Question 1

An Enterprise Resource Planning System can best be described as ________.

Accepted Answer

A)  a collection of programs that use a variety of unconnected databases 
B)  a single database that collects data and feeds it into applications that support each of the company's business activities, such as purchases, production, distribution, and sales 
C)  a database that is primarily used by a purchasing department to determine the correct amount of a particular supply item to purchase 
D)  a sophisticated means of linking two or more companies to facilitate their planning processes 
A)  a collection of programs that use a variety of unconnected databases 
B)  a single database that collects data and feeds it into applications that support each of the company's business activities, such as purchases, production, distribution, and sales 
C)  a database that is primarily used by a purchasing department to determine the correct amount of a particular supply item to purchase 
D)  a sophisticated means of linking two or more companies to facilitate their planning processes

Question 2

Value chain and classification of costs,car company.
General Motors incurs the following costs:
a.Electricity costs for the plant assembling the Chevrolet Camaro
b.Transportation costs for shipping the Camaro to dealers
c.Payment to Shelby Designs for the design of the Camaro.
d.Salary of an engineer working on the next generation of Camaros
e.Cost of GM employees' visit to an auto show to demonstrate the Camaro
f.Testing the Camaro at the GM track
g.Payment to television network for running Camaro advertisements
h.Cost of brake pads purchased from outside supplier to be installed on the Camaro
Required:
Classify each of the cost items (a-h)into one of the business functions of the value chain.
1) Research and development
2) Design of products and processes
3) Production
4) Marketing and sales
5) Distribution
6) Customer service

Accepted Answer

a.3)Production
b.5)Distributio

Question 3

Cost accounting measures and reports short-term,long-term,financial,and non financial information.

Accepted Answer

A) True 
 B)False

Question 4

Classify each cost item of Ripon Printers given below into one of the business functions of the value chain,either (1)R&D,(2)design of products and processes,(3)production,(4)marketing (including sales),(5)distribution,or (6)customer service.
Item:
a.cost of customer order forms
b.cost of paper used in manufacture of books
c.cost of paper used in packing cartons to ship books
d.cost of paper used in display at national trade show
e.depreciation of trucks used to transport books to college bookstores
f.cost of the wood used to manufacture paper
g.salary of the scientists attempting to find another source of printing ink
h.cost of designing the book size so that a standard-sized box is filled to capacity

Accepted Answer

a.(4)marketing (including sales)
b.(3)pr

Question 5

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 6

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

Accepted Answer

A)  bonuses paid to employees 
B)  recognition of job well done 
C)  promotions based on performance 
D)  salaries paid to employees 
A)  bonuses paid to employees 
B)  recognition of job well done 
C)  promotions based on performance 
D)  salaries paid to employees

Question 7

You have been employed as an entry-level management accountant for a little under a year.You suspect that your immediate supervisor is involved in a significant fraud involving diverting of company assets to personal use.Briefly describe the steps you might take to resolve this dilemma.

Accepted Answer

The management accountant should first c

Question 8

Control measures should ________.

Accepted Answer

A)  be set and not changed until the next budget cycle 
B)  be set by excluding nonfinancial information 
C)  be kept confidential from employees so that competitors don't have an opportunity to gain a competitive advantage 
D)  be linked by feedback to help future planning 
A)  be set and not changed until the next budget cycle 
B)  be set by excluding nonfinancial information 
C)  be kept confidential from employees so that competitors don't have an opportunity to gain a competitive advantage 
D)  be linked by feedback to help future planning

Question 9

Complete a performance report for the month of May,2014,for Times Corp,a regional newspaper showing four columns: 1)Actual Result; 2)Budgeted Amount; 3)Difference: Actual Result minus Budgeted Amount; 4)Difference as a Percentage of Budgeted Amount,given the following data:
 $$\begin{array} { | l | l | } 
\hline \text { Actual pages sold } & 550 \
\hline \text { Budgeted advertising pages } & 500 \
\hline \text { Actual Advertising revenue } & \$ 4,200,000 \
\hline \text { Budgeted Advertising revenue } & \$ 4,000,000 \
\hline
\end{array}$$ Does the report indicate any cause for managerial investigation?

