Question 1

Discuss the potential behavioural implications of performance evaluation.

Accepted Answer

As measurements are made on operations a

Question 2

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

Question 3

Collecting information to follow through on how actual performance compares to planned or budgeted performance is referred to as

Accepted Answer

A)  an accounting system. 
B)  scorekeeping. 
C)  management accounting. 
D)  attention directing. 
E)  problem solving. 
A)  an accounting system. 
B)  scorekeeping. 
C)  management accounting. 
D)  attention directing. 
E)  problem solving.

Question 4

Discuss the cost-benefit approach guideline management accountants use to provide value in strategic decision making.

Accepted Answer

Management accountants continually face

Question 5

An accountant, as a member of a professional organization, must follow only those ethical requirements as are prescribed by the organization they belong to, such as the Society of Management Accountants of Canada.

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

Corporate social responsibility is

Accepted Answer

A)  legislated by government and enforced by the courts. 
B)  the same as code of ethics passed by the board of governors of a company. 
C)  the mandatory integration by companies of social and environmental concerns into their business operation. 
D)  the voluntary integration by companies of social and environmental concerns into their business operation. 
E)  codified in international trade agreements. 
A)  legislated by government and enforced by the courts. 
B)  the same as code of ethics passed by the board of governors of a company. 
C)  the mandatory integration by companies of social and environmental concerns into their business operation. 
D)  the voluntary integration by companies of social and environmental concerns into their business operation. 
E)  codified in international trade agreements.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true concerning the value chain of business functions?

Accepted Answer

A)  Managers should always proceed sequentially through the value chain, since distribution, for example, cannot occur before production is completed. 
B)  Senior managers from individual parts of the value chain do not have a responsibility in deciding on the organization's overall strategy. 
C)  An organization can only realize gains from having individual parts of the value chain work sequentially. 
D)  The value chain refers to the value added to the customer from marketing. 
E)  Senior managers from individual parts of the value chain have a responsibility in deciding how resources are to be obtained and used, and how rewards are to be given. 
A)  Managers should always proceed sequentially through the value chain, since distribution, for example, cannot occur before production is completed. 
B)  Senior managers from individual parts of the value chain do not have a responsibility in deciding on the organization's overall strategy. 
C)  An organization can only realize gains from having individual parts of the value chain work sequentially. 
D)  The value chain refers to the value added to the customer from marketing. 
E)  Senior managers from individual parts of the value chain have a responsibility in deciding how resources are to be obtained and used, and how rewards are to be given.

Question 10

Control includes the performance evaluation of personnel and operations.

Accepted Answer

A) True 
 B)False

Question 11

The value chain is the

Accepted Answer

A)  sequence of business functions in which value is deducted from the products or services of an organization. 
B)  sequence of business functions in which value is proportionately added to the products or services of an organization. 
C)  process by which products and services are critiqued for their value. 
D)  sequence of business functions in which customer usefulness is added to the products or services of an organization. 
E)  sequence of functions in which value is added at specific target areas of improvement. 
A)  sequence of business functions in which value is deducted from the products or services of an organization. 
B)  sequence of business functions in which value is proportionately added to the products or services of an organization. 
C)  process by which products and services are critiqued for their value. 
D)  sequence of business functions in which customer usefulness is added to the products or services of an organization. 
E)  sequence of functions in which value is added at specific target areas of improvement.

Question 12

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 13

Hardcover Company incurs the following costs when it manufactures books.
1. Cost of customer order forms.
2. Cost of paper used in manufacture of books.
3. Cost of paper used in packing cartons to ship books.
4. Cost of paper used in display at national trade show.
5. Amortization of delivery trucks.
6. Amortization of the wood used in the manufacturing plant.
7. Salary of the scientists attempting to find another source of printing ink.
Required:
Classify each one of them according to one of the value chain functions below:
a. Research and development.
b. Design of products, services, and processes.
c. Production.
d. Marketing.
e. Distribution.
f. Customer service.

