Exam 1: The Changing Role of Managerial Accounting

Augusta Corporation recently implemented a just-in-time (JIT) production system along with a series of continuous improvement programs. If the firm is now considering adopting a total quality management (TQM) program, it would likely find that TQM:

Which of the following choice of rows correctly depicts activities that would be included in a manufacturer's value chain? Row Research and 1 Yes Yes No 2 Yes No Yes 3 Yes Yes Yes 4 No Yes No 5 No Yes Yes

Which of the following would likely be considered an internal user of accounting information rather than an external user?

Which of the following can be linked to a wave of corporate scandals that took place in the recent past?

The value chain is a key component of contemporary management accounting. Define the term "value chain" and explain how it would relate to an airline:

Much of managerial accounting information is based on:

Theoretical capacity refers to:

The value chain of a manufacturer would tend to exclude activities related to:

The process of managing the various activities in the value chain, along with the associated costs, is commonly known as:

Which of the following functions is best described as choosing among available alternatives?

The process of encouraging and authorizing workers to take appropriate initiatives to improve the overall firm is commonly known as:

The concept of employee empowerment does not involve encouraging and authorizing workers to take initiatives to:

Present several examples of managerial accounting information that could help a manager make each of the following decisions: A. A manufacturing company is currently making a part that is a production headache. The firm is deciding whether to abandon production and buy the part from an outside supplier. B. An operator of fast-food restaurants is deciding whether to open a new store in Dallas.

North of Seven Company has a bottleneck operation that slows production. Which of the following tools or approaches could the firm use to determine the most cost-effective ways to eliminate this problem?

Managerial accounting:

Consider the descriptors that follow: 1. Is heavily involved with the record keeping and reporting of assets, liabilities, and stockholders' equity. 2. Focuses on planning, decision-making, directing, and control. 3. Is heavily regulated. 4. A field that is becoming more "cross-functional" in nature. 5. Much of the field is based on costs and benefits. 6. Is involved almost exclusively with past transactions and events. 7. Much of the information provided is directed toward stockholders, financial analysts, creditors, and other external parties. 8. Tends to focus more on subunits within an entity rather than the organization as a whole. 9. May become involved with measures of customer satisfaction, and the amount of actual cost incurred vs. budgeted targets. 10. Information produced is intended for Managers within the organization. Required: Determine whether the descriptors are most closely associated with financial accounting or managerial accounting.

Which of the following choice of rows correctly depicts whether McDonald's, the University of British Columbia and The Gap would have a need for managerial accounting? Row The Gap 1 Yes Yes No 2 Yes No Yes 3 Yes Yes Yes 4 No Yes No 5 No Yes Yes

The day-to-day work of management teams will typically comprise all of the following activities except:

Managerial accountants: