Question 1

A budget ________.

Accepted Answer

A)  is the qualitative expression of a proposed plan of action by management 
B)  is an aid to coordinating what needs to be done to execute a plan 
C)  helps in identifying problems and uncertainties 
D)  promotes production automation 
A)  is the qualitative expression of a proposed plan of action by management 
B)  is an aid to coordinating what needs to be done to execute a plan 
C)  helps in identifying problems and uncertainties 
D)  promotes production automation

Question 2

Describe management accounting and financial accounting.

Accepted Answer

Management accounting provides informati

Question 3

Long-term financing is an integral part of the ________ function in an organization.

Accepted Answer

A)  CFO's 
B)  controller's 
C)  auditor's 
D)  president's 
A)  CFO's 
B)  controller's 
C)  auditor's 
D)  president's

Question 4

Cost accounting provides information for both management accounting and financial accounting professionals.Explain.

Accepted Answer

Cost accounting is the process of measur

Question 5

Management accountants might provide information on decisions on whether to buy a product from outside or manufacture it in-house.

Accepted Answer

A) True 
 B)False

Question 6

The process of preparing a budget forces coordination and communication throughout the company.

Accepted Answer

A) True 
 B)False

Question 7

New-product development time is the time taken by companies to ________.

Accepted Answer

A)  test the prototype and start the large scale production of a product 
B)  design and develop the prototype product 
C)  create new products and bring them to market 
D)  improvise existing products and re-launch them to market 
A)  test the prototype and start the large scale production of a product 
B)  design and develop the prototype product 
C)  create new products and bring them to market 
D)  improvise existing products and re-launch them to market

Question 8

________ is a strategy that integrates people and technology in all business functions to enhance relationships with customers,partners,and distributors.

Accepted Answer

A)  Supply-chain analysis 
B)  Customer relationship management 
C)  Value-chain analysis 
D)  Continuous quality improvement 
A)  Supply-chain analysis 
B)  Customer relationship management 
C)  Value-chain analysis 
D)  Continuous quality improvement

Question 9

Financial accounting provides the primary source of information for ________.

Accepted Answer

A)  decision making in the finishing department 
B)  improving customer service 
C)  preparing the income statement for shareholders 
D)  planning next year's operating budget 
A)  decision making in the finishing department 
B)  improving customer service 
C)  preparing the income statement for shareholders 
D)  planning next year's operating budget

Question 10

Managers use management accounting information to ________.

Accepted Answer

A)  help external users such as investors, banks, regulators, and suppliers 
B)  communicate, develop, and implement strategies 
C)  communicate a firm's financial position to investors, banks, regulators, and other outside parties 
D)  ensure that financial statements are consistent with the SEC rules 
A)  help external users such as investors, banks, regulators, and suppliers 
B)  communicate, develop, and implement strategies 
C)  communicate a firm's financial position to investors, banks, regulators, and other outside parties 
D)  ensure that financial statements are consistent with the SEC rules

Question 11

The scenario that resources should be spent if the expected benefits to the company exceed the expected costs describes ________.

Accepted Answer

A)  cost-benefit approach 
B)  behavioral and technical considerations 
C)  balanced scorecard 
D)  different costs for different purposes 
A)  cost-benefit approach 
B)  behavioral and technical considerations 
C)  balanced scorecard 
D)  different costs for different purposes

Question 12

Performing professional duties in accordance with relevant laws,regulations,and technical standards is a competent responsibility.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following reports to the CFO?

Accepted Answer

A)  external auditor 
B)  distribution manager 
C)  production manager 
D)  treasurer 
A)  external auditor 
B)  distribution manager 
C)  production manager 
D)  treasurer

Question 14

Financial accounting ________.

Accepted Answer

A)  focuses on the future and includes activities such as preparing next year's operating budget 
B)  must comply with GAAP (generally accepted accounting principles) 
C)  is the process of measuring, analyzing, and reporting financial and nonfinancial information related to the costs of acquiring or using resources in an organization 
D)  is prepared for the use of department heads and other employees 
A)  focuses on the future and includes activities such as preparing next year's operating budget 
B)  must comply with GAAP (generally accepted accounting principles) 
C)  is the process of measuring, analyzing, and reporting financial and nonfinancial information related to the costs of acquiring or using resources in an organization 
D)  is prepared for the use of department heads and other employees

Question 15

Which of the following is true of staff management?

Accepted Answer

A)  It plans income taxes, sales taxes, and international taxes. 
B)  It is directly responsible for achieving the goals of the organization. 
C)  It provides advice, support, and assistance to line management. 
D)  It controls the main business functions such as production and marketing. 
A)  It plans income taxes, sales taxes, and international taxes. 
B)  It is directly responsible for achieving the goals of the organization. 
C)  It provides advice, support, and assistance to line management. 
D)  It controls the main business functions such as production and marketing.

Question 16

An effective way to cut costs is to eliminate activities that do NOT improve the product attributes that customers value.

Accepted Answer

A) True 
 B)False

Question 17

The same cost concept used for external and internal reporting purposes.

Accepted Answer

A) True 
 B)False

Question 18

A company's CFO oversees banking and short- and long-term financing,investments,and cash management.

Accepted Answer

A) True 
 B)False

Question 19

Management accountants must work well in cross-functional teams and as a business partner.

Accepted Answer

A) True 
 B)False

Question 20

What areas of responsibility does a chief financial officer have in a typical organization?

Accepted Answer

The responsibilities vary amon

Exam 1: The Manager and Management Accounting

A budget ________.

Describe management accounting and financial accounting.

Long-term financing is an integral part of the ________ function in an organization.

Cost accounting provides information for both management accounting and financial accounting professionals.Explain.

Management accountants might provide information on decisions on whether to buy a product from outside or manufacture it in-house.

The process of preparing a budget forces coordination and communication throughout the company.

New-product development time is the time taken by companies to ________.

________ is a strategy that integrates people and technology in all business functions to enhance relationships with customers,partners,and distributors.

Financial accounting provides the primary source of information for ________.

Managers use management accounting information to ________.

The scenario that resources should be spent if the expected benefits to the company exceed the expected costs describes ________.

Performing professional duties in accordance with relevant laws,regulations,and technical standards is a competent responsibility.

Which of the following reports to the CFO?

Financial accounting ________.

Which of the following is true of staff management?

An effective way to cut costs is to eliminate activities that do NOT improve the product attributes that customers value.

The same cost concept used for external and internal reporting purposes.

A company's CFO oversees banking and short- and long-term financing,investments,and cash management.

Management accountants must work well in cross-functional teams and as a business partner.

What areas of responsibility does a chief financial officer have in a typical organization?

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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