Question 1

The Ontario Securities Commission introduced regulations governing the composition and duties of audit committees, as well as their members' behaviour.The new rules

Accepted Answer

A) are as robust as parallel rules required by the U.S.Sarbanes-Oxley Act. 
B) were adopted by all provincial and territorial securities regulators, except for British Columbia's. 
C) were introduced in conjunction with the Canadian Securities Administrators. 
D) all of the above. 
A) are as robust as parallel rules required by the U.S.Sarbanes-Oxley Act. 
B) were adopted by all provincial and territorial securities regulators, except for British Columbia's. 
C) were introduced in conjunction with the Canadian Securities Administrators. 
D) all of the above.

Question 2

Which of the following is true?

Accepted Answer

A) Dissatisfied employees cite a decline in ethical behaviour is a result of a change in corporate culture. 
B) Unethical corporate behaviour occurs only in the United States because of its capitalistic environment. 
C) Unethical behaviour rarely causes a decline in investor confidence. 
D) Unethical actions are reasonable in an environment wherein unreasonable budgets and targets have been set. 
A) Dissatisfied employees cite a decline in ethical behaviour is a result of a change in corporate culture. 
B) Unethical corporate behaviour occurs only in the United States because of its capitalistic environment. 
C) Unethical behaviour rarely causes a decline in investor confidence. 
D) Unethical actions are reasonable in an environment wherein unreasonable budgets and targets have been set.

Question 3

A balanced scorecard is

Accepted Answer

A) a performance-measurement approach that uses both financial and non-financial measures to evaluate a company's operations in an integrated way. 
B) a tool used to measure the benefits and costs of implementing a new strategy. 
C) used only by small organizations that cannot afford more expensive methods of evaluating their operations. 
D) focuses on non-financial measures in order to balance the many other financial reports companies use to evaluate their operations. 
A) a performance-measurement approach that uses both financial and non-financial measures to evaluate a company's operations in an integrated way. 
B) a tool used to measure the benefits and costs of implementing a new strategy. 
C) used only by small organizations that cannot afford more expensive methods of evaluating their operations. 
D) focuses on non-financial measures in order to balance the many other financial reports companies use to evaluate their operations.

Question 4

Step one in the lean thinking model requires

Accepted Answer

A) target costing, that is determining the acceptable cost the customer is willing to pay. 
B) an assessment of the potential value that can be added to the firm by adopting the lean manufacturing concept. 
C) identifying processes that do not add value to the manufacturing process. 
D) identifying push factors that can be converted to pull factors. 
A) target costing, that is determining the acceptable cost the customer is willing to pay. 
B) an assessment of the potential value that can be added to the firm by adopting the lean manufacturing concept. 
C) identifying processes that do not add value to the manufacturing process. 
D) identifying push factors that can be converted to pull factors.

Question 5

The theory of constraints is

Accepted Answer

A) a theory that the benefit of making a change in a production process should be weighed against the cost of making that change. 
B) that even the best suggestions for improvement are likely to be rejected due to opposition from those who have to implement the changes. 
C) a specific approach used to identify and manage constraints in order to achieve the company's goals. 
D) not applicable to service operations. 
A) a theory that the benefit of making a change in a production process should be weighed against the cost of making that change. 
B) that even the best suggestions for improvement are likely to be rejected due to opposition from those who have to implement the changes. 
C) a specific approach used to identify and manage constraints in order to achieve the company's goals. 
D) not applicable to service operations.

Question 6

One of the advantages of a just-in-time inventory system is that it reduces inventory quantities.Why is this considered to be a benefit?

Accepted Answer

A) Carrying inventory incurs storage costs, hence reducing inventory quantities reduces costs. 
B) Carrying large inventory raises the risk that customers will want an item that you do not have. 
C) Carrying large inventory reduces the risk that customers will want an item that you do not have. 
D) none of the above 
A) Carrying inventory incurs storage costs, hence reducing inventory quantities reduces costs. 
B) Carrying large inventory raises the risk that customers will want an item that you do not have. 
C) Carrying large inventory reduces the risk that customers will want an item that you do not have. 
D) none of the above

Question 7

What activities and responsibilities are not associated with management's functions?

Accepted Answer

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

Question 8

Lean manufacturing

Accepted Answer

A) is being used less often by manufacturing firms. 
B) is in contrast to traditional mass-production operations. 
C) is apt to be used by firms that use large amounts of direct labour to produce their products. 
D) sets out to minimize rather than eliminate waste. 
A) is being used less often by manufacturing firms. 
B) is in contrast to traditional mass-production operations. 
C) is apt to be used by firms that use large amounts of direct labour to produce their products. 
D) sets out to minimize rather than eliminate waste.

Question 9

Some companies implement systems to reduce defects in finished products with the goal of achieving zero defects.What are these systems called?

Accepted Answer

A) activity-based costing systems 
B) enterprise resource planning systems 
C) value chain systems 
D) total-quality management systems 
A) activity-based costing systems 
B) enterprise resource planning systems 
C) value chain systems 
D) total-quality management systems

Question 10

What is "balanced" in the balanced scorecard approach?

Accepted Answer

A) the number of products produced 
B) the emphasis on financial and non-financial performance measurements 
C) the amount of costs allocated to products 
D) the number of defects found on each product 
A) the number of products produced 
B) the emphasis on financial and non-financial performance measurements 
C) the amount of costs allocated to products 
D) the number of defects found on each product

Question 11

Which of the following is a reason for the reorganization of the three accounting bodies in Canada into one, CPA Canada?

Accepted Answer

A) There was conflict within the standard setting process between the three accounting bodies. 
B) Extensive competition between the three organizations was causing friction. 
C) The reorganization was mandated by the Canadian government. 
D) A larger unified profession would mean a more prominent and cohesive Canadian presence internationally. 
A) There was conflict within the standard setting process between the three accounting bodies. 
B) Extensive competition between the three organizations was causing friction. 
C) The reorganization was mandated by the Canadian government. 
D) A larger unified profession would mean a more prominent and cohesive Canadian presence internationally.

Question 12

Which one of the following characteristics would likely be associated with a just-in-time inventory method?

Accepted Answer

A) ending inventory of work in process that would allow several production runs 
B) a backlog of inventory orders not yet shipped 
C) minimal finished goods inventory on hand 
D) an understanding with customers that they may come to the showroom and select from inventory on hand 
A) ending inventory of work in process that would allow several production runs 
B) a backlog of inventory orders not yet shipped 
C) minimal finished goods inventory on hand 
D) an understanding with customers that they may come to the showroom and select from inventory on hand

Question 13

How do most companies manage their value chain?

Accepted Answer

A) by using activity-based costing 
B) by creating enterprise resource planning systems 
C) using an action plan 
D) using total-quality management systems 
A) by using activity-based costing 
B) by creating enterprise resource planning systems 
C) using an action plan 
D) using total-quality management systems

Question 14

Many companies now manufacture products that are untouched by human hands.What do they use to achieve this?

Accepted Answer

A) activity-based costing 
B) computer-integrated manufacturing 
C) enterprise resource planning systems 
D) total-quality management systems 
A) activity-based costing 
B) computer-integrated manufacturing 
C) enterprise resource planning systems 
D) total-quality management systems

Question 15

Which one of the following does the planning function involve?

Accepted Answer

A) analyzing financial statements 
B) setting goals and objectives for an entity 
C) hiring the right people for a particular job 
D) coordinating the accounting information system 
A) analyzing financial statements 
B) setting goals and objectives for an entity 
C) hiring the right people for a particular job 
D) coordinating the accounting information system

Question 16

The production manager at ABC Inc.is responsible for formulating the budget for his department.He will be evaluated on his ability to control costs.After considerable thought, he arrives at his best estimate of costs, and then adds a further 10% to the projections.Chances are he has inflated the cost projections because

Accepted Answer

A) that is the way it has always been done. 
B) conservative accounting practise requires that he not under report expenses. 
C) by overestimating expenses, it will make it easier for him to come in under budget and receive a favourable evaluation. 
D) none of the above. 
A) that is the way it has always been done. 
B) conservative accounting practise requires that he not under report expenses. 
C) by overestimating expenses, it will make it easier for him to come in under budget and receive a favourable evaluation. 
D) none of the above.

