Question 1

List three characteristics of a JIT operating environment.

Accepted Answer

The just-in-time operating environment i

Question 2

Financial accounting usually involves analyses of various segments of a business, such as cost centers, profit centers, or departments, or of some specific aspect of its operations.

Accepted Answer

A) True 
 B)False

Question 3

Total quality management has many of the same characteristics as the JIT philosophy.

Accepted Answer

A) True 
 B)False

Question 4

Management executes a plan by overseeing the daily operations of an organization.

Accepted Answer

A) True 
 B)False

Question 5

Performance measures are used in

Accepted Answer

A)  the "perform" stage of the management process. 
B)  the "evaluate" stage of the management process. 
C)  the "communicate" stage of the management process. 
D)  all stages of the management cycle. 
A)  the "perform" stage of the management process. 
B)  the "evaluate" stage of the management process. 
C)  the "communicate" stage of the management process. 
D)  all stages of the management cycle.

Question 6

A manager should write the purpose of a report before preparing it.

Accepted Answer

A) True 
 B)False

Question 7

Benchmarking enables a company to determine whether it is making continuous improvement in its operations without regard to competition.

Accepted Answer

A) True 
 B)False

Question 8

An advantage of value chain analysis is that it allows a company to focus on what a company does best.

Accepted Answer

A) True 
 B)False

Question 9

Carlson Manufacturing is a producer of plastic bottles for bottled water companies. In July of this year, the plant manager switched to a new supplier of raw materials. The materials have a lower cost, and because of their chemical composition, more bottles can be made per hour. The downside of this faster production is that more bad, unusable bottles result. Below are the production data for the two months before and after the switch of suppliers.
   
a. Compute bad units as a percentage of total production for each month. Round answers to two decimal places.
b. What does the plant manager need to consider in determining whether or not to continue buying raw material from the new supplier?

Accepted Answer

a. Computation of bad bottles as a perce

Question 10

Suppose a management accountant becomes aware that a poor judgment he or she made has resulted in the loss of one of the company's clients. Is the accountant bound to share this information with the company? (The accountant doubts that the company will ever find out about it directly.)

Accepted Answer

A)  The management accountant is bound to honestly respond to inquiries regarding the adequacy of professional judgments but is not bound to communicate them if not directly asked. 
B)  The management accountant is bound to communicate this error in judgment only if another client cannot be found. 
C)  The management accountant is not bound to communicate this error. 
D)  The management accountant is bound to communicate unfavorable and favorable judgments made even if not directly asked. 
A)  The management accountant is bound to honestly respond to inquiries regarding the adequacy of professional judgments but is not bound to communicate them if not directly asked. 
B)  The management accountant is bound to communicate this error in judgment only if another client cannot be found. 
C)  The management accountant is not bound to communicate this error. 
D)  The management accountant is bound to communicate unfavorable and favorable judgments made even if not directly asked.

Question 11

Which of the following statements is true regarding the ethical standards of management accountants?

Accepted Answer

A)  Management accountants are not obligated to develop their knowledge and skills beyond the level they had when they sought employment with the company. 
B)  Management accountants are not responsible for monitoring their subordinates to ensure maintenance of confidentiality within the company. 
C)  Management accountants are allowed privacy and are not bound to refrain from supporting activities of personal interest even when they could discredit the profession. 
D)  Management accountants should refrain from relationships with individuals that could cause possible conflicts of interest. 
A)  Management accountants are not obligated to develop their knowledge and skills beyond the level they had when they sought employment with the company. 
B)  Management accountants are not responsible for monitoring their subordinates to ensure maintenance of confidentiality within the company. 
C)  Management accountants are allowed privacy and are not bound to refrain from supporting activities of personal interest even when they could discredit the profession. 
D)  Management accountants should refrain from relationships with individuals that could cause possible conflicts of interest.

Question 12

The management process includes all of the following stages except

Accepted Answer

A)  evaluate. 
B)  communicate. 
C)  plan. 
D)  record. 
A)  evaluate. 
B)  communicate. 
C)  plan. 
D)  record.

Question 13

All of the following are "Who" questions that dictate a managerial report's format except

Accepted Answer

A)  who should write the report? 
B)  to whom should the report be distributed? 
C)  who will read the report? 
D)  for whom is the report being prepared? 
A)  who should write the report? 
B)  to whom should the report be distributed? 
C)  who will read the report? 
D)  for whom is the report being prepared?

Question 14

Give two examples of nonfinancial performance measures.

Accepted Answer

Examples include number of cus

Question 15

In order to obtain information about benchmarks, a manager might join a trade association for the company's particular industry.

Accepted Answer

A) True 
 B)False

Question 16

Similar to financial accounting reports, management accounting reports are standardized in format.

Accepted Answer

A) True 
 B)False

Question 17

The unit of measurement used in management accounting is

Accepted Answer

A)  primarily the historical dollar. 
B)  usually current replacement cost. 
C)  any measurement unit that is useful in a particular situation. 
D)  the measurement unit used by competing companies. 
A)  primarily the historical dollar. 
B)  usually current replacement cost. 
C)  any measurement unit that is useful in a particular situation. 
D)  the measurement unit used by competing companies.

Question 18

Assume your club makes and sells boxes of chocolate every year as a fundraising project for Valentine's Day. As the current director of projects, you are interested in improving the quality of the service and the product your club offers. You have just learned about continuous improvement. Discuss how your club could use JIT, TQM, and ABM to achieve improved quality.

Accepted Answer

Note: Student answers will vary consider

Question 19

Like balance sheets and income statements, management accounting formats are much the same from company to company.

Accepted Answer

A) True 
 B)False

Question 20

Neither the amount of detail nor the format of a management accounting report is affected by those to whom the report is sent.

Accepted Answer

A) True 
 B)False

Exam 18: The Changing Business Environment-A Managers Pers

List three characteristics of a JIT operating environment.

Financial accounting usually involves analyses of various segments of a business, such as cost centers, profit centers, or departments, or of some specific aspect of its operations.

Total quality management has many of the same characteristics as the JIT philosophy.

Management executes a plan by overseeing the daily operations of an organization.

Performance measures are used in

A manager should write the purpose of a report before preparing it.

Benchmarking enables a company to determine whether it is making continuous improvement in its operations without regard to competition.

An advantage of value chain analysis is that it allows a company to focus on what a company does best.

Suppose a management accountant becomes aware that a poor judgment he or she made has resulted in the loss of one of the company's clients. Is the accountant bound to share this information with the company? (The accountant doubts that the company will ever find out about it directly.)

Which of the following statements is true regarding the ethical standards of management accountants?

The management process includes all of the following stages except

All of the following are "Who" questions that dictate a managerial report's format except

Give two examples of nonfinancial performance measures.

In order to obtain information about benchmarks, a manager might join a trade association for the company's particular industry.

Similar to financial accounting reports, management accounting reports are standardized in format.

The unit of measurement used in management accounting is

Like balance sheets and income statements, management accounting formats are much the same from company to company.

Neither the amount of detail nor the format of a management accounting report is affected by those to whom the report is sent.

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Completing the Accounting Cycle

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Internal Control

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Contributed Capital

Long Term Liabilities

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

Financial Performance Measurement

Partnerships

Cost Concepts and Cost Allocation

Costing Systems: Job Order Costing

Costing Systems Process Costing

Activity-Based Systems-Abm and Lean

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

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