Question 1

Which of the following statements is true?

Accepted Answer

A) In recent decades, the Canadian economy in general has shifted toward an emphasis on providing services rather than goods.This trend has reduced the importance of managerial accounting. 
B) In recent decades, the Canadian economy in general has shifted toward an emphasis on providing goods rather than services.This trend has reduced the importance of managerial accounting. 
C) In recent decades, the Canadian economy in general has shifted toward an emphasis on providing services rather than goods.This trend has not reduced the importance of managerial accounting. 
D) In recent decades, the Canadian economy in general has shifted toward an emphasis on providing goods rather than services.This trend has not reduced the importance of managerial accounting. 
A) In recent decades, the Canadian economy in general has shifted toward an emphasis on providing services rather than goods.This trend has reduced the importance of managerial accounting. 
B) In recent decades, the Canadian economy in general has shifted toward an emphasis on providing goods rather than services.This trend has reduced the importance of managerial accounting. 
C) In recent decades, the Canadian economy in general has shifted toward an emphasis on providing services rather than goods.This trend has not reduced the importance of managerial accounting. 
D) In recent decades, the Canadian economy in general has shifted toward an emphasis on providing goods rather than services.This trend has not reduced the importance of managerial accounting. C

Question 2

Bottlenecks are

Accepted Answer

A) the point at which the finished product leaves the factory. 
B) constraints that limit the company's potential profitability. 
C) the point at which a company's plan is put into action. 
D) are factors that consume a great deal of managers' attention, but have little impact on the company as a whole. 
A) the point at which the finished product leaves the factory. 
B) constraints that limit the company's potential profitability. 
C) the point at which a company's plan is put into action. 
D) are factors that consume a great deal of managers' attention, but have little impact on the company as a whole. B

Question 3

Choose the incorrect answer.

Accepted Answer

A) While generally not encouraged, lapses in ethical behaviour are irrelevant to a company's operating income. 
B) Proper incentives need to be implemented to foster an ethical business environment. 
C) Manufacturing companies need to establish effective and realistic production goals for their processes. 
D) As a result of the Sarbanes-Oxley Act, companies now pay more attention to the composition of the board of directors. 
A) While generally not encouraged, lapses in ethical behaviour are irrelevant to a company's operating income. 
B) Proper incentives need to be implemented to foster an ethical business environment. 
C) Manufacturing companies need to establish effective and realistic production goals for their processes. 
D) As a result of the Sarbanes-Oxley Act, companies now pay more attention to the composition of the board of directors. A

Question 4

Which function is achieved when a manager is determining whether planned goals are being met?

Accepted Answer

A) controlling 
B) motivating 
C) planning 
D) directing 
A) controlling 
B) motivating 
C) planning 
D) directing

Question 5

How often are internal managerial reports communicated?

Accepted Answer

A) as frequently as needed 
B) annually 
C) during every audit by the company's ca 
D) monthly 
A) as frequently as needed 
B) annually 
C) during every audit by the company's ca 
D) monthly

Question 6

In Canada, which of the following professional accounting organizations play an important role in promoting high standards of ethics in the accounting profession?

Accepted Answer

A) Chartered Professional Accountants of Canada (CPA Canada) 
B) The Financial Planning Standards Council (FPS
C)  
C) The Canadian Institute of Financial Planning (CIFP) 
D) all of the above 
A) Chartered Professional Accountants of Canada (CPA Canada) 
B) The Financial Planning Standards Council (FPS
C)  
C) The Canadian Institute of Financial Planning (CIFP) 
D) all of the above

Question 7

For what reason is a product cost primarily tracked?

