Exam 1: Introduction to Managerial Accounting

The four emphasized areas of the CMA examination reflect the needs of managerial accounting and highlights that managerial accounting has more of an interdisciplinary flavor than other areas of accounting.

The objective of profit maximization

The belief that each member of a group bears no responsibility for the well-being of other members is a common principle underlying all ethical systems.

Managerial accounting

Managerial Accounting is designed primarily for internal users.

The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as decision making.

Management accounting information is only used by manufacturing organizations.

The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as ______________.

Managerial accounting reports are prepared

_________ is a crucial element in all phases of the value chain.

A __________________________ has passed a comprehensive examination designed to ensure technical competence and has two years of experience. or or

Discuss in detail the three uses of managerial accounting information.

The standards of ethical conduct for managerial accountants include

Briefly describe activity-based costing (ABC),value chain,lean accounting and enterprise risk management (ERM).

You have been working as a staff accountant at Sanborn Industries for three months.Mr.Jones,the accounting manager as well as your boss,has informed you that he has decided to change vendors for the company's office supplies.He notifies you that your company will now be utilizing the store owned by his best friend.Mr.Jones is hopeful that this will bring in a significant profit for his friend's business possibly preventing the closing of his store.You receive the first invoice from that store and realize that the prices are nearly double the amount that the company was paying when using a large retail chain. What should you do about the situation?

Excellent customer service is an example of a value-added activity.

The controller of an organization participates in

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

Only a _________________________ is permitted to serve as an external auditor. or or

Which of the following is not an objective of managerial accounting?