Question 1

Which of the following statements about management accounting is FALSE?

Accepted Answer

A)  Management accounting is the process of identifying, measuring, accumulating, analyzing, preparing, interpreting and communicating information. 
B)  Management accounting helps managers fulfill organizational objectives. 
C)  Management accounting is used by managerial accountants to make strategic and operational decisions. 
D)  Management accounting produces information for managers in an organization. 
A)  Management accounting is the process of identifying, measuring, accumulating, analyzing, preparing, interpreting and communicating information. 
B)  Management accounting helps managers fulfill organizational objectives. 
C)  Management accounting is used by managerial accountants to make strategic and operational decisions. 
D)  Management accounting produces information for managers in an organization.

Question 2

Which statement about TQM is FALSE?

Accepted Answer

A)  TQM focuses on product quality. 
B)  TQM minimizes costs by maximizing quality. 
C)  TQM focuses on the prevention of defects and on customer satisfaction 
D)  Management accountants have no role in the application of TQM. 
A)  TQM focuses on product quality. 
B)  TQM minimizes costs by maximizing quality. 
C)  TQM focuses on the prevention of defects and on customer satisfaction 
D)  Management accountants have no role in the application of TQM.

Question 3

The behavioral implications of an accounting system refer to the system's effects on the firm's customers.

Accepted Answer

A) True 
 B)False

Question 4

Which stage of the product life cycle has a stable sales level?

Accepted Answer

A)  product development stage 
B)  introduction to market stage 
C)  mature market stage 
D)  phase-out of product stage 
A)  product development stage 
B)  introduction to market stage 
C)  mature market stage 
D)  phase-out of product stage

Question 5

A manager using information to decide whether to add or drop a product is an example of problem solving.

Accepted Answer

A) True 
 B)False

Question 6

Generally Accepted Accounting Principles are most closely connected to ________.

Accepted Answer

A)  management accounting 
B)  financial accounting 
C)  internal auditing 
D)  management auditing 
A)  management accounting 
B)  financial accounting 
C)  internal auditing 
D)  management auditing

Question 7

Investigating the reasons for the variances on a department's performance report is an example of ________.

Accepted Answer

A)  scorekeeping 
B)  attention directing 
C)  problem solving 
D)  auditing 
A)  scorekeeping 
B)  attention directing 
C)  problem solving 
D)  auditing

Question 8

The Hermanski Company held a Christmas party.The company expected attendance of 100 people and prepared the following budget:
$\begin{array}{ll}
\text { Hotel room rental } & \$ 600 \
\text { Food } & 500 \
\text { Entertainment } & 800 \
\text { Decorations } & 300\
\text { Total Costs }&\$2,200
\end{array}$
One hundred people attended the party.The costs incurred were:
$\begin{array}{ll}
\text { Hotel room rental } & \$ 575 \
\text { Food } & 640 \
\text { Entertainment } & 750 \
\text { Decorations } & 350\
\text { Total Costs }&\$2,315
\end{array}$
What is the primary reason for the variance in total costs?

Accepted Answer

A)  Hotel room rent cost more than expected. 
B)  Food cost more than expected. 
C)  Entertainment cost more than expected. 
D)  Decorations cost less than expected. 
A)  Hotel room rent cost more than expected. 
B)  Food cost more than expected. 
C)  Entertainment cost more than expected. 
D)  Decorations cost less than expected.

Question 9

Many companies derive their competitive advantage from their information,not their physical facilities.

Accepted Answer

A) True 
 B)False

Question 10

Marketing is the function of the value chain that involves ________.

Accepted Answer

A)  the mechanism by which a company delivers products or services to the customer 
B)  the manner by which individuals or groups learn about the value and features of products or services 
C)  selling activities and delivery activities 
D)  selling activities and customer service 
A)  the mechanism by which a company delivers products or services to the customer 
B)  the manner by which individuals or groups learn about the value and features of products or services 
C)  selling activities and delivery activities 
D)  selling activities and customer service

Question 11

A new weight loss product is sold by a mail-order system.The mail-order system is an example of the ________ function in the value chain.

Accepted Answer

A)  marketing 
B)  production 
C)  customer service 
D)  distribution 
A)  marketing 
B)  production 
C)  customer service 
D)  distribution

Question 12

Who is the primary user of performance reports used to plan and control operations?

Accepted Answer

A)  management accountants 
B)  CPAs 
C)  operating managers 
D)  chartered accountants 
A)  management accountants 
B)  CPAs 
C)  operating managers 
D)  chartered accountants

Question 13

Line managers are directly involved with making and selling the organization's products or services.

Accepted Answer

A) True 
 B)False

Question 14

Southern Chicken is expanding the menu items offered in order to increase profitability.Management will evaluate the profitability of each new menu item after six months.Menu items that are profitable will be retained and the others will be discontinued.On the part of management,the evaluation and subsequent actions after six months is an example of ________.

Accepted Answer

A)  management auditing 
B)  internal auditing 
C)  planning 
D)  control 
A)  management auditing 
B)  internal auditing 
C)  planning 
D)  control

Question 15

You are a management accountant in a large company.You have observed unethical behavior by your immediate supervisor.In accordance with the guidelines offered by the IMA,which of the following courses of action should NOT be taken?

