Question 1

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

Accepted Answer

A) Refrain from engaging in any conduct that would prejudice carrying out duties ethically. 
B) Communicate information fairly and objectively. 
C) Keep information confidential except when disclosure is authorized or legally required. 
D) Recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity. 
A) Refrain from engaging in any conduct that would prejudice carrying out duties ethically. 
B) Communicate information fairly and objectively. 
C) Keep information confidential except when disclosure is authorized or legally required. 
D) Recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity.

Question 2

Staff management includes:

Accepted Answer

A) manufacturing managers 
B) human-resource managers 
C) purchasing managers 
D) distribution managers 
A) manufacturing managers 
B) human-resource managers 
C) purchasing managers 
D) distribution managers

Question 3

Which of the following statements about customer value is NOT true?

Accepted Answer

A) Customer value is shown in a corporation's balance sheet. 
B) Creating value for customers is an important part of planning and implementing strategy. 
C) How our product delivers customer value should be determined as part of a company's strategy formulation. 
D) It is possible to simultaneously lower cost and increase customer value. 
A) Customer value is shown in a corporation's balance sheet. 
B) Creating value for customers is an important part of planning and implementing strategy. 
C) How our product delivers customer value should be determined as part of a company's strategy formulation. 
D) It is possible to simultaneously lower cost and increase customer value.

Question 4

For best results, cost management emphasizes independently coordinating supply chain activities within your company and with other companies that act as suppliers and customers.

Accepted Answer

A) True 
 B)False

Question 5

________ includes providing financial information for reports to managers and shareholders, and overseeing the overall operations of the accounting system.

Accepted Answer

A) Internal audit 
B) External audit 
C) Controllership 
D) Treasury 
A) Internal audit 
B) External audit 
C) Controllership 
D) Treasury

Question 6

Strategic cost management describes cost management that specifically focuses on strategic issues.

Accepted Answer

A) True 
 B)False

Question 7

Key success factors are geared to improving customer satisfaction.

Accepted Answer

A) True 
 B)False

Question 8

Technological innovation has led to longer product-life cycles and lessened the need to bring new products to market more rapidly.

Accepted Answer

A) True 
 B)False

Question 9

Which item is NOT a guideline used by management accountants to assist in strategic and operational decision making?

Accepted Answer

A) cost-benefit approach 
B) behavioral and technical considerations 
C) different costs for different purposes 
D) balanced scorecard 
A) cost-benefit approach 
B) behavioral and technical considerations 
C) different costs for different purposes 
D) balanced scorecard

Question 10

A managerial accountant should NOT disclose confidential information to an outside party (such as a newspaper)unless legally obligated to do so.

Accepted Answer

A) True 
 B)False

Question 11

To take advantage of changing market opportunities, the annual budget should be strictly enforced.

Accepted Answer

A) True 
 B)False

Question 12

The balance sheet, income statement, and statement of cash flows are used for financial accounting, and also for management accounting.

Accepted Answer

A) True 
 B)False

Question 13

Modern cost accounting plays a role in:

Accepted Answer

A) planning new products 
B) evaluating operational processes 
C) controlling costs 
D) All of these answers are correct. 
A) planning new products 
B) evaluating operational processes 
C) controlling costs 
D) All of these answers are correct.

Question 14

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. Assume you are opening a small food outlet across the street from your campus. How might that business be operated under each of the two broad strategies? Consider the following specific operational areas:
a. target customers
b. products offered
c. product pricing
d. location choice
e. advertising content
f. advertising media

Accepted Answer

The purpose of this question is to explo

Question 15

A budget is a quantitative expression of a plan.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements about the cost-benefit approach is true?

Accepted Answer

A) Resources should be spent if they are expected to better attain company goals in relation to the expected costs of these resources. 
B) In a cost-benefit analysis, both costs and benefits are easy to obtain. 
C) Resources should be spent if the costs of a decision outweigh the benefits of the decision. 
D) A cost-benefit approach would not be appropriate for a decision to install a budget system or not. 
A) Resources should be spent if they are expected to better attain company goals in relation to the expected costs of these resources. 
B) In a cost-benefit analysis, both costs and benefits are easy to obtain. 
C) Resources should be spent if the costs of a decision outweigh the benefits of the decision. 
D) A cost-benefit approach would not be appropriate for a decision to install a budget system or not.

Question 17

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

Accepted Answer

A) Risk management 
B) Internal audit 
C) Controllership 
D) Treasury 
A) Risk management 
B) Internal audit 
C) Controllership 
D) Treasury

Question 18

________ is the delivery of products or services to customers.

Accepted Answer

A) Distribution 
B) Customer service 
C) Production 
D) Design of products, services, or processes 
A) Distribution 
B) Customer service 
C) Production 
D) Design of products, services, or processes

Question 19

The production component of the value chain refers detailed planning, engineering, and testing of products and processes.

Accepted Answer

A) True 
 B)False

Question 20

If there is an ethical conflict concerning your direct supervisor, you may contact all of the following groups EXCEPT:

Accepted Answer

A) local media 
B) audit committee 
C) executive committee 
D) board of directors 
A) local media 
B) audit committee 
C) executive committee 
D) board of directors

Exam 1: The Accountants Role in the Organization

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

Staff management includes:

Which of the following statements about customer value is NOT true?

For best results, cost management emphasizes independently coordinating supply chain activities within your company and with other companies that act as suppliers and customers.

________ includes providing financial information for reports to managers and shareholders, and overseeing the overall operations of the accounting system.

Strategic cost management describes cost management that specifically focuses on strategic issues.

Key success factors are geared to improving customer satisfaction.

Technological innovation has led to longer product-life cycles and lessened the need to bring new products to market more rapidly.

Which item is NOT a guideline used by management accountants to assist in strategic and operational decision making?

A managerial accountant should NOT disclose confidential information to an outside party (such as a newspaper)unless legally obligated to do so.

To take advantage of changing market opportunities, the annual budget should be strictly enforced.

The balance sheet, income statement, and statement of cash flows are used for financial accounting, and also for management accounting.

Modern cost accounting plays a role in:

A budget is a quantitative expression of a plan.

Which of the following statements about the cost-benefit approach is true?

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

________ is the delivery of products or services to customers.

The production component of the value chain refers detailed planning, engineering, and testing of products and processes.

If there is an ethical conflict concerning your direct supervisor, you may contact all of the following groups EXCEPT:

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

Filters