Exam 1: The Manager and Management Accounting

Managers track the costs incurred in each value-chain category is to reduce costs and to improve efficiency.

Classify each cost item into one of the business functions of the value chain,either (1)R&D,(2)design,(3)production,(4)marketing,(5)distribution,or (6)customer service. Item: a.cost of samples mailed to promote sales of a new product b.labor cost of workers in the manufacturing plant c.bonus paid to a person with a 90% satisfaction rating in handling customers with complaints d.transportation costs for shipping products to retail outlets

Gathering information before making a decision leads to a wastage of time and is not helpful.

Management accountants should have little or no role in deciding on a company's strategy.

________ is the generation of,and experimentation with,ideas related to new products,services,or processes.

Control comprises taking actions that implement the planning decisions,evaluating past performance,and providing feedback and learning to help future decision making.

The primary user of management accounting information is a(n)________.

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

The supply chain always occurs within a single organization.

For each type of report listed below,identify one planning decision and one controlling decision for which the information would be helpful.Assume you are a Walgreen Company store. Item: a.annual financial statements for the past three years b.report detailing sales by department by each hour of the day for the past week c.special study regarding increased road traffic due to the construction of a new shopping mall at a near-by intersection

Which of the following is true of financial accounting information?

Bonuses given to employees based on performance is an example of extrinsic reward.

For best results,cost management emphasizes independently coordinating supply chain activities within your company and with other companies that act as suppliers and customers.

Which of the following statements concerning an organization's strategy is true?

Integrity is to abstain from engaging in or supporting any activity that might discredit the profession.

The Institute of Management Accountants provides a hotline to discuss ethical issues.

Which of the following deals with management accounting?

Customer response time involves ________.

For optimal planning success it is best if each business function within the value chain is performed one at a time in sequence.

In designing strategy,a company must match its opportunities in the marketplace with ________.