Accepted Answer

1. d. Marketing
2. c. Producti

Question 14

The control function may include evaluating

Accepted Answer

A)  the difference between current operating costs and last year's operating costs. 
B)  the difference between budgeted amounts and actual results. 
C)  the difference between the original budget and the final adjusted budget. 
D)  the difference allowed in the current production costs. 
E)  the difference between the historical cost and the current cost. 
A)  the difference between current operating costs and last year's operating costs. 
B)  the difference between budgeted amounts and actual results. 
C)  the difference between the original budget and the final adjusted budget. 
D)  the difference allowed in the current production costs. 
E)  the difference between the historical cost and the current cost.

Question 15

Management accounting is guided by generally accepted accounting principles.

Accepted Answer

A) True 
 B)False

Question 16

For which of the following areas is a chief operating officer (COO) typically responsible?

Accepted Answer

A)  treasurer 
B)  non-financial operating functions 
C)  risk management 
D)  taxation 
E)  controllership 
A)  treasurer 
B)  non-financial operating functions 
C)  risk management 
D)  taxation 
E)  controllership

Question 17

________ 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 18

Which of the following elements is contained within the Implement the Decision, Evaluate Performance, and Learn category in the Five-Step Decision-Making Process?

Accepted Answer

A)  Identify the problem and uncertainties. 
B)  Obtain information. 
C)  Make predictions about the future. 
D)  Provide feedback. 
E)  Make decisions by choosing among alternatives. 
A)  Identify the problem and uncertainties. 
B)  Obtain information. 
C)  Make predictions about the future. 
D)  Provide feedback. 
E)  Make decisions by choosing among alternatives.

Question 19

Which of the following would likely constitute a breach of ethics for a management accountant?

Accepted Answer

A)  to omit pertinent information from a report because it is personally unfavourable 
B)  to consider disclosing confidential information in order to further your own career 
C)  to consider disclosing confidential information (ie gained from a third party) in order to assist your employer / client 
D)  to report the unethical actions of another party, with the expectation that this will further your own career 
E)  to be disruptive in a meeting 
A)  to omit pertinent information from a report because it is personally unfavourable 
B)  to consider disclosing confidential information in order to further your own career 
C)  to consider disclosing confidential information (ie gained from a third party) in order to assist your employer / client 
D)  to report the unethical actions of another party, with the expectation that this will further your own career 
E)  to be disruptive in a meeting

Question 20

Strategy specifies

Accepted Answer

A)  how an organization matches its own capabilities with the opportunities in the marketplace. 
B)  standard procedures to ensure quality products. 
C)  incremental changes for improved performance. 
D)  the demand created for products and services. 
E)  that a company's financial procedures are in compliance with GAAP. 
A)  how an organization matches its own capabilities with the opportunities in the marketplace. 
B)  standard procedures to ensure quality products. 
C)  incremental changes for improved performance. 
D)  the demand created for products and services. 
E)  that a company's financial procedures are in compliance with GAAP.

Exam 1: The Accountants Vital Role in Decision Making

Discuss the potential behavioural implications of performance evaluation.

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

Collecting information to follow through on how actual performance compares to planned or budgeted performance is referred to as

Discuss the cost-benefit approach guideline management accountants use to provide value in strategic decision making.

An accountant, as a member of a professional organization, must follow only those ethical requirements as are prescribed by the organization they belong to, such as the Society of Management Accountants of Canada.

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

Corporate social responsibility is

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

Which of the following is true concerning the value chain of business functions?

Control includes the performance evaluation of personnel and operations.

The value chain is the

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

The control function may include evaluating

Management accounting is guided by generally accepted accounting principles.

For which of the following areas is a chief operating officer (COO) typically responsible?

________ 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.

Which of the following elements is contained within the Implement the Decision, Evaluate Performance, and Learn category in the Five-Step Decision-Making Process?

Which of the following would likely constitute a breach of ethics for a management accountant?

Strategy specifies

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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