Accepted Answer

A) to keep up with current cost trends to bring products to market 
B) to effectively allocate the cost of products to measure profitability 
C) to determine what amounts are necessary for allocating overhead 
D) to keep management's bonuses increasing every year 
A) to keep up with current cost trends to bring products to market 
B) to effectively allocate the cost of products to measure profitability 
C) to determine what amounts are necessary for allocating overhead 
D) to keep management's bonuses increasing every year

Question 8

A recent survey of fraud by international accounting firm KPMG reported

Accepted Answer

A) reported a 13% decrease in instances of corporate fraud compared with five years earlier. 
B) that employee fraud (such things as expense account abuse, payroll fraud, and theft of assets)represents 60% of all instances of fraud. 
C) financial reporting fraud (the intentional misstatement of financial reports)was the least costly to companies. 
D) business scandals with large investment losses and few employee layoffs. 
A) reported a 13% decrease in instances of corporate fraud compared with five years earlier. 
B) that employee fraud (such things as expense account abuse, payroll fraud, and theft of assets)represents 60% of all instances of fraud. 
C) financial reporting fraud (the intentional misstatement of financial reports)was the least costly to companies. 
D) business scandals with large investment losses and few employee layoffs.

Question 9

Reports scrutinized by managerial accountants

Accepted Answer

A) do not include those focused on business subunits. 
B) do not include non-financial data relevant to business decision making. 
C) are highly aggregated. 
D) are special purpose for specific decisions. 
A) do not include those focused on business subunits. 
B) do not include non-financial data relevant to business decision making. 
C) are highly aggregated. 
D) are special purpose for specific decisions.

Question 10

Which is the best definition of fraud?

Accepted Answer

A) unknowingly misrepresenting the facts 
B) using business supplies for personal use 
C) the intentional misstatement of facts 
D) misappropriating funds for personal financial gain 
A) unknowingly misrepresenting the facts 
B) using business supplies for personal use 
C) the intentional misstatement of facts 
D) misappropriating funds for personal financial gain

Question 11

Which term describes managerial accounting reports?

Accepted Answer

A) GAAP reports 
B) special purpose 
C) general-purpose 
D) regulatory reports 
A) GAAP reports 
B) special purpose 
C) general-purpose 
D) regulatory reports

Question 12

Which one of the following describes internal reports?

Accepted Answer

A) They are often audited by CAs. 
B) They must be prepared according to GAAP. 
C) They are aggregated. 
D) They are detailed. 
A) They are often audited by CAs. 
B) They must be prepared according to GAAP. 
C) They are aggregated. 
D) They are detailed.

Question 13

The IMA's Statement of Ethical Professional Practice provides codes of conduct with regard to:

Accepted Answer

A) competence, confidentiality, assurance and credibility. 
B) confidentiality, integrity, credibility and responsibility. 
C) comprehension, competence, integriy and credibility. 
D) competence, confidentiaility, integrity and credibility. 
A) competence, confidentiality, assurance and credibility. 
B) confidentiality, integrity, credibility and responsibility. 
C) comprehension, competence, integriy and credibility. 
D) competence, confidentiaility, integrity and credibility.

Question 14

In order to obtain more accurate product costs, how do many companies allocate overhead?

Accepted Answer

A) They use activity-based costing. 
B) They use enterprise resource planning systems. 
C) They use just-in-time methods. 
D) They use total-quality management systems. 
A) They use activity-based costing. 
B) They use enterprise resource planning systems. 
C) They use just-in-time methods. 
D) They use total-quality management systems.

Question 15

Managerial accounting information is generally prepared for

Accepted Answer

A) stockholders. 
B) managers. 
C) regulatory agencies. 
D) investors. 
A) stockholders. 
B) managers. 
C) regulatory agencies. 
D) investors.

Question 16

Managerial accounting

Accepted Answer

A) information generally pertains to an entity as a whole and is very detailed. 
B) applies only to manufacturing companies. 
C) focuses primarily on reports for both internal and external users. 
D) provides tools that help management make decisions and evaluate the effectiveness of those decisions. 
A) information generally pertains to an entity as a whole and is very detailed. 
B) applies only to manufacturing companies. 
C) focuses primarily on reports for both internal and external users. 
D) provides tools that help management make decisions and evaluate the effectiveness of those decisions.

