Question 1

An effective way to cut costs is to eliminate activities that do NOT improve the product attributes that customers value.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is NOT a way for a company to improve customer response time?

Accepted Answer

A) Increase capacity of bottleneck operations. 
B) Purchase material in larger quantities. 
C) Use faster delivery procedures. 
D) Produce the product more quickly. 
A) Increase capacity of bottleneck operations. 
B) Purchase material in larger quantities. 
C) Use faster delivery procedures. 
D) Produce the product more quickly.

Question 3

The value chain is the sequence of business functions in which:

Accepted Answer

A) value is deducted from the products or services of an organization 
B) value is proportionately added to the products or services of an organization 
C) products and services are evaluated with respect to their value to the supply chain 
D) usefulness is added to the products or services of an organization 
A) value is deducted from the products or services of an organization 
B) value is proportionately added to the products or services of an organization 
C) products and services are evaluated with respect to their value to the supply chain 
D) usefulness is added to the products or services of an organization

Question 4

How does a controller help "control" a company?

Accepted Answer

By reporting and interpreting relevant d

Question 5

Strategy specifies:

Accepted Answer

A) how an organization matches its own capabilities with the opportunities in the marketplace 
B) standard procedures to ensure quality products 
C) incremental changes for improved performance 
D) the demand created for products and services 
A) how an organization matches its own capabilities with the opportunities in the marketplace 
B) standard procedures to ensure quality products 
C) incremental changes for improved performance 
D) the demand created for products and services

Question 6

Discuss the cost-benefit approach guideline management accountants use to provide value in strategic decision making.

Accepted Answer

Management accountants continually face

Question 7

The supply chain refers to the sequence of business functions in which customer usefulness is added to products or services.

Accepted Answer

A) True 
 B)False

Question 8

Management accounting:

Accepted Answer

A) focuses on estimating future revenues, costs, and other measures to forecast activities and their results 
B) provides information about the company as a whole 
C) reports information that has occurred in the past that is verifiable and reliable 
D) provides information that is generally available only on a quarterly or annual basis 
A) focuses on estimating future revenues, costs, and other measures to forecast activities and their results 
B) provides information about the company as a whole 
C) reports information that has occurred in the past that is verifiable and reliable 
D) provides information that is generally available only on a quarterly or annual basis

Question 9

All of the following report to the CFO EXCEPT the:

Accepted Answer

A) controller 
B) tax department manager 
C) production manager 
D) treasurer 
A) controller 
B) tax department manager 
C) production manager 
D) treasurer

Question 10

Complete a performance report for the month of May, 2011, for the Daily Bulletin, a regional newspaper showing four columns: 1)Actual Result; 2)Budgeted Amount; 3)Difference: Actual Result minus Budgeted Amount; 4)Difference as a Percentage of Budgeted Amount, given the following data:
   Does the report indicate any cause for managerial investigation?

Accepted Answer

The performance report should look somet

Question 11

For each type of report listed below, identify one planning decision and one controlling decision for which the information would be helpful. Assume you are a Walgreen Company store.
Item:
a. annual financial statements for the past three years
b. report detailing sales by department by each hour of the day for the past week
c. special study regarding increased road traffic due to the construction of a new shopping mall at a near-by intersection

Accepted Answer

Please note that answers will vary, but

Question 12

Long term financing is an integral part of the ________ function in an organization.

Accepted Answer

A) treasurer's 
B) controller's 
C) internal audit 
D) president's 
A) treasurer's 
B) controller's 
C) internal audit 
D) president's

Question 13

Explain how a budget can help management implement strategy.

Accepted Answer

A budget is a planning tool, a quantitat

Question 14

The person(s)directly responsible for attaining of organizational objectives is/are:

Accepted Answer

A) the treasurer 
B) line management 
C) the controller 
D) the chief financial officer 
A) the treasurer 
B) line management 
C) the controller 
D) the chief financial officer

Question 15

The process of preparing a budget:

Accepted Answer

A) forces coordination and communication across business functions 
B) increases accounting efficiencies 
C) reduces overcapacity 
D) promotes production automation 
A) forces coordination and communication across business functions 
B) increases accounting efficiencies 
C) reduces overcapacity 
D) promotes production automation

Question 16

Employees pay little attention to how their performance is measured.

Accepted Answer

A) True 
 B)False

Question 17

Which item is an indication of credibility under the Standards of Ethical Conduct?

Accepted Answer

A) Maintain an appropriate level of professional expertise by continually developing knowledge and skills. 
B) Refrain from using confidential information for unethical or illegal advantage. 
C) Abstain from engaging in or supporting any activity that might discredit the profession. 
D) Disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law. 
A) Maintain an appropriate level of professional expertise by continually developing knowledge and skills. 
B) Refrain from using confidential information for unethical or illegal advantage. 
C) Abstain from engaging in or supporting any activity that might discredit the profession. 
D) Disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.

Question 18

Planning includes all of the following EXCEPT

Accepted Answer

A) identifying the problem and uncertainties. 
B) obtaining information. 
C) providing feedback to help with future decision making. 
D) making predictions about the future. 
A) identifying the problem and uncertainties. 
B) obtaining information. 
C) providing feedback to help with future decision making. 
D) making predictions about the future.

Question 19

The key to a company's success is always to be the low cost producer in a particular industry.

Accepted Answer

A) True 
 B)False

Question 20

Staff management should NOT provide advice and assistance to line management.

Accepted Answer

A) True 
 B)False

Exam 1: The Accountants Role in the Organization

An effective way to cut costs is to eliminate activities that do NOT improve the product attributes that customers value.

Which of the following is NOT a way for a company to improve customer response time?

The value chain is the sequence of business functions in which:

How does a controller help "control" a company?

Strategy specifies:

Discuss the cost-benefit approach guideline management accountants use to provide value in strategic decision making.

The supply chain refers to the sequence of business functions in which customer usefulness is added to products or services.

Management accounting:

All of the following report to the CFO EXCEPT the:

Long term financing is an integral part of the ________ function in an organization.

Explain how a budget can help management implement strategy.

The person(s)directly responsible for attaining of organizational objectives is/are:

The process of preparing a budget:

Employees pay little attention to how their performance is measured.

Which item is an indication of credibility under the Standards of Ethical Conduct?

Planning includes all of the following EXCEPT

The key to a company's success is always to be the low cost producer in a particular industry.

Staff management should NOT provide advice and assistance to line management.

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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