Question 1

Another name for management accounting could be internal accounting.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following employees would normally occupy a line position?

Accepted Answer

A)  the controller
B)  the purchasing manager
C)  the treasurer
D)  the vice-president of marketing D

Question 3

Select the appropriate definition for each of the items listed below.
-The newly created designation to amalgamate the three accounting bodies in Canada

Accepted Answer

A)  Financial accounting
B)  Managerial accounting
C)  Planning
D)  Controlling
E)  Decision makingF) Value chainG) Continuous improvementH) Line positionsI) TimeJ) Total quality managementK) Lean accountingL) Staff positionsM) ControllerN) TreasurerO) Chartered Accountant (C
A)  P) Ethical behaviourQ) Certified General Accountant (CG
A)  R) Certified Management Accountant (CM
A)  S) Certified Professional Accountant (CP
A)  T) CICA S

Question 4

Positions that have direct responsibility for the basic objectives of an organization are referred to as staff positions.

Accepted Answer

A) True 
 B)False

Question 5

What is a requirement for accountants who have a CPA,(CA,CMA,or CGA)designation?

Accepted Answer

A)  They are not the only people permitted to serve as external auditors.
B)  They must pass a national examination and be licensed by the province or territory in which they practice.
C)  They are not held responsible for providing assurance concerning the reliability of a firm's financial statements.
D)  They can only work at public accounting firms.

Question 6

The controller is the Chief Executive Officer of a company.

Accepted Answer

A) True 
 B)False

Question 7

Select the appropriate definition for each of the items listed below.
-The chief accounting officer in an organization

Accepted Answer

A)  Financial accounting
B)  Managerial accounting
C)  Planning
D)  Controlling
E)  Decision makingF) Value chainG) Continuous improvementH) Line positionsI) TimeJ) Total quality managementK) Lean accountingL) Staff positionsM) ControllerN) TreasurerO) Chartered Accountant (C
A)  P) Ethical behaviourQ) Certified General Accountant (CG
A)  R) Certified Management Accountant (CM
A)  S) Certified Professional Accountant (CP
A)  T) CICA

Question 8

What is the objective of process value analysis?

Accepted Answer

A)  to include measures of activities not simply related to increasing profits
B)  to establish competitive advantage by creating better customer value for the same cost
C)  to efficiently perform necessary and eliminate activities that do not create customer value
D)  to improve costing accuracy by emphasizing the activities and tasks that must be performed

Question 9

Which of the following employees would normally occupy a line position in a hospital?

Accepted Answer

A)  the manager of the cafeteria
B)  a hospital administrator
C)  the chief of surgery
D)  a staff nurse

Question 10

Select the appropriate definition for each of the items listed below.
-Searching for ways to increase the overall efficiency and productivity of activities by reducing waste,increasing quality,and reducing costs

Accepted Answer

A)  Financial accounting
B)  Managerial accounting
C)  Planning
D)  Controlling
E)  Decision makingF) Value chainG) Continuous improvementH) Line positionsI) TimeJ) Total quality managementK) Lean accountingL) Staff positionsM) ControllerN) TreasurerO) Chartered Accountant (C
A)  P) Ethical behaviourQ) Certified General Accountant (CG
A)  R) Certified Management Accountant (CM
A)  S) Certified Professional Accountant (CP
A)  T) CICA

Question 11

What is characteristic of management accounting reports?

Accepted Answer

A)  The reports are prepared to meet the needs of decision makers within the firm.
B)  The reports are prepared whenever stockholders request them.
C)  The reports are prepared according to guidelines prepared by the Ontario Securities Commission (OS
C)  .
D)  The reports are prepared according to IFRS.

Question 12

Which of the following is a characteristic of activity-based costing?

Accepted Answer

A)  It is a traditional costing method.
B)  It encourages process-value analysis.
C)  It always results in a lower cost assigned to goods or services.
D)  It assigns shared costs to jobs.

Question 13

Which of the following is a characteristic of financial accounting?

Accepted Answer

A)  It has no regulatory or mandatory rules.
B)  It is internally focused.
C)  It is concerned with the firm as a whole.
D)  It has an emphasis on the future.

