Question 1

Which of the following types of information are used in management accounting?

Accepted Answer

A) financial information 
B) nonfinancial information 
C) information focused on the long term 
D) All of the above are correct. 
A) financial information 
B) nonfinancial information 
C) information focused on the long term 
D) All of the above are correct.

Question 2

The Hawthorne study revealed that:

Accepted Answer

A) individuals alter their behavior when they know they are being studied. 
B) groups alter their behavior when they know they are being studied. 
C) People react when they are being measured. 
D) All of the above are correct. 
A) individuals alter their behavior when they know they are being studied. 
B) groups alter their behavior when they know they are being studied. 
C) People react when they are being measured. 
D) All of the above are correct.

Question 3

Explain the role of management accounting in helping an enterprise develop and implement its strategy.

Accepted Answer

The organization needs management accoun

Question 4

A quarterly report disclosing declining market share information is MOST useful to:

Accepted Answer

A) a front-line employee. 
B) the manager of operations. 
C) the chief executive officer. 
D) the accounting department. 
A) a front-line employee. 
B) the manager of operations. 
C) the chief executive officer. 
D) the accounting department.

Question 5

Management accounting reports might include information about:

Accepted Answer

A) customer complaints. 
B) net income for the year on budgeted income statement. 
C) total assets on budgeted balance sheet. 
D) All of the above are correct. 
A) customer complaints. 
B) net income for the year on budgeted income statement. 
C) total assets on budgeted balance sheet. 
D) All of the above are correct.

Question 6

The person MOST likely to use ONLY financial accounting information is a:

Accepted Answer

A) factory shift supervisor. 
B) vice president of operations. 
C) current shareholder. 
D) department manager. 
A) factory shift supervisor. 
B) vice president of operations. 
C) current shareholder. 
D) department manager.

Question 7

Nonfinancial information might be used for all of the following except:

Accepted Answer

A) improve product quality. 
B) reduce cycle times. 
C) satisfy customers' needs. 
D) All of the above are used. 
A) improve product quality. 
B) reduce cycle times. 
C) satisfy customers' needs. 
D) All of the above are used.

Question 8

For improving operational efficiencies and customer satisfaction,nonfinancial information is:

Accepted Answer

A) critical. 
B) moderate. 
C) infrequently used. 
D) unnecessary. 
A) critical. 
B) moderate. 
C) infrequently used. 
D) unnecessary.

Question 9

The most important factor in successful organizations is:

Accepted Answer

A) weaknesses. 
B) competition. 
C) strategy. 
D) definition of quality. 
A) weaknesses. 
B) competition. 
C) strategy. 
D) definition of quality.

Question 10

Which of the following best represents the Check step in the Plan-Do-Check-Act (PDCA)cycle?

Accepted Answer

A) Take actions to lower costs, change resource allocations, improve the quality, cycle time and flexibility of processes, modify the product mix, change customer relationships, and redesign and introduce new products. 
B) Measure and monitor ongoing performance and take short-term actions based on the measured performance. 
C) Define the organization's purpose and select the focus and scope of its strategy. 
D) Implement the chosen course of action. 
A) Take actions to lower costs, change resource allocations, improve the quality, cycle time and flexibility of processes, modify the product mix, change customer relationships, and redesign and introduce new products. 
B) Measure and monitor ongoing performance and take short-term actions based on the measured performance. 
C) Define the organization's purpose and select the focus and scope of its strategy. 
D) Implement the chosen course of action.

Question 11

Planning activities include all of the following except:

Accepted Answer

A) estimate the cost and profit consequences from a course of action. 
B) evaluating the quality of the service provided. 
C) projecting labor requirements. 
D) budgeting. 
A) estimate the cost and profit consequences from a course of action. 
B) evaluating the quality of the service provided. 
C) projecting labor requirements. 
D) budgeting.

Question 12

A law firm would use management accounting information for all of the following decisions except:

Accepted Answer

A) staffing needs. 
B) performance evaluation of staff. 
C) budgeted purchases of supplies. 
D) location of annual holiday party. 
A) staffing needs. 
B) performance evaluation of staff. 
C) budgeted purchases of supplies. 
D) location of annual holiday party.

Question 13

Which of the following descriptors refer to management accounting information?

Accepted Answer

A) It is only retrospective, reporting and summarizing in financial terms the results of past decisions and transactions. 
B) It is driven by rules. 
C) It is prepared for shareholders. 
D) It is oriented to meeting the decision making needs of employees and managers inside the organization. 
A) It is only retrospective, reporting and summarizing in financial terms the results of past decisions and transactions. 
B) It is driven by rules. 
C) It is prepared for shareholders. 
D) It is oriented to meeting the decision making needs of employees and managers inside the organization.

Question 14

Management accounting information is sometimes predictive and forward looking.

Accepted Answer

A) True 
 B)False

Question 15

A key element in any organization's strategy is to identify its target customers and to deliver what those target customers want.

Accepted Answer

A) True 
 B)False

Question 16

Financial accounting:

Accepted Answer

A) focuses on the future and includes activities such as preparing next year's operating budget. 
B) does not need to comply with GAAP (generally accepted accounting principles). 
C) is primarily oriented to external stakeholders, such as investors, creditors, regulators and tax authorities. 
D) is prepared for the use of department heads and other employees. 
A) focuses on the future and includes activities such as preparing next year's operating budget. 
B) does not need to comply with GAAP (generally accepted accounting principles). 
C) is primarily oriented to external stakeholders, such as investors, creditors, regulators and tax authorities. 
D) is prepared for the use of department heads and other employees.

Question 17

Is financial accounting or management accounting more useful to an operations manager? Why?

Accepted Answer

Management accounting is more useful to

Question 18

Many organizations start the planning stage by re-affirming or updating its mission statement.

Accepted Answer

A) True 
 B)False

Question 19

A national company manufactures a line of modern furniture.Information MOST useful to the employee who assembles the furniture includes:

Accepted Answer

A) a daily report comparing the actual time it took to assemble a piece of furniture to the standard time allowed. 
B) a monthly report on the proportion of furniture pieces assembled with defects. 
C) the number of furniture pieces sold this month. 
D) revenue per employee. 
A) a daily report comparing the actual time it took to assemble a piece of furniture to the standard time allowed. 
B) a monthly report on the proportion of furniture pieces assembled with defects. 
C) the number of furniture pieces sold this month. 
D) revenue per employee.

Question 20

Management accounting:

Accepted Answer

A) is both retrospective, providing feedback about past operations, and also prospective, incorporating forecasts and estimates about future events. 
B) is primarily oriented to external stakeholders. 
C) must be consistent with rules formulated by the Financial Accounting Standards Board (FAS
B) . 
D) provides information that is generally available only on a quarterly or annual basis. 
A) is both retrospective, providing feedback about past operations, and also prospective, incorporating forecasts and estimates about future events. 
B) is primarily oriented to external stakeholders. 
C) must be consistent with rules formulated by the Financial Accounting Standards Board (FAS
B) . 
D) provides information that is generally available only on a quarterly or annual basis.

Which of the following types of information are used in management accounting?

The Hawthorne study revealed that:

Explain the role of management accounting in helping an enterprise develop and implement its strategy.

A quarterly report disclosing declining market share information is MOST useful to:

Management accounting reports might include information about:

The person MOST likely to use ONLY financial accounting information is a:

Nonfinancial information might be used for all of the following except:

For improving operational efficiencies and customer satisfaction,nonfinancial information is:

The most important factor in successful organizations is:

Which of the following best represents the Check step in the Plan-Do-Check-Act (PDCA)cycle?

Planning activities include all of the following except:

A law firm would use management accounting information for all of the following decisions except:

Which of the following descriptors refer to management accounting information?

Management accounting information is sometimes predictive and forward looking.

A key element in any organization's strategy is to identify its target customers and to deliver what those target customers want.

Financial accounting:

Is financial accounting or management accounting more useful to an operations manager? Why?

Many organizations start the planning stage by re-affirming or updating its mission statement.

A national company manufactures a line of modern furniture.Information MOST useful to the employee who assembles the furniture includes:

Management 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

Which of the following types of information are used in management accounting?

The Hawthorne study revealed that:

Explain the role of management accounting in helping an enterprise develop and implement its strategy.

A quarterly report disclosing declining market share information is MOST useful to:

Management accounting reports might include information about:

The person MOST likely to use ONLY financial accounting information is a:

Nonfinancial information might be used for all of the following except:

For improving operational efficiencies and customer satisfaction,nonfinancial information is:

The most important factor in successful organizations is:

Which of the following best represents the Check step in the Plan-Do-Check-Act (PDCA)cycle?

Planning activities include all of the following except:

A law firm would use management accounting information for all of the following decisions except:

Which of the following descriptors refer to management accounting information?

Management accounting information is sometimes predictive and forward looking.

A key element in any organization's strategy is to identify its target customers and to deliver what those target customers want.

Financial accounting:

Is financial accounting or management accounting more useful to an operations manager? Why?

Many organizations start the planning stage by re-affirming or updating its mission statement.

A national company manufactures a line of modern furniture.Information MOST useful to the employee who assembles the furniture includes:

Management 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