Question 1

The service sector accounts for approximately 40 percent of the employment in the United States at the present time.

Accepted Answer

A) True 
 B)False

Question 2

The essence of the just-in-time philosophy is to eliminate waste.

Accepted Answer

A) True 
 B)False

Question 3

Line managers are directly involved with making and selling the organization's products or services.

Accepted Answer

A) True 
 B)False

Question 4

________ is the field of accounting that develops information for external parties such as stockholders,suppliers,banks and governmental regulatory bodies.

Accepted Answer

A) Auditing 
B) Internal auditing 
C) Management accounting 
D) Financial accounting 
A) Auditing 
B) Internal auditing 
C) Management accounting 
D) Financial accounting

Question 5

The value chain refers to the various stages through which a product passes.

Accepted Answer

A) True 
 B)False

Question 6

Process engineers at Starbucks investigate methods to reduce the time to roast coffee beans and to better preserve their flavor.This is an example of the ________ or the ________ functions of the value chain.

Accepted Answer

A) research and development; production 
B) design of products,services or processes; production 
C) production; engineering 
D) research and development; design of products,services or processes 
A) research and development; production 
B) design of products,services or processes; production 
C) production; engineering 
D) research and development; design of products,services or processes

Question 7

The Flintstone Company held a party.The company expected attendance of 100 people and prepared the following budget:   One hundred people attended the party.The costs incurred were:
  Which of the following costs deserve further examination assuming Flintstone Company uses the management-by-exception rule?

Accepted Answer

A) hotel room rental 
B) food 
C) entertainment 
D) decorations 
A) hotel room rental 
B) food 
C) entertainment 
D) decorations

Question 8

Generally Accepted Accounting Principles play an important role in management accounting.

Accepted Answer

A) True 
 B)False

Question 9

All service organizations are similar in that ________.

Accepted Answer

A) there is very little labor 
B) output is difficult to measure 
C) major inputs and outputs can be stored 
D) they are capital intensive 
A) there is very little labor 
B) output is difficult to measure 
C) major inputs and outputs can be stored 
D) they are capital intensive

Question 10

Investigating the reasons for the variances on a department's performance report is an example of ________.

Accepted Answer

A) scorekeeping 
B) attention directing 
C) problem solving 
D) auditing 
A) scorekeeping 
B) attention directing 
C) problem solving 
D) auditing

Question 11

Which company has NOT engaged in accounting fraud in the past ten years?

Accepted Answer

A) Enron 
B) Tyco 
C) Adelphia 
D) Smucker Quality Beverages Inc. 
A) Enron 
B) Tyco 
C) Adelphia 
D) Smucker Quality Beverages Inc.

Question 12

The function of the value chain that provides support activities to the customer is called ________.

Accepted Answer

A) marketing 
B) distribution 
C) customer service 
D) consumer relations 
A) marketing 
B) distribution 
C) customer service 
D) consumer relations

Question 13

A fraternity held a party.The following budget was prepared for 25 expected attendees:   Twenty-five people attended the party.The following costs were incurred:
  Using the management-by-exception rule,which of the following costs deserves further examination?

Accepted Answer

A) room rental 
B) food 
C) entertainment 
D) decorations 
A) room rental 
B) food 
C) entertainment 
D) decorations

Question 14

According to the Statement of Ethical Professional Practice drafted by the IMA,the standard of integrity states that each member has a responsibility to ________.

Accepted Answer

A) communicate information fairly and objectively 
B) mitigate actual conflicts of interest 
C) recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity 
D) disclose delays or deficiencies in information 
A) communicate information fairly and objectively 
B) mitigate actual conflicts of interest 
C) recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity 
D) disclose delays or deficiencies in information

Question 15

A sorority held a party.The sorority prepared the following budget for 25 expected attendees:   Twenty-five people attended the party.The costs incurred were:
  What is the variance for the room rental cost?

Accepted Answer

A) $30 Unfavorable 
B) $35 Favorable 
C) $30 Favorable 
D) $70 Unfavorable 
A) $30 Unfavorable 
B) $35 Favorable 
C) $30 Favorable 
D) $70 Unfavorable

Question 16

Scott is a management accountant in a large company.Scott observed unethical behavior by a coworker who is also a management accountant.The coworker is a relative of the company's president and he always receives preferential treatment.Scott observed the coworker putting office supplies and small pieces of electronic equipment in his briefcase.According to the IMA,what course of action should Scott take?

