Question 1

Management accounting and financial accounting differ in that management accounting information is prepared

Accepted Answer

A) following prescribed rules. 
B) using whatever methods the company finds beneficial. 
C) for shareholders. 
D) to summarize the whole company with little detail. 
A) following prescribed rules. 
B) using whatever methods the company finds beneficial. 
C) for shareholders. 
D) to summarize the whole company with little detail. B

Question 2

Which of the following statements is NOT true about world-class firms?

Accepted Answer

A) World-class firms are firms that are poor in customer support. 
B) World-class firms know their market and their products. 
C) World-class firms strive continually to improve product design, manufacture, and delivery. 
D) World-class firms can compete with the best of the best in a global environment. 
A) World-class firms are firms that are poor in customer support. 
B) World-class firms know their market and their products. 
C) World-class firms strive continually to improve product design, manufacture, and delivery. 
D) World-class firms can compete with the best of the best in a global environment. A

Question 3

Management accounting reports are prepared

Accepted Answer

A) to meet the needs of decision makers within the firm. 
B) whenever shareholders request them. 
C) according to guidelines prepared by the shares and Financial Services Authority. 
D) according to financial accounting standards. 
A) to meet the needs of decision makers within the firm. 
B) whenever shareholders request them. 
C) according to guidelines prepared by the shares and Financial Services Authority. 
D) according to financial accounting standards. A

Question 4

Cost accounting

Accepted Answer

A) is concerned with assigning costs to various cost objects. 
B) attempts to satisfy the costing objectives of both financial accounting and management accounting. 
C) provides cost information that supports planning, controlling, and decision making. 
D) All of the above descriptions are true. 
A) is concerned with assigning costs to various cost objects. 
B) attempts to satisfy the costing objectives of both financial accounting and management accounting. 
C) provides cost information that supports planning, controlling, and decision making. 
D) All of the above descriptions are true.

Question 5

Management accounting is the branch of accounting concerned with reporting to

Accepted Answer

A) internal managers. 
B) shareholders. 
C) the government. 
D) bankers. 
A) internal managers. 
B) shareholders. 
C) the government. 
D) bankers.

Question 6

The primary objective of management accounting is

Accepted Answer

A) to provide shareholders and potential investors with useful information for decision making. 
B) to provide banks and other creditors with information useful in making credit decisions. 
C) to provide management with information useful for planning and control of operations. 
D) to provide the relevant taxation authorities with information about taxable income. 
A) to provide shareholders and potential investors with useful information for decision making. 
B) to provide banks and other creditors with information useful in making credit decisions. 
C) to provide management with information useful for planning and control of operations. 
D) to provide the relevant taxation authorities with information about taxable income.

Question 7

Factors that have led to a global market for manufacturing and service firms are

Accepted Answer

A) improved transportation and communications systems. 
B) improved telemarketing and communications. 
C) improved distribution and transportation systems. 
D) None of these factors have contributed. 
A) improved transportation and communications systems. 
B) improved telemarketing and communications. 
C) improved distribution and transportation systems. 
D) None of these factors have contributed.

Question 8

____ is devoted to providing information for external users.

Accepted Answer

A) Management accounting 
B) Financial accounting 
C) Internal accounting 
D) Cost accounting 
A) Management accounting 
B) Financial accounting 
C) Internal accounting 
D) Cost accounting

Question 9

Which of the following activities is NOT significant to the advancement of information technology?

Accepted Answer

A) enterprise resource planning software 
B) emergence of electronic commerce 
C) theory of constraints 
D) decision support systems 
A) enterprise resource planning software 
B) emergence of electronic commerce 
C) theory of constraints 
D) decision support systems

Question 10

Which of the following activities is NOT associated with the financial accounting information system?

Accepted Answer

A) reporting on the cost of quality 
B) reporting to the shareholders 
C) preparing reports for the tax authorities 
D) preparing a statement of cash flows 
A) reporting on the cost of quality 
B) reporting to the shareholders 
C) preparing reports for the tax authorities 
D) preparing a statement of cash flows

Question 11

Management accounting is concerned with which kind of decision?

Accepted Answer

A) product costing and pricing 
B) continuous operational improvement 
C) financial control 
D) all of the above 
A) product costing and pricing 
B) continuous operational improvement 
C) financial control 
D) all of the above

Question 12

Software that has integrated system capability using real time data is

Accepted Answer

A) enterprise resource planning software. 
B) on-line analytic programs. 
C) computer-assisted engineering software. 
D) none of the above. 
A) enterprise resource planning software. 
B) on-line analytic programs. 
C) computer-assisted engineering software. 
D) none of the above.

Question 13

Which one of the following statements about ethical behaviour is true?

Accepted Answer

A) Ethical behaviour is not guided by well-defined rules and is often subjective. 
B) Ethical behaviour is best described as doing actions that are permitted by law. 
C) Ethical behaviour always involves choosing between actions that are clearly right or wrong. 
D) Ethical behaviour is best guided by a policy of placing corporate performance above individual ends. 
A) Ethical behaviour is not guided by well-defined rules and is often subjective. 
B) Ethical behaviour is best described as doing actions that are permitted by law. 
C) Ethical behaviour always involves choosing between actions that are clearly right or wrong. 
D) Ethical behaviour is best guided by a policy of placing corporate performance above individual ends.

