Question 1

Which of the following is true of cost accounting?

Accepted Answer

A)  It is a subset of management accounting and therefore its information is used only to meet the needs of managers. 
B)  It is used only by manufacturers. 
C)  It is part of both management and financial accounting systems. 
D)  The distinction between management accounting and cost accounting is clear-cut. 
A)  It is a subset of management accounting and therefore its information is used only to meet the needs of managers. 
B)  It is used only by manufacturers. 
C)  It is part of both management and financial accounting systems. 
D)  The distinction between management accounting and cost accounting is clear-cut. C

Question 2

________ includes banking and short- and long-term financing, investments, and cash management.

Accepted Answer

A)  Risk management 
B)  Strategic planning 
C)  Controllership 
D)  Treasury management 
A)  Risk management 
B)  Strategic planning 
C)  Controllership 
D)  Treasury management D

Question 3

The primary user of management accounting information is a(n) ________.

Accepted Answer

A)  the controller 
B)  a shareholder evaluating a stock investment 
C)  bondholder 
D)  external regulator 
A)  the controller 
B)  a shareholder evaluating a stock investment 
C)  bondholder 
D)  external regulator A

Question 4

Management accounting ________.

Accepted Answer

A)  focuses on estimating future revenues, costs, and other measures to forecast activities and their results 
B)  provides information about the company as a whole 
C)  reports information that has occurred in the past that is verifiable and reliable 
D)  provides information that is generally available only on a quarterly or annual basis 
A)  focuses on estimating future revenues, costs, and other measures to forecast activities and their results 
B)  provides information about the company as a whole 
C)  reports information that has occurred in the past that is verifiable and reliable 
D)  provides information that is generally available only on a quarterly or annual basis

Question 5

Which of the following statements about customer value is true?

Accepted Answer

A)  Customer value is shown in a corporation's balance sheet. 
B)  Creating value for customers is an important part of planning and implementing strategy. 
C)  Customer value is the only focus that helps managers to formulate strategies. 
D)  Customer value is lost with increase in costs of the product. 
A)  Customer value is shown in a corporation's balance sheet. 
B)  Creating value for customers is an important part of planning and implementing strategy. 
C)  Customer value is the only focus that helps managers to formulate strategies. 
D)  Customer value is lost with increase in costs of the product.

Question 6

Which of the tools shown below would be the most effective planning tool?

Accepted Answer

A)  performance evaluation report 
B)  fishbone diagram 
C)  control chart 
D)  budget 
A)  performance evaluation report 
B)  fishbone diagram 
C)  control chart 
D)  budget

Question 7

Which of the following is true of line management?

Accepted Answer

A)  It is directly responsible for achieving the goals of the organization. 
B)  It is responsible of management accounting functions. 
C)  It provides advice, support, and assistance to staff management. 
D)  It only includes the top level management. 
A)  It is directly responsible for achieving the goals of the organization. 
B)  It is responsible of management accounting functions. 
C)  It provides advice, support, and assistance to staff management. 
D)  It only includes the top level management.

Question 8

Generally, companies follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition. Assume you are opening a small food outlet across the street from your campus. How might that business be operated under each of the two broad strategies? Consider the following specific operational areas:
a.target customers
b.products offered
c.product pricing
d.location choice
e.advertising content
f.advertising media

Accepted Answer

The purpose of this question is to explo

Question 9

Managers rely on management accounting information to evaluate alternative investment and R&D decisions.

Accepted Answer

A) True 
 B)False

Question 10

Cost management not only helps reduce costs but also improve customer satisfaction and the quality of a firm's products.

Accepted Answer

A) True 
 B)False

Question 11

Management accountants serve as key business partners in the planning process because they understand the key ________ factors that create ________.

Accepted Answer

A)  success ... value 
B)  accounting .... profits 
C)  financial ... value. 
D)  success ..... income 
A)  success ... value 
B)  accounting .... profits 
C)  financial ... value. 
D)  success ..... income

Question 12

Line management is directly responsible for attaining the goals of the organization.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a responsibility of the CFO?

