Question 1

The four stages of the management process are plan, perform, evaluate, and communicate.

Accepted Answer

A) True 
 B)False

Question 2

When unable to resolve an ethical conflict, the accountant should consider consulting with an attorney as to the legal obligations and rights concerning the ethical conflict.

Accepted Answer

A) True 
 B)False

Question 3

The Chief Financial Officer (CFO) of your company has asked you to help her develop a cost control report to be distributed within the company. She wants your input concerning what she should think about before developing such a report. Discuss the significant points, in detail, the CFO should consider before the cost control report is prepared.

Accepted Answer

In addition to identifying the Why, Who,

Question 4

Which of the following types of information is not essential for a manager to run a business effectively?

Accepted Answer

A)  Product or service costing information 
B)  Data for planning and controlling of operations 
C)  Special reports and analyses to support decisions 
D)  Quote of the current price of the company's stock 
A)  Product or service costing information 
B)  Data for planning and controlling of operations 
C)  Special reports and analyses to support decisions 
D)  Quote of the current price of the company's stock

Question 5

Identify three uses of the costs of quality information.

Accepted Answer

Uses of the cost of quality information

Question 6

Each of the management tools can be used individually, or parts of them can be combined to create a new operating environment.

Accepted Answer

A) True 
 B)False

Question 7

If a management accountant gives information about a future merger of his or her company to a relative, the accountant has acted unethically.

Accepted Answer

A) True 
 B)False

Question 8

In a JIT system, materials and parts are not stockpiled.

Accepted Answer

A) True 
 B)False

Question 9

Financial accounting is concerned primarily with planning and control of internal operations.

Accepted Answer

A) True 
 B)False

Question 10

Management accounting reports can

Accepted Answer

A)  use a flexible format. 
B)  use financial and nonfinancial data. 
C)  be prepared for any time period. 
D)  include all of these. 
A)  use a flexible format. 
B)  use financial and nonfinancial data. 
C)  be prepared for any time period. 
D)  include all of these.

Question 11

Assume you are the president of the business club at your school. You are thinking about creating a fundraising project to generate money for next year's operations. Develop an outline of your ideas using the various stages of the management process.

Accepted Answer

Note: Student answers will vary consider

Question 12

Activity-based management is an extension of activity-based costing.

Accepted Answer

A) True 
 B)False

Question 13

What are the results of the successful implementation of a JIT operating environment?

Accepted Answer

Successful implementation of a

Question 14

Accountants have ranked among the highest in ethics among business professions and other occupations. List and briefly describe five ethical standards that management accountants subscribe to that, in your opinion, help maintain the impression that accountants are highly ethical.

Accepted Answer

The student should list any five of the

Question 15

Management accounting

Accepted Answer

A)  deals primarily with people and organizations outside of the business entity. 
B)  requires only periodic reporting on a regular basis. 
C)  uses any type of useful measurement unit, including physical as well as monetary measures. 
D)  deals only with the double-entry recording system. 
A)  deals primarily with people and organizations outside of the business entity. 
B)  requires only periodic reporting on a regular basis. 
C)  uses any type of useful measurement unit, including physical as well as monetary measures. 
D)  deals only with the double-entry recording system.

Question 16

Which of the following is not a result of adopting a just-in-time operating environment?

Accepted Answer

A)  Reduced materials waste 
B)  Reduced production time 
C)  Reduced total labor hours 
D)  Reduced production costs 
A)  Reduced materials waste 
B)  Reduced production time 
C)  Reduced total labor hours 
D)  Reduced production costs

Question 17

Give two examples of each stage in the management process.

Accepted Answer

Plan: Determining the mission statement

Question 18

A Taste of Italy is a pizza business that delivers only. A Taste of Italy's business objectives are as follows:
1. To be profitable and grow
2. To manage its food inventory carefully (especially the cheese!)
3. To provide fast and courteous service
4. To have repeat customers
The following performance measures were developed:
5. Average unsold food at the end of the business day as a percentage of the total purchased that day
6. Growth in revenues per quarter and profit margin
7. Average customer wait time between order and delivery
8. Percentage of customers who have ordered before (All customers are identified by phone number.)
Match each of the above business objectives and performance measures with the four perspectives of the balanced scorecard. (Identify by placing the number or numbers next to the perspective; each number can be used only once.)
a. Financial Perspective ________________
b. Learning and Growth Perspective ________________
c. Internal Business Processes Perspective __________________
d. Customer Perspective _______________

Accepted Answer

a. 1, 6
b.

Question 19

The management accountant who is responsible only for nonfinancial reports to management does not have to remain objective, using the doctrine of fairness, when preparing all reports and analyses.

Accepted Answer

A) True 
 B)False

Question 20

Activity-based costing (ABC) is used most often to improve the assignment of overhead costs to products.

Accepted Answer

A) True 
 B)False

Exam 18: The Changing Business Environment-A Managers Pers

The four stages of the management process are plan, perform, evaluate, and communicate.

When unable to resolve an ethical conflict, the accountant should consider consulting with an attorney as to the legal obligations and rights concerning the ethical conflict.

Which of the following types of information is not essential for a manager to run a business effectively?

Identify three uses of the costs of quality information.

Each of the management tools can be used individually, or parts of them can be combined to create a new operating environment.

If a management accountant gives information about a future merger of his or her company to a relative, the accountant has acted unethically.

In a JIT system, materials and parts are not stockpiled.

Financial accounting is concerned primarily with planning and control of internal operations.

Management accounting reports can

Assume you are the president of the business club at your school. You are thinking about creating a fundraising project to generate money for next year's operations. Develop an outline of your ideas using the various stages of the management process.

Activity-based management is an extension of activity-based costing.

What are the results of the successful implementation of a JIT operating environment?

Accountants have ranked among the highest in ethics among business professions and other occupations. List and briefly describe five ethical standards that management accountants subscribe to that, in your opinion, help maintain the impression that accountants are highly ethical.

Management accounting

Which of the following is not a result of adopting a just-in-time operating environment?

Give two examples of each stage in the management process.

The management accountant who is responsible only for nonfinancial reports to management does not have to remain objective, using the doctrine of fairness, when preparing all reports and analyses.

Activity-based costing (ABC) is used most often to improve the assignment of overhead costs to products.

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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