Question 1

Managers rely on management accounting information to evaluate alternative investment and R&D decisions.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements is true of performance reports?

Accepted Answer

A) The performance report shows actual performance as compared to the budget. 
B) The performance report depicts the performance of a firm's competitors. 
C) The performance report compares only the budgeted performance over the years. 
D) The performance report contains no actual results due to confidentiality. 
A) The performance report shows actual performance as compared to the budget. 
B) The performance report depicts the performance of a firm's competitors. 
C) The performance report compares only the budgeted performance over the years. 
D) The performance report contains no actual results due to confidentiality.

Question 3

If there is an ethical conflict concerning your direct supervisor,you should first contact ________.

Accepted Answer

A) the local media 
B) an IMA Ethics Counselor 
C) an attorney 
D) the board of directors 
A) the local media 
B) an IMA Ethics Counselor 
C) an attorney 
D) the board of directors

Question 4

Control measures should ________.

Accepted Answer

A) be set and not changed until the next budget cycle so as to provide an effective benchmark 
B) be set by excluding nonfinancial information 
C) be kept confidential from employees so that competitors don't have an opportunity to gain a competitive advantage 
D) be linked by feedback to help learning and future planning 
A) be set and not changed until the next budget cycle so as to provide an effective benchmark 
B) be set by excluding nonfinancial information 
C) be kept confidential from employees so that competitors don't have an opportunity to gain a competitive advantage 
D) be linked by feedback to help learning and future planning

Question 5

Evaluating actual performance,receiving feedback and learning from that feedback helps in the future decision-making process.

Accepted Answer

A) True 
 B)False

Question 6

The balance sheet and income statement are primarily management accounting reports.

Accepted Answer

A) True 
 B)False

Question 7

A budget helps to control activities by adhering to the prescribed plan.

Accepted Answer

A) True 
 B)False

Question 8

Cost accounting measures and reports short-term,long-term,financial,and non financial information.

Accepted Answer

A) True 
 B)False

Question 9

The best-designed strategies and the best-developed capabilities are useless unless they are effectively executed.

Accepted Answer

A) True 
 B)False

Question 10

Place the four business functions in the order they appear along the value chain:

Accepted Answer

A) Customer Service,Design,Production,Marketing 
B) Customer Service,Marketing,Production,Design 
C) Design,Production,Marketing,Customer Service 
D) Design,Customer Service,Production,Marketing 
A) Customer Service,Design,Production,Marketing 
B) Customer Service,Marketing,Production,Design 
C) Design,Production,Marketing,Customer Service 
D) Design,Customer Service,Production,Marketing

Question 11

________ describes the flow of goods,services,and information from the purchase of materials to the delivery of products to consumers,regardless of whether those activities occur in the same organization or with other organizations.

Accepted Answer

A) Supply chain 
B) Production process 
C) Quality control 
D) Customer relationship management 
A) Supply chain 
B) Production process 
C) Quality control 
D) Customer relationship management

Question 12

In designing strategy,a company must match its opportunities in the marketplace with ________.

Accepted Answer

A) environmental friendly goals 
B) its resources and capabilities 
C) branding opportunities 
D) the requirements of credit rating agencies 
A) environmental friendly goals 
B) its resources and capabilities 
C) branding opportunities 
D) the requirements of credit rating agencies

Question 13

Briefly describe the list of items that managers undertake to formulate strategies.

Accepted Answer

ONE: Identifying the most important cust

Question 14

Technological innovation has led to shorter product-life cycles and increased the need to bring new products to market more rapidly.

Accepted Answer

A) True 
 B)False

Question 15

Competitive information serves as a benchmark that managers use to continuously improve their operations.

Accepted Answer

A) True 
 B)False

Question 16

________ is a strategy that integrates people and technology in all business functions to enhance relationships with customers,partners,and distributors.

Accepted Answer

A) Supply-chain analysis 
B) Customer relationship management 
C) Value-chain analysis 
D) Continuous quality improvement 
A) Supply-chain analysis 
B) Customer relationship management 
C) Value-chain analysis 
D) Continuous quality improvement

Question 17

Value chain and classification of costs, car company. 
General Motors incurs the following costs:
a.  Electricity costs for the plant assembling the Chevrolet Camaro
b.  Transportation costs for shipping the Camaro to dealers
c.  Payment to Shelby Designs for the design of the Camaro.
d.  Salary of an engineer working on the next generation of Camaros
e.  Cost of GM employees' visit to an auto show to demonstrate the Camaro 
f.  Testing the Camaro at the GM track
g.  Payment to television network for running Camaro advertisements
h.  Cost of brake pads purchased from outside supplier to be installed on the Camaro

Required:
Classify each of the cost items (a-h) into one of the business functions of the value chain.
1)  Research and development
2)  Design of products and processes
3)  Production
4)  Marketing and sales
5)  Distribution
6)  Customer service

Accepted Answer

a.3)Production
b.5)Distributio

Question 18

Describe management accounting and financial accounting.

Accepted Answer

Management accounting provides informati

Question 19

Management accounting is playing an increasingly important role by helping managers develop and implement strategy.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) Refrain from engaging in any conduct that would prejudice carrying out duties ethically. 
B) Communicate information fairly and objectively. 
C) Keep information confidential except when disclosure is authorized or legally required. 
D) Recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity. 
A) Refrain from engaging in any conduct that would prejudice carrying out duties ethically. 
B) Communicate information fairly and objectively. 
C) Keep information confidential except when disclosure is authorized or legally required. 
D) Recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity.

Exam 1: The Manager and Management Accounting

Managers rely on management accounting information to evaluate alternative investment and R&D decisions.

Which of the following statements is true of performance reports?

If there is an ethical conflict concerning your direct supervisor,you should first contact ________.

Control measures should ________.

Evaluating actual performance,receiving feedback and learning from that feedback helps in the future decision-making process.

The balance sheet and income statement are primarily management accounting reports.

A budget helps to control activities by adhering to the prescribed plan.

Cost accounting measures and reports short-term,long-term,financial,and non financial information.

The best-designed strategies and the best-developed capabilities are useless unless they are effectively executed.

Place the four business functions in the order they appear along the value chain:

________ describes the flow of goods,services,and information from the purchase of materials to the delivery of products to consumers,regardless of whether those activities occur in the same organization or with other organizations.

In designing strategy,a company must match its opportunities in the marketplace with ________.

Briefly describe the list of items that managers undertake to formulate strategies.

Technological innovation has led to shorter product-life cycles and increased the need to bring new products to market more rapidly.

Competitive information serves as a benchmark that managers use to continuously improve their operations.

________ is a strategy that integrates people and technology in all business functions to enhance relationships with customers,partners,and distributors.

Describe management accounting and financial accounting.

Management accounting is playing an increasingly important role by helping managers develop and implement strategy.

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

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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