Question 14

Select the appropriate definition for each of the items listed below.
-A type of accounting that is primarily concerned with producing information for external users

Accepted Answer

A)  Financial accounting
B)  Managerial accounting
C)  Planning
D)  Controlling
E)  Decision makingF) Value chainG) Continuous improvementH) Line positionsI) TimeJ) Total quality managementK) Lean accountingL) Staff positionsM) ControllerN) TreasurerO) Chartered Accountant (C
A)  P) Ethical behaviourQ) Certified General Accountant (CG
A)  R) Certified Management Accountant (CM
A)  S) Certified Professional Accountant (CP
A)  T) CICA

Question 15

What is the name of the newly formed professional accounting body?

Accepted Answer

A)  CA Canada
B)  CFA Canada
C)  CPA Canada
D)  CMA Canada

Question 16

Select the appropriate definition for each of the items listed below.
-Organizing costs according to the value chain and collecting both financial and nonfinancial information

Accepted Answer

A)  Financial accounting
B)  Managerial accounting
C)  Planning
D)  Controlling
E)  Decision makingF) Value chainG) Continuous improvementH) Line positionsI) TimeJ) Total quality managementK) Lean accountingL) Staff positionsM) ControllerN) TreasurerO) Chartered Accountant (C
A)  P) Ethical behaviourQ) Certified General Accountant (CG
A)  R) Certified Management Accountant (CM
A)  S) Certified Professional Accountant (CP
A)  T) CICA

Question 17

The Triple Bottom Line refers to management putting triple the focus on profits.

Accepted Answer

A) True 
 B)False

Question 18

Select the appropriate definition for each of the items listed below.
-A management activity that involves the detailed formulation of action to achieve a particular end

Accepted Answer

A)  Financial accounting
B)  Managerial accounting
C)  Planning
D)  Controlling
E)  Decision makingF) Value chainG) Continuous improvementH) Line positionsI) TimeJ) Total quality managementK) Lean accountingL) Staff positionsM) ControllerN) TreasurerO) Chartered Accountant (C
A)  P) Ethical behaviourQ) Certified General Accountant (CG
A)  R) Certified Management Accountant (CM
A)  S) Certified Professional Accountant (CP
A)  T) CICA

Question 19

Which of the following are included in the standards of ethical conduct for management accountants?

Accepted Answer

A)  competence, performance, respect for others, and observance
B)  integrity, respect for others, performance, and confidence
C)  confidence, confidentiality, objectivity, and observance
D)  competence, confidentiality, integrity, and objectivity

Question 20

Customer value is the difference between what a customer receives and what they give up when buying a product or service.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Managerial Accounting

Another name for management accounting could be internal accounting.

Which of the following employees would normally occupy a line position?

Select the appropriate definition for each of the items listed below. -The newly created designation to amalgamate the three accounting bodies in Canada

Positions that have direct responsibility for the basic objectives of an organization are referred to as staff positions.

What is a requirement for accountants who have a CPA,(CA,CMA,or CGA) designation?

The controller is the Chief Executive Officer of a company.

Select the appropriate definition for each of the items listed below. -The chief accounting officer in an organization

What is the objective of process value analysis?

Which of the following employees would normally occupy a line position in a hospital?

Select the appropriate definition for each of the items listed below. -Searching for ways to increase the overall efficiency and productivity of activities by reducing waste,increasing quality,and reducing costs

What is characteristic of management accounting reports?

Which of the following is a characteristic of activity-based costing?

Which of the following is a characteristic of financial accounting?

Select the appropriate definition for each of the items listed below. -A type of accounting that is primarily concerned with producing information for external users

What is the name of the newly formed professional accounting body?

Select the appropriate definition for each of the items listed below. -Organizing costs according to the value chain and collecting both financial and nonfinancial information

The Triple Bottom Line refers to management putting triple the focus on profits.

Select the appropriate definition for each of the items listed below. -A management activity that involves the detailed formulation of action to achieve a particular end

Which of the following are included in the standards of ethical conduct for management accountants?

Customer value is the difference between what a customer receives and what they give up when buying a product or service.