Question 1

If an action is legal for a company to pursue,is it necessary ethical? Discuss this in terms of the ethical issues presented in the text.

Accepted Answer

Answers may vary.However,just because an

Question 2

Fixed costs expressed on a per unit basis

Accepted Answer

A) will react directly with changes in activity. 
B) will react inversely with changes in activity. 
C) are not affected by activity. 
D) should be ignored in making decisions since they cannot change over the long run. 
A) will react directly with changes in activity. 
B) will react inversely with changes in activity. 
C) are not affected by activity. 
D) should be ignored in making decisions since they cannot change over the long run.

Question 3

What recent management innovation uses such performance measures as product reliability and service delivery,as well as traditional measures of profitability?

Accepted Answer

A) Just-in-time production 
B) Total quality management 
C) Economic order quantities 
D) Strategic cost analysis systems 
A) Just-in-time production 
B) Total quality management 
C) Economic order quantities 
D) Strategic cost analysis systems

Question 4

Which of the following would be a direct cost for a computer manufacturer?

Accepted Answer

A) cost of utilities in the factory 
B) wages of the workers in the keyboard manufacturing department 
C) wages of the workers in the repair department 
D) factory supervision 
A) cost of utilities in the factory 
B) wages of the workers in the keyboard manufacturing department 
C) wages of the workers in the repair department 
D) factory supervision

Question 5

Lean production strives to do all of the following except:

Accepted Answer

A) flexibility in changing quickly from one product to another 
B) make the quality and efficiency of production the highest priority 
C) eliminate inventory between production departments 
D) emphasize upper management control of decision making 
A) flexibility in changing quickly from one product to another 
B) make the quality and efficiency of production the highest priority 
C) eliminate inventory between production departments 
D) emphasize upper management control of decision making

Question 6

What organization developed the "Standards of Ethical Conduct for Management Accountants" mandating that management accountants have a responsibility to maintain the highest levels of ethical conduct?

Accepted Answer

A) Institute of Management Accountants 
B) Cost Accounting Standards Board 
C) General Accounting Office 
D) American Institute of Certified Public Accountants 
A) Institute of Management Accountants 
B) Cost Accounting Standards Board 
C) General Accounting Office 
D) American Institute of Certified Public Accountants

Question 7

The linked set of activities that increases the usefulness (or value)of the products or services of an organization is the

Accepted Answer

A) direct chain. 
B) indirect chain. 
C) value chain. 
D) variable chain. 
A) direct chain. 
B) indirect chain. 
C) value chain. 
D) variable chain.

Question 8

Which of the following best determines the amount of accounting information that is generated for managerial purposes and effective communication between accountants and users?

Accepted Answer

A) bandwidth capabilities 
B) cost-benefit analysis 
C) web hosting 
D) just-in-time analysis 
A) bandwidth capabilities 
B) cost-benefit analysis 
C) web hosting 
D) just-in-time analysis

Question 9

Which of the following activities performed by a manufacturer of bicycles best describes one that is not a value-added activity?

Accepted Answer

A) Transfer of direct materials to appropriate points on the assembly line. 
B) Reworking of poor quality bicycles. 
C) Inspection of direct materials upon receipt from suppliers. 
D) Bar code tagging of direct materials to ensure that the right parts are used for production. 
A) Transfer of direct materials to appropriate points on the assembly line. 
B) Reworking of poor quality bicycles. 
C) Inspection of direct materials upon receipt from suppliers. 
D) Bar code tagging of direct materials to ensure that the right parts are used for production.

Question 10

What is part of a "lean production" philosophy that has been credited for the success of many Japanese companies and some large U.S.companies?

Accepted Answer

A) Just-in-time production 
B) Mini-max inventory systems 
C) Economic order quantities 
D) Strategic cost analysis systems 
A) Just-in-time production 
B) Mini-max inventory systems 
C) Economic order quantities 
D) Strategic cost analysis systems

Question 11

All of the following are key developments that have helped reshape the discipline of managerial accounting except:

Accepted Answer

A) the convergence of U.S.GAAP with IFRS 
B) global strategies 
C) total quality management 
D) integrated information systems 
A) the convergence of U.S.GAAP with IFRS 
B) global strategies 
C) total quality management 
D) integrated information systems

Question 12

Managerial accounting information is used by which of the following managers?

Accepted Answer

A) marketing managers to help price products and assess their profitability. 
B) production managers to manage quality and costs and to assure on-time delivery. 
C) general managers to measure employee performance and create incentives. 
D) All of the answers are correct. 
A) marketing managers to help price products and assess their profitability. 
B) production managers to manage quality and costs and to assure on-time delivery. 
C) general managers to measure employee performance and create incentives. 
D) All of the answers are correct.

Question 13

Discuss how managers can use accounting information to implement strategies.

Accepted Answer

Managers use accounting information to h

Question 14

Which of the following is best defined as a cost that changes in totalas the level of activity changes?

Accepted Answer

A) an opportunity cost 
B) a fixed cost 
C) a variable cost 
D) a cost object 
A) an opportunity cost 
B) a fixed cost 
C) a variable cost 
D) a cost object

Question 15

Which of the following works in planning,decision making,designing information systems,designing incentive systems,and helping managers make operating decisions?

Accepted Answer

A) Controller 
B) Treasurer 
C) Board of directors 
D) Chief executive officer 
A) Controller 
B) Treasurer 
C) Board of directors 
D) Chief executive officer

Question 16

A cost that changes in total as the level of activity changes is known as which of the following?

Accepted Answer

A) fixed cost. 
B) direct cost. 
C) indirect cost. 
D) variable cost. 
A) fixed cost. 
B) direct cost. 
C) indirect cost. 
D) variable cost.

Question 17

Ronald's Refrigeration Repair located in Tampa,Florida provides service to restaurant customers.He has always had the policy of letting his employees have 6 holidays off each year (New Year's Day,Memorial Day,July 4th,Labor Day,Thanksgiving,and Christmas).However,he has also discovered that these are the days when restaurants seem to be the busiest and have refrigeration breakdowns.As a result he is considering paying an emergency skeletal crew time and a half overtime rather than giving them the days off.
Ronald estimates that if he does this,he can generate $5,000 revenue for each of these 6 days.The incremental cost for 2 repair personnel will be $60 per hour for 8 hours per day plus daily costs of: $500 for parts,$300 for transportation costs,and $200 for dispatcher staff.These costs do not include a share of monthly rent or depreciation related to equipment.
Although Ronald would like to maintain his current holidays off policy,he would like to know the opportunity cost of this.Present Ronald with an estimate of the opportunity cost and explain whey you do not have to consider rent or depreciation in the estimate.

Accepted Answer

Revenue per day $ 5,000
Less incremental

Question 18

Considering the time dimension,how does managerial decision making compare with external performance evaluation?
Managerial Decision Making External Performance

Accepted Answer

A) Past Past 
B) Past Future 
C) Future Past 
D) Future Future 
A) Past Past 
B) Past Future 
C) Future Past 
D) Future Future

Question 19

In an aircraft factory,the inventory of direct materials would not include:

Accepted Answer

A) Glue for the passenger seats 
B) Electronic instruments to be installed in aircraft. 
C) Lavatory equipment 
D) Sheet aluminum to be used for the exterior of the aircraft. 
A) Glue for the passenger seats 
B) Electronic instruments to be installed in aircraft. 
C) Lavatory equipment 
D) Sheet aluminum to be used for the exterior of the aircraft.

Question 20

Costs that change in total as the level of activity changes are which of the following?

Accepted Answer

A) direct costs. 
B) indirect costs. 
C) variable costs. 
D) fixed costs. 
A) direct costs. 
B) indirect costs. 
C) variable costs. 
D) fixed costs.

If an action is legal for a company to pursue,is it necessary ethical? Discuss this in terms of the ethical issues presented in the text.

Fixed costs expressed on a per unit basis

What recent management innovation uses such performance measures as product reliability and service delivery,as well as traditional measures of profitability?

Which of the following would be a direct cost for a computer manufacturer?

Lean production strives to do all of the following except:

What organization developed the "Standards of Ethical Conduct for Management Accountants" mandating that management accountants have a responsibility to maintain the highest levels of ethical conduct?

The linked set of activities that increases the usefulness (or value)of the products or services of an organization is the

Which of the following best determines the amount of accounting information that is generated for managerial purposes and effective communication between accountants and users?

Which of the following activities performed by a manufacturer of bicycles best describes one that is not a value-added activity?

What is part of a "lean production" philosophy that has been credited for the success of many Japanese companies and some large U.S.companies?

All of the following are key developments that have helped reshape the discipline of managerial accounting except:

Managerial accounting information is used by which of the following managers?

Discuss how managers can use accounting information to implement strategies.

Which of the following is best defined as a cost that changes in totalas the level of activity changes?

Which of the following works in planning,decision making,designing information systems,designing incentive systems,and helping managers make operating decisions?

A cost that changes in total as the level of activity changes is known as which of the following?

Considering the time dimension,how does managerial decision making compare with external performance evaluation? Managerial Decision Making External Performance

In an aircraft factory,the inventory of direct materials would not include:

Costs that change in total as the level of activity changes are which of the following?

Measuring Product Costs

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters

Exam 1: Fundamental Concepts

If an action is legal for a company to pursue,is it necessary ethical? Discuss this in terms of the ethical issues presented in the text.

Fixed costs expressed on a per unit basis

What recent management innovation uses such performance measures as product reliability and service delivery,as well as traditional measures of profitability?

Which of the following would be a direct cost for a computer manufacturer?

Lean production strives to do all of the following except:

What organization developed the "Standards of Ethical Conduct for Management Accountants" mandating that management accountants have a responsibility to maintain the highest levels of ethical conduct?

The linked set of activities that increases the usefulness (or value)of the products or services of an organization is the

Which of the following best determines the amount of accounting information that is generated for managerial purposes and effective communication between accountants and users?

Which of the following activities performed by a manufacturer of bicycles best describes one that is not a value-added activity?

What is part of a "lean production" philosophy that has been credited for the success of many Japanese companies and some large U.S.companies?

All of the following are key developments that have helped reshape the discipline of managerial accounting except:

Managerial accounting information is used by which of the following managers?

Discuss how managers can use accounting information to implement strategies.

Which of the following is best defined as a cost that changes in totalas the level of activity changes?

Which of the following works in planning,decision making,designing information systems,designing incentive systems,and helping managers make operating decisions?

A cost that changes in total as the level of activity changes is known as which of the following?

Considering the time dimension,how does managerial decision making compare with external performance evaluation? Managerial Decision Making External Performance

In an aircraft factory,the inventory of direct materials would not include:

Costs that change in total as the level of activity changes are which of the following?

Measuring Product Costs

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters