Exam 18: The Changing Business Environment-A Managers Pers

Although management accountants should try not to engage in activities that would prejudice their ability to carry out their duties, they are not obligated to refrain from such activities after business hours, as long as these activities take place off company premises.

Management accounting provides reports that are future oriented.

The costs of quality consist entirely of rework costs and customer complaint costs.

Analysis of nonfinancial data is important to the management accountant because

Management accounting data may be gathered for small segments or large divisions and may be expressed in units of measurement other than historical dollars.

Management accounting differs from financial accounting in many ways. Indicate with an "X" in the appropriate column whether each of the following characteristics relates to financial accounting, management accounting, or neither.

Total quality management focuses on reducing waste.

Services that support the primary processes in the value chain are

JIT, TQM, ABM, and TOC all make a contribution to continuous improvement and are applicable in service businesses as well as in manufacturing and retail businesses.

Integrity standards of management accountants include

Identify and explain the important questions a manager must address before preparing a managerial report. (Hint: Think "w's.")

Management accounting information is more subjective than financial accounting information.

What would a company using an activity-based management approach attempt to do in regard to activities that add value to the product and those that do not?

Management accounting and financial accounting are similar in which of the following respects?

Management accountants who alter reports to meet targeted levels of performance are not acting unethically, because their job is to provide information that will aid in communicating the goals of the business.

Management accounting is not a subordinate activity to financial accounting.

What steps would a company using TQM take to improve product or service quality?

The overall guideline or limit for management accounting information is that the report or analysis must be meaningful and must answer the questions or issues under review.

In a JIT system, workers are trained to specialize in one specific task.

Hiring a janitorial service firm rather than employing full-time employees is an example of outsourcing.