Question 1

Customer relationship management initiatives use technology to coordinate all

Accepted Answer

A)  production activities. 
B)  research activities. 
C)  customer-facing activities. 
D)  inventory management activities. 
E)  aspects of strategy implementation. 
A)  production activities. 
B)  research activities. 
C)  customer-facing activities. 
D)  inventory management activities. 
E)  aspects of strategy implementation. C

Question 2

A profession is distinguished by certain characteristics. "An independent, neutral, objective perspective" is one of these characteristics.

Accepted Answer

A) True 
 B)False  True

Question 3

Staff management includes

Accepted Answer

A)  manufacturing managers. 
B)  human-resource managers. 
C)  purchasing managers. 
D)  distribution managers. 
E)  sales persons. 
A)  manufacturing managers. 
B)  human-resource managers. 
C)  purchasing managers. 
D)  distribution managers. 
E)  sales persons. B

Question 4

Management accountants are required to follow the generally accepted accounting principles that are used for external financial reporting when preparing reports for internal users.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a major benefit of utilizing a budgeting system?

Accepted Answer

A)  It always results in more profitable decisions. 
B)  It is easier for managers than traditional decision-making models. 
C)  It saves costs by utilizing historical data to make projections. 
D)  It facilitates coordination and communication. 
E)  Once a successful budget is developed, it can be re-used year after year. 
A)  It always results in more profitable decisions. 
B)  It is easier for managers than traditional decision-making models. 
C)  It saves costs by utilizing historical data to make projections. 
D)  It facilitates coordination and communication. 
E)  Once a successful budget is developed, it can be re-used year after year.

Question 6

Companies use the term customer relationship management (CRM) to describe

Accepted Answer

A)  a strategy that integrates people and technology in all business functions to enhance relationships with customers. 
B)  a strategy that integrates people and technology in all business functions to enhance relationships with customers and partners. 
C)  a strategy that integrates people and technology in all business functions to enhance relationships with customers, partners, and distributors. 
D)  a strategy that integrates people and technology in a few business functions to enhance relationships with customers, partners, and distributors. 
E)  a strategy that integrates people and technology in a few business functions to enhance relationships with customers and partners. 
A)  a strategy that integrates people and technology in all business functions to enhance relationships with customers. 
B)  a strategy that integrates people and technology in all business functions to enhance relationships with customers and partners. 
C)  a strategy that integrates people and technology in all business functions to enhance relationships with customers, partners, and distributors. 
D)  a strategy that integrates people and technology in a few business functions to enhance relationships with customers, partners, and distributors. 
E)  a strategy that integrates people and technology in a few business functions to enhance relationships with customers and partners.

Question 7

Sub-contracting a business function is part of supply chain management.

Accepted Answer

A) True 
 B)False

Question 8

List and briefly describe each function in the value chain. Provide an example for each of the value chain functions identified.

Accepted Answer

RESEARCH AND DEVELOPMENT-the generation

Question 9

________ includes reporting and interpreting information that helps managers to focus on operating problems, imperfections, inefficiencies, and opportunities.

Accepted Answer

A)  Scorekeeping 
B)  Control 
C)  Problem-solving 
D)  Planning 
E)  Budgeting 
A)  Scorekeeping 
B)  Control 
C)  Problem-solving 
D)  Planning 
E)  Budgeting

Question 10

Companies generally follow one of two basic strategies: 1) providing a quality product or service at low prices, or 2) offering a unique product or service often priced higher than competing products.

Accepted Answer

A) True 
 B)False

Question 11

Corporate governance

Accepted Answer

A)  relates to the role of the corporate governor. 
B)  comprises activities undertaken to ensure legal compliance with laws. 
C)  is legislated by the federal government. 
D)  relates only to the regulations provided by the Canadian Securities Administrators. 
E)  is a voluntary system of compliance approved by each company's board of directors. 
A)  relates to the role of the corporate governor. 
B)  comprises activities undertaken to ensure legal compliance with laws. 
C)  is legislated by the federal government. 
D)  relates only to the regulations provided by the Canadian Securities Administrators. 
E)  is a voluntary system of compliance approved by each company's board of directors.

Question 12

The ________ is also called the chief financial officer.

Accepted Answer

A)  controller 
B)  finance director 
C)  internal auditor 
D)  treasurer 
E)  chief executive 
A)  controller 
B)  finance director 
C)  internal auditor 
D)  treasurer 
E)  chief executive

Question 13

An example of a staff management function would be

Accepted Answer

A)  determining that new equipment is required. 
B)  preparing operating cost estimates for proposed new equipment. 
C)  developing quality standards for production. 
D)  ensuring that environmental standards are met. 
E)  being responsible for attaining a set level of plant income. 
A)  determining that new equipment is required. 
B)  preparing operating cost estimates for proposed new equipment. 
C)  developing quality standards for production. 
D)  ensuring that environmental standards are met. 
E)  being responsible for attaining a set level of plant income.

