Question 1

IMA's overarching ethical principles include: Honesty,Fairness,Objectivity,and Responsibility.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following statements refers to management accounting information?

Accepted Answer

A)  There are no regulations governing the reports. 
B)  The reports are generally delayed and historical. 
C)  The audience tends to be stockholders, creditors, and tax authorities. 
D)  It primarily measures manager's compensation on reported financial results. 
A)  There are no regulations governing the reports. 
B)  The reports are generally delayed and historical. 
C)  The audience tends to be stockholders, creditors, and tax authorities. 
D)  It primarily measures manager's compensation on reported financial results. A

Question 3

________ 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 
A)  Cost-benefit approach 
B)  Customer focus 
C)  Customer relationship management 
D)  Total quality management D

Question 4

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 5

Explain how a budget can help management implement strategy.

Accepted Answer

A budget is a planning tool,a

Question 6

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

Accepted Answer

A value chain is a sequence of business

Question 7

Which of the following is a responsibility of the CFO?

Accepted Answer

A)  preparing financial statements 
B)  managing short-term and long-term financing 
C)  investing in new equipment 
D)  conducting internal audit 
A)  preparing financial statements 
B)  managing short-term and long-term financing 
C)  investing in new equipment 
D)  conducting internal audit

Question 8

________ is the detailed planning and engineering and testing of products,services,or processes.

Accepted Answer

A)  Plan of implementation 
B)  Design 
C)  Production 
D)  Research and development 
A)  Plan of implementation 
B)  Design 
C)  Production 
D)  Research and development

Question 9

The successful management accountant possesses several skills and characteristics that reach well beyond
basic analytical abilities.Discuss.

Accepted Answer

The skills required are as follows:
Mana

Question 10

Ethical challenges for management accountants include ________.

Accepted Answer

A)  whether to accept gifts from suppliers, knowing it is an effort to indirectly influence decisions 
B)  adhering to the principles of accounting 
C)  whether to file a tax return this year 
D)  whether to accept gifts higher incentives from the company for their performance 
A)  whether to accept gifts from suppliers, knowing it is an effort to indirectly influence decisions 
B)  adhering to the principles of accounting 
C)  whether to file a tax return this year 
D)  whether to accept gifts higher incentives from the company for their performance

Question 11

Management accounting is playing an increasingly important role by helping managers develop and implement strategy.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

Management accountants continually face

Question 13

Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting.

Accepted Answer

A) True 
 B)False

Question 14

________ includes banking and short- and long-term financing,investments,and cash management.

Accepted Answer

A)  Risk management 
B)  Strategic planning 
C)  Controllership 
D)  Treasury management 
A)  Risk management 
B)  Strategic planning 
C)  Controllership 
D)  Treasury management

Question 15

Discuss the behavioral considerations that provide value to strategic decision making.

Accepted Answer

Management is primarily a human activity

Question 16

Which item is an indication of competence under the Standards of Ethical Conduct?

Accepted Answer

A)  Maintain an appropriate level of professional expertise by continually developing knowledge and skills. 
B)  Keep information confidential except when disclosure is authorized or legally required. 
C)  Abstain from engaging in or supporting any activity that might discredit the profession. 
D)  Refrain from engaging in any conduct that would prejudice carrying out duties ethically. 
A)  Maintain an appropriate level of professional expertise by continually developing knowledge and skills. 
B)  Keep information confidential except when disclosure is authorized or legally required. 
C)  Abstain from engaging in or supporting any activity that might discredit the profession. 
D)  Refrain from engaging in any conduct that would prejudice carrying out duties ethically.

Question 17

The two broad strategies that companies follow are cost leadership strategy and product differentiation strategy.

Accepted Answer

A) True 
 B)False

Question 18

The ________ function supports the six functions of value-chain analysis.

Accepted Answer

A)  administration 
B)  controlling 
C)  planning 
D)  direction 
A)  administration 
B)  controlling 
C)  planning 
D)  direction

Question 19

Management accounting information and reports do not have to follow set principles or rules such as GAAP.

Accepted Answer

A) True 
 B)False

Question 20

Linking rewards to performance helps in good management performance.

Accepted Answer

A) True 
 B)False

Exam 1: The Manager and Management Accounting

IMA's overarching ethical principles include: Honesty,Fairness,Objectivity,and Responsibility.

Which of the following statements refers to management accounting information?

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

Explain how a budget can help management implement strategy.

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

Which of the following is a responsibility of the CFO?

________ is the detailed planning and engineering and testing of products,services,or processes.

The successful management accountant possesses several skills and characteristics that reach well beyond basic analytical abilities.Discuss.

Ethical challenges for management accountants include ________.

Management accounting is playing an increasingly important role by helping managers develop and implement strategy.

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

Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting.

________ includes banking and short- and long-term financing,investments,and cash management.

Discuss the behavioral considerations that provide value to strategic decision making.

Which item is an indication of competence under the Standards of Ethical Conduct?

The two broad strategies that companies follow are cost leadership strategy and product differentiation strategy.

The ________ function supports the six functions of value-chain analysis.

Management accounting information and reports do not have to follow set principles or rules such as GAAP.

Linking rewards to performance helps in good management performance.

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, direct-Cost Variances, and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

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