Question 1

Management accountants have important ethical responsibilities that are related to competence, confidentiality, integrity, and credibility.

Accepted Answer

A) True 
 B)False

Question 2

The most important planning tool is a ________.

Accepted Answer

A) performance evaluation report 
B) balanced scorecard 
C) goal 
D) budget 
A) performance evaluation report 
B) balanced scorecard 
C) goal 
D) budget

Question 3

Place the five steps in the decision-making process in the correct order:

Accepted Answer

A) C D B E A 
B) E D A B C 
C) C A E B D 
D) A E B D C 
A) C D B E A 
B) E D A B C 
C) C A E B D 
D) A E B D C

Question 4

Integrity includes mitigating actual conflicts of interest, regularly communicating with business associates to avoid apparent conflicts of interest, and advising all parties of any potential conflicts.

Accepted Answer

A) True 
 B)False

Question 5

Customers are demanding increased levels of performance in all aspects of the value chain and the supply chain.

Accepted Answer

A) True 
 B)False

Question 6

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as:

Accepted Answer

A) value chain management 
B) enterprise resource planning 
C) cost management 
D) customer value management 
A) value chain management 
B) enterprise resource planning 
C) cost management 
D) customer value management

Question 7

The act of simply measuring and reporting information:

Accepted Answer

A) focuses the attention of employees on those processes 
B) diverts employee's attention to other activities 
C) disproves the saying "What gets measured gets managed." 
D) has no effect on employee behavior 
A) focuses the attention of employees on those processes 
B) diverts employee's attention to other activities 
C) disproves the saying "What gets measured gets managed." 
D) has no effect on employee behavior

Question 8

Which of the following issues is NOT addressed by the Sarbanes-Oxley legislation?

Accepted Answer

A) improving internal control 
B) corporate governance 
C) disclosure practices of public corporations 
D) disclosure practices of private companies 
A) improving internal control 
B) corporate governance 
C) disclosure practices of public corporations 
D) disclosure practices of private companies

Question 9

For each report listed below, identify whether the major purpose of the report is for (1)routine internal reporting, (2)nonroutine internal reporting, or for (3)external reporting to investors and other outside parties.
Item:
a. study detailing sale information of the top-ten selling products
b. weekly report of total sales generated by each store in the metropolitan area
c. annual Report sent to shareholders
d. monthly report comparing budgeted sales by store to actual sales

Accepted Answer

a. (2)nonroutine internal repo

Question 10

Explain how a customer focus can result in increased profits for a company.

Accepted Answer

If customers who provide a com

Question 11

Management accounting information includes:

Accepted Answer

A) tabulated results of customer satisfaction surveys 
B) the cost of producing a product 
C) the percentage of units produced that are defective 
D) All of these answers are correct. 
A) tabulated results of customer satisfaction surveys 
B) the cost of producing a product 
C) the percentage of units produced that are defective 
D) All of these answers are correct.

Question 12

A budget can serve as:

Accepted Answer

A) a planning tool 
B) a control tool 
C) a basis for preparing financial statements 
D) a planning and control tool 
A) a planning tool 
B) a control tool 
C) a basis for preparing financial statements 
D) a planning and control tool

Question 13

________ is the generation of, and experimentation with, ideas related to new products, services, or processes.

Accepted Answer

A) Research and development 
B) Design of products, services, or processes 
C) Production 
D) Marketing 
A) Research and development 
B) Design of products, services, or processes 
C) Production 
D) Marketing

Question 14

Briefly describe how managers make use of management accounting information.

Accepted Answer

ONE: To choose strategy, to communicate

Question 15

Financial accounting is concerned primarily with:

Accepted Answer

A) external reporting to investors, creditors, and government authorities 
B) cost planning and cost controls 
C) profitability analysis 
D) providing information for strategic and tactical decisions 
A) external reporting to investors, creditors, and government authorities 
B) cost planning and cost controls 
C) profitability analysis 
D) providing information for strategic and tactical decisions

Question 16

Cost accounting provides information only for management accounting purposes.

Accepted Answer

A) True 
 B)False

Question 17

Financial accounting provides the primary source of information for:

Accepted Answer

A) decision making in the finishing department 
B) improving customer service 
C) preparing the income statement for shareholders 
D) planning next year's operating budget 
A) decision making in the finishing department 
B) improving customer service 
C) preparing the income statement for shareholders 
D) planning next year's operating budget

Question 18

Increased global competition is placing pressure on companies to reduce costs.

Accepted Answer

A) True 
 B)False

Question 19

A budget may be used as a planning tool, but NOT as a control tool.

Accepted Answer

A) True 
 B)False

Question 20

Tracking what is happening in other companies is illegal.

Accepted Answer

A) True 
 B)False

Exam 1: The Accountants Role in the Organization

Management accountants have important ethical responsibilities that are related to competence, confidentiality, integrity, and credibility.

The most important planning tool is a ________.

Place the five steps in the decision-making process in the correct order:

Integrity includes mitigating actual conflicts of interest, regularly communicating with business associates to avoid apparent conflicts of interest, and advising all parties of any potential conflicts.

Customers are demanding increased levels of performance in all aspects of the value chain and the supply chain.

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as:

The act of simply measuring and reporting information:

Which of the following issues is NOT addressed by the Sarbanes-Oxley legislation?

Explain how a customer focus can result in increased profits for a company.

Management accounting information includes:

A budget can serve as:

________ is the generation of, and experimentation with, ideas related to new products, services, or processes.

Briefly describe how managers make use of management accounting information.

Financial accounting is concerned primarily with:

Cost accounting provides information only for management accounting purposes.

Financial accounting provides the primary source of information for:

Increased global competition is placing pressure on companies to reduce costs.

A budget may be used as a planning tool, but NOT as a control tool.

Tracking what is happening in other companies is illegal.

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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