Question 1

A budget is a qualitative expression of a plan.

Accepted Answer

A) True 
 B)False

Question 2

Customer relationship management initiatives use technology to coordinate all customer-facing activities (such as marketing,sales calls,distribution,and after-sales support)and the design and production activities necessary to get products to customers.

Accepted Answer

A) True 
 B)False

Question 3

The Institute of Management Accountants provides a hotline to discuss ethical issues.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a function of a controller?

Accepted Answer

A) operations administration 
B) controlling the stock price 
C) communication with the shareholders 
D) interest-rate risk management 
A) operations administration 
B) controlling the stock price 
C) communication with the shareholders 
D) interest-rate risk management

Question 5

Rules for measurement and reporting for management accounting ________.

Accepted Answer

A) state that information must only be useful to management. 
B) do not need to follow GAAP but must meet the cost-benefit test. 
C) must follow GAAP. 
D) must follow GAAP,IRS rules or government standards. 
A) state that information must only be useful to management. 
B) do not need to follow GAAP but must meet the cost-benefit test. 
C) must follow GAAP. 
D) must follow GAAP,IRS rules or government standards.

Question 6

Management accounting report time spans can vary from one hour to many years,while financial accounting report time periods usually span a quarter or a year.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following differentiates cost accounting and financial accounting?

Accepted Answer

A) The primary users of cost accounting are the investors,whereas the primary users of financial accounting are the managers. 
B) Cost accounting deals with product design,production,and marketing strategies,whereas financial accounting deals mainly with pricing of the products. 
C) Cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization,whereas financial accounting measures financial and nonfinancial information of a company's business transactions. 
D) Cost accounting measures information related to the costs of acquiring or using resources in an organization,whereas financial accounting measures a financial position of a company to investors,banks,and external parties. 
A) The primary users of cost accounting are the investors,whereas the primary users of financial accounting are the managers. 
B) Cost accounting deals with product design,production,and marketing strategies,whereas financial accounting deals mainly with pricing of the products. 
C) Cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization,whereas financial accounting measures financial and nonfinancial information of a company's business transactions. 
D) Cost accounting measures information related to the costs of acquiring or using resources in an organization,whereas financial accounting measures a financial position of a company to investors,banks,and external parties.

Question 8

Management accountants work closely with managers in various departments to formulate strategies by providing information about the sources of competitive advantage.

Accepted Answer

A) True 
 B)False

Question 9

Performing professional duties in accordance with relevant laws,regulations,and technical standards is a competent responsibility.

Accepted Answer

A) True 
 B)False

Question 10

A company's CFO oversees banking and short- and long-term financing,investments,and cash management.

Accepted Answer

A) True 
 B)False

Question 11

What areas of responsibility does a chief financial officer have in a typical organization?

Accepted Answer

The responsibilities vary amon

Question 12

Which of the tools shown below would be the most effective planning tool?

Accepted Answer

A) performance evaluation report 
B) fishbone diagram 
C) control chart 
D) budget 
A) performance evaluation report 
B) fishbone diagram 
C) control chart 
D) budget

Question 13

New-product development time is the time taken to ________.

Accepted Answer

A) test the prototype and start the large scale production of a product 
B) design and develop the prototype product 
C) create new products and bring them to market 
D) improvise existing products and re-launch them to market 
A) test the prototype and start the large scale production of a product 
B) design and develop the prototype product 
C) create new products and bring them to market 
D) improvise existing products and re-launch them to market

Question 14

As part of the Sarbanes-Oxley Act,internal auditors are solely responsible for the fair representation of the business operations in the financial statements.

Accepted Answer

A) True 
 B)False

Question 15

For best results,cost management emphasizes independently coordinating supply chain activities within your company and with other companies that act as suppliers and customers.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements about the cost-benefit approach is true?

Accepted Answer

A) Resources should be spent if the expected costs exceed the expected benefits of the company. 
B) In a cost-benefit analysis,both costs and benefits are not easy to measure. 
C) Resources should be spent if the costs of a decision outweigh the benefits of the decision. 
D) A cost-benefit approach would not be appropriate for a decision to install a budgeting system. 
A) Resources should be spent if the expected costs exceed the expected benefits of the company. 
B) In a cost-benefit analysis,both costs and benefits are not easy to measure. 
C) Resources should be spent if the costs of a decision outweigh the benefits of the decision. 
D) A cost-benefit approach would not be appropriate for a decision to install a budgeting system.

Question 17

Line management includes ________.

Accepted Answer

A) distribution managers 
B) human-resource managers 
C) information-technology managers 
D) management-accounting managers 
A) distribution managers 
B) human-resource managers 
C) information-technology managers 
D) management-accounting managers

Question 18

Which of the following is a responsibility of the CFO?

Accepted Answer

A) budget funds for a plant upgrade 
B) managing short-term and long-term financing 
C) investing in new equipment 
D) conducting internal audit 
A) budget funds for a plant upgrade 
B) managing short-term and long-term financing 
C) investing in new equipment 
D) conducting internal audit

Question 19

________ is an after-sale support provided to customers.

Accepted Answer

A) Distribution 
B) Customer service 
C) Production 
D) Marketing 
A) Distribution 
B) Customer service 
C) Production 
D) Marketing

Question 20

IMA's overarching ethical principles include: Honesty,Fairness,Objectivity,and Responsibility.

Accepted Answer

A) True 
 B)False

Exam 1: The Manager and Management Accounting

A budget is a qualitative expression of a plan.

Customer relationship management initiatives use technology to coordinate all customer-facing activities (such as marketing,sales calls,distribution,and after-sales support)and the design and production activities necessary to get products to customers.

The Institute of Management Accountants provides a hotline to discuss ethical issues.

Which of the following is a function of a controller?

Rules for measurement and reporting for management accounting ________.

Management accounting report time spans can vary from one hour to many years,while financial accounting report time periods usually span a quarter or a year.

Which of the following differentiates cost accounting and financial accounting?

Management accountants work closely with managers in various departments to formulate strategies by providing information about the sources of competitive advantage.

Performing professional duties in accordance with relevant laws,regulations,and technical standards is a competent responsibility.

A company's CFO oversees banking and short- and long-term financing,investments,and cash management.

What areas of responsibility does a chief financial officer have in a typical organization?

Which of the tools shown below would be the most effective planning tool?

New-product development time is the time taken to ________.

As part of the Sarbanes-Oxley Act,internal auditors are solely responsible for the fair representation of the business operations in the financial statements.

For best results,cost management emphasizes independently coordinating supply chain activities within your company and with other companies that act as suppliers and customers.

Which of the following statements about the cost-benefit approach is true?

Line management includes ________.

Which of the following is a responsibility of the CFO?

________ is an after-sale support provided to customers.

IMA's overarching ethical principles include: Honesty,Fairness,Objectivity,and Responsibility.

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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