Question 17

Which one of the following tasks would not be performed by a management accountant?

Accepted Answer

A) being concerned with the impact of cost and volume on profits 
B) strategic cost management 
C) assisting in budget planning 
D) preparing reports primarily for external users 
A) being concerned with the impact of cost and volume on profits 
B) strategic cost management 
C) assisting in budget planning 
D) preparing reports primarily for external users

Question 18

Which of the following uses managerial accounting?

Accepted Answer

A) manufacturing and service entities, but not merchandising 
B) profit-oriented businesses only 
C) service, manufacturing, and merchandising entities 
D) only manufacturing entities 
A) manufacturing and service entities, but not merchandising 
B) profit-oriented businesses only 
C) service, manufacturing, and merchandising entities 
D) only manufacturing entities

Question 19

For what purpose is the theory of constraints used?

Accepted Answer

A) to reduce product defects 
B) to balance performance measurement 
C) to identify and manage constraints that bottleneck operations 
D) to reduce inventory levels 
A) to reduce product defects 
B) to balance performance measurement 
C) to identify and manage constraints that bottleneck operations 
D) to reduce inventory levels

Question 20

Managerial accounting information

Accepted Answer

A) pertains to the entity as a whole and is highly aggregated. 
B) must be prepared according to generally accepted accounting principles. 
C) pertains to subunits of the entity and may be very detailed. 
D) is prepared only once a year. 
A) pertains to the entity as a whole and is highly aggregated. 
B) must be prepared according to generally accepted accounting principles. 
C) pertains to subunits of the entity and may be very detailed. 
D) is prepared only once a year.

Which of the following statements is true?

Bottlenecks are

Choose the incorrect answer.

Which function is achieved when a manager is determining whether planned goals are being met?

How often are internal managerial reports communicated?

In Canada, which of the following professional accounting organizations play an important role in promoting high standards of ethics in the accounting profession?

For what reason is a product cost primarily tracked?

A recent survey of fraud by international accounting firm KPMG reported

Reports scrutinized by managerial accountants

Which is the best definition of fraud?

Which term describes managerial accounting reports?

Which one of the following describes internal reports?

The IMA's Statement of Ethical Professional Practice provides codes of conduct with regard to:

In order to obtain more accurate product costs, how do many companies allocate overhead?

Managerial accounting information is generally prepared for

Managerial accounting

Which one of the following tasks would not be performed by a management accountant?

Which of the following uses managerial accounting?

For what purpose is the theory of constraints used?

Managerial accounting information

Managerial Cost Concepts and Cost Behaviour Analysis

Job Order Costing

Process Costing

Activity-Based-Costing

Cost-Volume-Profit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters

Exam 1: Managerial Accounting

Which of the following statements is true?

Bottlenecks are

Choose the incorrect answer.

Which function is achieved when a manager is determining whether planned goals are being met?

How often are internal managerial reports communicated?

In Canada, which of the following professional accounting organizations play an important role in promoting high standards of ethics in the accounting profession?

For what reason is a product cost primarily tracked?

A recent survey of fraud by international accounting firm KPMG reported

Reports scrutinized by managerial accountants

Which is the best definition of fraud?

Which term describes managerial accounting reports?

Which one of the following describes internal reports?

The IMA's Statement of Ethical Professional Practice provides codes of conduct with regard to:

In order to obtain more accurate product costs, how do many companies allocate overhead?

Managerial accounting information is generally prepared for

Managerial accounting

Which one of the following tasks would not be performed by a management accountant?

Which of the following uses managerial accounting?

For what purpose is the theory of constraints used?

Managerial accounting information

Managerial Cost Concepts and Cost Behaviour Analysis

Job Order Costing

Process Costing

Activity-Based-Costing

Cost-Volume-Profit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters