Question 1

Which of the following adjectives describes higher quality information? I Complete
II Costly to develop
III Relevant

Accepted Answer

A)  I and II only 
B)  II and III only 
C)  I and III only 
D)  I, II, and III 
A)  I and II only 
B)  II and III only 
C)  I and III only 
D)  I, II, and III

Question 2

Which of the following statements regarding organisational vision is false?

Accepted Answer

A)  Organisational vision means the same as core competencies 
B)  Organisational vision is one tool for expressing an organisation's main purpose 
C)  Organisational vision should be communicated to all employees 
D)  Managers sometimes divide the organisational vision into one or more written statements 
A)  Organisational vision means the same as core competencies 
B)  Organisational vision is one tool for expressing an organisation's main purpose 
C)  Organisational vision should be communicated to all employees 
D)  Managers sometimes divide the organisational vision into one or more written statements

Question 3

Which of the following is a type of external report produced by an organisation's information system?

Accepted Answer

A)  Cash flow plan 
B)  Analysis of potential acquisition 
C)  News release 
D)  Bonus computations 
A)  Cash flow plan 
B)  Analysis of potential acquisition 
C)  News release 
D)  Bonus computations

Question 4

In a decision to lease premises or to build office space in Melbourne, which of the following is relevant?

Accepted Answer

A)  The cost of office space for sale in Sydney 
B)  The architect's fee for drawing up plans for the building 
C)  The age of the employees currently working for the company 
D)  The personal preferences of the decision maker 
A)  The cost of office space for sale in Sydney 
B)  The architect's fee for drawing up plans for the building 
C)  The age of the employees currently working for the company 
D)  The personal preferences of the decision maker

Question 5

Organisational strategies

Accepted Answer

A)  Are reconsidered on a daily basis 
B)  Should never be reconsidered once they are determined 
C)  Are reconsidered quarterly 
D)  Are reconsidered periodically in response to changes in the organisation or environment 
A)  Are reconsidered on a daily basis 
B)  Should never be reconsidered once they are determined 
C)  Are reconsidered quarterly 
D)  Are reconsidered periodically in response to changes in the organisation or environment

Question 6

Consider the following activities, which could be undertaken by managers at Virgin Blue Airlines. Indicate whether each item is most likely part of:
S - organisational strategies
P - operating plans
A - actual operations or
M - measuring, monitoring and motivating.
Each item has only one correct response.
1 comparing actual revenues with budgeted revenues
2 developing processes for handling customer complaints
3 handling customer complaints
4 hosting an annual employee picnic
5 maintaining high quality customer service
6 negotiating contracts with the flight attendant union over the next six months
7 opening a new route to Perth
8 providing employees opportunities to buy stock at discounted prices
9 valuing training for employees to increase organisational competence
10 reporting periodic financial results

Accepted Answer

a) ₁comparing actual revenues with budget

Question 7

Whether a given type of information is relevant or irrelevant depends on

Accepted Answer

A)  Its accuracy 
B)  Its objectivity 
C)  Its relation to the decision to be made 
D)  Whether it is cash-basis or accrual-basis 
A)  Its accuracy 
B)  Its objectivity 
C)  Its relation to the decision to be made 
D)  Whether it is cash-basis or accrual-basis

Question 8

When learning cost accounting, it is sufficient to learn the mechanics of applying cost accounting methods.

Accepted Answer

A) True 
 B)False

Question 9

Biases

Accepted Answer

A)  Inhibit anticipating all future conditions 
B)  Assist in the identification of relevant information 
C)  Do not affect the ability to identify irrelevant information 
D)  Are not a problem in ethical decision making 
A)  Inhibit anticipating all future conditions 
B)  Assist in the identification of relevant information 
C)  Do not affect the ability to identify irrelevant information 
D)  Are not a problem in ethical decision making

Question 10

Because accounting information is highly objective and quantitative in nature, it is not subject to uncertainties or management bias.

Accepted Answer

A) True 
 B)False

Question 11

Frank is considering transportation modes to a client's office. He can drive his own car, at an incremental cost of $0.55 per kilometre, or take a company car. If he takes his own car, he can be reimbursed $0.45 per kilometre. If Frank makes his decision strictly from his personal economic point of view, what is the relevant net cost associated with driving his own car?

Accepted Answer

A)  $0.10 
B)  $0.45 
C)  $0.55 
D)  Some other amount 
A)  $0.10 
B)  $0.45 
C)  $0.55 
D)  Some other amount

Question 12

Managers often break activities into four groups for value chain analysis. Which of the following is not an activity category among those four groups?

Accepted Answer

A)  Unnecessary activities that cannot be eliminated 
B)  Necessary activities that could be changed to improve the process 
C)  Necessary activities that cannot be improved upon at this time 
D)  Unnecessary activities that can be eliminated quickly 
A)  Unnecessary activities that cannot be eliminated 
B)  Necessary activities that could be changed to improve the process 
C)  Necessary activities that cannot be improved upon at this time 
D)  Unnecessary activities that can be eliminated quickly

Question 13

Textbook costs are an opportunity cost of earning a university degree.

