Question 1

CPAs are required to follow the formal codes of ethical conduct provided by their professional association.

Accepted Answer

A) True 
 B)False

Question 2

Management should evaluate the difference between planned and budgeted amounts.

Accepted Answer

A) True 
 B)False

Question 3

Place the five business functions in the order they appear along the value chain:
A = Customer service
B = Design
C = Distribution
D = Production
E = Research and Development
F = Marketing

Accepted Answer

A) A,E,B,D,C,F 
B) A,C,D,B,F,E 
C) E,B,D,F,C,A 
D) E,B,A,D,F,C 
E) B,E,D,F,C,A 
A) A,E,B,D,C,F 
B) A,C,D,B,F,E 
C) E,B,D,F,C,A 
D) E,B,A,D,F,C 
E) B,E,D,F,C,A

Question 4

The value chain includes the following functions: research and development;design of products,services,or processes;production;marketing;distribution;customer service;and management satisfaction.

Accepted Answer

A) True 
 B)False

Question 5

Developing a new web site to display and demonstrate the company's products would be part of which value chain function?

Accepted Answer

A) research and development 
B) design of products,services,and processes 
C) production 
D) marketing 
E) distribution 
A) research and development 
B) design of products,services,and processes 
C) production 
D) marketing 
E) distribution

Question 6

In the value chain,research and development generates and experiments with new ideas related to new products.

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

The value chain

Accepted Answer

A) for all companies starts with research and development. 
B) is a strategy that integrates people and technology in all business functions to enhance relationships with customers,partners,and distributors. 
C) describes the flow of goods,services,and information from their initial sources to the delivery to consumers regardless if those activities occur in one or more organizations. 
D) is a strategy that can be focused on providing consumer goods at the lowest possible cost. 
E) is the sequence of business functions in which customer usefulness is added to products or services. 
A) for all companies starts with research and development. 
B) is a strategy that integrates people and technology in all business functions to enhance relationships with customers,partners,and distributors. 
C) describes the flow of goods,services,and information from their initial sources to the delivery to consumers regardless if those activities occur in one or more organizations. 
D) is a strategy that can be focused on providing consumer goods at the lowest possible cost. 
E) is the sequence of business functions in which customer usefulness is added to products or services.

Question 10

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

Question 11

Which of the following is a major benefit of utilizing a budgeting system?

Accepted Answer

A) It always results in more profitable decisions. 
B) It is easier for managers than traditional decision-making models. 
C) It saves costs by utilizing historical data to make projections. 
D) It facilitates coordination and communication. 
E) Once a successful budget is developed,it can be re-used year after year. 
A) It always results in more profitable decisions. 
B) It is easier for managers than traditional decision-making models. 
C) It saves costs by utilizing historical data to make projections. 
D) It facilitates coordination and communication. 
E) Once a successful budget is developed,it can be re-used year after year.

Question 12

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 13

The budgetary control function may include evaluating the difference

Accepted Answer

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

Question 14

The primary criterion when faced with a resource allocation decision is

Accepted Answer

A) cost minimization. 
B) reduction in the amount of time required to perform a particular job. 
C) achievement of organizational goals. 
D) how well the alternative options help achieve organizational goals in relation to the costs incurred. 
E) improving information flow. 
A) cost minimization. 
B) reduction in the amount of time required to perform a particular job. 
C) achievement of organizational goals. 
D) how well the alternative options help achieve organizational goals in relation to the costs incurred. 
E) improving information flow.

Question 15

Managers typically receive reports on cost planning and controls that should be considered for internal use only.

Accepted Answer

A) True 
 B)False

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

Sub-contracting a business function can be part of supply chain management.

Accepted Answer

A) True 
 B)False

Question 18

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 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

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 IFRS/ASPE. 
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 IFRS/ASPE.

Exam 1: The Accountants Vital Role in Decision Making

CPAs are required to follow the formal codes of ethical conduct provided by their professional association.

Management should evaluate the difference between planned and budgeted amounts.

Place the five business functions in the order they appear along the value chain: A = Customer service B = Design C = Distribution D = Production E = Research and Development F = Marketing

The value chain includes the following functions: research and development;design of products,services,or processes;production;marketing;distribution;customer service;and management satisfaction.

Developing a new web site to display and demonstrate the company's products would be part of which value chain function?

In the value chain,research and development generates and experiments with new ideas related to new products.

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

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

The value chain

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

Which of the following is a major benefit of utilizing a budgeting system?

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

The budgetary control function may include evaluating the difference

The primary criterion when faced with a resource allocation decision is

Managers typically receive reports on cost planning and controls that should be considered for internal use only.

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

Sub-contracting a business function can be part of supply chain management.

A budget is defined as

Professional codes of conduct relating to the accounting profession

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

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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