Question 1

Key success factors are geared to improving customer satisfaction.

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

A) thank you letter from someone outside the company 
B) the feeling of satisfaction from a job well done 
C) receiving employee of the month honours 
D) stock option plan 
E) an employee being thanked publicly by the company's president 
A) thank you letter from someone outside the company 
B) the feeling of satisfaction from a job well done 
C) receiving employee of the month honours 
D) stock option plan 
E) an employee being thanked publicly by the company's president D

Question 3

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

Accepted Answer

Management accountants continually face resource allocation decisions.The cost-benefit approach should be used in making these decisions.Resources should be spent if the expected benefits to the company exceed the expected costs.The expected benefits and costs may not be easy to quantify,but it is a useful approach for making resource allocation decisions.

Question 4

________ 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 5

How does a controller help "control" a company?

Accepted Answer

By reporting and interpreting relevant d

Question 6

Enterprise Resource Planning software (ERP)

Accepted Answer

A) integrates data and provide managers with reports that highlight the interdependence of different business activities. 
B) facilitates "Easy Reporting for Proposals." 
C) provides financial reports for each separate enterprise in a conglomerate. 
D) is used only by plant managers to create "Exceptional Reports for Production." 
E) is free software downloaded over the Internet. 
A) integrates data and provide managers with reports that highlight the interdependence of different business activities. 
B) facilitates "Easy Reporting for Proposals." 
C) provides financial reports for each separate enterprise in a conglomerate. 
D) is used only by plant managers to create "Exceptional Reports for Production." 
E) is free software downloaded over the Internet.

Question 7

Management accountants are required to follow the generally accepted accounting principles that are used for external financial reporting when preparing reports for internal users.

Accepted Answer

A) True 
 B)False

Question 8

Explain how a budget can help management implement strategy.

Accepted Answer

A budget is a planning tool,a quantitati

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

List and briefly describe each function in the value chain.Provide an example for each of the value chain functions identified.

Accepted Answer

RESEARCH AND DEVELOPMENT-the generation

Question 11

Describe management accounting and financial accounting.

Accepted Answer

Management accounting provides informati

Question 12

Corporate social responsibility (CSR)is the legislated integration of social and environmental
concerns into business decisions.

Accepted Answer

A) True 
 B)False

Question 13

If a managerial accountant were not keeping up with current developments in managerial accounting,that behaviour might violate the enabling competency guideline of CPA ethical behaviour.

Accepted Answer

A) True 
 B)False

Question 14

In the value chain,research and development is the detailed planning and engineering of products,services,or processes.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is TRUE regarding sustainability accounting?

Accepted Answer

A) The Global Reporting Initiative (GRI)is a for profit organization established to develop guidelines so that "reporting on economic,environmental and social performance by all organizations is as routine and comparable as financial reporting." 
B) Statutory requirements describe the elements that must be included in reports based on sustainability accounting. 
C) Since 2002 it has been a criminal offence for the Chief Financial Officer to sign off on a report based on sustainability accounting that does not include a section on environmental management. 
D) Corporate Social Responsibility (CSR)is a subset of sustainability accounting. 
E) The trend to sustainability in reporting has emphasized value creation as well as risk mitigation in financial reports and management discussion and analysis of organizations. 
A) The Global Reporting Initiative (GRI)is a for profit organization established to develop guidelines so that "reporting on economic,environmental and social performance by all organizations is as routine and comparable as financial reporting." 
B) Statutory requirements describe the elements that must be included in reports based on sustainability accounting. 
C) Since 2002 it has been a criminal offence for the Chief Financial Officer to sign off on a report based on sustainability accounting that does not include a section on environmental management. 
D) Corporate Social Responsibility (CSR)is a subset of sustainability accounting. 
E) The trend to sustainability in reporting has emphasized value creation as well as risk mitigation in financial reports and management discussion and analysis of organizations.

Question 16

TQM is a method for improving quality.

Accepted Answer

A) True 
 B)False

Question 17

Corporate governance

Accepted Answer

A) relates to the role of the corporate governor. 
B) comprises activities undertaken to ensure legal compliance with laws. 
C) is legislated by the federal government. 
D) relates only to the regulations provided by the Canadian Securities Administrators. 
E) is a voluntary system of compliance approved by each company's board of directors. 
A) relates to the role of the corporate governor. 
B) comprises activities undertaken to ensure legal compliance with laws. 
C) is legislated by the federal government. 
D) relates only to the regulations provided by the Canadian Securities Administrators. 
E) is a voluntary system of compliance approved by each company's board of directors.

Question 18

Generally,companies follow one of two broad strategies: offering a quality product at a low price,or offering a unique product or service priced higher than the competition.Assume you are opening a small food outlet across the street from your campus.How might that business be operated under each of the two broad strategies? Consider the following specific operational areas:
a.target customers
b.products offered
c.product pricing
d.location choice
e.advertising content
f.advertising media

Accepted Answer

The purpose of this question is to explo

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

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

Exam 1: The Accountants Vital Role in Decision Making

Key success factors are geared to improving customer satisfaction.

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

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

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

How does a controller help "control" a company?

Enterprise Resource Planning software (ERP)

Management accountants are required to follow the generally accepted accounting principles that are used for external financial reporting when preparing reports for internal users.

Explain how a budget can help management implement strategy.

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

List and briefly describe each function in the value chain.Provide an example for each of the value chain functions identified.

Describe management accounting and financial accounting.

Corporate social responsibility (CSR)is the legislated integration of social and environmental concerns into business decisions.

If a managerial accountant were not keeping up with current developments in managerial accounting,that behaviour might violate the enabling competency guideline of CPA ethical behaviour.

In the value chain,research and development is the detailed planning and engineering of products,services,or processes.

Which of the following statements is TRUE regarding sustainability accounting?

TQM is a method for improving quality.

Corporate governance

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

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

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

Analysis of Cost Behaviour

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

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

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