Exam 1: The Accountants Vital Role in Decision Making

The text identifies six ways to classify the major differences between Management and Financial Accounting.The statement "Varies from hourly to 15 to 20 years" is an example of which of the following classes of differences?

Professional codes of conduct relating to the accounting profession

The value chain

Which of the following is TRUE concerning the value chain of business functions?

"Cost management" describes

When a company works with its supplier to reduce material-handling costs, this is an example of

Once an action plan is implemented, it should

The value chain is the sequence of business functions in which

Managers typically receive reports on cost planning and controls that should be considered for internal use only.

The text identifies six ways to classify the major differences between Management and Financial Accounting.The statement "Communicate organization's financial position to external users" is an example of which of the following classes?

Cyclone Car Company tries to assign appropriate responsibilities to all of its managers.Production managers receive reports which accumulate information of the shop operations for each plant.Plant operations are further aggregated in the report received by the vice president of manufacturing.These reports show the budgeted and actual operating results for the current month and year-to-date.These, along with inventory status reports, provide the major source of production information for the next planning period.Managers evaluate the variances between actual and budgeted amounts and determine whether operations are in or out of control.If variances are large, appropriate action is taken, i. e., the plans are changed.The company's profits have been decreasing, and management has requested similar aggregate sales data from marketing.It is felt that this added information will suffice for its decision-making needs.Required: Do you agree? Why? Do you foresee any needs that will not be met by this information? If so, what additional information do you suggest that management be provided by the management accounting system?

Match each independent statement with the appropriate use of feedback. A)Changing reward systems. B)Changing how decision alternatives are identified. C)Changing goals. D)Changing the range of information collected in order to make predictions. E)Changing managers. F)Changing how the company operates. -Quality control activities have been moved from the end of the assembly line to critical points along the assembly line.

Johnson Advertising Agency incurs the following costs in its service activities.Match each one of them to one of the value chain functions listed. A)customer service B)marketing C)production D)design of products, services, and processes -cost of computer time used to create designs for customers

Preparation of a monthly report comparing the actual phone bill with the expected phone costs would be classified as

Control includes deciding what feedback to provide that will help with future decision making.

Measuring and evaluating performance, and providing feedback are aspects of

The primary criterion when faced with a resource allocation decision is

Match each independent statement with the appropriate use of feedback. A)Changing reward systems. B)Changing how decision alternatives are identified. C)Changing goals. D)Changing the range of information collected in order to make predictions. E)Changing managers. F)Changing how the company operates. -MLB Company contracts with an outside janitorial service rather than continuing with its own cleaning crew.

As teamwork has become more prominent in the last few years, the traditional distinctions between staff and line management

Control includes the performance evaluation of personnel and operations.