Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

Financial accounting is broader in scope than management accounting in that financial accounting can include external reporting and reporting that helps managers plan and control operations.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true of staff management?

Accepted Answer

A) It plans income taxes,sales taxes,and international taxes. 
B) It is directly responsible for achieving the goals of the organization. 
C) It provides advice,support,and assistance to line management. 
D) It controls the main business functions such as production and marketing. 
A) It plans income taxes,sales taxes,and international taxes. 
B) It is directly responsible for achieving the goals of the organization. 
C) It provides advice,support,and assistance to line management. 
D) It controls the main business functions such as production and marketing.

Question 5

Strategic cost management describes cost management that specifically focuses on strategic issues.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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 8

For management accounting,internal measurement and reporting are based on cost-benefit analysis.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

________ 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 11

Cost accounting provides information for both management accounting and financial accounting professionals.

Accepted Answer

A) True 
 B)False

Question 12

Management accounting ________.

Accepted Answer

A) focuses on estimating future revenues,costs,and other measures to forecast activities and their results 
B) provides information about the company as a whole 
C) reports information that has occurred in the past that is verifiable and reliable 
D) provides information that is generally available only on a quarterly or annual basis 
A) focuses on estimating future revenues,costs,and other measures to forecast activities and their results 
B) provides information about the company as a whole 
C) reports information that has occurred in the past that is verifiable and reliable 
D) provides information that is generally available only on a quarterly or annual basis

Question 13

Which of the following is true of line management?

Accepted Answer

A) It is directly responsible for achieving the goals of the organization. 
B) It is responsible of management accounting functions. 
C) It provides advice,support,and assistance to staff management. 
D) It only includes the top level management. 
A) It is directly responsible for achieving the goals of the organization. 
B) It is responsible of management accounting functions. 
C) It provides advice,support,and assistance to staff management. 
D) It only includes the top level management.

Question 14

Customer response time involves ________.

Accepted Answer

A) the speed it takes a customer to respond to an advertisement and place an order 
B) the speed at which an organization responds to customer requests 
C) the speed it takes to develop a new product 
D) the speed it takes an organization to develop a Total Quality Management (TQM)program 
A) the speed it takes a customer to respond to an advertisement and place an order 
B) the speed at which an organization responds to customer requests 
C) the speed it takes to develop a new product 
D) the speed it takes an organization to develop a Total Quality Management (TQM)program

Question 15

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

Accepted Answer

There are three broad outcomes from a su

Question 16

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

Accepted Answer

A) Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. 
B) Cost accountants formulate strategy in an organization since they have more inputs about costs. 
C) A good strategy will always overcome poor implementation. 
D) Businesses usually follow one of two broad strategies: offering a quality product at a high price,or offering a unique product or service priced lower than the competition. 
A) Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives. 
B) Cost accountants formulate strategy in an organization since they have more inputs about costs. 
C) A good strategy will always overcome poor implementation. 
D) Businesses usually follow one of two broad strategies: offering a quality product at a high price,or offering a unique product or service priced lower than the competition.

Question 17

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

Accepted Answer

Planning consists of selecting an organi

Question 18

Which of the following groups would be least likely to receive detailed management accounting reports?

Accepted Answer

A) stockholders 
B) sales managers 
C) production supervisors 
D) distribution managers 
A) stockholders 
B) sales managers 
C) production supervisors 
D) distribution managers

Question 19

Discuss the cost-benefit approach guideline management accountants use to provide value in strategic decision making.

Accepted Answer

Management accountants continually face

Question 20

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 helps with the coordination of elements of the value chain. 
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 helps with the coordination of elements of the value chain.

Exam 1: The Manager and Management Accounting

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

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.

Financial accounting is broader in scope than management accounting in that financial accounting can include external reporting and reporting that helps managers plan and control operations.

Which of the following is true of staff management?

Strategic cost management describes cost management that specifically focuses on strategic issues.

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

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

For management accounting,internal measurement and reporting are based on cost-benefit analysis.

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

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

Cost accounting provides information for both management accounting and financial accounting professionals.

Management accounting ________.

Which of the following is true of line management?

Customer response time involves ________.

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

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

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

Which of the following groups would be least likely to receive detailed management accounting reports?

Discuss the cost-benefit approach guideline management accountants use to provide value in strategic decision making.

Which of the following is true of management accounting information?

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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