Question 1

A performance report compares actual performance to the amount budgeted.

Accepted Answer

A) True 
 B)False

Question 2

The supply chain refers to the sequence of business functions in which customer usefulness is added to products or services.

Accepted Answer

A) True 
 B)False

Question 3

Management accountants have important ethical responsibilities that are related to competence,confidentiality,integrity,and credibility.

Accepted Answer

A) True 
 B)False

Question 4

The best-designed strategies and the best-developed capabilities are useless unless they are effectively executed.

Accepted Answer

A) True 
 B)False

Question 5

One of the steps in planning is evaluating the performance and taking corrective measures.

Accepted Answer

A) True 
 B)False

Question 6

Describe the major differences between management accounting and financial accounting for the following:
1.Primary users
2.Focus and emphasis
3.Rules of measurement and reporting

Accepted Answer

1.The primary users of management accoun

Question 7

As per IMA statement of ethical professional practice,integrity refers to disclosing all relevant information that could reasonably be expected to influence an intended user's understanding of the reports,analyses,or recommendations is a responsibility.

Accepted Answer

A) True 
 B)False

Question 8

Companies can decide on an appropriate strategy based strictly on internally available information.

Accepted Answer

A) True 
 B)False

Question 9

Generally,companies follow one of two broad strategies: offering a quality product at a low price,or offering a unique product or service priced higher than the competition.Is it possible to follow a strategy that is "in the middle"?

Accepted Answer

There is some dispute about the correct

Question 10

What is planning in decision making? Explain how budget helps in planning.

Accepted Answer

Planning consists of selecting an organi

Question 11

________ aims to improve operations throughout the value chain and to deliver products and services that exceed customer expectations.

Accepted Answer

A)  Total Quality Management 
B)  Innovation 
C)  Customer response time 
D)  Cost and efficiency 
A)  Total Quality Management 
B)  Innovation 
C)  Customer response time 
D)  Cost and efficiency

Question 12

The primary user of financial accounting information is a ________.

Accepted Answer

A)  factory shift supervisor 
B)  distribution manager 
C)  current shareholder 
D)  department manager 
A)  factory shift supervisor 
B)  distribution manager 
C)  current shareholder 
D)  department manager

Question 13

Increased global competition is placing pressure on companies to reduce costs.

Accepted Answer

A) True 
 B)False

Question 14

Identifying a company's most important customers helps to formulate a strategy.

Accepted Answer

A) True 
 B)False

Question 15

Management accounting information typically includes ________.

Accepted Answer

A)  tabulated results of customer satisfaction surveys 
B)  the cost of producing a product 
C)  the percentage of units produced that are defective 
D)  All of these answers are correct. 
A)  tabulated results of customer satisfaction surveys 
B)  the cost of producing a product 
C)  the percentage of units produced that are defective 
D)  All of these answers are correct.

Question 16

The most important planning tool is a ________.

Accepted Answer

A)  performance evaluation report 
B)  fishbone diagram 
C)  control chart 
D)  budget 
A)  performance evaluation report 
B)  fishbone diagram 
C)  control chart 
D)  budget

Question 17

Which of the following is a guideline used by management accountants to assist in strategic and operational decision making?

Accepted Answer

A)  employing a cost-benefit approach 
B)  employing a supply chain approach 
C)  employing a six sigma approach 
D)  employing a regression approach 
A)  employing a cost-benefit approach 
B)  employing a supply chain approach 
C)  employing a six sigma approach 
D)  employing a regression approach

Question 18

A budget is a benchmark against which actual performance can be compared.

Accepted Answer

A) True 
 B)False

Question 19

What competitive advantage could a company obtain from a successful cost management program?

Accepted Answer

There are three broad outcomes from a su

Question 20

Staff management includes ________.

Accepted Answer

A)  manufacturing managers 
B)  management accountants 
C)  purchasing managers 
D)  distribution managers 
A)  manufacturing managers 
B)  management accountants 
C)  purchasing managers 
D)  distribution managers

Exam 1: The Manager and Management Accounting

A performance report compares actual performance to the amount budgeted.

The supply chain refers to the sequence of business functions in which customer usefulness is added to products or services.

Management accountants have important ethical responsibilities that are related to competence,confidentiality,integrity,and credibility.

The best-designed strategies and the best-developed capabilities are useless unless they are effectively executed.

One of the steps in planning is evaluating the performance and taking corrective measures.

Describe the major differences between management accounting and financial accounting for the following: 1.Primary users 2.Focus and emphasis 3.Rules of measurement and reporting

As per IMA statement of ethical professional practice,integrity refers to disclosing all relevant information that could reasonably be expected to influence an intended user's understanding of the reports,analyses,or recommendations is a responsibility.

Companies can decide on an appropriate strategy based strictly on internally available information.

Generally,companies follow one of two broad strategies: offering a quality product at a low price,or offering a unique product or service priced higher than the competition.Is it possible to follow a strategy that is "in the middle"?

What is planning in decision making? Explain how budget helps in planning.

________ aims to improve operations throughout the value chain and to deliver products and services that exceed customer expectations.

The primary user of financial accounting information is a ________.

Increased global competition is placing pressure on companies to reduce costs.

Identifying a company's most important customers helps to formulate a strategy.

Management accounting information typically includes ________.

The most important planning tool is a ________.

Which of the following is a guideline used by management accountants to assist in strategic and operational decision making?

A budget is a benchmark against which actual performance can be compared.

What competitive advantage could a company obtain from a successful cost management program?

Staff management includes ________.

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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