Question 14

The controller is also called the CFO.

Accepted Answer

A) True 
 B)False

Question 15

A well-conceived plan allows managers to have the ability to

Accepted Answer

A)  stay with the pre-existing plan when things start to change for the better. 
B)  leave the system and let the plan continue on its own. 
C)  underestimate the costs so that actual operating results will be favourable when comparisons are made. 
D)  take advantage of unforeseen opportunities. 
E)  stay the course regardless of the outcome. 
A)  stay with the pre-existing plan when things start to change for the better. 
B)  leave the system and let the plan continue on its own. 
C)  underestimate the costs so that actual operating results will be favourable when comparisons are made. 
D)  take advantage of unforeseen opportunities. 
E)  stay the course regardless of the outcome.

Question 16

Non-compliance with a code of professional ethics for management accountants includes which of the following penalties?

Accepted Answer

A)  imprisonment of up to two years 
B)  imprisonment of up to 20 years 
C)  fines up to $100,000 and imprisonment of up to two years 
D)  public censure and imprisonment up to 2 years 
E)  fines, public censure, and loss of license to practice 
A)  imprisonment of up to two years 
B)  imprisonment of up to 20 years 
C)  fines up to $100,000 and imprisonment of up to two years 
D)  public censure and imprisonment up to 2 years 
E)  fines, public censure, and loss of license to practice

Question 17

To be successful a company should be

Accepted Answer

A)  customer driven. 
B)  "driven" by the board of directors. 
C)  employee driven. 
D)  management driven. 
E)  executive driven. 
A)  customer driven. 
B)  "driven" by the board of directors. 
C)  employee driven. 
D)  management driven. 
E)  executive driven.

Question 18

What aspect of business analysis focuses on the sequence of business functions?

Accepted Answer

A)  customer service 
B)  value chain 
C)  quality 
D)  research and development 
E)  product design 
A)  customer service 
B)  value chain 
C)  quality 
D)  research and development 
E)  product design

Question 19

Managerial accounting and cost accounting both measure and report financial and non-financial information relating to the cost of acquiring or utilizing resources.

Accepted Answer

A) True 
 B)False

Question 20

The text identifies six ways to classify the major differences between Management and Financial Accounting. The statement "Past oriented (reports on 2011 performance prepared in 2012)" is an example of which of the following classes?

Accepted Answer

A)  Purpose of information 
B)  Primary users 
C)  Focus and emphasis 
D)  Rules of measurement and reporting 
E)  Time span and type of reports 
A)  Purpose of information 
B)  Primary users 
C)  Focus and emphasis 
D)  Rules of measurement and reporting 
E)  Time span and type of reports

Exam 1: The Accountants Vital Role in Decision Making

Customer relationship management initiatives use technology to coordinate all

A profession is distinguished by certain characteristics. "An independent, neutral, objective perspective" is one of these characteristics.

Staff management includes

Management accountants are required to follow the generally accepted accounting principles that are used for external financial reporting when preparing reports for internal users.

Which of the following is a major benefit of utilizing a budgeting system?

Companies use the term customer relationship management (CRM) to describe

Sub-contracting a business function is part of supply chain management.

List and briefly describe each function in the value chain. Provide an example for each of the value chain functions identified.

________ includes reporting and interpreting information that helps managers to focus on operating problems, imperfections, inefficiencies, and opportunities.

Companies generally follow one of two basic strategies: 1) providing a quality product or service at low prices, or 2) offering a unique product or service often priced higher than competing products.

Corporate governance

The ________ is also called the chief financial officer.

An example of a staff management function would be

The controller is also called the CFO.

A well-conceived plan allows managers to have the ability to

Non-compliance with a code of professional ethics for management accountants includes which of the following penalties?

To be successful a company should be

What aspect of business analysis focuses on the sequence of business functions?

Managerial accounting and cost accounting both measure and report financial and non-financial information relating to the cost of acquiring or utilizing resources.

The text identifies six ways to classify the major differences between Management and Financial Accounting. The statement "Past oriented (reports on 2011 performance prepared in 2012)" is an example of which of the following classes?

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Quantitative Analyses of Cost Functions

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, Rework, and Scrap

Cost Management: Quality, Time, and the Theory of Constraints

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Capital Budgeting: a Closer Look

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

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