Question 1

When faced with a potential ethical conflict,the managerial accountant should first consult IMA ethics counselor.

Accepted Answer

A) True 
 B)False

Question 2

________ includes providing financial information for reports to managers and shareholders,and overseeing the overall operations of the accounting system.

Accepted Answer

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

Question 3

Management accountants must promote fact-based analysis and make tough-minded,critical judgments
without being adversarial.

Accepted Answer

A) True 
 B)False

Question 4

Financial accounting is concerned primarily with ________.

Accepted Answer

A)  external reporting to investors, creditors, and government authorities 
B)  cost planning and cost controls 
C)  product design and marketing strategies 
D)  providing information for strategic and tactical decisions 
A)  external reporting to investors, creditors, and government authorities 
B)  cost planning and cost controls 
C)  product design and marketing strategies 
D)  providing information for strategic and tactical decisions

Question 5

Line management includes ________.

Accepted Answer

A)  distribution managers 
B)  human-resource managers 
C)  information-technology managers 
D)  management-accounting managers 
A)  distribution managers 
B)  human-resource managers 
C)  information-technology managers 
D)  management-accounting managers

Question 6

The supply chain describes the flow of goods,services,and information from the initial sources of materials and services to the delivery of products to consumers.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true of management accounting information?

Accepted Answer

A)  It focuses on documenting past business actions of a firm. 
B)  It is prepared based on SEC rules and FASB accounting principles. 
C)  It is prepared for shareholders. 
D)  It co-ordinates product design, production, and marketing decisions. 
A)  It focuses on documenting past business actions of a firm. 
B)  It is prepared based on SEC rules and FASB accounting principles. 
C)  It is prepared for shareholders. 
D)  It co-ordinates product design, production, and marketing decisions.

Question 8

What is strategy? Briefly describe the two broad types of strategies that companies may choose to pursue.

Accepted Answer

Strategy specifies how an organization m

Question 9

Which of the following statements is true of performance reports?

Accepted Answer

A)  The performance report shows actual performance as compared to the budget. 
B)  The performance report depicts the performance of a firm's competitors. 
C)  The performance report compares only the budgeted performance over the years. 
D)  The performance report contains no actual results due to confidentiality. 
A)  The performance report shows actual performance as compared to the budget. 
B)  The performance report depicts the performance of a firm's competitors. 
C)  The performance report compares only the budgeted performance over the years. 
D)  The performance report contains no actual results due to confidentiality.

Question 10

Place the four business functions in the order they appear along the value chain: Customer service
Design
Marketing
Production

Accepted Answer

A)  Customer Service, Design, Production, Marketing 
B)  Customer Service, Marketing, Production, Design 
C)  Design, Production, Marketing, Customer Service 
D)  Design, Customer Service, Production, Marketing 
A)  Customer Service, Design, Production, Marketing 
B)  Customer Service, Marketing, Production, Design 
C)  Design, Production, Marketing, Customer Service 
D)  Design, Customer Service, Production, Marketing

Question 11

Customer relationship management initiatives use technology to coordinate all customer-facing activities (such as marketing,sales calls,distribution,and after-sales support)and the design and production activities necessary to get products to customers.

Accepted Answer

A) True 
 B)False

Question 12

Line management is directly responsible for attaining the goals of the organization.

Accepted Answer

A) True 
 B)False

Question 13

________ describes the flow of goods,services,and information from the purchase of materials to the delivery of products to consumers,regardless of whether those activities occur in the same organization or with other organizations.

Accepted Answer

A)  Supply chain 
B)  Production process 
C)  Quality control 
D)  Customer relationship management 
A)  Supply chain 
B)  Production process 
C)  Quality control 
D)  Customer relationship management

Question 14

The ________ is primarily responsible for management accounting and financial accounting.

Accepted Answer

A)  COO (Chief Operating Officer) 
B)  CIO (Chief Information Officer) 
C)  treasurer 
D)  controller 
A)  COO (Chief Operating Officer) 
B)  CIO (Chief Information Officer) 
C)  treasurer 
D)  controller

Question 15

Management accounting information helps managers calculate a target cost for a product by subtracting from the target price the net income per unit of product that the company wants to earn.

Accepted Answer

A) True 
 B)False

Question 16

Managers rely on management accounting information to evaluate alternative investment and R&D decisions.

Accepted Answer

A) True 
 B)False

Question 17

Technological innovation has led to shorter product-life cycles and increased the need to bring new products to market more rapidly.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements about the cost-benefit approach is true?

Accepted Answer

A)  Resources should be spent if the expected costs exceed the expected benefits of the company. 
B)  In a cost-benefit analysis, both costs and benefits are not easy to measure. 
C)  Resources should be spent if the costs of a decision outweigh the benefits of the decision. 
D)  A cost-benefit approach would not be appropriate for a decision to install a budgeting system. 
A)  Resources should be spent if the expected costs exceed the expected benefits of the company. 
B)  In a cost-benefit analysis, both costs and benefits are not easy to measure. 
C)  Resources should be spent if the costs of a decision outweigh the benefits of the decision. 
D)  A cost-benefit approach would not be appropriate for a decision to install a budgeting system.

Question 19

Technical consideration ________.

Accepted Answer

A)  help managers make wise economic decisions by providing them with the desired information 
B)  focus on encouraging individuals to do their jobs better 
C)  focus on compensating the managers for good performance 
D)  emphasize on different costs for different purposes 
A)  help managers make wise economic decisions by providing them with the desired information 
B)  focus on encouraging individuals to do their jobs better 
C)  focus on compensating the managers for good performance 
D)  emphasize on different costs for different purposes

Question 20

The balance sheet,income statement,and statement of cash flows are used for financial accounting,and also for management accounting.

Accepted Answer

A) True 
 B)False

Exam 1: The Manager and Management Accounting

When faced with a potential ethical conflict,the managerial accountant should first consult IMA ethics counselor.

________ includes providing financial information for reports to managers and shareholders,and overseeing the overall operations of the accounting system.

Management accountants must promote fact-based analysis and make tough-minded,critical judgments without being adversarial.

Financial accounting is concerned primarily with ________.

Line management includes ________.

The supply chain describes the flow of goods,services,and information from the initial sources of materials and services to the delivery of products to consumers.

Which of the following is true of management accounting information?

What is strategy? Briefly describe the two broad types of strategies that companies may choose to pursue.

Which of the following statements is true of performance reports?

Place the four business functions in the order they appear along the value chain: Customer service Design Marketing Production

Customer relationship management initiatives use technology to coordinate all customer-facing activities (such as marketing,sales calls,distribution,and after-sales support)and the design and production activities necessary to get products to customers.

Line management is directly responsible for attaining the goals of the organization.

________ describes the flow of goods,services,and information from the purchase of materials to the delivery of products to consumers,regardless of whether those activities occur in the same organization or with other organizations.

The ________ is primarily responsible for management accounting and financial accounting.

Management accounting information helps managers calculate a target cost for a product by subtracting from the target price the net income per unit of product that the company wants to earn.

Managers rely on management accounting information to evaluate alternative investment and R&D decisions.

Technological innovation has led to shorter product-life cycles and increased the need to bring new products to market more rapidly.

Which of the following statements about the cost-benefit approach is true?

Technical consideration ________.

The balance sheet,income statement,and statement of cash flows are used for financial accounting,and also for management 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

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