Question 1

The increasing pace of technological information has resulted in longer product life cycles.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements about customer value is true?

Accepted Answer

A) Customer value is shown in a corporation's balance sheet. 
B) Creating value for customers is an important part of planning and implementing strategy. 
C) Customer value is the only focus that helps managers to formulate strategies. 
D) Customer value is lost with increase in costs of the product. 
A) Customer value is shown in a corporation's balance sheet. 
B) Creating value for customers is an important part of planning and implementing strategy. 
C) Customer value is the only focus that helps managers to formulate strategies. 
D) Customer value is lost with increase in costs of the product.

Question 3

Which of the following statements about a company's supply chain is true?

Accepted Answer

A) A company's supply chain is always internal to a firm. 
B) A company's supply chain is always external to a firm. 
C) A company's supply chain is the same thing as a company's value chain. 
D) Management accountants provide information to enhance a company's supply chain. 
A) A company's supply chain is always internal to a firm. 
B) A company's supply chain is always external to a firm. 
C) A company's supply chain is the same thing as a company's value chain. 
D) Management accountants provide information to enhance a company's supply chain.

Question 4

The process of preparing a budget encourages coordination and communication throughout the company.

Accepted Answer

A) True 
 B)False

Question 5

A cost concept used for the purposes of external reporting will always be appropriate for internal reporting.

Accepted Answer

A) True 
 B)False

Question 6

You have been employed as an entry-level management accountant for a little under a year.You suspect that your immediate supervisor is involved in a significant fraud involving diverting of company assets to personal use.Briefly describe the steps you might take to resolve this dilemma.

Accepted Answer

The management accountant should first c

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Gathering information before making a decision is not efficient within the decision-making process.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) Maintain an appropriate level of professional expertise by continually developing knowledge and skills. 
B) Refrain from using confidential information for unethical or illegal advantage. 
C) Abstain from engaging in or supporting any activity that might discredit the profession. 
D) Disclose delays or deficiencies in information,timeliness,processing,or internal controls in conformance with organization policy and/or applicable law. 
A) Maintain an appropriate level of professional expertise by continually developing knowledge and skills. 
B) Refrain from using confidential information for unethical or illegal advantage. 
C) Abstain from engaging in or supporting any activity that might discredit the profession. 
D) Disclose delays or deficiencies in information,timeliness,processing,or internal controls in conformance with organization policy and/or applicable law.

Question 10

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

Accepted Answer

Cost accounting is the process of measur

Question 11

The scenario that says resources should be spent if the expected benefits to the company exceed the expected costs describes ________.

Accepted Answer

A) cost-benefit approach 
B) behavioral and technical considerations 
C) balanced scorecard 
D) different costs for different purposes 
A) cost-benefit approach 
B) behavioral and technical considerations 
C) balanced scorecard 
D) different costs for different purposes

Question 12

Management accounting ensures communication of an organization's financial position to investors,banks,and regulators.

Accepted Answer

A) True 
 B)False

Question 13

Cost management not only helps reduce costs but also improve customer satisfaction and the quality of a firm's products.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following reports to the CFO?

Accepted Answer

A) external auditor 
B) distribution manager 
C) production manager 
D) treasurer 
A) external auditor 
B) distribution manager 
C) production manager 
D) treasurer

Question 15

________ 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 16

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 17

The primary user of management accounting information is a(n)________.

Accepted Answer

A) the controller 
B) a shareholder evaluating a stock investment 
C) bondholder 
D) external regulator 
A) the controller 
B) a shareholder evaluating a stock investment 
C) bondholder 
D) external regulator

Question 18

A performance report compares actual performance to the amount budgeted.

Accepted Answer

A) True 
 B)False

Question 19

Discuss the behavioral considerations that provide value to strategic decision making.

Accepted Answer

Management is primarily a human activity

Question 20

Strategy specifies ________.

Accepted Answer

A) how an organization matches its own capabilities with the opportunities in the marketplace 
B) standard procedures to ensure quality products 
C) incremental changes for improved performance 
D) the demand created for products and services 
A) how an organization matches its own capabilities with the opportunities in the marketplace 
B) standard procedures to ensure quality products 
C) incremental changes for improved performance 
D) the demand created for products and services

Exam 1: The Manager and Management Accounting

The increasing pace of technological information has resulted in longer product life cycles.

Which of the following statements about customer value is true?

Which of the following statements about a company's supply chain is true?

The process of preparing a budget encourages coordination and communication throughout the company.

A cost concept used for the purposes of external reporting will always be appropriate for internal reporting.

You have been employed as an entry-level management accountant for a little under a year.You suspect that your immediate supervisor is involved in a significant fraud involving diverting of company assets to personal use.Briefly describe the steps you might take to resolve this dilemma.

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

Gathering information before making a decision is not efficient within the decision-making process.

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

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

The scenario that says resources should be spent if the expected benefits to the company exceed the expected costs describes ________.

Management accounting ensures communication of an organization's financial position to investors,banks,and regulators.

Cost management not only helps reduce costs but also improve customer satisfaction and the quality of a firm's products.

Which of the following reports to the CFO?

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

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.

The primary user of management accounting information is a(n)________.

A performance report compares actual performance to the amount budgeted.

Discuss the behavioral considerations that provide value to strategic decision making.

Strategy specifies ________.

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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