Question 1

Management accountants have important ethical responsibilities that are related to competence, duty of care, objectivity, and professionalism.

Accepted Answer

A) True 
 B)False

Question 2

Hardcover Company incurs the following costs when it manufactures books.Match each one of them to one of the value chain functions listed.
A)production
B)distribution
C)marketing
D)research and development
-cost of paper used in manufacture of books

Accepted Answer

The answer of Hardcover Company incurs the following costs when...

Question 3

Which of the following is something management accountants should do to satisfy their users?

Accepted Answer

A) provide specialized information that given users can use 
B) consider only financial measures 
C) focus exclusively on internal users 
D) follow generally accepted accounting principles 
E) focus on planning more than control 
A) provide specialized information that given users can use 
B) consider only financial measures 
C) focus exclusively on internal users 
D) follow generally accepted accounting principles 
E) focus on planning more than control

Question 4

The cost-benefit approach should be used to make resource allocation decisions.

Accepted Answer

A) True 
 B)False

Question 5

Generally, companies follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition.Is it possible to follow a strategy that is "in the middle"?

Accepted Answer

There is some dispute about the correct

Question 6

A well conceived plan allows managers to have the ability to

Accepted Answer

A) stay with the pre-existing plan when things start to change for the better. 
B) leave the system and let the plan continue on its own. 
C) underestimate the costs so that actual operating results will be favourable when comparisons are made. 
D) take advantage of unforeseen opportunities. 
E) stay the course regardless of the outcome. 
A) stay with the pre-existing plan when things start to change for the better. 
B) leave the system and let the plan continue on its own. 
C) underestimate the costs so that actual operating results will be favourable when comparisons are made. 
D) take advantage of unforeseen opportunities. 
E) stay the course regardless of the outcome.

Question 7

Line management exists to provide advice and assistance to staff departments.

Accepted Answer

A) True 
 B)False

Question 8

Management should evaluate the difference between planned and budgeted amounts.

Accepted Answer

A) True 
 B)False

Question 9

Corporate governance

Accepted Answer

A) relates to the role of the corporate governor. 
B) comprises activities undertaken to ensure legal compliance with laws. 
C) is legislated by the federal government. 
D) relates only to the regulations provided by the Canadian Securities Administrators. 
E) is a voluntary system of compliance approved by each company's board of directors. 
A) relates to the role of the corporate governor. 
B) comprises activities undertaken to ensure legal compliance with laws. 
C) is legislated by the federal government. 
D) relates only to the regulations provided by the Canadian Securities Administrators. 
E) is a voluntary system of compliance approved by each company's board of directors.

Question 10

The person(s)responsible for providing advice and assistance to line managers is/are

Accepted Answer

A) the controller. 
B) the chief financial officer. 
C) staff management. 
D) the treasurer. 
E) the president. 
A) the controller. 
B) the chief financial officer. 
C) staff management. 
D) the treasurer. 
E) the president.

Question 11

Managerial accounting and cost accounting both measure and report financial and non-financial information relating to the cost of acquiring or utilizing resources.

Accepted Answer

A) True 
 B)False

Question 12

Controllership includes short- and long-term financing and investments, banking, cash management, foreign exchange, and derivatives management.

Accepted Answer

A) True 
 B)False

Question 13

Explain how a budget can help management implement strategy.

Accepted Answer

A budget is a planning tool, a quantitat

Question 14

How does a controller help "control" a company?

Accepted Answer

By reporting and interpreting relevant d

Question 15

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 updating an ad for a customer

Accepted Answer

The answer of Johnson Advertising Agency incurs the following costs...

Question 16

Hardcover Company incurs the following costs when it manufactures books.Match each one of them to one of the value chain functions listed.
A)production
B)distribution
C)marketing
D)research and development
-amortization of the wood used in the manufacturing plant

Accepted Answer

The answer of Hardcover Company incurs the following costs when...

Question 17

Which of the following statements about the cost-benefit approach is TRUE?

Accepted Answer

A) Resources should be spent if they are expected to better attain company goals in relation to the expected costs of these resources. 
B) In a cost-benefit analysis, both costs and benefits are easy to obtain. 
C) Resources should be spent if the costs of a decision outweigh the benefits of the decision. 
D) A cost-benefit approach would not be appropriate for a decision to install a budget system or not. 
E) The cost-benefit approach is more important than behavioural considerations. 
A) Resources should be spent if they are expected to better attain company goals in relation to the expected costs of these resources. 
B) In a cost-benefit analysis, both costs and benefits are easy to obtain. 
C) Resources should be spent if the costs of a decision outweigh the benefits of the decision. 
D) A cost-benefit approach would not be appropriate for a decision to install a budget system or not. 
E) The cost-benefit approach is more important than behavioural considerations.

Question 18

Line management is directly responsible for attaining the goals of the organization.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is an example of a reporting element of the social bottom line category in the triple bottom line approach?

Accepted Answer

A) shareholder return 
B) emission reduction 
C) sustainable business practices 
D) benefits to stakeholders 
E) risk management 
A) shareholder return 
B) emission reduction 
C) sustainable business practices 
D) benefits to stakeholders 
E) risk management

Question 20

A budget may be used as a planning tool, but not as a control tool.

Accepted Answer

A) True 
 B)False

Exam 1: The Accountants Vital Role in Decision Making

Management accountants have important ethical responsibilities that are related to competence, duty of care, objectivity, and professionalism.

Hardcover Company incurs the following costs when it manufactures books.Match each one of them to one of the value chain functions listed. A)production B)distribution C)marketing D)research and development -cost of paper used in manufacture of books

Which of the following is something management accountants should do to satisfy their users?

The cost-benefit approach should be used to make resource allocation decisions.

Generally, companies follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition.Is it possible to follow a strategy that is "in the middle"?

A well conceived plan allows managers to have the ability to

Line management exists to provide advice and assistance to staff departments.

Management should evaluate the difference between planned and budgeted amounts.

Corporate governance

The person(s)responsible for providing advice and assistance to line managers is/are

Managerial accounting and cost accounting both measure and report financial and non-financial information relating to the cost of acquiring or utilizing resources.

Controllership includes short- and long-term financing and investments, banking, cash management, foreign exchange, and derivatives management.

Explain how a budget can help management implement strategy.

How does a controller help "control" a company?

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 updating an ad for a customer

Hardcover Company incurs the following costs when it manufactures books.Match each one of them to one of the value chain functions listed. A)production B)distribution C)marketing D)research and development -amortization of the wood used in the manufacturing plant

Which of the following statements about the cost-benefit approach is TRUE?

Line management is directly responsible for attaining the goals of the organization.

Which of the following is an example of a reporting element of the social bottom line category in the triple bottom line approach?

A budget may be used as a planning tool, but not as a control tool.

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Analysis of Cost Behaviour

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, Rework, and Scrap

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

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