Question 1

A data warehouse or infobarn:

Accepted Answer

A) is reserved for exclusive use by the CFO 
B) is primarily used for financial reporting purposes 
C) stores information used by different managers for multiple purposes 
D) gathers only nonfinancial information 
A) is reserved for exclusive use by the CFO 
B) is primarily used for financial reporting purposes 
C) stores information used by different managers for multiple purposes 
D) gathers only nonfinancial information

Question 2

The supply chain describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers.

Accepted Answer

A) True 
 B)False

Question 3

Classify each cost item 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 samples mailed to promote sales of a new product
b. labor cost of workers in the manufacturing plant
c. bonus paid to a person with a 90% satisfaction rating in handling customers with complaints
d. transportation costs for shipping products to retail outlets

Accepted Answer

a. (4)marketing
b. (

Question 4

________ is a philosophy in which management improves operations throughout the value chain to deliver products and services that exceed customer expectations.

Accepted Answer

A) Cost-benefit approach 
B) Customer focus 
C) Customer relationship management 
D) Total quality management 
A) Cost-benefit approach 
B) Customer focus 
C) Customer relationship management 
D) Total quality management

Question 5

Which item is NOT an area that customers want to see improved levels of performance in?

Accepted Answer

A) innovation 
B) quality 
C) cost and efficiency 
D) profit 
A) innovation 
B) quality 
C) cost and efficiency 
D) profit

Question 6

Is it possible to have an active cost management program without an Enterprise Resource Planning (ERP)System?

Accepted Answer

Yes, an active cost management program c

Question 7

The ________ is primarily responsible for management accounting and financial accounting.

Accepted Answer

A) COO (Chief Operating Officer) 
B) CIO (Chief Information Officer) 
C) treasurer 
D) controller 
A) COO (Chief Operating Officer) 
B) CIO (Chief Information Officer) 
C) treasurer 
D) controller

Question 8

The key to a company's success is creating value for customers while differentiating itself from its competitors.

Accepted Answer

A) True 
 B)False

Question 9

Companies have to follow strict guidelines when designing a management accounting system.

Accepted Answer

A) True 
 B)False

Question 10

In designing strategy, a company must match the opportunities and threats in the marketplace with:

Accepted Answer

A) those of the CFO (Chief Financial Officer) 
B) its resources and capabilities 
C) branding opportunities 
D) capabilities of current suppliers 
A) those of the CFO (Chief Financial Officer) 
B) its resources and capabilities 
C) branding opportunities 
D) capabilities of current suppliers

Question 11

Employees ________ how their performance is measured.

Accepted Answer

A) pay close attention to 
B) pay no attention to 
C) rarely know 
D) None of the above are correct. 
A) pay close attention to 
B) pay no attention to 
C) rarely know 
D) None of the above are correct.

Question 12

You have been employed as an entry-level management accountant for a little under a year. You suspect that your immediate supervisor is involved in a significant fraud involving diverting of company assets to personal use. Briefly describe the steps you might take to resolve this dilemma.

Accepted Answer

The management accountant should first c

Question 13

Which of the following statements refers to management accounting information?

Accepted Answer

A) There are no regulations governing the reports. 
B) The reports are generally delayed and historical. 
C) The audience tends to be stockholders, creditors, and tax authorities. 
D) It primarily measures and records business transactions. 
A) There are no regulations governing the reports. 
B) The reports are generally delayed and historical. 
C) The audience tends to be stockholders, creditors, and tax authorities. 
D) It primarily measures and records business transactions.

Question 14

Managers always require the information in an accounting system to be presented in the same format.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following types of information are used in management accounting?

Accepted Answer

A) financial information 
B) nonfinancial information 
C) information focused on the long term 
D) All of these answers are correct. 
A) financial information 
B) nonfinancial information 
C) information focused on the long term 
D) All of these answers are correct.

Question 16

If a managerial accountant suspected his or her immediate superior of wrongdoing, the managerial accountant should request an immediate meeting with the Board of Directors.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning your direct supervisor?

Accepted Answer

A) Inform the Board of Directors of the existence of a potential conflict. 
B) Confront the supervisor directly. 
C) Discuss the situation with your supervisor's direct supervisor. 
D) Review your organization's procedures concerning resolution of such a conflict. 
A) Inform the Board of Directors of the existence of a potential conflict. 
B) Confront the supervisor directly. 
C) Discuss the situation with your supervisor's direct supervisor. 
D) Review your organization's procedures concerning resolution of such a conflict.

Question 18

Southwest Airlines is an example of a company that pursues a product differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following statements concerning an organization's strategy is NOT true?

Accepted Answer

A) Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. 
B) Management accountants provide input to help managers formulate strategy. 
C) A good strategy will always overcome poor implementation. 
D) Businesses usually 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. 
A) Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. 
B) Management accountants provide input to help managers formulate strategy. 
C) A good strategy will always overcome poor implementation. 
D) Businesses usually 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.

Question 20

Place the four business functions in the order they appear along the value chain:

Accepted Answer

A) Customer Service, Design, Production, Marketing 
B) Customer Service, Marketing, Production, Design 
C) Design, Production, Marketing, Customer Service 
D) Design, Customer Service, Production, Marketing 
A) Customer Service, Design, Production, Marketing 
B) Customer Service, Marketing, Production, Design 
C) Design, Production, Marketing, Customer Service 
D) Design, Customer Service, Production, Marketing

Exam 1: The Accountants Role in the Organization

A data warehouse or infobarn:

The supply chain describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers.

________ is a philosophy in which management improves operations throughout the value chain to deliver products and services that exceed customer expectations.

Which item is NOT an area that customers want to see improved levels of performance in?

Is it possible to have an active cost management program without an Enterprise Resource Planning (ERP)System?

The ________ is primarily responsible for management accounting and financial accounting.

The key to a company's success is creating value for customers while differentiating itself from its competitors.

Companies have to follow strict guidelines when designing a management accounting system.

In designing strategy, a company must match the opportunities and threats in the marketplace with:

Employees ________ how their performance is measured.

You have been employed as an entry-level management accountant for a little under a year. You suspect that your immediate supervisor is involved in a significant fraud involving diverting of company assets to personal use. Briefly describe the steps you might take to resolve this dilemma.

Which of the following statements refers to management accounting information?

Managers always require the information in an accounting system to be presented in the same format.

Which of the following types of information are used in management accounting?

If a managerial accountant suspected his or her immediate superior of wrongdoing, the managerial accountant should request an immediate meeting with the Board of Directors.

Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning your direct supervisor?

Southwest Airlines is an example of a company that pursues a product differentiation strategy.

Which of the following statements concerning an organization's strategy is NOT true?

Place the four business functions in the order they appear along the value chain:

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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