Accepted Answer

A) He should report the observation to the police.The coworker is stealing from the company. 
B) He should report the observation to his immediate supervisor. 
C) He should report the observation to the Securities and Exchange Commission. 
D) He should do nothing. 
A) He should report the observation to the police.The coworker is stealing from the company. 
B) He should report the observation to his immediate supervisor. 
C) He should report the observation to the Securities and Exchange Commission. 
D) He should do nothing.

Question 17

Scorekeeping allows managers to evaluate organizational performance.

Accepted Answer

A) True 
 B)False

Question 18

What statement about management accounting is FALSE?

Accepted Answer

A) Management accounting is the process of identifying,measuring,accumulating,analyzing,preparing,interpreting and communicating information. 
B) Management accounting helps managers fulfill organizational objectives. 
C) Management accounting is used by managerial accountants to make strategic and operational decisions. 
D) Management accounting produces information for managers in an organization. 
A) Management accounting is the process of identifying,measuring,accumulating,analyzing,preparing,interpreting and communicating information. 
B) Management accounting helps managers fulfill organizational objectives. 
C) Management accounting is used by managerial accountants to make strategic and operational decisions. 
D) Management accounting produces information for managers in an organization.

Question 19

Reports prepared by managerial accountants have a past orientation.

Accepted Answer

A) True 
 B)False

Question 20

________ is (are)the accounting system's effect on the behavior and the decisions of managers.

Accepted Answer

A) Simplicity 
B) Behavioral implications 
C) The cost-benefit balance 
D) The code of ethics 
A) Simplicity 
B) Behavioral implications 
C) The cost-benefit balance 
D) The code of ethics

The service sector accounts for approximately 40 percent of the employment in the United States at the present time.

The essence of the just-in-time philosophy is to eliminate waste.

Line managers are directly involved with making and selling the organization's products or services.

________ is the field of accounting that develops information for external parties such as stockholders,suppliers,banks and governmental regulatory bodies.

The value chain refers to the various stages through which a product passes.

Process engineers at Starbucks investigate methods to reduce the time to roast coffee beans and to better preserve their flavor.This is an example of the or the functions of the value chain.

Generally Accepted Accounting Principles play an important role in management accounting.

All service organizations are similar in that ________.

Investigating the reasons for the variances on a department's performance report is an example of ________.

Which company has NOT engaged in accounting fraud in the past ten years?

The function of the value chain that provides support activities to the customer is called ________.

A fraternity held a party.The following budget was prepared for 25 expected attendees: Twenty-five people attended the party.The following costs were incurred: Using the management-by-exception rule,which of the following costs deserves further examination?

According to the Statement of Ethical Professional Practice drafted by the IMA,the standard of integrity states that each member has a responsibility to ________.

A sorority held a party.The sorority prepared the following budget for 25 expected attendees: Twenty-five people attended the party.The costs incurred were: What is the variance for the room rental cost?

Scorekeeping allows managers to evaluate organizational performance.

What statement about management accounting is FALSE?

Reports prepared by managerial accountants have a past orientation.

________ is (are)the accounting system's effect on the behavior and the decisions of 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 service sector accounts for approximately 40 percent of the employment in the United States at the present time.

The essence of the just-in-time philosophy is to eliminate waste.

Line managers are directly involved with making and selling the organization's products or services.

________ is the field of accounting that develops information for external parties such as stockholders,suppliers,banks and governmental regulatory bodies.

The value chain refers to the various stages through which a product passes.

Process engineers at Starbucks investigate methods to reduce the time to roast coffee beans and to better preserve their flavor.This is an example of the ________ or the ________ functions of the value chain.

Generally Accepted Accounting Principles play an important role in management accounting.

All service organizations are similar in that ________.

Investigating the reasons for the variances on a department's performance report is an example of ________.

Which company has NOT engaged in accounting fraud in the past ten years?

The function of the value chain that provides support activities to the customer is called ________.

A fraternity held a party.The following budget was prepared for 25 expected attendees: Twenty-five people attended the party.The following costs were incurred: Using the management-by-exception rule,which of the following costs deserves further examination?

According to the Statement of Ethical Professional Practice drafted by the IMA,the standard of integrity states that each member has a responsibility to ________.

A sorority held a party.The sorority prepared the following budget for 25 expected attendees: Twenty-five people attended the party.The costs incurred were: What is the variance for the room rental cost?

Scorekeeping allows managers to evaluate organizational performance.

What statement about management accounting is FALSE?

Reports prepared by managerial accountants have a past orientation.

________ is (are)the accounting system's effect on the behavior and the decisions of 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

Process engineers at Starbucks investigate methods to reduce the time to roast coffee beans and to better preserve their flavor.This is an example of the or the functions of the value chain.