Question 1

Companies can decide on an appropriate strategy based strictly on internally available information.

Accepted Answer

A) True 
 B)False

Question 2

Cost management involves long-term and short-term decisions that attempt to increase value for customers and lower costs of products or services.

Accepted Answer

A) True 
 B)False

Question 3

Briefly explain the planning and control activities in management accounting. How are these two activities linked to each other?

Accepted Answer

Planning business operations relates to

Question 4

When confronted with a potential ethical conflict, a managerial accountant should not contact his or her personal attorney concerning rights and obligations.

Accepted Answer

A) True 
 B)False

Question 5

Treasury includes banking and short- and long-term financing, investments, and cash management.

Accepted Answer

A) True 
 B)False

Question 6

Companies generally follow one of two basic strategies: 1)providing a quality product or service at low prices, or 2)offering a unique product or service often priced higher than competing products.

Accepted Answer

A) True 
 B)False

Question 7

An external audit includes reviewing and analyzing financial and other records to attest to the integrity of the organization's financial reports and to adherence to its policies and procedures.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following people is LEAST likely to use management accounting information?

Accepted Answer

A) the controller 
B) a shareholder evaluating a stock investment 
C) the treasurer 
D) an assembly department supervisor 
A) the controller 
B) a shareholder evaluating a stock investment 
C) the treasurer 
D) an assembly department supervisor

Question 9

Cost management provides information that helps increase value for customers.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Strategy does NOT specify how an organization matches its capabilities with the opportunities in the marketplace.

Accepted Answer

A) True 
 B)False

Question 12

________ is a strategy that integrates people and technology in all business functions to enhance relationships with customers, partners, and distributors.

Accepted Answer

A) Supply-chain analysis 
B) Customer relationship management 
C) Value-chain analysis 
D) Continuous quality improvement 
A) Supply-chain analysis 
B) Customer relationship management 
C) Value-chain analysis 
D) Continuous quality improvement

Question 13

Cost management is narrowly focused on a continuous reduction of costs.

Accepted Answer

A) True 
 B)False

Question 14

An Enterprise Resource Planning (ERP)System is a single database that collects data and feeds into applications that support each of the company's business activities, such as purchases, production, distribution, and sales.

Accepted Answer

A) True 
 B)False

Question 15

________ is the after-sale support provided to customers.

Accepted Answer

A) Distribution 
B) Customer service 
C) Production 
D) Marketing 
A) Distribution 
B) Customer service 
C) Production 
D) Marketing

Question 16

When a particular aspect of employee performance is measured, employees pay more attention to it.

Accepted Answer

A) True 
 B)False

Question 17

Which item is NOT an indication of confidentiality under the Standards of Ethical Conduct?

Accepted Answer

A) Keep information confidential except when disclosure is authorized or legally required. 
B) Inform all relevant parties regarding appropriate use of confidential information. 
C) Refrain from using confidential information for unethical or illegal advantage. 
D) All of the above indicate confidentiality. 
A) Keep information confidential except when disclosure is authorized or legally required. 
B) Inform all relevant parties regarding appropriate use of confidential information. 
C) Refrain from using confidential information for unethical or illegal advantage. 
D) All of the above indicate confidentiality.

Question 18

Line management includes:

Accepted Answer

A) manufacturing managers 
B) human-resource managers 
C) information-technology managers 
D) management-accounting managers 
A) manufacturing managers 
B) human-resource managers 
C) information-technology managers 
D) management-accounting managers

Question 19

The last step in the decision-making process is to make decisions by choosing among alternatives.

Accepted Answer

A) True 
 B)False

Question 20

Managers use management accounting information to ________ strategy.

Accepted Answer

A) choose 
B) communicate 
C) implement 
D) All of these answers are correct. 
A) choose 
B) communicate 
C) implement 
D) All of these answers are correct.

Exam 1: The Accountants Role in the Organization

Companies can decide on an appropriate strategy based strictly on internally available information.

Cost management involves long-term and short-term decisions that attempt to increase value for customers and lower costs of products or services.

Briefly explain the planning and control activities in management accounting. How are these two activities linked to each other?

When confronted with a potential ethical conflict, a managerial accountant should not contact his or her personal attorney concerning rights and obligations.

Treasury includes banking and short- and long-term financing, investments, and cash management.

Companies generally follow one of two basic strategies: 1)providing a quality product or service at low prices, or 2)offering a unique product or service often priced higher than competing products.

An external audit includes reviewing and analyzing financial and other records to attest to the integrity of the organization's financial reports and to adherence to its policies and procedures.

Which of the following people is LEAST likely to use management accounting information?

Cost management provides information that helps increase value for customers.

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

Strategy does NOT specify how an organization matches its capabilities with the opportunities in the marketplace.

________ is a strategy that integrates people and technology in all business functions to enhance relationships with customers, partners, and distributors.

Cost management is narrowly focused on a continuous reduction of costs.

An Enterprise Resource Planning (ERP)System is a single database that collects data and feeds into applications that support each of the company's business activities, such as purchases, production, distribution, and sales.

________ is the after-sale support provided to customers.

When a particular aspect of employee performance is measured, employees pay more attention to it.

Which item is NOT an indication of confidentiality under the Standards of Ethical Conduct?

Line management includes:

The last step in the decision-making process is to make decisions by choosing among alternatives.

Managers use management accounting information to ________ strategy.

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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