Accepted Answer

A)  Follow the organization's established policies on the resolution of ethical conflict. 
B)  Discuss the issue with your immediate supervisor. 
C)  Consult your own attorney. 
D)  Initiate a confidential discussion with an IMA Ethics Counselor. 
A)  Follow the organization's established policies on the resolution of ethical conflict. 
B)  Discuss the issue with your immediate supervisor. 
C)  Consult your own attorney. 
D)  Initiate a confidential discussion with an IMA Ethics Counselor.

Question 16

The various stages through which a product passes are called the ________.

Accepted Answer

A)  value chain 
B)  product life cycle 
C)  performance plan 
D)  product performance plan 
A)  value chain 
B)  product life cycle 
C)  performance plan 
D)  product performance plan

Question 17

A sorority held a party.The sorority prepared the following budget for 25 expected attendees:
$$\begin{array} { l l } 
\text { Room rental } & \$ 270 \
\text { Food } & 250 \
\text { Entertainment } & 150 \
\text { Decorations } & 75 \
\text { Total Costs } & \$ 745
\end{array}$$
Twenty-five people attended the party.The costs incurred were:
$$\begin{array} { l l } 
\text { Room rental } & \$ 140 \
\text { Food } & 320 \
\text { Entertainment } & 125 \
\text { Decorations } & 75 \
\text { Total Costs } & \$ 660
\end{array}$$
What is the variance for the room rental cost?

Accepted Answer

A)  $85 Unfavorable 
B)  $85 Favorable 
C)  $130 Favorable 
D)  $130 Unfavorable 
A)  $85 Unfavorable 
B)  $85 Favorable 
C)  $130 Favorable 
D)  $130 Unfavorable

Question 18

Taco Bell wants to increase profitability of stores in the Midwest by adding new menu items and increasing advertising.This is an experiment and the company is unsure if these actions will be fruitful.On the part of management,this is an example of ________.

Accepted Answer

A)  control 
B)  scorekeeping 
C)  feedback 
D)  planning 
A)  control 
B)  scorekeeping 
C)  feedback 
D)  planning

Question 19

Each value chain function should focus on activities that ________.

Accepted Answer

A)  create profits for the seller 
B)  create bonuses for top management 
C)  create higher stock prices for the company's stock 
D)  create value for the customer 
A)  create profits for the seller 
B)  create bonuses for top management 
C)  create higher stock prices for the company's stock 
D)  create value for the customer

Question 20

All service organizations are similar in that ________.

Accepted Answer

A)  they are labor intensive 
B)  output is easy to measure 
C)  major inputs and outputs can be stored 
D)  they are capital intensive 
A)  they are labor intensive 
B)  output is easy to measure 
C)  major inputs and outputs can be stored 
D)  they are capital intensive

Which of the following statements about management accounting is FALSE?

Which statement about TQM is FALSE?

The behavioral implications of an accounting system refer to the system's effects on the firm's customers.

Which stage of the product life cycle has a stable sales level?

A manager using information to decide whether to add or drop a product is an example of problem solving.

Generally Accepted Accounting Principles are most closely connected to ________.

Investigating the reasons for the variances on a department's performance report is an example of ________.

Many companies derive their competitive advantage from their information,not their physical facilities.

Marketing is the function of the value chain that involves ________.

A new weight loss product is sold by a mail-order system.The mail-order system is an example of the ________ function in the value chain.

Who is the primary user of performance reports used to plan and control operations?

Line managers are directly involved with making and selling the organization's products or services.

You are a management accountant in a large company.You have observed unethical behavior by your immediate supervisor.In accordance with the guidelines offered by the IMA,which of the following courses of action should NOT be taken?

The various stages through which a product passes are called the ________.

Taco Bell wants to increase profitability of stores in the Midwest by adding new menu items and increasing advertising.This is an experiment and the company is unsure if these actions will be fruitful.On the part of management,this is an example of ________.

Each value chain function should focus on activities that ________.

All service organizations are similar in that ________.

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 1: Managerial Accounting,the Business Organization,and Professional Ethics

Which of the following statements about management accounting is FALSE?

Which statement about TQM is FALSE?

The behavioral implications of an accounting system refer to the system's effects on the firm's customers.

Which stage of the product life cycle has a stable sales level?

A manager using information to decide whether to add or drop a product is an example of problem solving.

Generally Accepted Accounting Principles are most closely connected to ________.

Investigating the reasons for the variances on a department's performance report is an example of ________.

Many companies derive their competitive advantage from their information,not their physical facilities.

Marketing is the function of the value chain that involves ________.

A new weight loss product is sold by a mail-order system.The mail-order system is an example of the ________ function in the value chain.

Who is the primary user of performance reports used to plan and control operations?

Line managers are directly involved with making and selling the organization's products or services.

You are a management accountant in a large company.You have observed unethical behavior by your immediate supervisor.In accordance with the guidelines offered by the IMA,which of the following courses of action should NOT be taken?

The various stages through which a product passes are called the ________.

Taco Bell wants to increase profitability of stores in the Midwest by adding new menu items and increasing advertising.This is an experiment and the company is unsure if these actions will be fruitful.On the part of management,this is an example of ________.

Each value chain function should focus on activities that ________.

All service organizations are similar in that ________.

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters