Question 1

Management accounting information includes all of the following except:

Accepted Answer

A) tabulated results of customer satisfaction surveys. 
B) the cost of producing a product. 
C) the percentage of units produced that is defective. 
D) market price of the stock. 
A) tabulated results of customer satisfaction surveys. 
B) the cost of producing a product. 
C) the percentage of units produced that is defective. 
D) market price of the stock.

Question 2

Fostering a culture of high ethical standards includes all of the following EXCEPT:

Accepted Answer

A) following the good example set by senior management. 
B) communicating to employees a belief system that inspires and promotes commitment to the organization's core values. 
C) following the general examples set by front-line employees. 
D) communicating to all employees a boundary system that states what actions will not be tolerated. 
A) following the good example set by senior management. 
B) communicating to employees a belief system that inspires and promotes commitment to the organization's core values. 
C) following the general examples set by front-line employees. 
D) communicating to all employees a boundary system that states what actions will not be tolerated.

Question 3

Management accounting can play a critical role in the service industry because of all the following reasons EXCEPT:

Accepted Answer

A) firms must be especially sensitive to the timeliness and quality of customer service. 
B) many employees have very little contact with customers. 
C) customers immediately notice defects and a delay in service. 
D) dissatisfied customers may never return. 
A) firms must be especially sensitive to the timeliness and quality of customer service. 
B) many employees have very little contact with customers. 
C) customers immediately notice defects and a delay in service. 
D) dissatisfied customers may never return.

Question 4

Management accounting is subject to the rules formulated by standard setters such as the Financial Accounting Standards Board (FASB).

Accepted Answer

A) True 
 B)False

Question 5

A key element of any organization's strategy is identifying:

Accepted Answer

A) its potential shareholders. 
B) its target customers. 
C) competitor's products. 
D) employee needs. 
A) its potential shareholders. 
B) its target customers. 
C) competitor's products. 
D) employee needs.

Question 6

Which of the following best represents the Act 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 7

The first modern industry to develop and use large quantities of financial statistics to assess and monitor organizational performance was:

Accepted Answer

A) steel companies. 
B) lumber companies. 
C) the railroads. 
D) automobile companies. 
A) steel companies. 
B) lumber companies. 
C) the railroads. 
D) automobile companies.

Question 8

Which of the following best represents the Plan 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 9

Quality expert,W.Edwards Deming,helped develop and disseminate the plan-do-check-act (PDCA)cycle.

Accepted Answer

A) True 
 B)False

Question 10

Management accounting information allows managers to compare actual and planned costs and to identify areas and opportunities for process improvement.

Accepted Answer

A) True 
 B)False

Question 11

Management accounting has no prescribed rules about its content,how the content is to be developed,and how the content is to be presented.

Accepted Answer

A) True 
 B)False

Question 12

The following information pertains to three divisions of Marine Industrial Coatings, Inc. (amounts in millions):
  
-What is the return on investment for the Chemical Division?

Accepted Answer

A) 1.25% 
B) 2.25% 
C) 25.0% 
D) 50.00% 
A) 1.25% 
B) 2.25% 
C) 25.0% 
D) 50.00%

Question 13

The introduction of a new management accounting system is MOST likely to motivate UNWANTED employee behavior when it is used for:

Accepted Answer

A) evaluation. 
B) planning. 
C) decision making. 
D) coordinating individual efforts. 
A) evaluation. 
B) planning. 
C) decision making. 
D) coordinating individual efforts.

Question 14

A weekly report comparing machine time used to available machine time is information LEAST 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 15

During the history of management accounting,innovations were developed to address the decision-making needs of managers.

Accepted Answer

A) True 
 B)False

Question 16

A national company manufactures a line of modern furniture.Information MOST useful to the top executive includes:

Accepted Answer

A) individual job summaries of materials used. 
B) monthly financial reports on the company's profitability by product line. 
C) time reports submitted by each employee. 
D) scheduled downtime for routine maintenance on machines. 
A) individual job summaries of materials used. 
B) monthly financial reports on the company's profitability by product line. 
C) time reports submitted by each employee. 
D) scheduled downtime for routine maintenance on machines.

