Question 1

R&D, production, and customer service are business functions that are all included as part of:

Accepted Answer

A) the value chain 
B) benchmarking 
C) marketing 
D) the supply chain 
A) the value chain 
B) benchmarking 
C) marketing 
D) the supply chain A

Question 2

The supply chain always occurs within a single organization.

Accepted Answer

A) True 
 B)False  False

Question 3

List the four standards of ethical conduct for management accountants. For each standard, give an example that demonstrates compliance with that standard.

Accepted Answer

Please note that answers may vary, but may include the following:
1. Competence: Maintain an appropriate level of professional expertise by continually developing knowledge and skills
2. Confidentiality: Refrain from using confidential information for unethical or illegal advantage
3. Integrity: Abstain from engaging in or supporting any activity that might discredit the profession
4. Credibility: Communicate information fairly and objectively

Question 4

One of the steps in planning is making predictions about the future.

Accepted Answer

A) True 
 B)False

Question 5

Examples of the controller's functions include all EXCEPT:

Accepted Answer

A) operations administration 
B) budgeting 
C) investor relations 
D) general ledger 
A) operations administration 
B) budgeting 
C) investor relations 
D) general ledger

Question 6

The technical considerations of budgeting encourage managers and other employees to strive for achieving the goals of the organization.

Accepted Answer

A) True 
 B)False

Question 7

The controller is usually responsible for banking, short- and long-term financing, investments, and cash management.

Accepted Answer

A) True 
 B)False

Question 8

The best-designed strategies are valuable whether or not they are effectively implemented.

Accepted Answer

A) True 
 B)False

Question 9

Cost accounting measures and reports short-term, long-term, financial, and non financial information.

Accepted Answer

A) True 
 B)False

Question 10

Accounting method for internal reporting purposes are specified by Generally Accepted Accounting Principles (GAAP).

Accepted Answer

A) True 
 B)False

Question 11

The controller (also called the chief accounting officer)is the financial executive primarily responsible for both management accounting and financial accounting.

Accepted Answer

A) True 
 B)False

Question 12

An ideal database should store information in a way that allows different managers to access the information they need.

Accepted Answer

A) True 
 B)False

Question 13

A well-conceived plan allows managers the ability to:

Accepted Answer

A) not make decisions again until the next planning session 
B) keep lower-level managers from implementing change 
C) underestimate costs so that actual operating results will be favorable when comparisons are made 
D) take advantage of unforeseen opportunities 
A) not make decisions again until the next planning session 
B) keep lower-level managers from implementing change 
C) underestimate costs so that actual operating results will be favorable when comparisons are made 
D) take advantage of unforeseen opportunities

Question 14

The Institute of Management Accountants provides a hotline to discuss ethical issues.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Which of the following is NOT one of the questions management accountants might attempt to help answer in the formulation of strategy?

Accepted Answer

A) Who are our most important customers? 
B) What substitute products exist in the marketplace? 
C) Does the strategy comply with GAAP (Generally Accepted Accounting Principles)? 
D) Will adequate cash be available to implement the strategy? 
A) Who are our most important customers? 
B) What substitute products exist in the marketplace? 
C) Does the strategy comply with GAAP (Generally Accepted Accounting Principles)? 
D) Will adequate cash be available to implement the strategy?

Question 17

Key success factors include cost, quality, timeliness, and innovation.

Accepted Answer

A) True 
 B)False

Question 18

Management accountants must have behavioral and interpersonal skills.

Accepted Answer

A) True 
 B)False

Question 19

Classify each cost item of Ripon Printers into one of the business functions of the value chain, either (1)R&D, (2)design, (3)production, (4)marketing, (5)distribution, or (6)customer service.
Item:
a. cost of customer order forms
b. cost of paper used in manufacture of books
c. cost of paper used in packing cartons to ship books
d. cost of paper used in display at national trade show
e. depreciation of trucks used to transport books to college bookstores
f. cost of the wood used to manufacture paper
g. salary of the scientists attempting to find another source of printing ink
h. cost of defining the book size so that a standard-sized box is filled to capacity

Accepted Answer

a. (4)marketing
b. (3)producti

Question 20

Customer relationship management initiatives use technology to coordinate all:

Accepted Answer

A) production activities 
B) research activities 
C) customer-facing activities 
D) inventory management activities 
A) production activities 
B) research activities 
C) customer-facing activities 
D) inventory management activities

Exam 1: The Accountants Role in the Organization

R&D, production, and customer service are business functions that are all included as part of:

The supply chain always occurs within a single organization.

List the four standards of ethical conduct for management accountants. For each standard, give an example that demonstrates compliance with that standard.

One of the steps in planning is making predictions about the future.

Examples of the controller's functions include all EXCEPT:

The technical considerations of budgeting encourage managers and other employees to strive for achieving the goals of the organization.

The controller is usually responsible for banking, short- and long-term financing, investments, and cash management.

The best-designed strategies are valuable whether or not they are effectively implemented.

Cost accounting measures and reports short-term, long-term, financial, and non financial information.

Accounting method for internal reporting purposes are specified by Generally Accepted Accounting Principles (GAAP).

The controller (also called the chief accounting officer)is the financial executive primarily responsible for both management accounting and financial accounting.

An ideal database should store information in a way that allows different managers to access the information they need.

A well-conceived plan allows managers the ability to:

The Institute of Management Accountants provides a hotline to discuss ethical issues.

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"?

Which of the following is NOT one of the questions management accountants might attempt to help answer in the formulation of strategy?

Key success factors include cost, quality, timeliness, and innovation.

Management accountants must have behavioral and interpersonal skills.

Customer relationship management initiatives use technology to coordinate all:

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, Direct-Cost Variances, and Management Control

Flexible Budgets, Overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Pricing Decisions and Cost Management

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, Common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Balanced Scorecard: Quality, Time, and the Theory of Constraints

Inventory Management, Just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing, and Multinational Considerations

Performance Measurement, Compensation, and Multinational Considerations

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