Question 1

Decision making requires managers to choose among the available alternatives.

Accepted Answer

A) True 
 B)False

Question 2

Controlling involves the coordination of daily business functions within an organization.

Accepted Answer

A) True 
 B)False

Question 3

The role of managerial accounting in organizations is the same as it has been over many years.

Accepted Answer

A) True 
 B)False

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

Which of the following typically does not relate to the role of a controller?

Accepted Answer

A) A controller supervises the accounting department. 
B) A controller safeguards an organization's assets. 
C) A controller oversees the preparation of reports required by governmental authorities. 
D) A controller normally assumes a narrow role within the organization, often preventing the 
E) A controller safeguards an organization's assets and a controller normally assumes a 
A) A controller supervises the accounting department. 
B) A controller safeguards an organization's assets. 
C) A controller oversees the preparation of reports required by governmental authorities. 
D) A controller normally assumes a narrow role within the organization, often preventing the 
E) A controller safeguards an organization's assets and a controller normally assumes a

Question 6

If a company has poor data governance practices, managers would have to worry that the managerial accounting data they receive is not what they need for their decisions, or that it would arrive too late or be inaccurate.

Accepted Answer

A) True 
 B)False

Question 7

The balanced scorecard is an important managerial accounting tool for short-run competitiveness.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is correct regarding the changing role of managerial accounting?

Accepted Answer

A) The managerial accountant is crunching more numbers than ever before in leading-edge 
B) The managerial accountant has been transformed into a ﬁnancial historian in progressive 
C) Managerial accountants are typically isolated in separate departments. 
D) Forward-looking goals have transformed managerial accountants into business advisors. 
E) Managerial accountants rarely have the title of analyst or take on leadership roles. 
A) The managerial accountant is crunching more numbers than ever before in leading-edge 
B) The managerial accountant has been transformed into a ﬁnancial historian in progressive 
C) Managerial accountants are typically isolated in separate departments. 
D) Forward-looking goals have transformed managerial accountants into business advisors. 
E) Managerial accountants rarely have the title of analyst or take on leadership roles.

Question 9

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).

Question 10

Strategic cost management is: I.the process of determining cost drivers. II.the recognition of the importance of cost relationships among the activities in the value chain. III.the process of managing cost relationships to the ﬁrm's advantage. IV.cost-causing factors.

Accepted Answer

A) I. 
B) II. 
C) III. 
D) IV. 
E) II.and IV. 
A) I. 
B) II. 
C) III. 
D) IV. 
E) II.and IV.

Question 11

The following are activities for State Hospital. Required: Classify each as a value-added (V) or nonvalue-added (N) and give an explanation why you answered the way you did.

Accepted Answer

The answer of The following are activities for State Hospital....

Question 12

What is the most important factor that has allowed companies to move from recording data to analyze it in order to gain signiﬁcant insight into the entire value chain of an organization?

Accepted Answer

A) relaxed data privacy laws. 
B) the increase in cell phones. 
C) powerful, low-cost technology. 
D) cross-functional teams. 
E) low-cost nuclear power. 
A) relaxed data privacy laws. 
B) the increase in cell phones. 
C) powerful, low-cost technology. 
D) cross-functional teams. 
E) low-cost nuclear power.

Question 13

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

Question 14

The capacity concept that allows for normal occurrences such as machine downtime and employee fatigue 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 15

The value chain is a managerial accounting tool that primarily assists in the valuation of assets.

Accepted Answer

A) True 
 B)False

Question 16

Managerial accountants:

Accepted Answer

A) often work with regulators like the SEC. 
B) are responsible for issuing a company's annual ﬁnancial statements. 
C) are found primarily at lower levels of the organizational hierarchy. 
D) are found primarily at higher levels of the organizational hierarchy. 
E) often work on cross-functional teams and are located throughout an organization. 
A) often work with regulators like the SEC. 
B) are responsible for issuing a company's annual ﬁnancial statements. 
C) are found primarily at lower levels of the organizational hierarchy. 
D) are found primarily at higher levels of the organizational hierarchy. 
E) often work on cross-functional teams and are located throughout an organization.