Question 14

Which of the following characteristics does NOT pertain to management accounting?

Accepted Answer

A) provides information and estimates about future activity 
B) generates specific-purpose financial statements and reports 
C) provides financial and operating data multidisciplinary in scope 
D) has externally imposed standards 
A) provides information and estimates about future activity 
B) generates specific-purpose financial statements and reports 
C) provides financial and operating data multidisciplinary in scope 
D) has externally imposed standards

Question 15

Breakthroughs in technology this century have given rise to which one of the following effects?

Accepted Answer

A) Direct materials have GREATLY decreased as a percentage of total manufacturing costs. 
B) Manufacturing overhead has only SLIGHTLY decreased as a percentage of total manufacturing costs. 
C) Direct labour has GREATLY decreased as a percentage of total manufacturing costs. 
D) Manufacturing overhead has GREATLY decreased as a percentage of total manufacturing costs. 
A) Direct materials have GREATLY decreased as a percentage of total manufacturing costs. 
B) Manufacturing overhead has only SLIGHTLY decreased as a percentage of total manufacturing costs. 
C) Direct labour has GREATLY decreased as a percentage of total manufacturing costs. 
D) Manufacturing overhead has GREATLY decreased as a percentage of total manufacturing costs.

Question 16

The monitoring of a plan's implementation is called

Accepted Answer

A) planning. 
B) controlling. 
C) decision making. 
D) budgeting. 
A) planning. 
B) controlling. 
C) decision making. 
D) budgeting.

Question 17

One advantage of employee empowerment is

Accepted Answer

A) it frees up some of the time of upper management for more strategic decision making. 
B) workers can improve production processes in a timely manner. 
C) employees closest to the work can provide valuable input in increasing efficiency. 
D) all of the above are advantages 
A) it frees up some of the time of upper management for more strategic decision making. 
B) workers can improve production processes in a timely manner. 
C) employees closest to the work can provide valuable input in increasing efficiency. 
D) all of the above are advantages

Question 18

Competitive advantage is established by

Accepted Answer

A) providing more customer products than competitors. 
B) providing better quality than competitors. 
C) providing greater customer value for less cost than competitors. 
D) providing greater efficiencies than competitors. 
A) providing more customer products than competitors. 
B) providing better quality than competitors. 
C) providing greater customer value for less cost than competitors. 
D) providing greater efficiencies than competitors.

Question 19

Management accounting:

Accepted Answer

A) provides a framework to evaluate information in light of an organization's goals. 
B) provides relevant information to managers. 
C) provides relevant information to meet specific needs of persons inside the organization. 
D) all of the above 
A) provides a framework to evaluate information in light of an organization's goals. 
B) provides relevant information to managers. 
C) provides relevant information to meet specific needs of persons inside the organization. 
D) all of the above

Question 20

Principles of personal ethical behaviour that are essential to an ethical life include

Accepted Answer

A) integrity. 
B) respect for others. 
C) accountability. 
D) all of the above. 
A) integrity. 
B) respect for others. 
C) accountability. 
D) all of the above.

Exam 1: Introduction to Management Accounting

Management accounting and financial accounting differ in that management accounting information is prepared

Which of the following statements is NOT true about world-class firms?

Management accounting reports are prepared

Cost accounting

Management accounting is the branch of accounting concerned with reporting to

The primary objective of management accounting is

Factors that have led to a global market for manufacturing and service firms are

____ is devoted to providing information for external users.

Which of the following activities is NOT significant to the advancement of information technology?

Which of the following activities is NOT associated with the financial accounting information system?

Management accounting is concerned with which kind of decision?

Software that has integrated system capability using real time data is

Which one of the following statements about ethical behaviour is true?

Which of the following characteristics does NOT pertain to management accounting?

Breakthroughs in technology this century have given rise to which one of the following effects?

The monitoring of a plan's implementation is called

One advantage of employee empowerment is

Competitive advantage is established by

Management accounting:

Principles of personal ethical behaviour that are essential to an ethical life include

An Introduction to Cost Terms and Concepts

Cost Assignment

Accounting Entries for a Job Costing System

Process Costing

Joint and By-Product Costing

Income Effects of Alternative Cost Accumulation Systems

Cost-Volume-Profit Analysis

Measuring Relevant Costs and Revenues for Decision-Making

Activity-Based Costing

Activity-Based Costing

Decision-Making Under Conditions of Risk and Uncertainty

Capital Investment Decisions: Appraisal Methods

Capital Investment Decisions: the Impact of Capital Rationing, Taxation, Inflation and Risk

The Budgeting Process

Management Control Systems

Standard Costing and Variance Analysis 1

Standard Costing and Variance Analysis 2: Further Aspects

Divisional Financial Performance Measures

Transfer Pricing in Divisionalized Companies

Strategic Cost Management

Strategic Performance Management

Cost Estimation and Cost Behaviour

Quantitative Models for the Planning and Control of Inventories

The Application of Linear Programming to Management Accounting

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