Question 17

What is the purpose of management accounting?

Accepted Answer

Management accounting gathers short-term

Question 18

The act of simply measuring and reporting information on certain processes:

Accepted Answer

A) focuses the attention of employees on those processes that are being measured. 
B) diverts the employee's attention to other activities that are not being measured. 
C) disproves the saying "What gets measured gets managed." 
D) has no effect on employee behavior. 
A) focuses the attention of employees on those processes that are being measured. 
B) diverts the employee's attention to other activities that are not being measured. 
C) disproves the saying "What gets measured gets managed." 
D) has no effect on employee behavior.

Question 19

People react when they are being measured,and they react to the measurements..

Accepted Answer

A) True 
 B)False

Question 20

Management accountants are MOST likely to feel outside pressure to influence the numbers favorably when the information is used for:

Accepted Answer

A) budgeting. 
B) compensation and promotions. 
C) continuous improvement. 
D) product costing. 
A) budgeting. 
B) compensation and promotions. 
C) continuous improvement. 
D) product costing.

Management accounting information includes all of the following except:

Fostering a culture of high ethical standards includes all of the following EXCEPT:

Management accounting can play a critical role in the service industry because of all the following reasons EXCEPT:

Management accounting is subject to the rules formulated by standard setters such as the Financial Accounting Standards Board (FASB).

A key element of any organization's strategy is identifying:

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

The first modern industry to develop and use large quantities of financial statistics to assess and monitor organizational performance was:

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

Quality expert,W.Edwards Deming,helped develop and disseminate the plan-do-check-act (PDCA)cycle.

Management accounting information allows managers to compare actual and planned costs and to identify areas and opportunities for process improvement.

Management accounting has no prescribed rules about its content,how the content is to be developed,and how the content is to be presented.

The following information pertains to three divisions of Marine Industrial Coatings, Inc. (amounts in millions): -What is the return on investment for the Chemical Division?

The introduction of a new management accounting system is MOST likely to motivate UNWANTED employee behavior when it is used for:

A weekly report comparing machine time used to available machine time is information LEAST useful to:

During the history of management accounting,innovations were developed to address the decision-making needs of managers.

A national company manufactures a line of modern furniture.Information MOST useful to the top executive includes:

What is the purpose of management accounting?

The act of simply measuring and reporting information on certain processes:

People react when they are being measured,and they react to the measurements..

Management accountants are MOST likely to feel outside pressure to influence the numbers favorably when the information is used for:

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 includes all of the following except:

Fostering a culture of high ethical standards includes all of the following EXCEPT:

Management accounting can play a critical role in the service industry because of all the following reasons EXCEPT:

Management accounting is subject to the rules formulated by standard setters such as the Financial Accounting Standards Board (FASB).

A key element of any organization's strategy is identifying:

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

The first modern industry to develop and use large quantities of financial statistics to assess and monitor organizational performance was:

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

Quality expert,W.Edwards Deming,helped develop and disseminate the plan-do-check-act (PDCA)cycle.

Management accounting information allows managers to compare actual and planned costs and to identify areas and opportunities for process improvement.

Management accounting has no prescribed rules about its content,how the content is to be developed,and how the content is to be presented.

The following information pertains to three divisions of Marine Industrial Coatings, Inc. (amounts in millions): -What is the return on investment for the Chemical Division?

The introduction of a new management accounting system is MOST likely to motivate UNWANTED employee behavior when it is used for:

A weekly report comparing machine time used to available machine time is information LEAST useful to:

During the history of management accounting,innovations were developed to address the decision-making needs of managers.

A national company manufactures a line of modern furniture.Information MOST useful to the top executive includes:

What is the purpose of management accounting?

The act of simply measuring and reporting information on certain processes:

People react when they are being measured,and they react to the measurements..

Management accountants are MOST likely to feel outside pressure to influence the numbers favorably when the information is used for:

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