Question 17

Which one of the following is an activity not associated with TQM?

Accepted Answer

A) Tightening the bolts on a chassis so that the frame will not drop out. 
B) Redesigning the gas tank after learning fuel efficiency standards are not being met. 
C) Verifying the 10 check points associated with producing the highest quality loaf of bread. 
D) Ensuring that the mattress just manufactured meets the standard of comfort of a random factory line worker. 
A) Tightening the bolts on a chassis so that the frame will not drop out. 
B) Redesigning the gas tank after learning fuel efficiency standards are not being met. 
C) Verifying the 10 check points associated with producing the highest quality loaf of bread. 
D) Ensuring that the mattress just manufactured meets the standard of comfort of a random factory line worker.

Question 18

The organization chart of a company shows

Accepted Answer

A) the interrelationships of activities within a company. 
B) the delegation of authority within a company. 
C) the delegation of responsibility within a company. 
D) all of the above. 
A) the interrelationships of activities within a company. 
B) the delegation of authority within a company. 
C) the delegation of responsibility within a company. 
D) all of the above.

Question 19

Which one of the following is an example of activity-based costing?

Accepted Answer

A) monitoring the salaries of managers that do untimely quality control checks 
B) keeping close track of shrinkage associated with thefts off the showroom floor 
C) insuring that management is closely working with the local union on keeping labour costs in line 
D) allocating the set up cost associated with getting a machine ready for a production run 
A) monitoring the salaries of managers that do untimely quality control checks 
B) keeping close track of shrinkage associated with thefts off the showroom floor 
C) insuring that management is closely working with the local union on keeping labour costs in line 
D) allocating the set up cost associated with getting a machine ready for a production run

Question 20

Which of the following is not an internal user?

Accepted Answer

A) corporate officers 
B) staff employees 
C) stockholders 
D) department manager 
A) corporate officers 
B) staff employees 
C) stockholders 
D) department manager

The Ontario Securities Commission introduced regulations governing the composition and duties of audit committees, as well as their members' behaviour.The new rules

Which of the following is true?

A balanced scorecard is

Step one in the lean thinking model requires

The theory of constraints is

One of the advantages of a just-in-time inventory system is that it reduces inventory quantities.Why is this considered to be a benefit?

What activities and responsibilities are not associated with management's functions?

Lean manufacturing

Some companies implement systems to reduce defects in finished products with the goal of achieving zero defects.What are these systems called?

What is "balanced" in the balanced scorecard approach?

Which of the following is a reason for the reorganization of the three accounting bodies in Canada into one, CPA Canada?

Which one of the following characteristics would likely be associated with a just-in-time inventory method?

How do most companies manage their value chain?

Many companies now manufacture products that are untouched by human hands.What do they use to achieve this?

Which one of the following does the planning function involve?

Which one of the following is an activity not associated with TQM?

The organization chart of a company shows

Which one of the following is an example of activity-based costing?

Which of the following is not an internal user?

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

The Ontario Securities Commission introduced regulations governing the composition and duties of audit committees, as well as their members' behaviour.The new rules

Which of the following is true?

A balanced scorecard is

Step one in the lean thinking model requires

The theory of constraints is

One of the advantages of a just-in-time inventory system is that it reduces inventory quantities.Why is this considered to be a benefit?

What activities and responsibilities are not associated with management's functions?

Lean manufacturing

Some companies implement systems to reduce defects in finished products with the goal of achieving zero defects.What are these systems called?

What is "balanced" in the balanced scorecard approach?

Which of the following is a reason for the reorganization of the three accounting bodies in Canada into one, CPA Canada?

Which one of the following characteristics would likely be associated with a just-in-time inventory method?

How do most companies manage their value chain?

Many companies now manufacture products that are untouched by human hands.What do they use to achieve this?

Which one of the following does the planning function involve?

Which one of the following is an activity not associated with TQM?

The organization chart of a company shows

Which one of the following is an example of activity-based costing?

Which of the following is not an internal user?

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