Question 1

Key success factors such as quality, time, and innovative products and services, must be executed well to achieve corporate performance.

Accepted Answer

A) True 
 B)False

Question 2

The ________ is primarily responsible for the quality of the information supplied in both internal and external reports.

Accepted Answer

A)  COO (Chief Operating Officer) 
B)  CIO (Chief Information Officer) 
C)  treasurer 
D)  controller 
E)  accountant 
A)  COO (Chief Operating Officer) 
B)  CIO (Chief Information Officer) 
C)  treasurer 
D)  controller 
E)  accountant

Question 3

Which of the following individuals focuses on reporting and interpreting relevant financial information used to manage the company?

Accepted Answer

A)  chief financial officer 
B)  controller 
C)  line management 
D)  treasurer 
E)  accounting manager 
A)  chief financial officer 
B)  controller 
C)  line management 
D)  treasurer 
E)  accounting manager

Question 4

Briefly explain the planning and control activities in management accounting. How are these two activities linked to each other?

Accepted Answer

Planning business operations relates to

Question 5

What areas of responsibility does a chief financial officer have in a typical organization?

Accepted Answer

The responsibilities vary amon

Question 6

Preparation of a monthly report comparing the actual phone bill with the expected phone costs would be classified as

Accepted Answer

A)  problem identification. 
B)  scorekeeping. 
C)  planning. 
D)  control. 
E)  information gathering. 
A)  problem identification. 
B)  scorekeeping. 
C)  planning. 
D)  control. 
E)  information gathering.

Question 7

Planning is choosing goals, predicting results under various alternative ways of achieving those goals, and then deciding how to attain the desired goals.

Accepted Answer

A) True 
 B)False

Question 8

A budget is a quantitative expression of a proposed plan of action by management.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements about the cost-benefit approach is true?

Accepted Answer

A)  Resources should be spent if they are expected to better attain company goals in relation to the expected costs of these resources. 
B)  In a cost-benefit analysis, both costs and benefits are easy to obtain. 
C)  Resources should be spent if the costs of a decision outweigh the benefits of the decision. 
D)  A cost-benefit approach would not be appropriate for a decision to install a budget system or not. 
E)  The cost-benefit approach is more important than behavioural considerations. 
A)  Resources should be spent if they are expected to better attain company goals in relation to the expected costs of these resources. 
B)  In a cost-benefit analysis, both costs and benefits are easy to obtain. 
C)  Resources should be spent if the costs of a decision outweigh the benefits of the decision. 
D)  A cost-benefit approach would not be appropriate for a decision to install a budget system or not. 
E)  The cost-benefit approach is more important than behavioural considerations.

Question 10

Companies with a strategy of low prices compete on their ability to offer unique new products or services that are priced higher than their competition.

Accepted Answer

A) True 
 B)False

Question 11

Match between columns
                        Premises: bonus paid to a person with a 90% satisfaction rating in handling customers with complaints
labour cost of workers in the manufacturing plant
cost of samples mailed to promote sales of a new product
transportation costs for shipping products to retail outlets

Accepted Answer

The Answer of production and R&D and design and marketing is...

Question 12

________ is a philosophy in which management improves operations throughout the value chain to deliver products and services that exceed customer expectations.

Accepted Answer

A)  Cost-benefit approach 
B)  Customer focus 
C)  Customer relationship management 
D)  Total quality management 
E)  Management by objectives 
A)  Cost-benefit approach 
B)  Customer focus 
C)  Customer relationship management 
D)  Total quality management 
E)  Management by objectives

Question 13

Which of the following is an example of an intrinsic reward?

Accepted Answer

A)  participation in a stock option plan 
B)  receiving a cash performance bonus 
C)  being acknowledged for a job well done 
D)  receiving an all-expenses paid vacation as a bonus 
E)  receiving a salary increase to keep up with inflation 
A)  participation in a stock option plan 
B)  receiving a cash performance bonus 
C)  being acknowledged for a job well done 
D)  receiving an all-expenses paid vacation as a bonus 
E)  receiving a salary increase to keep up with inflation

Question 14

The value chain is the sequence of business functions in which

Accepted Answer

A)  value is deducted from the products or services of an organization. 
B)  value is proportionately added to the products or services of an organization. 
C)  rational experimentation is performed to enhance product compatibility. 
D)  products and services are evaluated with respect to their value to the supply chain. 
E)  usefulness is added to the products or services of an organization. 
A)  value is deducted from the products or services of an organization. 
B)  value is proportionately added to the products or services of an organization. 
C)  rational experimentation is performed to enhance product compatibility. 
D)  products and services are evaluated with respect to their value to the supply chain. 
E)  usefulness is added to the products or services of an organization.

Question 15

In designing strategy, a company must match the opportunities and threats in the marketplace with

Accepted Answer

A)  those of the CFO (Chief Financial Officer). 
B)  its resources and capabilities. 
C)  branding opportunities. 
D)  capabilities of current suppliers. 
E)  its competitors. 
A)  those of the CFO (Chief Financial Officer). 
B)  its resources and capabilities. 
C)  branding opportunities. 
D)  capabilities of current suppliers. 
E)  its competitors.

Question 16

________ is an operational activity that is essential to corporate performance.

Accepted Answer

A)  Customer focus 
B)  A key success factor 
C)  Continuous improvement 
D)  Supply chain 
E)  Value chain 
A)  Customer focus 
B)  A key success factor 
C)  Continuous improvement 
D)  Supply chain 
E)  Value chain

Question 17

Do you agree that prior management decisions affect cost management?

Accepted Answer

A)  Yes. Managers should always follow prior management decisions, for example, in the determination of the EOQ. 
B)  No. Managers should ignore prior management decisions. 
C)  Yes. Managers should always strive to lower the costs incurred last year, as their number 1 priority. 
D)  Yes. The only prior management decisions that can affect cost management going forward, are concerned with employee wages. All other decisions can be changed. 
E)  Yes. Prior management decisions can affect any area of the business operations, and commit the organization to the subsequent or continued incurrence of costs in such areas as material handling, and plant construction, for example. 
A)  Yes. Managers should always follow prior management decisions, for example, in the determination of the EOQ. 
B)  No. Managers should ignore prior management decisions. 
C)  Yes. Managers should always strive to lower the costs incurred last year, as their number 1 priority. 
D)  Yes. The only prior management decisions that can affect cost management going forward, are concerned with employee wages. All other decisions can be changed. 
E)  Yes. Prior management decisions can affect any area of the business operations, and commit the organization to the subsequent or continued incurrence of costs in such areas as material handling, and plant construction, for example.

Question 18

Complete a performance report for the month of May, 2012, for the Daily Bulletin, a regional newspaper. Use four columns: 1) Actual Result; 2) Budgeted Amount; 3) Difference: Actual Result minus Budgeted Amount; 4) Difference as a Percentage of Budgeted Amount; AND, three rows: 1) advertising pages sold; 2) average rate per page; 3) advertising revenues. Use the given the following data:
   Does the report indicate any cause for managerial investigation?

Accepted Answer

The performance report should look somet

Question 19

Professional codes of conduct relating to the accounting profession

Accepted Answer

A)  supercede the provincial laws but not federal laws. 
B)  are enforced by the solicitor general of the relevant province. 
C)  specify penalties up to and including incarceration. 
D)  are not enforceable as they are not actually laws. 
E)  specify how professional accountants must behave. 
A)  supercede the provincial laws but not federal laws. 
B)  are enforced by the solicitor general of the relevant province. 
C)  specify penalties up to and including incarceration. 
D)  are not enforceable as they are not actually laws. 
E)  specify how professional accountants must behave.

Question 20

Understanding the reasons for any difference between actual results and budgeted amounts is an important aspect of

Accepted Answer

A)  extended value-chain analysis. 
B)  forecasting for the next accounting period. 
C)  kaizen management. 
D)  control. 
E)  management by perception. 
A)  extended value-chain analysis. 
B)  forecasting for the next accounting period. 
C)  kaizen management. 
D)  control. 
E)  management by perception.

Exam 1: The Accountants Vital Role in Decision Making

Key success factors such as quality, time, and innovative products and services, must be executed well to achieve corporate performance.

The ________ is primarily responsible for the quality of the information supplied in both internal and external reports.

Which of the following individuals focuses on reporting and interpreting relevant financial information used to manage the company?

Briefly explain the planning and control activities in management accounting. How are these two activities linked to each other?

What areas of responsibility does a chief financial officer have in a typical organization?

Preparation of a monthly report comparing the actual phone bill with the expected phone costs would be classified as

Planning is choosing goals, predicting results under various alternative ways of achieving those goals, and then deciding how to attain the desired goals.

A budget is a quantitative expression of a proposed plan of action by management.

Which of the following statements about the cost-benefit approach is true?

Companies with a strategy of low prices compete on their ability to offer unique new products or services that are priced higher than their competition.

________ is a philosophy in which management improves operations throughout the value chain to deliver products and services that exceed customer expectations.

Which of the following is an example of an intrinsic reward?

The value chain is the sequence of business functions in which

In designing strategy, a company must match the opportunities and threats in the marketplace with

________ is an operational activity that is essential to corporate performance.

Do you agree that prior management decisions affect cost management?

Professional codes of conduct relating to the accounting profession

Understanding the reasons for any difference between actual results and budgeted amounts is an important aspect of

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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