Accepted Answer

A) True 
 B)False

Question 14

Uncertainties and biases do not affect external financial reports, because these reports are based on objective standards.

Accepted Answer

A) True 
 B)False

Question 15

Open-ended problems are not often seen in business.

Accepted Answer

A) True 
 B)False

Question 16

Why is it necessary to identify whether a problem is open-ended?

Accepted Answer

A)  Open-ended problems require less decision making effort than other types of problems 
B)  Decision maker biases are not important when addressing open-ended problems 
C)  More than one potential solution must be explored for open-ended problems 
D)  Few management decisions are open-ended 
A)  Open-ended problems require less decision making effort than other types of problems 
B)  Decision maker biases are not important when addressing open-ended problems 
C)  More than one potential solution must be explored for open-ended problems 
D)  Few management decisions are open-ended

Question 17

Management decisions require monitoring over time for all of the following reasons except

Accepted Answer

A)  The economic environment may change 
B)  New opportunities may become available 
C)  To motivate employees to follow plans exactly, even if the plan results in poor performance 
D)  Unforeseen threats may arise 
A)  The economic environment may change 
B)  New opportunities may become available 
C)  To motivate employees to follow plans exactly, even if the plan results in poor performance 
D)  Unforeseen threats may arise

Question 18

Which of the following is least likely to be an open-ended problem?

Accepted Answer

A)  How to contribute as a team member 
B)  Choice of career 
C)  How to study for a course 
D)  Identification of required courses for a university degree 
A)  How to contribute as a team member 
B)  Choice of career 
C)  How to study for a course 
D)  Identification of required courses for a university degree

Question 19

Which of the following often prevents managers from adequately exploring information before making a decision?

Accepted Answer

A)  The existence of many uncertainties 
B)  The need to distinguish between relevant and irrelevant information 
C)  The managers' biases 
D)  The organisation's values 
A)  The existence of many uncertainties 
B)  The need to distinguish between relevant and irrelevant information 
C)  The managers' biases 
D)  The organisation's values

Question 20

Which of the following is an element of an operating plan?

Accepted Answer

A)  Developing an organisational mission 
B)  Preparing financial statements 
C)  Defining core values 
D)  Budgeting employee costs 
A)  Developing an organisational mission 
B)  Preparing financial statements 
C)  Defining core values 
D)  Budgeting employee costs

Which of the following adjectives describes higher quality information? I Complete II Costly to develop III Relevant

Which of the following statements regarding organisational vision is false?

Which of the following is a type of external report produced by an organisation's information system?

In a decision to lease premises or to build office space in Melbourne, which of the following is relevant?

Organisational strategies

Whether a given type of information is relevant or irrelevant depends on

When learning cost accounting, it is sufficient to learn the mechanics of applying cost accounting methods.

Biases

Because accounting information is highly objective and quantitative in nature, it is not subject to uncertainties or management bias.

Managers often break activities into four groups for value chain analysis. Which of the following is not an activity category among those four groups?

Textbook costs are an opportunity cost of earning a university degree.

Uncertainties and biases do not affect external financial reports, because these reports are based on objective standards.

Open-ended problems are not often seen in business.

Why is it necessary to identify whether a problem is open-ended?

Management decisions require monitoring over time for all of the following reasons except

Which of the following is least likely to be an open-ended problem?

Which of the following often prevents managers from adequately exploring information before making a decision?

Which of the following is an element of an operating plan?

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Cost-Volume-Profit Cvp Analysis

Job Costing Systems

Process Costing Systems

Absorption, Variable and Throughput Costing

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Standard Costs, Flexible Budgets and Variance Analysis

Operational Budgets

Strategy and Control

Planning and Budgeting for Strategic Success

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters

Exam 1: The Role of Accounting Information in Management Decision Making

Which of the following adjectives describes higher quality information? I Complete II Costly to develop III Relevant

Which of the following statements regarding organisational vision is false?

Which of the following is a type of external report produced by an organisation's information system?

In a decision to lease premises or to build office space in Melbourne, which of the following is relevant?

Organisational strategies

Whether a given type of information is relevant or irrelevant depends on

When learning cost accounting, it is sufficient to learn the mechanics of applying cost accounting methods.

Biases

Because accounting information is highly objective and quantitative in nature, it is not subject to uncertainties or management bias.

Managers often break activities into four groups for value chain analysis. Which of the following is not an activity category among those four groups?

Textbook costs are an opportunity cost of earning a university degree.

Uncertainties and biases do not affect external financial reports, because these reports are based on objective standards.

Open-ended problems are not often seen in business.

Why is it necessary to identify whether a problem is open-ended?

Management decisions require monitoring over time for all of the following reasons except

Which of the following is least likely to be an open-ended problem?

Which of the following often prevents managers from adequately exploring information before making a decision?

Which of the following is an element of an operating plan?

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Cost-Volume-Profit Cvp Analysis

Job Costing Systems

Process Costing Systems

Absorption, Variable and Throughput Costing

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Standard Costs, Flexible Budgets and Variance Analysis

Operational Budgets

Strategy and Control

Planning and Budgeting for Strategic Success

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters