Question 1

Sustainability is a strategy to achieve long term ________.

Accepted Answer

A) cost reductions and efficiency objectives. 
B) financial and quality goals. 
C) financial,social,and environmental goals. 
D) innovation and technology goals. 
A) cost reductions and efficiency objectives. 
B) financial and quality goals. 
C) financial,social,and environmental goals. 
D) innovation and technology goals.

Question 2

Which of the following is an example of an extrinsic reward?

Accepted Answer

A) receiving a high rating on customer service 
B) appreciation mail from a customer 
C) promotions based on performance 
D) verbal appreciation from CEO 
A) receiving a high rating on customer service 
B) appreciation mail from a customer 
C) promotions based on performance 
D) verbal appreciation from CEO

Question 3

Which of the following statements refers to management accounting information?

Accepted Answer

A) There are no regulations governing the reports. 
B) The reports are generally delayed and historical. 
C) The audience tends to be stockholders,creditors,and tax authorities. 
D) It primarily measures manager's compensation on reported financial results. 
A) There are no regulations governing the reports. 
B) The reports are generally delayed and historical. 
C) The audience tends to be stockholders,creditors,and tax authorities. 
D) It primarily measures manager's compensation on reported financial results.

Question 4

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as ________.

Accepted Answer

A) value chain management 
B) enterprise resource planning 
C) cost management 
D) customer value management 
A) value chain management 
B) enterprise resource planning 
C) cost management 
D) customer value management

Question 5

Examining past performance and exploring alternative ways to make better informed decisions in the future is ________.

Accepted Answer

A) control 
B) planning 
C) learning 
D) implementation 
A) control 
B) planning 
C) learning 
D) implementation

Question 6

A budget serves as much as a control tool as a planning tool because ________.

Accepted Answer

A) it aids in the coordination and communication among various business functions 
B) it helps to evaluate customer needs and feedback 
C) it is a benchmark against which actual performance can be compared 
D) it helps to make predictions about the future 
A) it aids in the coordination and communication among various business functions 
B) it helps to evaluate customer needs and feedback 
C) it is a benchmark against which actual performance can be compared 
D) it helps to make predictions about the future

Question 7

The technical considerations of budgeting encourage managers and other employees to strive for achieving the goals of the organization.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a concern for management accountants in formulating a strategy?

Accepted Answer

A) identifying the most important warehouse location for the distribution of goods 
B) substituting products that exist in the marketplace 
C) strategizing compliance with GAAP (Generally Accepted Accounting Principles) 
D) maintaining adequate fixed assets available to implement the strategy 
A) identifying the most important warehouse location for the distribution of goods 
B) substituting products that exist in the marketplace 
C) strategizing compliance with GAAP (Generally Accepted Accounting Principles) 
D) maintaining adequate fixed assets available to implement the strategy

Question 9

Management accountants should have little or no role in deciding on a company's strategy.

Accepted Answer

A) True 
 B)False

Question 10

Briefly explain the planning and control activities in management accounting.How are these two activities linked to each other?

Accepted Answer

Planning business operations relates to

Question 11

________ is the generation of,and experimentation with,ideas related to new products,services,or processes.

Accepted Answer

A) Research and development 
B) Design of products,services,or processes 
C) Production 
D) Marketing 
A) Research and development 
B) Design of products,services,or processes 
C) Production 
D) Marketing

Question 12

The best-designed strategies are valuable,whether or not they are effectively implemented.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true of a budgeting system?

Accepted Answer

A) It compels managers to plan ahead. 
B) It increases agency costs. 
C) It is easy to measure the exact benefits of a budgeting system. 
D) It leads to operational inefficiency. 
A) It compels managers to plan ahead. 
B) It increases agency costs. 
C) It is easy to measure the exact benefits of a budgeting system. 
D) It leads to operational inefficiency.

Question 14

Which of the following would most likely be the user of financial accounting information?

Accepted Answer

A) factory shift supervisor 
B) distribution manager 
C) current shareholder 
D) department manager 
A) factory shift supervisor 
B) distribution manager 
C) current shareholder 
D) department manager

Question 15

Linking rewards to performance ________.

Accepted Answer

A) helps to motivate managers 
B) allows companies to charge premium prices 
C) should only be based on financial information 
D) enhances agency costs 
A) helps to motivate managers 
B) allows companies to charge premium prices 
C) should only be based on financial information 
D) enhances agency costs

Question 16

R&D,production,and customer service are business functions that are all included as part of ________.

Accepted Answer

A) the value chain 
B) benchmarking 
C) customer relationship management 
D) the supply chain 
A) the value chain 
B) benchmarking 
C) customer relationship management 
D) the supply chain

Question 17

A report showing the actual financial results for a period compared to the budgeted financial results for that same period would most likely be called a ________.

Accepted Answer

A) strategic plan 
B) management forecast 
C) performance report 
D) revised plan 
A) strategic plan 
B) management forecast 
C) performance report 
D) revised plan

Question 18

An effective way to cut costs is to eliminate activities that do NOT improve the product attributes that customers value.

Accepted Answer

A) True 
 B)False

Question 19

________ is a philosophy in which management improves operations throughout the value chain to deliver products and services that exceed customer expectations.

Accepted Answer

A) Cost-benefit approach 
B) Customer focus 
C) Customer relationship management 
D) Total quality management 
A) Cost-benefit approach 
B) Customer focus 
C) Customer relationship management 
D) Total quality management

Question 20

Cost accounting ________.

Accepted Answer

A) measures the costs of acquiring or using resources in an organization 
B) measures the financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization 
C) coordinates product design,production,and marketing decisions and evaluate a company's performance 
D) communicates information to investors,banks,regulators,and other outside parties 
A) measures the costs of acquiring or using resources in an organization 
B) measures the financial and nonfinancial information that helps managers make decisions to fulfill the goals of an organization 
C) coordinates product design,production,and marketing decisions and evaluate a company's performance 
D) communicates information to investors,banks,regulators,and other outside parties

Exam 1: The Manager and Management Accounting

Sustainability is a strategy to achieve long term ________.

Which of the following is an example of an extrinsic reward?

Which of the following statements refers to management accounting information?

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as ________.

Examining past performance and exploring alternative ways to make better informed decisions in the future is ________.

A budget serves as much as a control tool as a planning tool because ________.

The technical considerations of budgeting encourage managers and other employees to strive for achieving the goals of the organization.

Which of the following is not a concern for management accountants in formulating a strategy?

Management accountants should have little or no role in deciding on a company's strategy.

Briefly explain the planning and control activities in management accounting.How are these two activities linked to each other?

________ is the generation of,and experimentation with,ideas related to new products,services,or processes.

The best-designed strategies are valuable,whether or not they are effectively implemented.

Which of the following is true of a budgeting system?

Which of the following would most likely be the user of financial accounting information?

Linking rewards to performance ________.

R&D,production,and customer service are business functions that are all included as part of ________.

A report showing the actual financial results for a period compared to the budgeted financial results for that same period would most likely be called a ________.

An effective way to cut costs is to eliminate activities that do NOT improve the product attributes that customers value.

________ is a philosophy in which management improves operations throughout the value chain to deliver products and services that exceed customer expectations.

Cost accounting ________.

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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