Question 1

Which of the following is a true statement regarding performance evaluation?

Accepted Answer

A) Managers should be evaluated on those things over which they have influence. 
B) Managers should be evaluated on the performance of the entire organization. 
C) Sales personnel do not have complete control over the level of sales. 
D) Managers should not be evaluated on those things over which they have influence,if they do not have complete control over them. 
A) Managers should be evaluated on those things over which they have influence. 
B) Managers should be evaluated on the performance of the entire organization. 
C) Sales personnel do not have complete control over the level of sales. 
D) Managers should not be evaluated on those things over which they have influence,if they do not have complete control over them.

Question 2

The system that allows firms to target profitable customers by assessing customer revenue and costs is called

Accepted Answer

A) customer relationship management. 
B) distribution chain. 
C) total quality management. 
D) cost of quality. 
A) customer relationship management. 
B) distribution chain. 
C) total quality management. 
D) cost of quality.

Question 3

Which of the following is not one of the basic standards of the Institute of Management Accountants (IMA)Code of Ethics?

Accepted Answer

A) Competence 
B) Confidentiality 
C) Honesty 
D) Integrity 
A) Competence 
B) Confidentiality 
C) Honesty 
D) Integrity

Question 4

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as

Accepted Answer

A) value chain management. 
B) enterprise resource planning. 
C) cost management. 
D) customer value management. 
A) value chain management. 
B) enterprise resource planning. 
C) cost management. 
D) customer value management.

Question 5

Financial accounting provides financial and nonfinancial information that helps managers in the decision making process.Cost accounting provides financial and nonfinancial information that helps managers in the decision making process.

Accepted Answer

A) True 
 B)False

Question 6

In 2013,the MoreForLess Company had revenues of $2,000,000 and costs of $1,500,000.During 2014,MoreForLess will be introducing a new product line that is expected to increase sales revenue by $200,000 and costs by $160,000.Assuming no changes are expected for the other products,the operating profits are expected to increase by

Accepted Answer

A) $540,000. 
B) $200,000. 
C) $160,000. 
D) $40,000. 
A) $540,000. 
B) $200,000. 
C) $160,000. 
D) $40,000.

Question 7

(CIA adapted)The primary reason for adopting total quality management (TQM)is to achieve

Accepted Answer

A) reduced delivery time. 
B) reduced delivery charges. 
C) greater customer satisfaction. 
D) greater employee participation. 
A) reduced delivery time. 
B) reduced delivery charges. 
C) greater customer satisfaction. 
D) greater employee participation.

Question 8

Which of the following is not normally considered part of the value chain?

Accepted Answer

A) Research and development 
B) Purchasing 
C) Administration 
D) Distribution 
A) Research and development 
B) Purchasing 
C) Administration 
D) Distribution

Question 9

Having one or more of the firms' activities performed by another firm or individual in the supply or distribution chain is called

Accepted Answer

A) lean accounting. 
B) responsibility centers. 
C) activity-based costing. 
D) budgeting. 
E) outsourcing 
A) lean accounting. 
B) responsibility centers. 
C) activity-based costing. 
D) budgeting. 
E) outsourcing

Question 10

(CMA adapted)An accounting system that collects financial and operating data on the basis of the underlying nature and extent of cost drivers is

Accepted Answer

A) full-absorption costing. 
B) activity-based costing. 
C) variable costing. 
D) benchmarking. 
A) full-absorption costing. 
B) activity-based costing. 
C) variable costing. 
D) benchmarking.

Question 11

All of the following actions enhance the new focus on making cost accounting information more relevant in helping a firm achieve strategic goals except

Accepted Answer

A) increasing emphasis on the management accountant as a business partner. 
B) increasing emphasis on external financial reporting. 
C) decreasing emphasis on financial statement inventory cost valuation. 
D) increasing emphasis on timely and useful information. 
A) increasing emphasis on the management accountant as a business partner. 
B) increasing emphasis on external financial reporting. 
C) decreasing emphasis on financial statement inventory cost valuation. 
D) increasing emphasis on timely and useful information.

Question 12

Two alternatives,identified A and B,are under consideration at Hayden Corporation.Costs associated with the alternatives are listed below.   Are the materials costs and processing costs differential in the choice between alternatives A and B? (Ignore the building costs and equipment rental in this question. )

Accepted Answer

A) Both materials costs and processing costs are differential 
B) Only materials costs are differential 
C) Only processing costs are differential 
D) Neither materials costs nor processing costs are differential 
A) Both materials costs and processing costs are differential 
B) Only materials costs are differential 
C) Only processing costs are differential 
D) Neither materials costs nor processing costs are differential

Question 13

Budgeting is primarily used to determine year-end bonuses based on managerial and organizational performance.Budgeting is used primarily for planning.A budget is a financial plan of the revenues and resources needed to carry out activities and meet financial goals.Budgeting helps managers decide whether their goals can be achieved and,if not,what modifications are necessary.

Accepted Answer

A) True 
 B)False

Question 14

The Institute of Management Accountants' (IMA)standards of ethical conduct for management accountants includes the elements of

Accepted Answer

A) competence,confidentiality,integrity,and relevance. 
B) competence,confidentiality,integrity,and credibility. 
C) competence,confidentiality,independence,and objectivity. 
D) competence,accuracy,integrity,and independence. 
A) competence,confidentiality,integrity,and relevance. 
B) competence,confidentiality,integrity,and credibility. 
C) competence,confidentiality,independence,and objectivity. 
D) competence,accuracy,integrity,and independence.