Question 17

The position of chief ﬁnancial oﬃcer (CFO) is typically a staff position.

Accepted Answer

A) True 
 B)False

Question 18

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 19

The largest professional association for management accountants in the U.S.is:

Accepted Answer

A) The American Institute of Certiﬁed Public Accountants. 
B) The Institute of Management Accountants (IM
A) . 
C) The Chartered Institute of Management Accountants. 
D) The Financial Executives International (FEI). 
E) The Association for Chartered Global Management Accountants. 
A) The American Institute of Certiﬁed Public Accountants. 
B) The Institute of Management Accountants (IM
A) . 
C) The Chartered Institute of Management Accountants. 
D) The Financial Executives International (FEI). 
E) The Association for Chartered Global Management Accountants.

Question 20

The value chain is a key component of contemporary management accounting. Required: Deﬁne the term "value chain" and explain how it would relate to an airline.

Accepted Answer

The value chain is a set of activities t

Decision making requires managers to choose among the available alternatives.

Controlling involves the coordination of daily business functions within an organization.

The role of managerial accounting in organizations is the same as it has been over many years.

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.

Which of the following typically does not relate to the role of a controller?

If a company has poor data governance practices, managers would have to worry that the managerial accounting data they receive is not what they need for their decisions, or that it would arrive too late or be inaccurate.

The balanced scorecard is an important managerial accounting tool for short-run competitiveness.

Which of the following is correct regarding the changing role of managerial accounting?

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

Strategic cost management is: I.the process of determining cost drivers. II.the recognition of the importance of cost relationships among the activities in the value chain. III.the process of managing cost relationships to the ﬁrm's advantage. IV.cost-causing factors.

The following are activities for State Hospital. Required: Classify each as a value-added (V) or nonvalue-added (N) and give an explanation why you answered the way you did.

What is the most important factor that has allowed companies to move from recording data to analyze it in order to gain signiﬁcant insight into the entire value chain of an organization?

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

The capacity concept that allows for normal occurrences such as machine downtime and employee fatigue is known as:

The value chain is a managerial accounting tool that primarily assists in the valuation of assets.

Managerial accountants:

The position of chief ﬁnancial oﬃcer (CFO) is typically a staff position.

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

The largest professional association for management accountants in the U.S.is:

The value chain is a key component of contemporary management accounting. Required: Deﬁne the term "value chain" and explain how it would relate to an airline.

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

Inventory Management and Economic Order Quantity (EOQ) Analysis

Filters

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

Decision making requires managers to choose among the available alternatives.

Controlling involves the coordination of daily business functions within an organization.

The role of managerial accounting in organizations is the same as it has been over many years.

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.

Which of the following typically does not relate to the role of a controller?

If a company has poor data governance practices, managers would have to worry that the managerial accounting data they receive is not what they need for their decisions, or that it would arrive too late or be inaccurate.

The balanced scorecard is an important managerial accounting tool for short-run competitiveness.

Which of the following is correct regarding the changing role of managerial accounting?

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

Strategic cost management is: I.the process of determining cost drivers. II.the recognition of the importance of cost relationships among the activities in the value chain. III.the process of managing cost relationships to the ﬁrm's advantage. IV.cost-causing factors.

The following are activities for State Hospital. Required: Classify each as a value-added (V) or nonvalue-added (N) and give an explanation why you answered the way you did.

What is the most important factor that has allowed companies to move from recording data to analyze it in order to gain signiﬁcant insight into the entire value chain of an organization?

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

The capacity concept that allows for normal occurrences such as machine downtime and employee fatigue is known as:

The value chain is a managerial accounting tool that primarily assists in the valuation of assets.

Managerial accountants:

The position of chief ﬁnancial oﬃcer (CFO) is typically a staff position.

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

The largest professional association for management accountants in the U.S.is:

The value chain is a key component of contemporary management accounting. Required: Deﬁne the term "value chain" and explain how it would relate to an airline.

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

Inventory Management and Economic Order Quantity (EOQ) Analysis

Filters