Question 1

Cost accounting is necessitated by

Accepted Answer

A)  the high degree of conversion found in certain businesses. 
B)  external reporting requirements for manufacturing companies. 
C)  management's need to be aware of all production activities. 
D)  management's need for information to be used for planning and controlling activities. 
A)  the high degree of conversion found in certain businesses. 
B)  external reporting requirements for manufacturing companies. 
C)  management's need to be aware of all production activities. 
D)  management's need for information to be used for planning and controlling activities.

Question 2

The Sarbanes-Oxley Act of 2002 provides legal protection for individuals who report illegal organizational activities to appropriate persons or agencies.

Accepted Answer

A) True 
 B)False

Question 3

Outcomes that have resulted from past actions are also referred to as ____________________ indicators.

Accepted Answer

The answer of Outcomes that have resulted from past actions...

Question 4

What four areas are covered by the Standards of Ethical Conduct for Certified Management Accountants? How are these areas defined?

Accepted Answer

The four areas covered by the Standards

Question 5

Managerial accounting is highly regulated by rules and regulations.

Accepted Answer

A) True 
 B)False

Question 6

The set of processes that convert inputs into services and products that consumers use is called

Accepted Answer

A)  a core competency. 
B)  an operational plan. 
C)  the value chain. 
D)  the product life cycle. 
A)  a core competency. 
B)  an operational plan. 
C)  the value chain. 
D)  the product life cycle.

Question 7

A managerial accountant who prepares clear reports and recommendations after analyzing relevant facts is exercising which of the following standards?

Accepted Answer

A)  objectivity 
B)  integrity 
C)  competence 
D)  confidentiality 
A)  objectivity 
B)  integrity 
C)  competence 
D)  confidentiality

Question 8

The learning and growth perspective of the balanced scorecard addresses stakeholder concerns about profitability and organizational growth.

Accepted Answer

A) True 
 B)False

Question 9

The financial perspective of the balanced scorecard addresses the things that an organization needs to do well to meet customer needs and expectations.

Accepted Answer

A) True 
 B)False

Question 10

The Foreign Corrupt Practices Act of 1977 provides legal protection for individuals who report illegal organizational activities to appropriate persons or agencies.

Accepted Answer

A) True 
 B)False

Question 11

Which ethical standard is violated when an accountant uses information from a financial statement he is preparing to advise a relative of a stock purchase?

Accepted Answer

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

Question 12

The Institute of Management Accountants' Code of Ethics

Accepted Answer

A)  is a legally enforceable contract with all management accountants. 
B)  should be viewed as a goal for professional behavior. 
C)  is a legally enforceable contract with all CPAs. 
D)  provides ways to measure departures from ethical behavior. 
A)  is a legally enforceable contract with all management accountants. 
B)  should be viewed as a goal for professional behavior. 
C)  is a legally enforceable contract with all CPAs. 
D)  provides ways to measure departures from ethical behavior.

Question 13

The ethical standards established for management accountants are in the areas of

Accepted Answer

A)  competence, licensing, reporting, and education. 
B)  budgeting, cost allocation, product costing, and insider trading. 
C)  competence, confidentiality, integrity, and credibility. 
D)  disclosure, communication, decision making, and planning. 
A)  competence, licensing, reporting, and education. 
B)  budgeting, cost allocation, product costing, and insider trading. 
C)  competence, confidentiality, integrity, and credibility. 
D)  disclosure, communication, decision making, and planning.

Question 14

Cost accounting standards

Accepted Answer

A)  are legal standards set by the Institute of Management Accountants for use in all manufacturing and professional businesses. 
B)  are set by the Cost Accounting Standards Board and are legally binding on all manufacturers, but not service organizations. 
C)  do not exist except for those legal pronouncements for companies bidding or pricing cost-related contracts with the government. 
D)  are developed by the Cost Accounting Standards Board, issued by the Institute of Management Accountants, and are legally binding on CMAs. 
A)  are legal standards set by the Institute of Management Accountants for use in all manufacturing and professional businesses. 
B)  are set by the Cost Accounting Standards Board and are legally binding on all manufacturers, but not service organizations. 
C)  do not exist except for those legal pronouncements for companies bidding or pricing cost-related contracts with the government. 
D)  are developed by the Cost Accounting Standards Board, issued by the Institute of Management Accountants, and are legally binding on CMAs.

Question 15

An organization's return on assets (ROA) is an example of a lead indicator.

Accepted Answer

A) True 
 B)False

Question 16

Financial accounting is most concerned with meeting the needs of internal users.

Accepted Answer

A) True 
 B)False

Question 17

The financial perspective of the balanced scorecard focuses on using an organization's intellectual capital to adapt to or influence customer needs and expectations.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is false?

