Question 1

R&D,production,and customer service are business functions that are all included as part of ________.

Accepted Answer

A)  the value chain 
B)  benchmarking 
C)  customer relationship management 
D)  the supply chain 
A)  the value chain 
B)  benchmarking 
C)  customer relationship management 
D)  the supply chain

Question 2

Cost accounting is the process of measuring,analyzing,and reporting financial and nonfinancial information related to the costs of acquiring or using resources in an organization.

Accepted Answer

A) True 
 B)False

Question 3

Marketing is the ________.

Accepted Answer

A)  generation of, and experimentation with, ideas related to new products, services, or processes 
B)  detailed planning and engineering of products, services, or processes 
C)  acquisition, coordination, and assembly of resources to produce a product or deliver a service 
D)  the manner by which companies promote and sell their products or services to customers or perspective customers 
A)  generation of, and experimentation with, ideas related to new products, services, or processes 
B)  detailed planning and engineering of products, services, or processes 
C)  acquisition, coordination, and assembly of resources to produce a product or deliver a service 
D)  the manner by which companies promote and sell their products or services to customers or perspective customers

Question 4

Cost accounting ________.

Accepted Answer

A)  measures the costs of acquiring or using resources in an organization 
B)  helps managers to develop, communicate, and implement strategies 
C)  coordinates product design, production, and marketing decisions and evaluate a company's performance 
D)  communicates information to investors, banks, regulators, and other outside parties 
A)  measures the costs of acquiring or using resources in an organization 
B)  helps managers to develop, communicate, and implement strategies 
C)  coordinates product design, production, and marketing decisions and evaluate a company's performance 
D)  communicates information to investors, banks, regulators, and other outside parties

Question 5

Competence includes maintaining an appropriate level of professional expertise by continually developing knowledge and skills.

Accepted Answer

A) True 
 B)False

Question 6

Linking rewards to performance ________.

Accepted Answer

A)  helps to motivate managers 
B)  allows companies to charge premium prices 
C)  should only be based on financial information 
D)  enhances agency costs 
A)  helps to motivate managers 
B)  allows companies to charge premium prices 
C)  should only be based on financial information 
D)  enhances agency costs

Question 7

Management accounting ________.

Accepted Answer

A)  focuses on estimating future revenues, costs, and other measures to forecast activities and their results 
B)  provides information about the company as a whole 
C)  reports information that has occurred in the past that is verifiable and reliable 
D)  provides information that is generally available only on a quarterly or annual basis 
A)  focuses on estimating future revenues, costs, and other measures to forecast activities and their results 
B)  provides information about the company as a whole 
C)  reports information that has occurred in the past that is verifiable and reliable 
D)  provides information that is generally available only on a quarterly or annual basis

Question 8

Management accounting is considered most likely to be successful when it ________.

Accepted Answer

A)  helps creditors evaluate the company's performance 
B)  helps investors improve their decisions 
C)  is timely 
D)  is relevant and reported annually 
A)  helps creditors evaluate the company's performance 
B)  helps investors improve their decisions 
C)  is timely 
D)  is relevant and reported annually

Question 9

An Enterprise Resource Planning (ERP)System is a single database that collects data and feeds into applications that support each of the company's business activities,such as purchases,production,distribution,and sales.

Accepted Answer

A) True 
 B)False

Question 10

The last step in the decision-making process is to make decisions by choosing among alternatives.

Accepted Answer

A) True 
 B)False

Question 11

For each report listed below,identify whether the major purpose of the report is for (1)routine internal reporting,(2)nonroutine internal reporting,or for (3)external reporting to investors and other outside parties.
Item:
a.study detailing sale information of the top-ten selling products
b.weekly report of total sales generated by each store in the metropolitan area
c.annual Report sent to shareholders
d.monthly report comparing budgeted sales by store to actual sales

Accepted Answer

a.(2)nonroutine internal repor

Question 12

If there is an ethical conflict concerning your direct supervisor,you may contact ________.

Accepted Answer

A)  local media 
B)  IMA Ethics Counselor 
C)  attorney 
D)  board of directors 
A)  local media 
B)  IMA Ethics Counselor 
C)  attorney 
D)  board of directors

Question 13

Financial accounting provides an organization's past-oriented information such as the previous years' financial statements.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following issues is addressed by the Sarbanes-Oxley legislation?

Accepted Answer

A)  safety aspects of products 
B)  environmental damages caused by industries 
C)  disclosure practices of public corporations 
D)  disclosure practices of private companies 
A)  safety aspects of products 
B)  environmental damages caused by industries 
C)  disclosure practices of public corporations 
D)  disclosure practices of private companies

Question 15

A data warehouse or infobarn ________.

Accepted Answer

A)  is reserved for exclusive use by the CFO 
B)  is primarily used for financial reporting purposes 
C)  stores information used by different managers for multiple purposes 
D)  gathers only nonfinancial information 
A)  is reserved for exclusive use by the CFO 
B)  is primarily used for financial reporting purposes 
C)  stores information used by different managers for multiple purposes 
D)  gathers only nonfinancial information

Question 16

If there is an ethical conflict concerning your direct supervisor,when is it appropriate to contact authorities or individuals not employed by the organization?

Accepted Answer

A)  when there is a personal conflict 
B)  when your supervisor is about to be promoted 
C)  when there is a clear violation of the law 
D)  when you face injustice from your supervisor 
A)  when there is a personal conflict 
B)  when your supervisor is about to be promoted 
C)  when there is a clear violation of the law 
D)  when you face injustice from your supervisor

Question 17

A budget is a qualitative expression of a plan.

Accepted Answer

A) True 
 B)False

Question 18

Management accountants work closely with managers in various departments to formulate strategies by providing information about the sources of competitive advantage.

Accepted Answer

A) True 
 B)False

Question 19

Value chain refers to its value to the employee.

Accepted Answer

A) True 
 B)False

Question 20

If a managerial accountant suspected his or her immediate superior of unethical behavior,who happens to be a chief executive officer or equivalent,the managerial accountant should request an immediate meeting with the executive committee or the audit committee.

Accepted Answer

A) True 
 B)False

Exam 1: The Manager and Management Accounting

R&D,production,and customer service are business functions that are all included as part of ________.

Cost accounting is the process of measuring,analyzing,and reporting financial and nonfinancial information related to the costs of acquiring or using resources in an organization.

Marketing is the ________.

Cost accounting ________.

Competence includes maintaining an appropriate level of professional expertise by continually developing knowledge and skills.

Linking rewards to performance ________.

Management accounting ________.

Management accounting is considered most likely to be successful when it ________.

An Enterprise Resource Planning (ERP)System is a single database that collects data and feeds into applications that support each of the company's business activities,such as purchases,production,distribution,and sales.

The last step in the decision-making process is to make decisions by choosing among alternatives.

If there is an ethical conflict concerning your direct supervisor,you may contact ________.

Financial accounting provides an organization's past-oriented information such as the previous years' financial statements.

Which of the following issues is addressed by the Sarbanes-Oxley legislation?

A data warehouse or infobarn ________.

If there is an ethical conflict concerning your direct supervisor,when is it appropriate to contact authorities or individuals not employed by the organization?

A budget is a qualitative expression of a plan.

Management accountants work closely with managers in various departments to formulate strategies by providing information about the sources of competitive advantage.

Value chain refers to its value to the employee.

If a managerial accountant suspected his or her immediate superior of unethical behavior,who happens to be a chief executive officer or equivalent,the managerial accountant should request an immediate meeting with the executive committee or the audit committee.

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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