Accepted Answer

The performance report should look somet

Question 10

The technical considerations of budgeting encourage managers and other employees to strive for achieving the goals of the organization.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true of line management?

Accepted Answer

A)  It is directly responsible for achieving the goals of the organization. 
B)  It is responsible of management accounting functions. 
C)  It provides advice, support, and assistance to staff management. 
D)  It only includes the top level management. 
A)  It is directly responsible for achieving the goals of the organization. 
B)  It is responsible of management accounting functions. 
C)  It provides advice, support, and assistance to staff management. 
D)  It only includes the top level management.

Question 12

Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning your direct supervisor?

Accepted Answer

A)  Inform the Board of Directors of the existence of a potential conflict. 
B)  Clarify relevant ethical issues by initiating a confidential discussion with an IMA Ethics Counselor. 
C)  Consult the attorney as to legal obligations and rights concerning the ethical conflict. 
D)  Follow the organization's procedures concerning resolution of such a conflict. 
A)  Inform the Board of Directors of the existence of a potential conflict. 
B)  Clarify relevant ethical issues by initiating a confidential discussion with an IMA Ethics Counselor. 
C)  Consult the attorney as to legal obligations and rights concerning the ethical conflict. 
D)  Follow the organization's procedures concerning resolution of such a conflict.

Question 13

A budget can only be used as a planning tool.

Accepted Answer

A) True 
 B)False

Question 14

The Standards of Ethical Conduct for management accountants include concepts related to ________.

Accepted Answer

A)  competence, performance, diligence, and reporting 
B)  competence, confidentiality, integrity, and credibility 
C)  experience, diligence, reporting, and objectivity 
D)  diligence, objectivity, conflicts of interest, and credibility 
A)  competence, performance, diligence, and reporting 
B)  competence, confidentiality, integrity, and credibility 
C)  experience, diligence, reporting, and objectivity 
D)  diligence, objectivity, conflicts of interest, and credibility

Question 15

Which of the following is true of cost accounting?

Accepted Answer

A)  It provides financial information about cash-based transactions only. 
B)  It accounts only the financial information of business transactions, not the nonfinancial information. 
C)  It provides financial information regarding the cost of acquiring resources. 
D)  It must be prepared in accordance with GAAP. 
A)  It provides financial information about cash-based transactions only. 
B)  It accounts only the financial information of business transactions, not the nonfinancial information. 
C)  It provides financial information regarding the cost of acquiring resources. 
D)  It must be prepared in accordance with GAAP.

An Enterprise Resource Planning System can best be described as ________.

Cost accounting measures and reports short-term,long-term,financial,and non financial information.

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

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

You have been employed as an entry-level management accountant for a little under a year.You suspect that your immediate supervisor is involved in a significant fraud involving diverting of company assets to personal use.Briefly describe the steps you might take to resolve this dilemma.

Control measures should ________.

The technical considerations of budgeting encourage managers and other employees to strive for achieving the goals of the organization.

Which of the following is true of line management?

Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning your direct supervisor?

A budget can only be used as a planning tool.

The Standards of Ethical Conduct for management accountants include concepts related to ________.

Which of the following is true of cost accounting?

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

Filters

Exam 1: The Manager and Management Accounting

An Enterprise Resource Planning System can best be described as ________.

Cost accounting measures and reports short-term,long-term,financial,and non financial information.

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

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

You have been employed as an entry-level management accountant for a little under a year.You suspect that your immediate supervisor is involved in a significant fraud involving diverting of company assets to personal use.Briefly describe the steps you might take to resolve this dilemma.

Control measures should ________.

The technical considerations of budgeting encourage managers and other employees to strive for achieving the goals of the organization.

Which of the following is true of line management?

Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning your direct supervisor?

A budget can only be used as a planning tool.

The Standards of Ethical Conduct for management accountants include concepts related to ________.

Which of the following is true of cost accounting?

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

Filters