Exam 1: An Introduction to Managerial Accounting

The Code of Ethics for Professional Accountants established by the International Federation of Accountants governs only the activities of accountants in public practice.

Strategy pertains to the general direction in which an organization plans to move to achieve its goals and objectives.

In order to eliminate waste, companies must adopt and implement one or more management practices that focus on different aspects of the lean business model such as:

Management accounting information is primarily concerned with reports on the organization as a whole while financial accounting focuses more on the individual segments of the organization.

Merchandising firms buy and sell finished goods whereas manufacturing firms make their products and then sell them to retailers.

Codes of ethics almost always provide employees with very specific and detailed instructions about what they can do and not do.

Performance reports provide formal feedback to assist in determining whether operations and performance are on track.

Managerial accounting emphasizes the future in addition to historical reports, whereas financial accounting:

Effective corporate governance enhances stakeholders' confidence that an organization is being managed in their best interests rather than solely in the interests of top management and certain key individuals.

A manufacturing business which operates five days per week has four different departments involved in producing each unit of its product. Maximum daily production capacities of each are: Department A - 100 units; Department B - 135 units; Department C - 95 units, and Department D - 110 units. Maximum weekly output of completed units is?

A cost report which focuses on a 10% reduction of costs in the upcoming period is an example of:

Merchandising and manufacturing firms generate revenue by selling products.

Managers everywhere carry out three major activities: planning, implementation, and control.

The implementation phase includes all of these activities EXCEPT:

The planning phase includes all of these activities EXCEPT:

Corporate governance:

Which of the following statements is not true?

Merchandising firms largely refer to retail and wholesale outlets that buy goods from suppliers and resell them to customers.

Planning involves selecting a course of action and specifying how the action will be implemented.

Which of the following is NOT included in Codes of Ethics for professional accountants?