Question 1

The only function in the value chain where accountants are of any importance is the production function.

Accepted Answer

A) True 
 B)False

Question 2

The various stages through which a product passes are called the ________.

Accepted Answer

A) value chain 
B) product life cycle 
C) performance plan 
D) product performance plan 
A) value chain 
B) product life cycle 
C) performance plan 
D) product performance plan

Question 3

The same information may serve the attention-directing function and the problem-solving function.

Accepted Answer

A) True 
 B)False

Question 4

The Hola Company held a Christmas party.The company expected attendance of 100 people and prepared the following budget:   One hundred people attended the party.The costs incurred were:
  What is the primary reason for the variance in total costs?

Accepted Answer

A) Hotel room rent cost more than expected. 
B) Food cost more than expected. 
C) Entertainment cost more than expected. 
D) Decorations cost more than expected. 
A) Hotel room rent cost more than expected. 
B) Food cost more than expected. 
C) Entertainment cost more than expected. 
D) Decorations cost more than expected.

Question 5

The largest U.S.association of professional accountants whose major interest is management accounting is the ________.

Accepted Answer

A) American Institute of Certified Public Accountants 
B) American Institute of Certified Management Accountants 
C) Institute of Management Accountants 
D) American Institute of Management Accountants 
A) American Institute of Certified Public Accountants 
B) American Institute of Certified Management Accountants 
C) Institute of Management Accountants 
D) American Institute of Management Accountants

Question 6

________ is (are)the primary consideration in choosing among accounting systems and methods.

Accepted Answer

A) Simplicity 
B) Behavioral implications 
C) The cost-benefit balance 
D) Simplicity and behavioral implications 
A) Simplicity 
B) Behavioral implications 
C) The cost-benefit balance 
D) Simplicity and behavioral implications

Question 7

The product life cycle for a refrigerator is usually a few months.

Accepted Answer

A) True 
 B)False

Question 8

Feedback is usually not critical to the cycle of planning and control.

Accepted Answer

A) True 
 B)False

Question 9

John is a management accountant at DAP Inc.John has reason to believe that his immediate supervisor (the controller),the chief financial officer and the company president are engaged in accounting fraud that involves overstating assets and understating liabilities.According to the guidelines offered by the IMA,what should John do?

Accepted Answer

A) Report the suspected wrongdoings to the local police. 
B) Discuss the suspected wrongdoings with his immediate supervisor. 
C) Discuss the suspected wrongdoings with the company president. 
D) Report the suspected wrongdoings to the audit committee or the board of directors. 
A) Report the suspected wrongdoings to the local police. 
B) Discuss the suspected wrongdoings with his immediate supervisor. 
C) Discuss the suspected wrongdoings with the company president. 
D) Report the suspected wrongdoings to the audit committee or the board of directors.

Question 10

Over 80 percent of companies in the United States have a code of conduct.

Accepted Answer

A) True 
 B)False

Question 11

According to the Financial Executives Institute,a function of the treasurer is ________.

Accepted Answer

A) reporting and interpreting 
B) short-term financing 
C) protection of assets 
D) government reporting 
A) reporting and interpreting 
B) short-term financing 
C) protection of assets 
D) government reporting

Question 12

The primary users of management accounting information are ________.

Accepted Answer

A) bankers 
B) governmental regulatory bodies 
C) managers in organizations 
D) managerial accountants 
A) bankers 
B) governmental regulatory bodies 
C) managers in organizations 
D) managerial accountants

Question 13

A budget is a qualitative expression of a plan of action.

Accepted Answer

A) True 
 B)False

Question 14

Variances ________.

Accepted Answer

A) are quantitative expressions of plans of action 
B) ignore areas that are problem areas 
C) are deviations from a plan 
D) ignore areas that are presumed to be running smoothly 
A) are quantitative expressions of plans of action 
B) ignore areas that are problem areas 
C) are deviations from a plan 
D) ignore areas that are presumed to be running smoothly

Question 15

Accountants support only some of the value-chain functions.

