Question 1

Processing orders and shipping products or providing services to customers is known as ________.

Accepted Answer

A) after-sales services 
B) distribution 
C) marketing 
D) supply chain 
A) after-sales services 
B) distribution 
C) marketing 
D) supply chain

Question 2

A data warehouse or infobarn ________.

Accepted Answer

A) is reserved for exclusive use by the CFO 
B) is primarily used for financial reporting purposes 
C) stores information used by different managers for multiple purposes 
D) gathers only nonfinancial information 
A) is reserved for exclusive use by the CFO 
B) is primarily used for financial reporting purposes 
C) stores information used by different managers for multiple purposes 
D) gathers only nonfinancial information

Question 3

There is an overlap or intersection between management accounting and financial accounting.Explain.

Accepted Answer

Management accounting develops

Question 4

Strategy is formulated ________.

Accepted Answer

A) by identifying the most important customers 
B) by forecasting the composition of adequate fixed assets 
C) based on the qualified opinion of external auditors 
D) by eliminating sunk costs 
A) by identifying the most important customers 
B) by forecasting the composition of adequate fixed assets 
C) based on the qualified opinion of external auditors 
D) by eliminating sunk costs

Question 5

Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting.

Accepted Answer

A) True 
 B)False

Question 6

If a managerial accountant suspected his or her immediate superior of unethical behavior,who happens to be a chief executive officer or equivalent,the managerial accountant should request an immediate meeting with the executive committee or the audit committee.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Distribution refers to promoting and selling products or services to customers or prospective customers.

Accepted Answer

A) True 
 B)False

Question 9

Accounting methods for internal reporting purposes are specified by Generally Accepted Accounting Principles (GAAP).

Accepted Answer

A) True 
 B)False

Question 10

Management accountants must work well in cross-functional teams and as a business partner.

Accepted Answer

A) True 
 B)False

Question 11

Management accounting information and reports do not have to follow set principles or rules such as GAAP but should be useful to its audience and meet the cost/benefit test.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Managers use management accounting information to ________.

Accepted Answer

A) help external users such as investors,banks,regulators,and suppliers 
B) communicate,develop,and implement strategies 
C) communicate a firm's financial position to investors,banks,regulators,and other outside parties 
D) ensure that financial statements are consistent with the SEC rules 
A) help external users such as investors,banks,regulators,and suppliers 
B) communicate,develop,and implement strategies 
C) communicate a firm's financial position to investors,banks,regulators,and other outside parties 
D) ensure that financial statements are consistent with the SEC rules

Question 14

Linking rewards to performance helps motivate managers and leads to good management performance.

Accepted Answer

A) True 
 B)False

Question 15

Ethical challenges for management accountants include ________.

Accepted Answer

A) whether to accept gifts from suppliers,knowing it is an effort to indirectly influence decisions 
B) adhering to the principles of accounting 
C) whether to file a tax return this year 
D) whether to accept gifts higher incentives from the company for their performance 
A) whether to accept gifts from suppliers,knowing it is an effort to indirectly influence decisions 
B) adhering to the principles of accounting 
C) whether to file a tax return this year 
D) whether to accept gifts higher incentives from the company for their performance

Question 16

The key to a company's success is always to be the low cost producer in a particular industry.

Accepted Answer

A) True 
 B)False

Question 17

The ________ function supports the six functions of value-chain analysis.

Accepted Answer

A) controlling 
B) administration 
C) planning 
D) direction 
A) controlling 
B) administration 
C) planning 
D) direction

Question 18

Financial accounting provides an organization's past-oriented information such as the previous years' financial statements.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true of financial accounting information?

Accepted Answer

A) It is prepared based on cost-benefit analysis. 
B) It is primarily used by managers to make internal business decisions. 
C) It focuses on the past-oriented financial performance of a company. 
D) It only measures the cash transactions of a company. 
A) It is prepared based on cost-benefit analysis. 
B) It is primarily used by managers to make internal business decisions. 
C) It focuses on the past-oriented financial performance of a company. 
D) It only measures the cash transactions of a company.

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

Processing orders and shipping products or providing services to customers is known as ________.

A data warehouse or infobarn ________.

There is an overlap or intersection between management accounting and financial accounting.Explain.

Strategy is formulated ________.

Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting.

If a managerial accountant suspected his or her immediate superior of unethical behavior,who happens to be a chief executive officer or equivalent,the managerial accountant should request an immediate meeting with the executive committee or the audit committee.

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

Distribution refers to promoting and selling products or services to customers or prospective customers.

Accounting methods for internal reporting purposes are specified by Generally Accepted Accounting Principles (GAAP).

Management accountants must work well in cross-functional teams and as a business partner.

Management accounting information and reports do not have to follow set principles or rules such as GAAP but should be useful to its audience and meet the cost/benefit test.

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

Managers use management accounting information to ________.

Linking rewards to performance helps motivate managers and leads to good management performance.

Ethical challenges for management accountants include ________.

The key to a company's success is always to be the low cost producer in a particular industry.

The ________ function supports the six functions of value-chain analysis.

Financial accounting provides an organization's past-oriented information such as the previous years' financial statements.

Which of the following is true of financial accounting information?

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

Filters