Question 1

The process of preparing a budget forces coordination and communication throughout the company.

Accepted Answer

A) True 
 B)False

Question 2

If there is an ethical conflict concerning your direct supervisor, when is it appropriate to contact authorities or individuals NOT employed by the organization?

Accepted Answer

A) when there is a personal conflict 
B) when your supervisor is about to receive a bonus 
C) when there is a clear violation of the law 
D) when you are about to be terminated 
A) when there is a personal conflict 
B) when your supervisor is about to receive a bonus 
C) when there is a clear violation of the law 
D) when you are about to be terminated

Question 3

Cost accounting provides all of the following EXCEPT:

Accepted Answer

A) information for management accounting and financial accounting 
B) pricing information from marketing studies 
C) financial information regarding the cost of acquiring resources 
D) nonfinancial information regarding the cost of operational efficiencies 
A) information for management accounting and financial accounting 
B) pricing information from marketing studies 
C) financial information regarding the cost of acquiring resources 
D) nonfinancial information regarding the cost of operational efficiencies

Question 4

The best-designed strategies and the best-developed capabilities are useless unless they are effectively executed.

Accepted Answer

A) True 
 B)False

Question 5

Value chain and classification of costs, car company.
General Motors incurs the following costs:
a. Electricity costs for the plant assembling the Chevrolet Camaro
b. Transportation costs for shipping the Camaro to dealers
c. Payment to Shelby Designs for the design of the Camaro.
d. Salary of an engineer working on the next generation of Camaros
e. Cost of GM employees' visit to an auto show to demonstrate the Camaro
f. Testing the Camaro at the GM track
g. Payment to television network for running Camaro advertisements
h. Cost of brake pads purchased from outside supplier to be installed on the Camaro
Required:
Classify each of the cost items (a-h)into one of the business functions of the value chain.
1) Research and development
2) Design of products and processes
3) Production
4) Marketing
5) Distribution
6) Customer service

Accepted Answer

a. 3)Production
b. 5)Distribut

Question 6

Identifying a company's most important customers does NOT help formulate strategy.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements about a company's supply chain is true?

Accepted Answer

A) A company's supply chain is always internal to a firm. 
B) A company's supply chain is always external to a firm. 
C) A company's supply chain is the same thing as a company's value chain. 
D) Management accountants provide information to enhance a company's supply chain. 
A) A company's supply chain is always internal to a firm. 
B) A company's supply chain is always external to a firm. 
C) A company's supply chain is the same thing as a company's value chain. 
D) Management accountants provide information to enhance a company's supply chain.

Question 8

A report showing the actual financial results for a period compared to the budgeted financial results for that same period would most likely be called a:

Accepted Answer

A) strategic plan 
B) management forecast 
C) performance report 
D) revised plan 
A) strategic plan 
B) management forecast 
C) performance report 
D) revised plan

Question 9

Financial accounting:

Accepted Answer

A) focuses on the future and includes activities such as preparing next year's operating budget 
B) must comply with GAAP (generally accepted accounting principles) 
C) reports include detailed information on the various operating segments of the business such as product lines or departments 
D) is prepared for the use of department heads and other employees 
A) focuses on the future and includes activities such as preparing next year's operating budget 
B) must comply with GAAP (generally accepted accounting principles) 
C) reports include detailed information on the various operating segments of the business such as product lines or departments 
D) is prepared for the use of department heads and other employees

Question 10

What competitive advantage could a company obtain from a successful cost management program?

Accepted Answer

There are three broad outcomes from a su

Question 11

Financial accounting reports financial and non financial information that helps managers implement company strategies.

Accepted Answer

A) True 
 B)False

Question 12

An Enterprise Resource Planning System can best be described as:

Accepted Answer

A) a collection of programs that use a variety of unconnected databases 
B) a single database that collects data and feeds it into applications that support each of the company's business activities, such as purchases, production, distribution, and sales 
C) a database that is primarily used by a purchasing department to determine the correct amount of a particular supply item to purchase 
D) a sophisticated means of linking two or more companies to facilitate their planning processes 
A) a collection of programs that use a variety of unconnected databases 
B) a single database that collects data and feeds it into applications that support each of the company's business activities, such as purchases, production, distribution, and sales 
C) a database that is primarily used by a purchasing department to determine the correct amount of a particular supply item to purchase 
D) a sophisticated means of linking two or more companies to facilitate their planning processes

Question 13

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

Accepted Answer

A) Maintain an appropriate level of professional expertise by continually developing knowledge and skills. 
B) Keep information confidential except when disclosure is authorized or legally required. 
C) Perform professional duties in accordance with relevant laws, regulations, and technical standards. 
D) Provide decision support information and recommendations that are accurate, clear, concise, and timely. 
A) Maintain an appropriate level of professional expertise by continually developing knowledge and skills. 
B) Keep information confidential except when disclosure is authorized or legally required. 
C) Perform professional duties in accordance with relevant laws, regulations, and technical standards. 
D) Provide decision support information and recommendations that are accurate, clear, concise, and timely.

Question 14

Value chain refers to its value to the employee.

Accepted Answer

A) True 
 B)False

Question 15

Customers are demanding improved performance related to:

Accepted Answer

A) reduced costs 
B) both reduced costs and increased quality 
C) lower costs, improved quality, and improved customer service 
D) All of these answers are correct. 
A) reduced costs 
B) both reduced costs and increased quality 
C) lower costs, improved quality, and improved customer service 
D) All of these answers are correct.

Question 16

Modern cost accounting takes the perspective that collecting cost information is a function of the management decisions being made.

Accepted Answer

A) True 
 B)False

Question 17

________ is the detailed planning and engineering of products, services, or processes.

Accepted Answer

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

Question 18

________ aims to improve operations throughout the value chain and to deliver products and services that exceed customer expectations.

Accepted Answer

A) Total Quality Management 
B) Innovation 
C) Customer response time 
D) Cost and efficiency 
A) Total Quality Management 
B) Innovation 
C) Customer response time 
D) Cost and efficiency

Question 19

Management accounting is playing an increasingly important role by helping managers develop and implement strategy.

Accepted Answer

A) True 
 B)False

Question 20

Whose perceptions of the company's products or services are the most important to the manager?

Accepted Answer

A) board of directors' perception 
B) customers' perception 
C) president's perception 
D) stockholders' perception 
A) board of directors' perception 
B) customers' perception 
C) president's perception 
D) stockholders' perception

Exam 1: The Accountants Role in the Organization

The process of preparing a budget forces coordination and communication throughout the company.

If there is an ethical conflict concerning your direct supervisor, when is it appropriate to contact authorities or individuals NOT employed by the organization?

Cost accounting provides all of the following EXCEPT:

The best-designed strategies and the best-developed capabilities are useless unless they are effectively executed.

Identifying a company's most important customers does NOT help formulate strategy.

Which of the following statements about a company's supply chain is true?

A report showing the actual financial results for a period compared to the budgeted financial results for that same period would most likely be called a:

Financial accounting:

What competitive advantage could a company obtain from a successful cost management program?

Financial accounting reports financial and non financial information that helps managers implement company strategies.

An Enterprise Resource Planning System can best be described as:

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

Value chain refers to its value to the employee.

Customers are demanding improved performance related to:

Modern cost accounting takes the perspective that collecting cost information is a function of the management decisions being made.

________ is the detailed planning and engineering of products, services, or processes.

________ aims to improve operations throughout the value chain and to deliver products and services that exceed customer expectations.

Management accounting is playing an increasingly important role by helping managers develop and implement strategy.

Whose perceptions of the company's products or services are the most important to the manager?

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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