Question 1

The person MOST likely to use management accounting information is a(n):

Accepted Answer

A) banker evaluating a credit application. 
B) shareholder evaluating a stock investment. 
C) governmental taxing authority. 
D) assembly department supervisor. 
A) banker evaluating a credit application. 
B) shareholder evaluating a stock investment. 
C) governmental taxing authority. 
D) assembly department supervisor.

Question 2

Information about customer satisfaction is an example of financial information.

Accepted Answer

A) True 
 B)False

Question 3

Financial accounting information:

Accepted Answer

A) provides a signal that something is wrong. 
B) identifies what is wrong. 
C) explains what is wrong. 
D) simply summarizes information but gives no indication that anything is wrong. 
A) provides a signal that something is wrong. 
B) identifies what is wrong. 
C) explains what is wrong. 
D) simply summarizes information but gives no indication that anything is wrong.

Question 4

How the customer is treated at the time of the purchase is an example of the __________ element of the value proposition.

Accepted Answer

A) functionality and features 
B) industry standards 
C) quality 
D) service 
A) functionality and features 
B) industry standards 
C) quality 
D) service

Question 5

Which of the following best represents the Do 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 6

Give two examples of financial information and nonfinancial information.

Accepted Answer

Financial information includes amounts t

Question 7

At the highest level strategic planning involves choosing a strategy that provides the best fit between the organization's environment and its internal resources in order to achieve the organization's objectives.

Accepted Answer

A) True 
 B)False

Question 8

Managers of service departments need all of the following information EXCEPT:

Accepted Answer

A) efficiency data on work performance. 
B) quality data on work performance. 
C) profitability data of the whole company. 
D) profitability data of the service department. 
A) efficiency data on work performance. 
B) quality data on work performance. 
C) profitability data of the whole company. 
D) profitability data of the service department.

Question 9

The Institute of Management Accountants (IMA):

Accepted Answer

A) is a professional organization of management accountants. 
B) is a professional organization of financial accountants. 
C) issues standards for management accounting. 
D) a professional organization of management accountants that issues standards for management accounting. 
A) is a professional organization of management accountants. 
B) is a professional organization of financial accountants. 
C) issues standards for management accounting. 
D) a professional organization of management accountants that issues standards for management accounting.

Question 10

_______ helped develop the Plan-Do-Check-Act (PDCA)cycle.

Accepted Answer

A) Hawthorne 
B) Deming. 
C) Carnegie 
D) Ford 
A) Hawthorne 
B) Deming. 
C) Carnegie 
D) Ford

Question 11

Which of the following is NOT a function of a management accounting system?

Accepted Answer

A) strategic development 
B) financial reporting 
C) control 
D) product costing 
A) strategic development 
B) financial reporting 
C) control 
D) product costing

Question 12

Management accounting innovations are usually developed by academics.

Accepted Answer

A) True 
 B)False

Question 13

The design and introduction of new measurements and systems must be accompanied by an analysis of the behavioral and organizational reactions to the measurements.

Accepted Answer

A) True 
 B)False

Question 14

The International Accounting Standards Board sets the guidelines used for management accounting.

Accepted Answer

A) True 
 B)False

Question 15

Quality is the degree of conformance between what the customer is promised and what the customer receives.

Accepted Answer

A) True 
 B)False

Question 16

Management accounting measures can provide advance warnings of problems.

Accepted Answer

A) True 
 B)False

Question 17

The check step in the PDCA cycle includes two components - measuring and monitoring ongoing performance and taking short-term actions based on the measured performance.

Accepted Answer

A) True 
 B)False

Question 18

The Federal Accounting Standards Advisory Board sets cost accounting standards for all federal government activities.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following companies is a service company?

Accepted Answer

A) Lands' End 
B) Schwinn Bicycles 
C) Orkin Pest Control 
D) British Petroleum 
A) Lands' End 
B) Schwinn Bicycles 
C) Orkin Pest Control 
D) British Petroleum

Question 20

Which statement below is FALSE?

Accepted Answer

A) "What gets measured gets managed." 
B) People react to measurements. 
C) Employees spend more attention on those variables that are not getting measured. 
D) "If I can't measure it,I can't manage it." 
A) "What gets measured gets managed." 
B) People react to measurements. 
C) Employees spend more attention on those variables that are not getting measured. 
D) "If I can't measure it,I can't manage it."

The person MOST likely to use management accounting information is a(n):

Information about customer satisfaction is an example of financial information.

Financial accounting information:

How the customer is treated at the time of the purchase is an example of the __________ element of the value proposition.

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

Give two examples of financial information and nonfinancial information.

At the highest level strategic planning involves choosing a strategy that provides the best fit between the organization's environment and its internal resources in order to achieve the organization's objectives.

Managers of service departments need all of the following information EXCEPT:

The Institute of Management Accountants (IMA):

_______ helped develop the Plan-Do-Check-Act (PDCA)cycle.

Which of the following is NOT a function of a management accounting system?

Management accounting innovations are usually developed by academics.

The design and introduction of new measurements and systems must be accompanied by an analysis of the behavioral and organizational reactions to the measurements.

The International Accounting Standards Board sets the guidelines used for management accounting.

Quality is the degree of conformance between what the customer is promised and what the customer receives.

Management accounting measures can provide advance warnings of problems.

The check step in the PDCA cycle includes two components - measuring and monitoring ongoing performance and taking short-term actions based on the measured performance.

The Federal Accounting Standards Advisory Board sets cost accounting standards for all federal government activities.

Which of the following companies is a service company?

Which statement below is FALSE?

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

The person MOST likely to use management accounting information is a(n):

Information about customer satisfaction is an example of financial information.

Financial accounting information:

How the customer is treated at the time of the purchase is an example of the __________ element of the value proposition.

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

Give two examples of financial information and nonfinancial information.

At the highest level strategic planning involves choosing a strategy that provides the best fit between the organization's environment and its internal resources in order to achieve the organization's objectives.

Managers of service departments need all of the following information EXCEPT:

The Institute of Management Accountants (IMA):

_______ helped develop the Plan-Do-Check-Act (PDCA)cycle.

Which of the following is NOT a function of a management accounting system?

Management accounting innovations are usually developed by academics.

The design and introduction of new measurements and systems must be accompanied by an analysis of the behavioral and organizational reactions to the measurements.

The International Accounting Standards Board sets the guidelines used for management accounting.

Quality is the degree of conformance between what the customer is promised and what the customer receives.

Management accounting measures can provide advance warnings of problems.

The check step in the PDCA cycle includes two components - measuring and monitoring ongoing performance and taking short-term actions based on the measured performance.

The Federal Accounting Standards Advisory Board sets cost accounting standards for all federal government activities.

Which of the following companies is a service company?

Which statement below is FALSE?

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