Accepted Answer

A) True 
 B)False

Question 16

Management accountants are exposed to only a few functional areas in an organization.

Accepted Answer

A) True 
 B)False

Question 17

The IMA's ethical standard of confidentiality does NOT require each member to ________.

Accepted Answer

A) keep information confidential except when disclosure is authorized or legally required 
B) inform all relevant parties regarding appropriate use of confidential information 
C) refrain from using confidential information for unethical or illegal advantage 
D) provide confidential decision support information and recommendations that are accurate,clear,concise and timely 
A) keep information confidential except when disclosure is authorized or legally required 
B) inform all relevant parties regarding appropriate use of confidential information 
C) refrain from using confidential information for unethical or illegal advantage 
D) provide confidential decision support information and recommendations that are accurate,clear,concise and timely

Question 18

The management accountant prepares the following performance report for a company's first year of operations:
   Required: 
A)Compute variances for each line item on the income statement.Also indicate if the variances are favorable or unfavorable.
B)Using the management-by-exception approach,which variances should be investigated further?

Accepted Answer

A) @#IMG-DLM& B)Selling Expenses and Cos

Question 19

Dell Inc.buys electronic components for laptop computers from Intel using the Internet.This is an example of a(n)________.

Accepted Answer

A) A2B transaction 
B) B2B transaction 
C) B2C transaction 
D) C2B transaction 
A) A2B transaction 
B) B2B transaction 
C) B2C transaction 
D) C2B transaction

Question 20

Staff managers give advice to line managers and have authority over line managers.

Accepted Answer

A) True 
 B)False

The only function in the value chain where accountants are of any importance is the production function.

The various stages through which a product passes are called the ________.

The same information may serve the attention-directing function and the problem-solving function.

The Hola Company held a Christmas party.The company expected attendance of 100 people and prepared the following budget: One hundred people attended the party.The costs incurred were: What is the primary reason for the variance in total costs?

The largest U.S.association of professional accountants whose major interest is management accounting is the ________.

________ is (are)the primary consideration in choosing among accounting systems and methods.

The product life cycle for a refrigerator is usually a few months.

Feedback is usually not critical to the cycle of planning and control.

Over 80 percent of companies in the United States have a code of conduct.

According to the Financial Executives Institute,a function of the treasurer is ________.

The primary users of management accounting information are ________.

A budget is a qualitative expression of a plan of action.

Variances ________.

Accountants support only some of the value-chain functions.

Management accountants are exposed to only a few functional areas in an organization.

The IMA's ethical standard of confidentiality does NOT require each member to ________.

Dell Inc.buys electronic components for laptop computers from Intel using the Internet.This is an example of a(n)________.

Staff managers give advice to line managers and have authority over line managers.

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 1: Managerial Accounting, the Business Organization

The only function in the value chain where accountants are of any importance is the production function.

The various stages through which a product passes are called the ________.

The same information may serve the attention-directing function and the problem-solving function.

The Hola Company held a Christmas party.The company expected attendance of 100 people and prepared the following budget: One hundred people attended the party.The costs incurred were: What is the primary reason for the variance in total costs?

The largest U.S.association of professional accountants whose major interest is management accounting is the ________.

________ is (are)the primary consideration in choosing among accounting systems and methods.

The product life cycle for a refrigerator is usually a few months.

Feedback is usually not critical to the cycle of planning and control.

Over 80 percent of companies in the United States have a code of conduct.

According to the Financial Executives Institute,a function of the treasurer is ________.

The primary users of management accounting information are ________.

A budget is a qualitative expression of a plan of action.

Variances ________.

Accountants support only some of the value-chain functions.

Management accountants are exposed to only a few functional areas in an organization.

The IMA's ethical standard of confidentiality does NOT require each member to ________.

Dell Inc.buys electronic components for laptop computers from Intel using the Internet.This is an example of a(n)________.

Staff managers give advice to line managers and have authority over line managers.

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters