Question 1

The purpose of information in financial accounting is to communicate the organization's financial position to investors,banks,regulators,and other outside parties.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a standard of ethical professional practice as outlined by the Institute of Management Accountants?

Accepted Answer

A) Principles. 
B) Standards. 
C) Competence. 
D) Confidence. 
E) Illegal acts.

Question 3

Classify each cost item of Ripon Printers into one of the business functions of the value chain,either (1)R&D, (2)Design, (3)Production, (4)Marketing, (5)Distribution,or (6)Customer service.
Item:
a.cost of customer order forms
b.cost of paper used to manufacture books
c.cost of paper used in packing cartons to ship books
d.cost of paper used in display at national trade show
e.depreciation of trucks used to transport books to college bookstores
f.cost of the wood used to manufacture paper
g.salary of the management scientists attempting to find another source of information technology
h.cost of refining the package size to specific dress sizes so that a standard-sized box is filled to capacity

Accepted Answer

The answer of Classify each cost item of Ripon Printers...

Question 4

A ________ is used to specify how a managerial accountant at an organization matches the capabilities with opportunities in the marketplace to accomplish their objectives.It also helps managers gain a competitive advantage at their company.

Accepted Answer

A) goal 
B) ethic 
C) focus 
D) strategy 
E) production

Question 5

________ is primarily a human activity that should focus on encouraging individuals to do their jobs better.

Accepted Answer

A) Reporting 
B) Management 
C) Functioning 
D) Doing 
E) Learning

Question 6

IMA's overarching ethical principles include: Honesty,Fairness,Objectivity,and Responsibility.

Accepted Answer

A) True 
 B)False

Question 7

Planning:

Accepted Answer

A) is the band range of relevant activity level or volume in which there is a specific relationship between the level of activity or volume and the cost in question. 
B) occurs when purchase materials and components are converted into various finished goods. 
C) is the band or range of normal activity level or volume in which there is a specific relationship between the level of activity or volume and the cost in question. 
D) is a general term that encompasses tracing direct costs to a cost object and allocating indirect costs to a cost object. 
E) comprises taking actions that implement the planning decisions,deciding how to evaluate performance,and providing feedback and learning to help future decision making.

Question 8

A recent Performance Report from Baker's Chocolate Factory revealed that there were budgeted revenues in October,2012,of $2,000,000;and,the actual revenues were $2,110,000.Is the difference favorable or unfavorable?

Accepted Answer

A) $1.05;favorable 
B) $1.05;unfavorable 
C) $110,000 favorable 
D) $110,000 unfavorable 
E) $4,110,000;favorable

Question 9

The most important functions in the value-chain analysis that managers use to please consumers include research and development (R&D),the design of products and processes,production,marketing,distribution and customer service.

Accepted Answer

A) True 
 B)False

Question 10

The main purpose of an organizational chart is to show the formal reporting relationships at an organization.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not true about the five-step decision making process?

Accepted Answer

A) Identifies the problems and uncertainties. 
B) Obtains information. 
C) Makes predictions about the future. 
D) Helps managers make decisions. 
E) Managers cannot evaluate performances or learn.

Question 12

Managers use management accounting information to do all of the following except:

Accepted Answer

A) collect. 
B) analyze. 
C) perform. 
D) categorize. 
E) summarize.

Question 13

Write a brief essay and summarize the different duties,responsibilities,and the basic skills of a Chief Financial Officer (CFO)and a Corporate Controller.Discuss some of the responsibilities that are typical in each role.Be specific.

Accepted Answer

The answer of Write a brief essay and summarize the...

Question 14

Management accounting:

Accepted Answer

A) focuses on measuring,analyzing,and reporting financial and nonfinancial information to help managers estimate future revenue,costs,and other measures to forecast activities and formulate strategies to increase the competitive advantage of the organization. 
B) financial-information purpose is to communicate organization's financial position to investors,banks,regulators,and suppliers. 
C) focus and emphasis is on past-oriented reports. 
D) rules of measurement reporting require financial statements to be prepared in accordance of GAAP. 
E) behavioral information primarily reports economic events,but also influences behavior because manager's compensation is often based on reported financial data.

Question 15

When managers track the costs that are incurred in each value-chain category,their goal is to ensure the profitability of the organization.

Accepted Answer

A) True 
 B)False

Question 16

List and discuss the two broad strategies that managers use to achieve organizational goals.Provide an example of each strategy.

Accepted Answer

The answer of List and discuss the two broad strategies...

Question 17

Management accountants work closely with other managers to develop strategies.Which of the following is not a source of competitive advantage they share to develop those strategies?

Accepted Answer

A) Share company interdepartmental costs at meetings. 
B) Share productivity reports. 
C) Share best practices at meetings so other managers learn new and innovative strategies. 
D) Share and understand the efficiency advantage relative to their competitors. 
E) Share only time to attend luncheons and meetings,but never discuss interdepartmental information.

Question 18

Some managerial accountants at companies choose to focus on a product differentiation strategy.Which of the following is not a characteristic of this strategy?

Accepted Answer

A) Offer unique products. 
B) Offer different services. 
C) Offer lower-priced products or services. 
D) Offer less-popular products or services. 
E) Offer higher-priced products or services.

Question 19

How do managers calculate a target cost for the selling price of a product?

Accepted Answer

A) Add net sales to gross sales. 
B) Subtract net sales from the cost. 
C) Subtract the operating cost per unit of the product. 
D) Subtract the operating income per unit of target product. 
E) Add the net sales to the operating income per unit and subtract costs.

Question 20

Practitioners of Management and Financial Management at pharmaceutical companies are not bound by standards of ethical behavior.

Accepted Answer

A) True 
 B)False

Exam 1: The Manager and Management Accounting

The purpose of information in financial accounting is to communicate the organization's financial position to investors,banks,regulators,and other outside parties.

Which of the following is not a standard of ethical professional practice as outlined by the Institute of Management Accountants?

A ________ is used to specify how a managerial accountant at an organization matches the capabilities with opportunities in the marketplace to accomplish their objectives.It also helps managers gain a competitive advantage at their company.

________ is primarily a human activity that should focus on encouraging individuals to do their jobs better.

IMA's overarching ethical principles include: Honesty,Fairness,Objectivity,and Responsibility.

Planning:

A recent Performance Report from Baker's Chocolate Factory revealed that there were budgeted revenues in October,2012,of $2,000,000;and,the actual revenues were $2,110,000.Is the difference favorable or unfavorable?

The most important functions in the value-chain analysis that managers use to please consumers include research and development (R&D),the design of products and processes,production,marketing,distribution and customer service.

The main purpose of an organizational chart is to show the formal reporting relationships at an organization.

Which of the following is not true about the five-step decision making process?

Managers use management accounting information to do all of the following except:

Write a brief essay and summarize the different duties,responsibilities,and the basic skills of a Chief Financial Officer (CFO)and a Corporate Controller.Discuss some of the responsibilities that are typical in each role.Be specific.

Management accounting:

When managers track the costs that are incurred in each value-chain category,their goal is to ensure the profitability of the organization.

List and discuss the two broad strategies that managers use to achieve organizational goals.Provide an example of each strategy.

Management accountants work closely with other managers to develop strategies.Which of the following is not a source of competitive advantage they share to develop those strategies?

Some managerial accountants at companies choose to focus on a product differentiation strategy.Which of the following is not a characteristic of this strategy?

How do managers calculate a target cost for the selling price of a product?

Practitioners of Management and Financial Management at pharmaceutical companies are not bound by standards of ethical behavior.