Question 1

A budget is defined as

Accepted Answer

A)  the qualitative expression of a plan. 
B)  an aid in controlling income. 
C)  the quantitative expression of a plan of action by management. 
D)  the quantitative expression of a plan and an aid in controlling income. 
E)  an aid in coordinating and implementing a plan. 
A)  the qualitative expression of a plan. 
B)  an aid in controlling income. 
C)  the quantitative expression of a plan of action by management. 
D)  the quantitative expression of a plan and an aid in controlling income. 
E)  an aid in coordinating and implementing a plan.

Question 2

Control includes deciding what feedback to provide that will help with future decision making.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a use of feedback, from a manager's perspective?

Accepted Answer

A)  to improve past performances 
B)  to search for alternative ways of reaching goals 
C)  to change goals 
D)  to predict future events 
E)  to change the reward system 
A)  to improve past performances 
B)  to search for alternative ways of reaching goals 
C)  to change goals 
D)  to predict future events 
E)  to change the reward system

Question 4

In what way do managers benefit from the use of a database, or "data warehouse"?

Accepted Answer

A)  Data can be entered at numerous input terminals within the organization. 
B)  The managers would not be completely responsible for the information that is entered into the database system. 
C)  The managers could combine or adjust these data to answer the questions from particular internal and external users. 
D)  The managers do not benefit, as the information requires technical expertise to retrieve. 
E)  Managers can store old documents in hard copy. 
A)  Data can be entered at numerous input terminals within the organization. 
B)  The managers would not be completely responsible for the information that is entered into the database system. 
C)  The managers could combine or adjust these data to answer the questions from particular internal and external users. 
D)  The managers do not benefit, as the information requires technical expertise to retrieve. 
E)  Managers can store old documents in hard copy.

Question 5

How does a controller help "control" a company?

Accepted Answer

By reporting and interpreting relevant d

Question 6

The supply chain refers to the sequence of business functions in which customer usefulness is added to products or services.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

There is many aspects of a company that managers should focus on. Which of the following sets describes key success factors for managers in terms of delivering performance to customers?

Accepted Answer

A)  cost and efficiency, time, quality, innovation 
B)  cost and efficiency, quality, innovation 
C)  cost and efficiency, shareholder value, quality, innovation 
D)  cost and efficiency, management by exception, quality, innovation 
E)  cost and efficiency, budgeting, quality, innovation 
A)  cost and efficiency, time, quality, innovation 
B)  cost and efficiency, quality, innovation 
C)  cost and efficiency, shareholder value, quality, innovation 
D)  cost and efficiency, management by exception, quality, innovation 
E)  cost and efficiency, budgeting, quality, innovation

Question 9

Management accounting

Accepted Answer

A)  measures, analyzes, and reports financial and nonfinancial information to internal managers. 
B)  provides information about the company as a whole. 
C)  reports information that has occurred in the past that is verifiable and reliable. 
D)  provides information that is generally available only on a quarterly or annual basis. 
E)  must follow generally accepted accounting principles. 
A)  measures, analyzes, and reports financial and nonfinancial information to internal managers. 
B)  provides information about the company as a whole. 
C)  reports information that has occurred in the past that is verifiable and reliable. 
D)  provides information that is generally available only on a quarterly or annual basis. 
E)  must follow generally accepted accounting principles.

Question 10

Financial accounting is concerned primarily with

Accepted Answer

A)  cost planning and cost controls. 
B)  external reporting to investors, government authorities, etc. 
C)  profitability analysis. 
D)  providing information for strategic and tactical decisions. 
E)  providing analysis to facilitate long term decision making. 
A)  cost planning and cost controls. 
B)  external reporting to investors, government authorities, etc. 
C)  profitability analysis. 
D)  providing information for strategic and tactical decisions. 
E)  providing analysis to facilitate long term decision making.

Question 11

When a company works with its supplier to reduce material-handling costs, this is an example of

Accepted Answer

A)  the customer-driven approach. 
B)  a conflict of interest. 
C)  a key success factor. 
D)  a strategic marketing focus. 
E)  total value chain or supply chain analysis. 
A)  the customer-driven approach. 
B)  a conflict of interest. 
C)  a key success factor. 
D)  a strategic marketing focus. 
E)  total value chain or supply chain analysis.

Question 12

The process of preparing a budget enhances coordination and communication throughout the company.

Accepted Answer

A) True 
 B)False

Question 13

There are 8 business functions in the value chain.

Accepted Answer

A) True 
 B)False

Question 14

Information used to project budgeted amounts does not require non-financial information.

Accepted Answer

A) True 
 B)False

Question 15

Aspects of the Five-Step Decision-Making Process are listed below. For each of the independent activities give the aspect that best describes what is being undertaken.
Independent activities:
1. Preparing a report comparing actual and budgeted waste percentages from a chemical process in a herbicide plant.
2. Changing the selling price of a product.
3. Explaining the variances in Department 23's labour report.
4. Evaluating a new environmental law..
5. Estimate possible outcomes from outsourcing production to another country.
6. Conduct a consumer survey.
Aspects:
a. Identify the problem and uncertainties
b. Obtain information
c. Make predictions about the future
d. Decide on and implement one of the alternatives
e. Implement the decision, evaluate performance, and learn

Accepted Answer

1. e. 2. d

Question 16

As teamwork has become more prominent in the last few years, the traditional distinctions between staff and line management

Accepted Answer

A)  has increased. 
B)  has become more important relative to promotions. 
C)  has diminished. 
D)  has only been evident in the employee reward system. 
E)  has become less clear cut in the employee reward system. 
A)  has increased. 
B)  has become more important relative to promotions. 
C)  has diminished. 
D)  has only been evident in the employee reward system. 
E)  has become less clear cut in the employee reward system.

Question 17

Describe the value chain and how it can help organizations become more effective.

Accepted Answer

A VALUE CHAIN IS A SEQUENCE OF BUSINESS

Question 18

There are three (3) basic business strategies: low cost, premium products, and customer satisfaction.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is something management accountants should do to satisfy their users?

Accepted Answer

A)  provide specialized information that given users can use 
B)  consider only financial measures 
C)  focus exclusively on internal users 
D)  follow generally accepted accounting principles 
E)  focus on planning more than control 
A)  provide specialized information that given users can use 
B)  consider only financial measures 
C)  focus exclusively on internal users 
D)  follow generally accepted accounting principles 
E)  focus on planning more than control

Question 20

The key to a company's success is always to be the low cost producer in a particular industry.

Accepted Answer

A) True 
 B)False

Exam 1: The Accountants Vital Role in Decision Making

A budget is defined as

Control includes deciding what feedback to provide that will help with future decision making.

Which of the following is not a use of feedback, from a manager's perspective?

In what way do managers benefit from the use of a database, or "data warehouse"?

How does a controller help "control" a company?

The supply chain refers to the sequence of business functions in which customer usefulness is added to products or services.

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

There is many aspects of a company that managers should focus on. Which of the following sets describes key success factors for managers in terms of delivering performance to customers?

Management accounting

Financial accounting is concerned primarily with

When a company works with its supplier to reduce material-handling costs, this is an example of

The process of preparing a budget enhances coordination and communication throughout the company.

There are 8 business functions in the value chain.

Information used to project budgeted amounts does not require non-financial information.

As teamwork has become more prominent in the last few years, the traditional distinctions between staff and line management

Describe the value chain and how it can help organizations become more effective.

There are three (3) basic business strategies: low cost, premium products, and customer satisfaction.

Which of the following is something management accountants should do to satisfy their users?

The key to a company's success is always to be the low cost producer in a particular industry.

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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