Question 1

Management accountants serve as key business partners in the planning process because they understand the key ________ factors that create ________.

Accepted Answer

A) success ...value 
B) accounting ....profits 
C) financial ...value. 
D) success .....income 
A) success ...value 
B) accounting ....profits 
C) financial ...value. 
D) success .....income A

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

Which item is an indication of competence under the Standards of Ethical Conduct?

Accepted Answer

A) Maintain an appropriate level of professional expertise by continually developing knowledge and skills. 
B) Keep information confidential except when disclosure is authorized or legally required. 
C) Abstain from engaging in or supporting any activity that might discredit the profession. 
D) Refrain from engaging in any conduct that would prejudice carrying out duties ethically. 
A) Maintain an appropriate level of professional expertise by continually developing knowledge and skills. 
B) Keep information confidential except when disclosure is authorized or legally required. 
C) Abstain from engaging in or supporting any activity that might discredit the profession. 
D) Refrain from engaging in any conduct that would prejudice carrying out duties ethically. A

Question 4

Technical consideration ________.

Accepted Answer

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

Question 5

Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning your direct supervisor?

Accepted Answer

A) Inform the Board of Directors of the existence of a potential conflict. 
B) Clarify relevant ethical issues by initiating a confidential discussion with an IMA Ethics Counselor. 
C) Consult the attorney as to legal obligations and rights concerning the ethical conflict. 
D) Follow the organization's procedures concerning resolution of such a conflict. 
A) Inform the Board of Directors of the existence of a potential conflict. 
B) Clarify relevant ethical issues by initiating a confidential discussion with an IMA Ethics Counselor. 
C) Consult the attorney as to legal obligations and rights concerning the ethical conflict. 
D) Follow the organization's procedures concerning resolution of such a conflict.

Question 6

The supply chain always occurs within a single organization.

Accepted Answer

A) True 
 B)False

Question 7

________ is the detailed planning and engineering and testing of products,services,or processes.

Accepted Answer

A) Plan of implementation 
B) Design 
C) Production 
D) Research and development 
A) Plan of implementation 
B) Design 
C) Production 
D) Research and development

Question 8

Value chain refers to its value to the employee.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true of cost accounting?

Accepted Answer

A) It is a subset of management accounting and therefore its information is used only to meet the needs of managers. 
B) It is used only by manufacturers. 
C) It is part of both management and financial accounting systems. 
D) The distinction between management accounting and cost accounting is clear-cut. 
A) It is a subset of management accounting and therefore its information is used only to meet the needs of managers. 
B) It is used only by manufacturers. 
C) It is part of both management and financial accounting systems. 
D) The distinction between management accounting and cost accounting is clear-cut.

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Customer relationship management initiatives use technology to coordinate all ________.

Accepted Answer

A) advertising and marketing techniques to attract customers 
B) research activities 
C) customer-facing activities 
D) quality control management activities 
A) advertising and marketing techniques to attract customers 
B) research activities 
C) customer-facing activities 
D) quality control management activities

Question 12

The treasurer (also called the chief accounting officer)is the financial executive primarily responsible for both management accounting and financial accounting.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

The value chain is the sequence of business functions in which ________.

Accepted Answer

A) value is deducted from the products or services of an organization 
B) producing and delivering the product or service is of prime importance 
C) products and services are evaluated with respect to their value to the supply chain 
D) usefulness is added to the products or services of an organization 
A) value is deducted from the products or services of an organization 
B) producing and delivering the product or service is of prime importance 
C) products and services are evaluated with respect to their value to the supply chain 
D) usefulness is added to the products or services of an organization

Question 17

A management accountant who is not capable of completing a project because her skills,knowledge,and abilities are lacking could be ethically in violation of the competence standard.

Accepted Answer

A) True 
 B)False

Question 18

In a cost-benefit approach,managers should spend resources if the ________.

Accepted Answer

A) marginal costs to the company exceed the marginal benefits 
B) expected benefits to the company exceed the expected costs 
C) marginal costs to the company equal the marginal benefits 
D) expected benefits to the company equal the expected costs 
A) marginal costs to the company exceed the marginal benefits 
B) expected benefits to the company exceed the expected costs 
C) marginal costs to the company equal the marginal benefits 
D) expected benefits to the company equal the expected costs

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 1: The Manager and Management Accounting

Management accountants serve as key business partners in the planning process because they understand the key ________ factors that create ________.

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

Which item is an indication of competence under the Standards of Ethical Conduct?

Technical consideration ________.

Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning your direct supervisor?

The supply chain always occurs within a single organization.

________ is the detailed planning and engineering and testing of products,services,or processes.

Value chain refers to its value to the employee.

Which of the following is true of cost accounting?

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

Customer relationship management initiatives use technology to coordinate all ________.

The treasurer (also called the chief accounting officer)is the financial executive primarily responsible for both management accounting and financial accounting.

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

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

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

The value chain is the sequence of business functions in which ________.

A management accountant who is not capable of completing a project because her skills,knowledge,and abilities are lacking could be ethically in violation of the competence standard.

In a cost-benefit approach,managers should spend resources if the ________.

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

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

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

Filters

Management accountants serve as key business partners in the planning process because they understand the key factors that create .