Question 1

In establishing a good internal reporting system, a company should

Accepted Answer

A) ensure that these reports agree to generally accepted accounting principles. 
B) have the Board of Directors agree to the information provided. 
C) establish clearly understood standards of performance. 
D) All of the above are valid reasons. 
A) ensure that these reports agree to generally accepted accounting principles. 
B) have the Board of Directors agree to the information provided. 
C) establish clearly understood standards of performance. 
D) All of the above are valid reasons.

Question 2

Managerial accounting is also called

Accepted Answer

A) inside reporting. 
B) cost accounting. 
C) management accounting. 
D) strategic management. 
A) inside reporting. 
B) cost accounting. 
C) management accounting. 
D) strategic management.

Question 3

Which one of the following involves coordinating a company's activities to produce a smooth-running operation?

Accepted Answer

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

Question 4

Which of the following represents two management functions?

Accepted Answer

A) regulating and directing 
B) controlling and directing 
C) controlling and auditing 
D) auditing and planning 
A) regulating and directing 
B) controlling and directing 
C) controlling and auditing 
D) auditing and planning

Question 5

How could management information assist in motivating its employees?

Accepted Answer

A) keeping track of quality improvements 
B) showing the company's percent of market share 
C) showing statistics on plant safety 
D) All areas would benefit from providing internal management information. 
A) keeping track of quality improvements 
B) showing the company's percent of market share 
C) showing statistics on plant safety 
D) All areas would benefit from providing internal management information.

Question 6

Which of the following is an accounting question a service company may face?

Accepted Answer

A) whether to purchase new equipment 
B) how much to charge for various services 
C) how efficient and productive individual staff members are 
D) all of the above 
A) whether to purchase new equipment 
B) how much to charge for various services 
C) how efficient and productive individual staff members are 
D) all of the above

Question 7

Which component of a company's value chain would benefit most from internal management information?

Accepted Answer

A) complaints from its customers over services offered 
B) bonuses paid to managers of the company 
C) the company's efforts to develop new services 
D) All such components would benefit from internal management information. 
A) complaints from its customers over services offered 
B) bonuses paid to managers of the company 
C) the company's efforts to develop new services 
D) All such components would benefit from internal management information.

Question 8

Which of the following is true?

Accepted Answer

A) Managerial accountants are the employees who are principally responsible for ethical behaviour. 
B) Investment losses have been precipitated by lax ethical standards. 
C) Corporate fraud was found to have decreased between the years 1998 and 2003. 
D) Expense account abuse has been cited as one of the rarest forms of unethical employee behaviour. 
A) Managerial accountants are the employees who are principally responsible for ethical behaviour. 
B) Investment losses have been precipitated by lax ethical standards. 
C) Corporate fraud was found to have decreased between the years 1998 and 2003. 
D) Expense account abuse has been cited as one of the rarest forms of unethical employee behaviour.

Question 9

A company acting ethically must adapt its internal reports to any changes required

Accepted Answer

A) instantly. 
B) as it is appropriate for its business cycle. 
C) as stipulated by the CPA Canada handbook and GAAP. 
D) if they are considered pertinent to its business activities. 
A) instantly. 
B) as it is appropriate for its business cycle. 
C) as stipulated by the CPA Canada handbook and GAAP. 
D) if they are considered pertinent to its business activities.

Question 10

Corporate social responsibility only considers:

Accepted Answer

A) profitability. 
B) sustainable business practices with regards to the environment. 
C) the triple bottom line including performance with regard to people, plant and profit. 
D) sustainable business practices with regards to employees. 
A) profitability. 
B) sustainable business practices with regards to the environment. 
C) the triple bottom line including performance with regard to people, plant and profit. 
D) sustainable business practices with regards to employees.

Question 11

Directing includes

Accepted Answer

A) providing a framework for management to have criteria to terminate employees when needed. 
B) running a department under quality control standards universally accepted. 
C) coordinating a company's diverse activities and human resources to produce a smooth-running operation. 
D) developing a performance ranking system to give certain high performers good raises. 
A) providing a framework for management to have criteria to terminate employees when needed. 
B) running a department under quality control standards universally accepted. 
C) coordinating a company's diverse activities and human resources to produce a smooth-running operation. 
D) developing a performance ranking system to give certain high performers good raises.

Question 12

What is ERP?

Accepted Answer

A) efficient resource procurement 
B) earnings reporting policies 
C) enterprise resource planning 
D) effective resource procurement 
A) efficient resource procurement 
B) earnings reporting policies 
C) enterprise resource planning 
D) effective resource procurement

Question 13

The five steps in the lean thinking model, in order are:

Accepted Answer

A) 1.Define value, 2.Identify the pull factors, 3.Identify the value stream, 4.Make the value stream flow, 5.Revise until perfection is achieved. 
B) 1.Define value, 2.Identify the value stream, 3.Make the value stream flow, 4.Implement a pull system, 5.Strive for perfection. 
C) 1.Identify unproductive activities that need to be reduced, 2.Identify push factors causing those unproductive activities, 3.Develop operations so that the work flows smoothly, 4.Strive for perfection, 5.Evaluate the value that has been added. 
D) 1.Identify push factors, 2.Develop strategies to turn those factors into pull factors, 3.Assess the value added by steps one and two, 4.Strive for perfection, 5.Repeat the process on a regular basis. 
A) 1.Define value, 2.Identify the pull factors, 3.Identify the value stream, 4.Make the value stream flow, 5.Revise until perfection is achieved. 
B) 1.Define value, 2.Identify the value stream, 3.Make the value stream flow, 4.Implement a pull system, 5.Strive for perfection. 
C) 1.Identify unproductive activities that need to be reduced, 2.Identify push factors causing those unproductive activities, 3.Develop operations so that the work flows smoothly, 4.Strive for perfection, 5.Evaluate the value that has been added. 
D) 1.Identify push factors, 2.Develop strategies to turn those factors into pull factors, 3.Assess the value added by steps one and two, 4.Strive for perfection, 5.Repeat the process on a regular basis.

Question 14

The major reporting standard for management accounting is

Accepted Answer

A) the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management. 
B) the Sarbanes-Oxley Act of 2002. 
C) relevance to decisions. 
D) generally accepted accounting principles. 
A) the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management. 
B) the Sarbanes-Oxley Act of 2002. 
C) relevance to decisions. 
D) generally accepted accounting principles.

Question 15

How often should management receive or prepare reports on its internal process activities?

Accepted Answer

A) on a fixed time basis 
B) as often as is necessary 
C) never more than monthly 
D) weekly 
A) on a fixed time basis 
B) as often as is necessary 
C) never more than monthly 
D) weekly

Question 16

What is value chain management best defined as?

Accepted Answer

A) a large chain that keeps the machines from falling on the production floor 
B) management decisions that affect how quickly the production run occurs 
C) the incremental value of costs associated with hiring a new production floor leader 
D) all activities associated with providing a product or service 
A) a large chain that keeps the machines from falling on the production floor 
B) management decisions that affect how quickly the production run occurs 
C) the incremental value of costs associated with hiring a new production floor leader 
D) all activities associated with providing a product or service

Question 17

How have many companies significantly lowered inventory levels and costs?

Accepted Answer

A) They use activity-based costing. 
B) They utilize an enterprise resource planning system. 
C) They have a just-in-time method. 
D) They focus on a total-quality management system. 
A) They use activity-based costing. 
B) They utilize an enterprise resource planning system. 
C) They have a just-in-time method. 
D) They focus on a total-quality management system.

Question 18

The value chain

Accepted Answer

A) is affected by technology through business-to-business on the Internet. 
B) refers to all the activities associated with providing a product with the exception of research and development. 
C) has not been enhanced by computerization and automation. 
D) refers to all the activities associated with providing a service with the exception of sales and marketing. 
A) is affected by technology through business-to-business on the Internet. 
B) refers to all the activities associated with providing a product with the exception of research and development. 
C) has not been enhanced by computerization and automation. 
D) refers to all the activities associated with providing a service with the exception of sales and marketing.

In establishing a good internal reporting system, a company should

Managerial accounting is also called

Which one of the following involves coordinating a company's activities to produce a smooth-running operation?

Which of the following represents two management functions?

How could management information assist in motivating its employees?

Which of the following is an accounting question a service company may face?

Which component of a company's value chain would benefit most from internal management information?

Which of the following is true?

A company acting ethically must adapt its internal reports to any changes required

Corporate social responsibility only considers:

Directing includes

What is ERP?

The five steps in the lean thinking model, in order are:

The major reporting standard for management accounting is

How often should management receive or prepare reports on its internal process activities?

What is value chain management best defined as?

How have many companies significantly lowered inventory levels and costs?

The value chain

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

In establishing a good internal reporting system, a company should

Managerial accounting is also called

Which one of the following involves coordinating a company's activities to produce a smooth-running operation?

Which of the following represents two management functions?

How could management information assist in motivating its employees?

Which of the following is an accounting question a service company may face?

Which component of a company's value chain would benefit most from internal management information?

Which of the following is true?

A company acting ethically must adapt its internal reports to any changes required

Corporate social responsibility only considers:

Directing includes

What is ERP?

The five steps in the lean thinking model, in order are:

The major reporting standard for management accounting is

How often should management receive or prepare reports on its internal process activities?

What is value chain management best defined as?

How have many companies significantly lowered inventory levels and costs?

The value chain

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