Question 15

Which of the following activities would not be considered a value-added activity?

Accepted Answer

A) Production 
B) Marketing 
C) Accounting 
D) Distribution 
A) Production 
B) Marketing 
C) Accounting 
D) Distribution

Question 16

During which step of the value chain process will a manufacturing company determine whether or not it has added utility?

Accepted Answer

A) The Design component 
B) The Purchasing process 
C) The Production activity 
D) Added utility occurs in all steps. 
A) The Design component 
B) The Purchasing process 
C) The Production activity 
D) Added utility occurs in all steps.

Question 17

Manufacturing firms use the value chain to take steps to improve the overall profitability of the firm by:

Accepted Answer

A) placing greater emphasis on the value chain. 
B) moving to an emphasis on upstream activities in the value chain. 
C) moving to an emphasis on downstream activities in the value chain. 
D) finding low-cost manufacturing locations. 
A) placing greater emphasis on the value chain. 
B) moving to an emphasis on upstream activities in the value chain. 
C) moving to an emphasis on downstream activities in the value chain. 
D) finding low-cost manufacturing locations.

Question 18

According to the IMA Code of Ethics,what should a management accountant do if a significant ethical situation can't be resolved?

Accepted Answer

A) The accountant should confront the guilty party and demand the unethical action be stopped. 
B) The accountant should try to rationalize and understand the position of the other party. 
C) The accountant should say nothing about the matter until he or she has retired. 
D) The accountant should first discuss the matter with the immediate supervisor. 
A) The accountant should confront the guilty party and demand the unethical action be stopped. 
B) The accountant should try to rationalize and understand the position of the other party. 
C) The accountant should say nothing about the matter until he or she has retired. 
D) The accountant should first discuss the matter with the immediate supervisor.

Question 19

Activity-based costing (ABC)is a management tool that focuses on the continuous improvement of all dimensions of a business.ABC is a costing method that assigns costs to activities and then assigns them to products based on the products' consumption of activities.

Accepted Answer

A) True 
 B)False

Question 20

According to the Institute of Management Accountants (IMA),the final step in resolving an ethical dilemma is to

Accepted Answer

A) resign from the organization. 
B) call the IMA's ethics hotline. 
C) report the circumstances to a local newspaper. 
D) consult with an objective,independent advisor. 
A) resign from the organization. 
B) call the IMA's ethics hotline. 
C) report the circumstances to a local newspaper. 
D) consult with an objective,independent advisor.

Which of the following is a true statement regarding performance evaluation?

The system that allows firms to target profitable customers by assessing customer revenue and costs is called

Which of the following is not one of the basic standards of the Institute of Management Accountants (IMA)Code of Ethics?

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as

Financial accounting provides financial and nonfinancial information that helps managers in the decision making process.Cost accounting provides financial and nonfinancial information that helps managers in the decision making process.

(CIA adapted)The primary reason for adopting total quality management (TQM)is to achieve

Which of the following is not normally considered part of the value chain?

Having one or more of the firms' activities performed by another firm or individual in the supply or distribution chain is called

(CMA adapted)An accounting system that collects financial and operating data on the basis of the underlying nature and extent of cost drivers is

All of the following actions enhance the new focus on making cost accounting information more relevant in helping a firm achieve strategic goals except

The Institute of Management Accountants' (IMA)standards of ethical conduct for management accountants includes the elements of

Which of the following activities would not be considered a value-added activity?

During which step of the value chain process will a manufacturing company determine whether or not it has added utility?

Manufacturing firms use the value chain to take steps to improve the overall profitability of the firm by:

According to the IMA Code of Ethics,what should a management accountant do if a significant ethical situation can't be resolved?

Activity-based costing (ABC)is a management tool that focuses on the continuous improvement of all dimensions of a business.ABC is a costing method that assigns costs to activities and then assigns them to products based on the products' consumption of activities.

According to the Institute of Management Accountants (IMA),the final step in resolving an ethical dilemma is to

Cost Concepts and Behavior

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

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Exam 1: Cost Accounting: Information for Decision Making

Which of the following is a true statement regarding performance evaluation?

The system that allows firms to target profitable customers by assessing customer revenue and costs is called

Which of the following is not one of the basic standards of the Institute of Management Accountants (IMA)Code of Ethics?

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as

Financial accounting provides financial and nonfinancial information that helps managers in the decision making process.Cost accounting provides financial and nonfinancial information that helps managers in the decision making process.

(CIA adapted)The primary reason for adopting total quality management (TQM)is to achieve

Which of the following is not normally considered part of the value chain?

Having one or more of the firms' activities performed by another firm or individual in the supply or distribution chain is called

(CMA adapted)An accounting system that collects financial and operating data on the basis of the underlying nature and extent of cost drivers is

All of the following actions enhance the new focus on making cost accounting information more relevant in helping a firm achieve strategic goals except

The Institute of Management Accountants' (IMA)standards of ethical conduct for management accountants includes the elements of

Which of the following activities would not be considered a value-added activity?

During which step of the value chain process will a manufacturing company determine whether or not it has added utility?

Manufacturing firms use the value chain to take steps to improve the overall profitability of the firm by:

According to the IMA Code of Ethics,what should a management accountant do if a significant ethical situation can't be resolved?

Activity-based costing (ABC)is a management tool that focuses on the continuous improvement of all dimensions of a business.ABC is a costing method that assigns costs to activities and then assigns them to products based on the products' consumption of activities.

According to the Institute of Management Accountants (IMA),the final step in resolving an ethical dilemma is to

Cost Concepts and Behavior

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Job Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

Filters