Accepted Answer

A) at the same quality level as competitors, at the same cost. 
B) at the same quality level as competitors, but at a lower cost. 
C) at a higher quality level than competitors, at a higher cost. 
D) at a higher quality level than competitors, but at no greater cost. 
E) at either the same quality level as competitors, but at a lower cost, or at a higher quality level than competitors, but at no greater cost. 
A) at the same quality level as competitors, at the same cost. 
B) at the same quality level as competitors, but at a lower cost. 
C) at a higher quality level than competitors, at a higher cost. 
D) at a higher quality level than competitors, but at no greater cost. 
E) at either the same quality level as competitors, but at a lower cost, or at a higher quality level than competitors, but at no greater cost.

Question 11

The two dimensions of managerial accounting are:

Accepted Answer

A) a decision-facilitating dimension and a decision-influencing dimension. 
B) a decision-facilitating dimension and a financial-influencing dimension. 
C) a decision-influencing dimension and a cost-minimizing dimension. 
D) a cost-minimizing dimension and a profit-maximizing dimension. 
E) a decision-influencing dimension and a profit-maximizing dimension. 
A) a decision-facilitating dimension and a decision-influencing dimension. 
B) a decision-facilitating dimension and a financial-influencing dimension. 
C) a decision-influencing dimension and a cost-minimizing dimension. 
D) a cost-minimizing dimension and a profit-maximizing dimension. 
E) a decision-influencing dimension and a profit-maximizing dimension.

Question 12

Financial accounting focuses primarily on reporting:

Accepted Answer

A) to parties outside of an organization. 
B) to parties within an organization. 
C) to an organization's board of directors. 
D) to the Vice President of Finance. 
E) on behalf of financial institutions. 
A) to parties outside of an organization. 
B) to parties within an organization. 
C) to an organization's board of directors. 
D) to the Vice President of Finance. 
E) on behalf of financial institutions.

Question 13

Which of the preceding activities would likely not be considered a major step in the value chain of Roots Canada?

Accepted Answer

A) Research and development. 
B) Production. 
C) Product design. 
D) Distribution and sales. 
E) Activity-based costing. 
A) Research and development. 
B) Production. 
C) Product design. 
D) Distribution and sales. 
E) Activity-based costing.

Question 14

Which of the following managerial functions involves a detailed financial and operational description of anticipated operations?

Accepted Answer

A) Decision making. 
B) Planning. 
C) Directing operational activities. 
D) Controlling. 
E) Measuring. 
A) Decision making. 
B) Planning. 
C) Directing operational activities. 
D) Controlling. 
E) Measuring.

Question 15

Which of the following activities involves the running of the organization on a day-to-day basis?

Accepted Answer

A) Decision making. 
B) Planning. 
C) Directing operational activities. 
D) Controlling. 
E) Motivating. 
A) Decision making. 
B) Planning. 
C) Directing operational activities. 
D) Controlling. 
E) Motivating.

Question 16

Which of the following is not normally considered to be an element of e-business?

Accepted Answer

A) E-budgeting. 
B) Supply-chain management. 
C) E-commerce. 
D) Balanced scorecards. 
E) E-accounting 
A) E-budgeting. 
B) Supply-chain management. 
C) E-commerce. 
D) Balanced scorecards. 
E) E-accounting

Question 17

Cost management systems tend to focus on an organization's:

Accepted Answer

A) machines. 
B) employees. 
C) activities. 
D) customers. 
E) rules and regulations. 
A) machines. 
B) employees. 
C) activities. 
D) customers. 
E) rules and regulations.

Question 18

Managerial accounting has not changed in recent years because of:

Accepted Answer

A) the growth of e-business. 
B) increased global competition. 
C) the increased speed of communication technology. 
D) the adoption of Just-in-Time Inventory Management systems. 
E) Management Accountants serving in the role of CEO. 
A) the growth of e-business. 
B) increased global competition. 
C) the increased speed of communication technology. 
D) the adoption of Just-in-Time Inventory Management systems. 
E) Management Accountants serving in the role of CEO.

Question 19

Cross-functional teams and continuous improvement are two themes of contemporary management accounting. Briefly explain these two concepts:

Accepted Answer

Cross-functional teams involve bringing

Question 20

Which of the following is not an element of competency?

Accepted Answer

A) To develop appropriate knowledge about a particular subject. 
B) To perform duties in accordance with relevant laws. 
C) To perform duties in accordance with relevant technical standards. 
D) To refrain from engaging in an activity that would discredit the accounting profession. 
E) To prepare clear reports after an analysis of relevant and reliable information. 
A) To develop appropriate knowledge about a particular subject. 
B) To perform duties in accordance with relevant laws. 
C) To perform duties in accordance with relevant technical standards. 
D) To refrain from engaging in an activity that would discredit the accounting profession. 
E) To prepare clear reports after an analysis of relevant and reliable information.

Managerial accounting information often assists management through its:

Which of the following positions does the controller occupy in an organization?

The chief managerial and financial accountant of an organization is the:

Managerial accounting:

Which of the following is not an ethical standard of managerial accounting?

Which of the following employees at WestJet Airlines would not be considered as holding a line position?

Which of the following characteristics relates more to managerial accounting than to financial accounting?

In order for a company to achieve a sustainable competitive advantage, it must perform value chain activities:

The two dimensions of managerial accounting are:

Financial accounting focuses primarily on reporting:

Which of the preceding activities would likely not be considered a major step in the value chain of Roots Canada?

Which of the following managerial functions involves a detailed financial and operational description of anticipated operations?

Which of the following activities involves the running of the organization on a day-to-day basis?

Which of the following is not normally considered to be an element of e-business?

Cost management systems tend to focus on an organization's:

Managerial accounting has not changed in recent years because of:

Cross-functional teams and continuous improvement are two themes of contemporary management accounting. Briefly explain these two concepts:

Which of the following is not an element of competency?

Basic Cost Management Concepts

Product Costing and Cost Accumulation

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis, Cost Behaviour, and Cost Estimation

Cost-Volume-Profit Analysis, Absorption and Variable Costing

Profit Planning and Activity-Based Budgeting

Standard Costing and Flexible Budgeting

Cost Management Tools

Responsibility Accounting, Investment Centres, and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

Filters

Exam 1: The Changing Role of Managerial Accounting

Managerial accounting information often assists management through its:

Which of the following positions does the controller occupy in an organization?

The chief managerial and financial accountant of an organization is the:

Managerial accounting:

Which of the following is not an ethical standard of managerial accounting?

Which of the following employees at WestJet Airlines would not be considered as holding a line position?

Which of the following characteristics relates more to managerial accounting than to financial accounting?

In order for a company to achieve a sustainable competitive advantage, it must perform value chain activities:

The two dimensions of managerial accounting are:

Financial accounting focuses primarily on reporting:

Which of the preceding activities would likely not be considered a major step in the value chain of Roots Canada?

Which of the following managerial functions involves a detailed financial and operational description of anticipated operations?

Which of the following activities involves the running of the organization on a day-to-day basis?

Which of the following is not normally considered to be an element of e-business?

Cost management systems tend to focus on an organization's:

Managerial accounting has not changed in recent years because of:

Cross-functional teams and continuous improvement are two themes of contemporary management accounting. Briefly explain these two concepts:

Which of the following is not an element of competency?

Basic Cost Management Concepts

Product Costing and Cost Accumulation

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis, Cost Behaviour, and Cost Estimation

Cost-Volume-Profit Analysis, Absorption and Variable Costing

Profit Planning and Activity-Based Budgeting

Standard Costing and Flexible Budgeting

Cost Management Tools

Responsibility Accounting, Investment Centres, and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

Filters