Question 1

A cost concept used for external reporting purposes may not be appropriate for internal, routine reporting to managers.

Accepted Answer

A) True 
 B)False

Question 2

The Sarbanes-Oxley legislation does NOT provide a process for employees to report violations of illegal and unethical acts.

Accepted Answer

A) True 
 B)False

Question 3

Line management is directly responsible for attaining the goals of the organization.

Accepted Answer

A) True 
 B)False

Question 4

________ is the acquisition, coordination, and assembly of resources to produce a product or deliver a service.

Accepted Answer

A) Research and development 
B) Customer service 
C) Production 
D) Marketing 
A) Research and development 
B) Customer service 
C) Production 
D) Marketing

Question 5

Which of the following descriptors refers to management accounting information?

Accepted Answer

A) It is verifiable and reliable. 
B) It is driven by rules. 
C) It is prepared for shareholders. 
D) It provides reasonable and timely estimates. 
A) It is verifiable and reliable. 
B) It is driven by rules. 
C) It is prepared for shareholders. 
D) It provides reasonable and timely estimates.

Question 6

In order, list the five steps in the decision-making process.

Accepted Answer

1. Identify the problem and uncertaintie

Question 7

Discuss the potential behavior implications of performance evaluation.

Accepted Answer

As measurements are made on operations a

Question 8

Strategy is formulated by answering all of the following EXCEPT:

Accepted Answer

A) Who are our most important customers? 
B) Is industry demand growing or shrinking? 
C) Will our external auditors certify our strategy? 
D) How sensitive are purchasers to price, quality, and service? 
A) Who are our most important customers? 
B) Is industry demand growing or shrinking? 
C) Will our external auditors certify our strategy? 
D) How sensitive are purchasers to price, quality, and service?

Question 9

Describe the major differences between management accounting and financial accounting for the following:
1. Primary users
2. Focus and emphasis
3. Rules of measurement and reporting

Accepted Answer

1. The primary users of management accou

Question 10

The primary criterion when faced with a resource allocation decision is:

Accepted Answer

A) cost minimization 
B) reduction in the amount of time required to perform a particular job 
C) achievement of organizational goals 
D) how well the alternative options help achieve organizational goals in relation to the costs incurred for these systems 
A) cost minimization 
B) reduction in the amount of time required to perform a particular job 
C) achievement of organizational goals 
D) how well the alternative options help achieve organizational goals in relation to the costs incurred for these systems

Question 11

Planning consists of all of these areas EXCEPT:

Accepted Answer

A) selecting organizational goals 
B) deciding how to attain the desired goals 
C) evaluating performance 
D) predicting results under various alternatives 
A) selecting organizational goals 
B) deciding how to attain the desired goals 
C) evaluating performance 
D) predicting results under various alternatives

Question 12

The increasing pace of technological innovation has resulted in shorter product life cycles.

Accepted Answer

A) True 
 B)False

Question 13

Processing orders and shipping products or services to customers (also called outbound logistics)is also known as

Accepted Answer

A) customer focus 
B) distribution 
C) marketing 
D) supply chain 
A) customer focus 
B) distribution 
C) marketing 
D) supply chain

Question 14

Ethical challenges for management accountants include:

Accepted Answer

A) whether to accept gifts from suppliers, knowing it is an effort to indirectly influence decisions 
B) whether to report unfavorable department information that may result in unfavorable consequences for a friend 
C) whether to file a tax return this year 
D) Both A and B are correct. 
A) whether to accept gifts from suppliers, knowing it is an effort to indirectly influence decisions 
B) whether to report unfavorable department information that may result in unfavorable consequences for a friend 
C) whether to file a tax return this year 
D) Both A and B are correct.

Question 15

Is financial accounting or management accounting more useful to an operations manager? Why?

Accepted Answer

Management accounting is more useful to

Question 16

________ describe(s)the flow of goods, services, and information from the purchase of materials to the delivery of products to consumers, regardless of whether those activities occur in the same organization or with other organizations.

Accepted Answer

A) Supply chain 
B) Key success factors 
C) Continuous improvement 
D) Customer focus 
A) Supply chain 
B) Key success factors 
C) Continuous improvement 
D) Customer focus

Question 17

________ describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers, regardless of whether those activities occur in the same organization or in other organizations.

Accepted Answer

A) The value chain 
B) The supply chain 
C) Product differentiation 
D) Distribution 
A) The value chain 
B) The supply chain 
C) Product differentiation 
D) Distribution

Question 18

The Standards of Ethical Conduct for management accountants include concepts related to:

Accepted Answer

A) competence, performance, integrity, and reporting 
B) competence, confidentiality, integrity, and credibility 
C) experience, integrity, reporting, and objectivity 
D) None of these answers are correct. 
A) competence, performance, integrity, and reporting 
B) competence, confidentiality, integrity, and credibility 
C) experience, integrity, reporting, and objectivity 
D) None of these answers are correct.

Question 19

The controller is generally a staff position.

Accepted Answer

A) True 
 B)False

Question 20

Management accountants might provide information on decisions on whether to buy a product from outside or manufacture it in-house.

Accepted Answer

A) True 
 B)False

Exam 1: The Accountants Role in the Organization

A cost concept used for external reporting purposes may not be appropriate for internal, routine reporting to managers.

The Sarbanes-Oxley legislation does NOT provide a process for employees to report violations of illegal and unethical acts.

Line management is directly responsible for attaining the goals of the organization.

________ is the acquisition, coordination, and assembly of resources to produce a product or deliver a service.

Which of the following descriptors refers to management accounting information?

In order, list the five steps in the decision-making process.

Discuss the potential behavior implications of performance evaluation.

Strategy is formulated by answering all of the following EXCEPT:

Describe the major differences between management accounting and financial accounting for the following: 1. Primary users 2. Focus and emphasis 3. Rules of measurement and reporting

The primary criterion when faced with a resource allocation decision is:

Planning consists of all of these areas EXCEPT:

The increasing pace of technological innovation has resulted in shorter product life cycles.

Processing orders and shipping products or services to customers (also called outbound logistics)is also known as

Ethical challenges for management accountants include:

Is financial accounting or management accounting more useful to an operations manager? Why?

________ describe(s)the flow of goods, services, and information from the purchase of materials to the delivery of products to consumers, regardless of whether those activities occur in the same organization or with other organizations.

________ describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to consumers, regardless of whether those activities occur in the same organization or in other organizations.

The Standards of Ethical Conduct for management accountants include concepts related to:

The controller is generally a staff position.

Management accountants might provide information on decisions on whether to buy a product from outside or manufacture it in-house.

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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