Exam 1: The Accountants Vital Role in Decision Making

Place the five steps in the decision-making process in the correct order: A = Obtain information B = Decide on and implement one of the alternatives C = Identify the problem and uncertainties D = Implement the decision, evaluate performance, and learn E = Make predictions about the future

Determining the number of components to put into a computer monitor is an example of which of the following value chain functions?

The method recommended for a management accountant in dealing with a resource-allocation decision is

The process of preparing a budget

Once a plan is implemented, the control process

The text identifies six ways to classify the major differences between Management and Financial Accounting. The statement "Varies from hourly to 15 to 20 years" is an example of which of the following classes of differences?

Managers typically receive reports on cost planning and controls that should be considered for internal use only.

What is the professional designation for management accountants?

Most organizations exist in a changing environment and, therefore, depend greatly on various types of feedback to adjust to the changes. Give four uses of feedback and provide examples of how each is used.

Cost management involves long-term and short-term decisions that attempt to increase value for customers and lower costs of products or services.

________ is a strategy that integrates people and technology in all business functions to enhance relationships with customers, partners, and distributors.

Place the five business functions in the order they appear along the value chain: A = Customer service B = Design C = Distribution D = Production E = Research and Development

Key success factors are geared to improving customer satisfaction.

An accountant that agrees with the company president to defer the recognition of a revenue is in a breach of which of the following dimensions of professional conduct?

TQM is a method for improving quality.

Johnson Advertising Agency incurs the following costs in its service activities. Classify each one of them according to one of the value chain functions. 1. Amortization of the artist design desk. 2. Cost of computer time used to create designs for customers. 3. Cost of updating an ad for a customer. 4. Cost of computer time used by a salesperson. 5. Cost of changing an unsuccessful ad after client complains that ad targeted wrong customers. 6. Cost of materials used in the layout of a customer's magazine ad.

If a managerial accountant were not keeping up with current developments in managerial accounting, that behaviour might violate a competence standard of professional ethical behaviour.

Six uses of feedback are given below. Match each independent statement with one of the feedback uses. Uses of feedback: a. Changing goals. b. Changing how decision alternatives are identified. c. Changing managers. d. Changing the range of information collected in order to make predictions. e. Changing how the company operates. f. Changing reward systems. Independent Statements: 1. Quality control activities have been moved from the end of the assembly line to critical points along the assembly line. 2. Home office changes stock option plans. 3. Jackson Company increases emphasis on cash flow rather than income, after prior liquidity problems lead to bankruptcy. 4. The Economic Order Quantity (EOQ) and reorder points of the inventory system are being converted to automatic processing on the computer to increase the information for forecasting inventory demand. 5. MLB Company contracts with an outside janitorial service rather than continuing with its own cleaning crew. 6. AMB Company is adopting online meetings to identify which product lines to establish. 7. Local Computer Company incorporates average inflation forecasts for wages when predicting future labour costs. 8. Altec Company considers basing its marketing bonuses on the profitability of sales rather than on the dollar amount of sales.

R&D, production, and customer service are business functions that are all included as part of

CMAs are required to follow the formal codes of ethical conduct provided by their professional association.