Accepted Answer

A)  A primary purpose of cost accounting is to determine valuations needed for external financial statements. 
B)  A primary purpose of management accounting is to provide information to managers for use in planning, controlling, and decision making. 
C)  The act of converting production inputs into finished products or services necessitates cost accounting. 
D)  Two primary hallmarks of cost and management accounting are standardization of procedures and use of generally accepted accounting principles. 
A)  A primary purpose of cost accounting is to determine valuations needed for external financial statements. 
B)  A primary purpose of management accounting is to provide information to managers for use in planning, controlling, and decision making. 
C)  The act of converting production inputs into finished products or services necessitates cost accounting. 
D)  Two primary hallmarks of cost and management accounting are standardization of procedures and use of generally accepted accounting principles.

Question 19

Mission statements typically remain unchanged throughout the life of an organization.

Accepted Answer

A) True 
 B)False

Question 20

The value chain

Accepted Answer

A)  reflects the production of goods within an organizational context. 
B)  is concerned with upstream suppliers, but not downstream customers. 
C)  results when all non-value-added activities are eliminated from a production process. 
D)  is the foundation of strategic resource management. 
A)  reflects the production of goods within an organizational context. 
B)  is concerned with upstream suppliers, but not downstream customers. 
C)  results when all non-value-added activities are eliminated from a production process. 
D)  is the foundation of strategic resource management.

Cost accounting is necessitated by

The Sarbanes-Oxley Act of 2002 provides legal protection for individuals who report illegal organizational activities to appropriate persons or agencies.

Outcomes that have resulted from past actions are also referred to as ____________________ indicators.

What four areas are covered by the Standards of Ethical Conduct for Certified Management Accountants? How are these areas defined?

Managerial accounting is highly regulated by rules and regulations.

The set of processes that convert inputs into services and products that consumers use is called

A managerial accountant who prepares clear reports and recommendations after analyzing relevant facts is exercising which of the following standards?

The learning and growth perspective of the balanced scorecard addresses stakeholder concerns about profitability and organizational growth.

The financial perspective of the balanced scorecard addresses the things that an organization needs to do well to meet customer needs and expectations.

The Foreign Corrupt Practices Act of 1977 provides legal protection for individuals who report illegal organizational activities to appropriate persons or agencies.

Which ethical standard is violated when an accountant uses information from a financial statement he is preparing to advise a relative of a stock purchase?

The Institute of Management Accountants' Code of Ethics

The ethical standards established for management accountants are in the areas of

Cost accounting standards

An organization's return on assets (ROA) is an example of a lead indicator.

Financial accounting is most concerned with meeting the needs of internal users.

The financial perspective of the balanced scorecard focuses on using an organization's intellectual capital to adapt to or influence customer needs and expectations.

Which of the following statements is false?

Mission statements typically remain unchanged throughout the life of an organization.

The value chain

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, Support Department Allocations, and Transfer Pricing

Performance Measurement, Balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Exam 1: Introduction to Cost Accounting

Cost accounting is necessitated by

The Sarbanes-Oxley Act of 2002 provides legal protection for individuals who report illegal organizational activities to appropriate persons or agencies.

Outcomes that have resulted from past actions are also referred to as ____________________ indicators.

What four areas are covered by the Standards of Ethical Conduct for Certified Management Accountants? How are these areas defined?

Managerial accounting is highly regulated by rules and regulations.

The set of processes that convert inputs into services and products that consumers use is called

A managerial accountant who prepares clear reports and recommendations after analyzing relevant facts is exercising which of the following standards?

The learning and growth perspective of the balanced scorecard addresses stakeholder concerns about profitability and organizational growth.

The financial perspective of the balanced scorecard addresses the things that an organization needs to do well to meet customer needs and expectations.

The Foreign Corrupt Practices Act of 1977 provides legal protection for individuals who report illegal organizational activities to appropriate persons or agencies.

Which ethical standard is violated when an accountant uses information from a financial statement he is preparing to advise a relative of a stock purchase?

The Institute of Management Accountants' Code of Ethics

The ethical standards established for management accountants are in the areas of

Cost accounting standards

An organization's return on assets (ROA) is an example of a lead indicator.

Financial accounting is most concerned with meeting the needs of internal users.

The financial perspective of the balanced scorecard focuses on using an organization's intellectual capital to adapt to or influence customer needs and expectations.

Which of the following statements is false?

Mission statements typically remain unchanged throughout the life of an organization.

The value chain

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, Support Department Allocations, and Transfer Pricing

Performance Measurement, Balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters