Question 1

Measuring the performance of managers and subunits is not an objective of managerial accounting.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would not be part of a value chain for a fast food restaurant?

Accepted Answer

A)  All of the answers are a part of the value chain. 
B)  Buying produce. 
C)  Mopping the floor. 
D)  Refilling the napkin dispensers. 
E)  Hiring new cooks. 
A)  All of the answers are a part of the value chain. 
B)  Buying produce. 
C)  Mopping the floor. 
D)  Refilling the napkin dispensers. 
E)  Hiring new cooks.

Question 3

The cost of resources supplied but unused is known as:

Accepted Answer

A)  practical capacity costs. 
B)  the cost of theoretical capacity. 
C)  the cost of unused capacity. 
D)  the cost of resources supplied. 
E)  capacity cost. 
A)  practical capacity costs. 
B)  the cost of theoretical capacity. 
C)  the cost of unused capacity. 
D)  the cost of resources supplied. 
E)  capacity cost.

Question 4

Given the following information, what is the total cost of unused capacity? Cost of material supplied is $3,200; Cost of material used is $3,000; Cost of material used per cake is $3; Cost of material supplied per cake is $3.20.

Accepted Answer

A)  $0.20. 
B)  $200. 
C)  $2,000. 
D)  $1,000. 
E)  There is no unused capacity. 
A)  $0.20. 
B)  $200. 
C)  $2,000. 
D)  $1,000. 
E)  There is no unused capacity.

Question 5

A company's leading executive is:

Accepted Answer

A)  chief financial officer (CFO). 
B)  treasurer. 
C)  vice-president of accounting. 
D)  internal auditor. 
E)  chief executive officer (CEO). 
A)  chief financial officer (CFO). 
B)  treasurer. 
C)  vice-president of accounting. 
D)  internal auditor. 
E)  chief executive officer (CEO).

Question 6

Which of the preceding activities would likely not be considered part of Forte Clothing Company's value chain?

Accepted Answer

A)  Designing a new product line. 
B)  Locating and then negotiating terms with a clothing manufacturer. 
C)  Marketing an existing product line. 
D)  Distributing goods from regional warehouses to local stores. 
E)  All of these activities would be an element in the company's value chain. 
A)  Designing a new product line. 
B)  Locating and then negotiating terms with a clothing manufacturer. 
C)  Marketing an existing product line. 
D)  Distributing goods from regional warehouses to local stores. 
E)  All of these activities would be an element in the company's value chain.

Question 7

Wembley Company has set various goals, and management is now taking appropriate action to ensure that the firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted amounts. Which of the following functions best describes this process?

Accepted Answer

A)  Decision making. 
B)  Planning. 
C)  Coordinating. 
D)  Controlling. 
E)  Organizing. 
A)  Decision making. 
B)  Planning. 
C)  Coordinating. 
D)  Controlling. 
E)  Organizing.

Question 8

Which of the following would likely be considered an internal user of accounting information rather than an external user?

Accepted Answer

A)  Stockholders. 
B)  Consumer groups. 
C)  Lenders. 
D)  Middle-level managers. 
E)  Government agencies. 
A)  Stockholders. 
B)  Consumer groups. 
C)  Lenders. 
D)  Middle-level managers. 
E)  Government agencies.

Question 9

Which of the following can be linked to a wave of corporate scandals that took place not too long ago?

Accepted Answer

A)  Greedy corporate executives. 
B)  Managers who made over-reaching business deals. 
C)  Lack of oversight by companies' audit boards and boards of directors. 
D)  Shoddy work by external auditors. 
E)  All of these. 
A)  Greedy corporate executives. 
B)  Managers who made over-reaching business deals. 
C)  Lack of oversight by companies' audit boards and boards of directors. 
D)  Shoddy work by external auditors. 
E)  All of these.

Question 10

Give examples of each of the four primary management activities in the context of a national pizza franchise.

Accepted Answer

Examples of the four primary management

Question 11

Because managerial accounting reports rarely solve decision problems, what function does a managerial accountant use to assist managers in understanding issues contained within the information produced?

Accepted Answer

A)  Internal business solution function. 
B)  Learning and growth function. 
C)  Theoretical capacity function. 
D)  Customer function. 
E)  Attention directing function. 
A)  Internal business solution function. 
B)  Learning and growth function. 
C)  Theoretical capacity function. 
D)  Customer function. 
E)  Attention directing function.

Question 12

All financial professionals, including managerial accountants, have an obligation to themselves, their colleagues, and their organizations to adhere to high standards of ethical conduct.

Accepted Answer

A) True 
 B)False

Question 13

The treasurer typically is responsible for raising capital and safeguarding the organization's assets.

Accepted Answer

A) True 
 B)False

Question 14

In order for a company to achieve a sustainable competitive advantage, it must perform value chain activities:

Accepted Answer

A)  at the same quality level as competitors, at the same cost. 
B)  at the same quality level as competitors, but at a lower cost. 
C)  at a higher quality level than competitors, at a higher cost. 
D)  at a higher quality level than competitors, but at no greater cost. 
E)  More than one answer choice is correct. 
A)  at the same quality level as competitors, at the same cost. 
B)  at the same quality level as competitors, but at a lower cost. 
C)  at a higher quality level than competitors, at a higher cost. 
D)  at a higher quality level than competitors, but at no greater cost. 
E)  More than one answer choice is correct.

Question 15

Which of the following is not a function of the treasurer?

Accepted Answer

A)  Safeguarding assets. 
B)  Managing investments. 
C)  Preparing financial statements. 
D)  Being responsible for an entity's credit policy. 
E)  Raising capital. 
A)  Safeguarding assets. 
B)  Managing investments. 
C)  Preparing financial statements. 
D)  Being responsible for an entity's credit policy. 
E)  Raising capital.

Question 16

Tae Franklin is the sales manager of Darius Enterprises, a very profitable distributor of office furniture to local businesses. A recent economic downturn has created an extremely tight cash position, and the company has been hurt by the bankruptcy of two key customers.
In late October, anticipating an economic recovery, Franklin began an extensive remodeling of the company's sales floor. Construction costs, decorating, and equipment purchases are projected to cost $250,000.
Darius has a policy that individual expenditures in excess of $200,000 must be approved by the firm's board of directors. Franklin, unfortunately, missed the deadline to have the board consider this project at its regular September meeting. Not wanting to wait until the next meeting in December, he subdivided the project in two parts-construction and decorating ($190,000) and equipment purchases ($60,000)-neither of which needed board approval because of the dollar amounts involved.
The project was recently completed and sales have begun to recover. Customers have raved about the new sales area, noting that it is far superior to those of Darius's competitors.
A. Would Franklin's approach of subdividing the project in two parts have any effect on the company's financial statements? Briefly explain.
B. Briefly discuss whether Franklin behaved in an ethical manner.
C. Which, if any, of the following standards of conduct would have applicability to Franklin's conduct: competence, confidentiality, integrity, or credibility? Briefly explain.

Accepted Answer

A. Although some extra processing is inv

Question 17

Assume that a managerial accountant regularly communicates with business associates to avoid conflicts of interest and advises relevant parties of potential conflicts. In so doing, the accountant will have applied the ethical standard of:

Accepted Answer

A)  objectivity. 
B)  confidentiality. 
C)  integrity. 
D)  credibility. 
E)  unified behavior. 
A)  objectivity. 
B)  confidentiality. 
C)  integrity. 
D)  credibility. 
E)  unified behavior.

Question 18

The upper limit on the production of goods and services if everything works perfectly is known as:

Accepted Answer

A)  practical capacity. 
B)  theoretical capacity. 
C)  utilized capacity. 
D)  management capacity. 
E)  capacity maximization. 
A)  practical capacity. 
B)  theoretical capacity. 
C)  utilized capacity. 
D)  management capacity. 
E)  capacity maximization.

Question 19

Which of the following perspectives is normally absent in a balanced scorecard?

Accepted Answer

A)  Financial. 
B)  Customer. 
C)  Internal operations. 
D)  Learning and innovation/growth. 
E)  None of these. 
A)  Financial. 
B)  Customer. 
C)  Internal operations. 
D)  Learning and innovation/growth. 
E)  None of these.

Question 20

The chief managerial and financial accountant of an organization is the:

Accepted Answer

A)  chief executive officer (CEO). 
B)  treasurer. 
C)  vice-president of accounting. 
D)  internal auditor. 
E)  chief financial officer (CFO). 
A)  chief executive officer (CEO). 
B)  treasurer. 
C)  vice-president of accounting. 
D)  internal auditor. 
E)  chief financial officer (CFO).

Measuring the performance of managers and subunits is not an objective of managerial accounting.

Which of the following would not be part of a value chain for a fast food restaurant?

The cost of resources supplied but unused is known as:

Given the following information, what is the total cost of unused capacity? Cost of material supplied is $3,200; Cost of material used is $3,000; Cost of material used per cake is $3; Cost of material supplied per cake is $3.20.

A company's leading executive is:

Which of the preceding activities would likely not be considered part of Forte Clothing Company's value chain?

Wembley Company has set various goals, and management is now taking appropriate action to ensure that the firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted amounts. Which of the following functions best describes this process?

Which of the following would likely be considered an internal user of accounting information rather than an external user?

Which of the following can be linked to a wave of corporate scandals that took place not too long ago?

Give examples of each of the four primary management activities in the context of a national pizza franchise.

Because managerial accounting reports rarely solve decision problems, what function does a managerial accountant use to assist managers in understanding issues contained within the information produced?

All financial professionals, including managerial accountants, have an obligation to themselves, their colleagues, and their organizations to adhere to high standards of ethical conduct.

The treasurer typically is responsible for raising capital and safeguarding the organization's assets.

In order for a company to achieve a sustainable competitive advantage, it must perform value chain activities:

Which of the following is not a function of the treasurer?

Assume that a managerial accountant regularly communicates with business associates to avoid conflicts of interest and advises relevant parties of potential conflicts. In so doing, the accountant will have applied the ethical standard of:

The upper limit on the production of goods and services if everything works perfectly is known as:

Which of the following perspectives is normally absent in a balanced scorecard?

The chief managerial and financial accountant of an organization is the:

Basic Cost Management Concepts

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis, Cost Behavior, and Cost Estimation

Cost-Volume-Profit Analysis

Variable Costing and the Costs of Quality and Sustainability

Financial Planning and Analysis: the Master Budget

Standard Costing and Analysis of Direct Costs

Flexible Budgeting and Analysis of Overhead Costs

Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Compound Interest and the Concept of Present Value

Inventory Management

Filters

Exam 1: The Changing Role of Managerial Accounting in a Dynamic Business Environment

Measuring the performance of managers and subunits is not an objective of managerial accounting.

Which of the following would not be part of a value chain for a fast food restaurant?

The cost of resources supplied but unused is known as:

Given the following information, what is the total cost of unused capacity? Cost of material supplied is $3,200; Cost of material used is $3,000; Cost of material used per cake is $3; Cost of material supplied per cake is $3.20.

A company's leading executive is:

Which of the preceding activities would likely not be considered part of Forte Clothing Company's value chain?

Wembley Company has set various goals, and management is now taking appropriate action to ensure that the firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted amounts. Which of the following functions best describes this process?

Which of the following would likely be considered an internal user of accounting information rather than an external user?

Which of the following can be linked to a wave of corporate scandals that took place not too long ago?

Give examples of each of the four primary management activities in the context of a national pizza franchise.

Because managerial accounting reports rarely solve decision problems, what function does a managerial accountant use to assist managers in understanding issues contained within the information produced?

All financial professionals, including managerial accountants, have an obligation to themselves, their colleagues, and their organizations to adhere to high standards of ethical conduct.

The treasurer typically is responsible for raising capital and safeguarding the organization's assets.

In order for a company to achieve a sustainable competitive advantage, it must perform value chain activities:

Which of the following is not a function of the treasurer?

Assume that a managerial accountant regularly communicates with business associates to avoid conflicts of interest and advises relevant parties of potential conflicts. In so doing, the accountant will have applied the ethical standard of:

The upper limit on the production of goods and services if everything works perfectly is known as:

Which of the following perspectives is normally absent in a balanced scorecard?

The chief managerial and financial accountant of an organization is the:

Basic Cost Management Concepts

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis, Cost Behavior, and Cost Estimation

Cost-Volume-Profit Analysis

Variable Costing and the Costs of Quality and Sustainability

Financial Planning and Analysis: the Master Budget

Standard Costing and Analysis of Direct Costs

Flexible Budgeting and Analysis of Overhead Costs

Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Compound Interest and the Concept of Present Value

Inventory Management

Filters