Question 1

Management accounting information can be used for all of the following except:

Accepted Answer

A) calculate the cost of a product or service. 
B) evaluate the performance of a company. 
C) project materials needs. 
D) evaluate the market price of the stock. 
A) calculate the cost of a product or service. 
B) evaluate the performance of a company. 
C) project materials needs. 
D) evaluate the market price of the stock. D

Question 2

What role has the increasingly competitive business environment played in the development of management accounting?

Accepted Answer

The competitive environment has changed dramatically. There has been a deregulation movement in North America and Europe during the 1970s and 1980s that changed the ground rules under which service companies operate.
In addition, organizations encountered severe competition from overseas companies that offered high-quality products at low prices. There has been an improvement of operational control systems such that information is more current and provided more frequently. Employees need better management accounting information and accurate and timely information to improve the activities they perform and to make decisions. Employees also want innovations in management accounting information. Nonfinancial information has become a critical feedback measure. Finally, the focus of many firms is now on measuring and managing activities.

Question 3

Management accounting can provide information on customer satisfaction.

Accepted Answer

A) True 
 B)False  True

Question 4

Discuss the potential behavior implications of performance evaluation.

Accepted Answer

As measurements are made on operations a

Question 5

Information is never neutral; just the act of measuring and reporting information affects the individuals involved.

Accepted Answer

A) True 
 B)False

Question 6

A daily report on the number of quality units assembled by each employee is information MOST useful to:

Accepted Answer

A) a front-line assembly worker. 
B) the accounting department. 
C) the chief executive officer. 
D) the personnel department. 
A) a front-line assembly worker. 
B) the accounting department. 
C) the chief executive officer. 
D) the personnel department.

Question 7

Which of the following would be MOST helpful for a top manager of a company?

Accepted Answer

A) profitability report of the company 
B) information to monitor hourly and daily operations 
C) number of customer complaints 
D) operating expense summary reported by department 
A) profitability report of the company 
B) information to monitor hourly and daily operations 
C) number of customer complaints 
D) operating expense summary reported by department

Question 8

The following information pertains to three divisions of Marine Industrial Coatings, Inc. (amounts in millions):
  
-Which division is more profitable based on ROI?

Accepted Answer

A) Chemical 
B) Retail paint 
C) Industrial 
D) Both Chemical and Retail paint are more profitable than Industrial. 
A) Chemical 
B) Retail paint 
C) Industrial 
D) Both Chemical and Retail paint are more profitable than Industrial.

Question 9

The regulatory authority responsible for formulating rules of United States GAAP is:

Accepted Answer

A) the Financial Accounting Standards Board. 
B) the Cost Accounting Standards Board. 
C) the Federal Accounting Standards Advisory Board. 
D) the International Accounting Standards Board. 
A) the Financial Accounting Standards Board. 
B) the Cost Accounting Standards Board. 
C) the Federal Accounting Standards Advisory Board. 
D) the International Accounting Standards Board.

Question 10

Historically,service companies have:

Accepted Answer

A) operated in less competitive environments than manufacturing companies. 
B) enjoyed global customer demand. 
C) used management accounting information in much the same way as manufacturing companies. 
D) competed by managing costs to provide the best service at the lowest price. 
A) operated in less competitive environments than manufacturing companies. 
B) enjoyed global customer demand. 
C) used management accounting information in much the same way as manufacturing companies. 
D) competed by managing costs to provide the best service at the lowest price.

Question 11

Management accounting information is BEST described as:

Accepted Answer

A) providing a signal that something is wrong. 
B) identifying and helping to explain what is wrong. 
C) simply summarizing information, but giving no indication that anything is wrong. 
D) measuring overall organizational performance. 
A) providing a signal that something is wrong. 
B) identifying and helping to explain what is wrong. 
C) simply summarizing information, but giving no indication that anything is wrong. 
D) measuring overall organizational performance.

Question 12

Describe the steps in the PDCA cycle.

Accepted Answer

The Plan step of the PCDA cycle defines

Question 13

A good management accounting system can become a source of competitive advantage for a company.

Accepted Answer

A) True 
 B)False

Question 14

In general,it was not until the 1970s that management accounting systems:

Accepted Answer

A) were improved because of demands by the FASB and the SEC. 
B) stagnated and proved inadequate. 
C) started to develop innovations in costing and performance-measurement systems due to intense pressure from overseas competitors. 
D) started to address the decision-making needs of managers. 
A) were improved because of demands by the FASB and the SEC. 
B) stagnated and proved inadequate. 
C) started to develop innovations in costing and performance-measurement systems due to intense pressure from overseas competitors. 
D) started to address the decision-making needs of managers.

Question 15

Management accounting information is primarily oriented to external stakeholders,such as investors,creditors,regulators,and tax authorities.

Accepted Answer

A) True 
 B)False

Question 16

Government and nonprofit organizations,as well as profit-seeking enterprises,are feeling the pressures for improved performance.

Accepted Answer

A) True 
 B)False

Question 17

When a change is introduced,employees tend to:

Accepted Answer

A) embrace the change. 
B) be indifferent to the change. 
C) exhibit no change in behavior. 
D) resist the change. 
A) embrace the change. 
B) be indifferent to the change. 
C) exhibit no change in behavior. 
D) resist the change.

Question 18

Operating profit is an example of nonfinancial information.

Accepted Answer

A) True 
 B)False

Question 19

The following information pertains to three divisions of Marine Industrial Coatings, Inc. (amounts in millions):
  
-What is the Return on Sales for the Retail paint division?

Accepted Answer

A) 2% 
B) 4.5% 
C) 20% 
D) 45% 
A) 2% 
B) 4.5% 
C) 20% 
D) 45%

Question 20

Compare and contrast the users and uses of management accounting and financial accounting.

Accepted Answer

Management accounting provides informati

Management accounting information can be used for all of the following except:

What role has the increasingly competitive business environment played in the development of management accounting?

Management accounting can provide information on customer satisfaction.

Discuss the potential behavior implications of performance evaluation.

Information is never neutral; just the act of measuring and reporting information affects the individuals involved.

A daily report on the number of quality units assembled by each employee is information MOST useful to:

Which of the following would be MOST helpful for a top manager of a company?

The following information pertains to three divisions of Marine Industrial Coatings, Inc. (amounts in millions): -Which division is more profitable based on ROI?

The regulatory authority responsible for formulating rules of United States GAAP is:

Historically,service companies have:

Management accounting information is BEST described as:

Describe the steps in the PDCA cycle.

A good management accounting system can become a source of competitive advantage for a company.

In general,it was not until the 1970s that management accounting systems:

Management accounting information is primarily oriented to external stakeholders,such as investors,creditors,regulators,and tax authorities.

Government and nonprofit organizations,as well as profit-seeking enterprises,are feeling the pressures for improved performance.

When a change is introduced,employees tend to:

Operating profit is an example of nonfinancial information.

The following information pertains to three divisions of Marine Industrial Coatings, Inc. (amounts in millions): -What is the Return on Sales for the Retail paint division?

Compare and contrast the users and uses of management accounting and financial accounting.

The Balanced Scorecard and Strategy Map

Using Costs in Decision Making

Accumulating and Assigning Costs to Products

Activity-Based Cost Systems

Measuring and Managing Customer Relationships

Measuring and Managing Process Performance

Measuring and Managing Life-Cycle Costs

Behavioral and Organizational Issues in Management Accounting and Control Systems

Using Budgets for Planning and Coordination

Financial Control

Filters

Exam 1: How Management Accounting Information Supports Decision Making

Management accounting information can be used for all of the following except:

What role has the increasingly competitive business environment played in the development of management accounting?

Management accounting can provide information on customer satisfaction.

Discuss the potential behavior implications of performance evaluation.

Information is never neutral; just the act of measuring and reporting information affects the individuals involved.

A daily report on the number of quality units assembled by each employee is information MOST useful to:

Which of the following would be MOST helpful for a top manager of a company?

The following information pertains to three divisions of Marine Industrial Coatings, Inc. (amounts in millions): -Which division is more profitable based on ROI?

The regulatory authority responsible for formulating rules of United States GAAP is:

Historically,service companies have:

Management accounting information is BEST described as:

Describe the steps in the PDCA cycle.

A good management accounting system can become a source of competitive advantage for a company.

In general,it was not until the 1970s that management accounting systems:

Management accounting information is primarily oriented to external stakeholders,such as investors,creditors,regulators,and tax authorities.

Government and nonprofit organizations,as well as profit-seeking enterprises,are feeling the pressures for improved performance.

When a change is introduced,employees tend to:

Operating profit is an example of nonfinancial information.

The following information pertains to three divisions of Marine Industrial Coatings, Inc. (amounts in millions): -What is the Return on Sales for the Retail paint division?

Compare and contrast the users and uses of management accounting and financial accounting.

The Balanced Scorecard and Strategy Map

Using Costs in Decision Making

Accumulating and Assigning Costs to Products

Activity-Based Cost Systems

Measuring and Managing Customer Relationships

Measuring and Managing Process Performance

Measuring and Managing Life-Cycle Costs

Behavioral and Organizational Issues in Management Accounting and Control Systems

Using Budgets for Planning and Coordination

Financial Control

Filters