Question 1

Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting.

Accepted Answer

A) True 
 B)False

Question 2

Describe management accounting and financial accounting.

Accepted Answer

Management accounting provides informati

Question 3

Cost accounting:

Accepted Answer

A) provides information on the efficiency of factory labor 
B) provides information on the cost of servicing commercial customers 
C) provides information on the performance of an operating division 
D) All of these answers are correct. 
A) provides information on the efficiency of factory labor 
B) provides information on the cost of servicing commercial customers 
C) provides information on the performance of an operating division 
D) All of these answers are correct.

Question 4

Which of the following statements concerning performance reports is NOT correct?

Accepted Answer

A) The performance report shows actual performance as compared to the budget. 
B) The performance report is a feedback tool. 
C) The performance report often leads to more investigations and action. 
D) The performance report contains no actual results due to confidentiality. 
A) The performance report shows actual performance as compared to the budget. 
B) The performance report is a feedback tool. 
C) The performance report often leads to more investigations and action. 
D) The performance report contains no actual results due to confidentiality.

Question 5

Management accounting information focuses on external reporting.

Accepted Answer

A) True 
 B)False

Question 6

Describe the value chain and how it can help organizations become more effective.

Accepted Answer

A value chain is a sequence of business

Question 7

Control measures should:

Accepted Answer

A) be set and not changed until the next budget cycle 
B) be flexible to allow for employees who are slackers 
C) be kept confidential from employees so that competitors don't have an opportunity to gain a competitive advantage 
D) be linked by feedback to planning 
A) be set and not changed until the next budget cycle 
B) be flexible to allow for employees who are slackers 
C) be kept confidential from employees so that competitors don't have an opportunity to gain a competitive advantage 
D) be linked by feedback to planning

Question 8

Which of the following groups would be LEAST likely to receive detailed management accounting reports?

Accepted Answer

A) stockholders 
B) sales representatives 
C) production supervisors 
D) managers 
A) stockholders 
B) sales representatives 
C) production supervisors 
D) managers

Question 9

Customer response time involves:

Accepted Answer

A) the speed it takes a customer to respond to an advertisement and place an order 
B) the speed at which an organization responds to customer requests 
C) the speed it takes to develop a new product 
D) the speed it takes an organization to develop a Total Quality Management (TQM)program 
A) the speed it takes a customer to respond to an advertisement and place an order 
B) the speed at which an organization responds to customer requests 
C) the speed it takes to develop a new product 
D) the speed it takes an organization to develop a Total Quality Management (TQM)program

Question 10

Management accountants should have little or no role in deciding on a company's strategy.

Accepted Answer

A) True 
 B)False

Question 11

Linking rewards to performance:

Accepted Answer

A) helps to motivate managers 
B) allows companies to charge premium prices 
C) should only be based on financial information 
D) All of these answers are correct. 
A) helps to motivate managers 
B) allows companies to charge premium prices 
C) should only be based on financial information 
D) All of these answers are correct.

Question 12

It is difficult to control activities without a budget.

Accepted Answer

A) True 
 B)False

Question 13

A budget:

Accepted Answer

A) is a quantitative expression of a proposed management plan 
B) helps translate strategy into actions 
C) aids in the coordination and communication among various business functions 
D) All of these answers are correct. 
A) is a quantitative expression of a proposed management plan 
B) helps translate strategy into actions 
C) aids in the coordination and communication among various business functions 
D) All of these answers are correct.

Question 14

It is generally easy to quantify expected benefits and costs when applying the cost-benefit approach.

Accepted Answer

A) True 
 B)False

Question 15

A bottleneck occurs when the work to be performed exceeds the available capacity.

Accepted Answer

A) True 
 B)False

Question 16

Which statement is true?

Accepted Answer

A) Management is primarily a technical activity. 
B) People do not react to measurements. 
C) Employees spend more attention on those variables that are getting measured. 
D) Resources should be spent if the expected benefits to the company are less than the expected costs. 
A) Management is primarily a technical activity. 
B) People do not react to measurements. 
C) Employees spend more attention on those variables that are getting measured. 
D) Resources should be spent if the expected benefits to the company are less than the expected costs.

Question 17

When faced with a potential ethical conflict, the managerial accountant should first consult any internal procedures of that organization.

Accepted Answer

A) True 
 B)False

Question 18

Management accounting includes all of the following EXCEPT

Accepted Answer

A) implementing strategies 
B) developing budgets 
C) preparing special studies and forecasts 
D) preparing the statement of cash flows 
A) implementing strategies 
B) developing budgets 
C) preparing special studies and forecasts 
D) preparing the statement of cash flows

Question 19

What is strategy? Briefly describe the two broad types of strategies that companies may choose to pursue.

Accepted Answer

Strategy specifies how an organization m

Question 20

Distribution refers to promoting and selling products or services to customers or prospective customers.

Accepted Answer

A) True 
 B)False

Exam 1: The Accountants Role in the Organization

Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting.

Describe management accounting and financial accounting.

Cost accounting:

Which of the following statements concerning performance reports is NOT correct?

Management accounting information focuses on external reporting.

Describe the value chain and how it can help organizations become more effective.

Control measures should:

Which of the following groups would be LEAST likely to receive detailed management accounting reports?

Customer response time involves:

Management accountants should have little or no role in deciding on a company's strategy.

Linking rewards to performance:

It is difficult to control activities without a budget.

A budget:

It is generally easy to quantify expected benefits and costs when applying the cost-benefit approach.

A bottleneck occurs when the work to be performed exceeds the available capacity.

Which statement is true?

When faced with a potential ethical conflict, the managerial accountant should first consult any internal procedures of that organization.

Management accounting includes all of the following EXCEPT

What is strategy? Briefly describe the two broad types of strategies that companies may choose to pursue.

Distribution refers to promoting and selling products or services to customers or prospective customers.

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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