Accepted Answer

A)  budget funds for a plant upgrade 
B)  managing short-term and long-term financing 
C)  investing in new equipment 
D)  conducting internal audit 
A)  budget funds for a plant upgrade 
B)  managing short-term and long-term financing 
C)  investing in new equipment 
D)  conducting internal audit

Question 14

Strategic cost management describes cost management that specifically focuses on strategic issues.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a function of a controller?

Accepted Answer

A)  operations administration 
B)  controlling the stock price 
C)  communication with the shareholders 
D)  interest-rate risk management 
A)  operations administration 
B)  controlling the stock price 
C)  communication with the shareholders 
D)  interest-rate risk management

Question 16

Management accounting information and reports do not have to follow set principles or rules such as GAAP but should be useful to its audience and meet the cost/benefit test.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following differentiates marketing from customer service?

Accepted Answer

A)  Marketing is the process of promoting and selling products or services to customers or prospective customers, whereas customer service is the process of providing after-sales service to customers. 
B)  Marketing is the process of processing orders and shipping products or services to customers, whereas customer service is the process of providing additional information to customers about the product. 
C)  Marketing is the process of detailed planning, engineering, and testing of products and processes, whereas customer service concentrates on existing customers. 
D)  Marketing is the process of processing orders and shipping products or services to customers, whereas customer service is concerned with choosing the right customer for the product. 
A)  Marketing is the process of promoting and selling products or services to customers or prospective customers, whereas customer service is the process of providing after-sales service to customers. 
B)  Marketing is the process of processing orders and shipping products or services to customers, whereas customer service is the process of providing additional information to customers about the product. 
C)  Marketing is the process of detailed planning, engineering, and testing of products and processes, whereas customer service concentrates on existing customers. 
D)  Marketing is the process of processing orders and shipping products or services to customers, whereas customer service is concerned with choosing the right customer for the product.

Question 18

Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning your direct supervisor?

Accepted Answer

A)  Inform the Board of Directors of the existence of a potential conflict. 
B)  Clarify relevant ethical issues by initiating a confidential discussion with an IMA Ethics Counselor. 
C)  Consult the attorney as to legal obligations and rights concerning the ethical conflict. 
D)  Follow the organization's procedures concerning resolution of such a conflict. 
A)  Inform the Board of Directors of the existence of a potential conflict. 
B)  Clarify relevant ethical issues by initiating a confidential discussion with an IMA Ethics Counselor. 
C)  Consult the attorney as to legal obligations and rights concerning the ethical conflict. 
D)  Follow the organization's procedures concerning resolution of such a conflict.

Question 19

The ________ function supports the six functions of value-chain analysis.

Accepted Answer

A)  controlling 
B)  administration 
C)  planning 
D)  direction 
A)  controlling 
B)  administration 
C)  planning 
D)  direction

Question 20

Cost accounting measures and reports short-term, long-term, financial, and non financial information.

Accepted Answer

A) True 
 B)False

Exam 1: The Manager and Management Accounting

Which of the following is true of cost accounting?

________ includes banking and short- and long-term financing, investments, and cash management.

The primary user of management accounting information is a(n) ________.

Management accounting ________.

Which of the following statements about customer value is true?

Which of the tools shown below would be the most effective planning tool?

Which of the following is true of line management?

Managers rely on management accounting information to evaluate alternative investment and R&D decisions.

Cost management not only helps reduce costs but also improve customer satisfaction and the quality of a firm's products.

Management accountants serve as key business partners in the planning process because they understand the key ________ factors that create ________.

Line management is directly responsible for attaining the goals of the organization.

Which of the following is a responsibility of the CFO?

Strategic cost management describes cost management that specifically focuses on strategic issues.

Which of the following is a function of a controller?

Management accounting information and reports do not have to follow set principles or rules such as GAAP but should be useful to its audience and meet the cost/benefit test.

Which of the following differentiates marketing from customer service?

Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning your direct supervisor?

The ________ function supports the six functions of value-chain analysis.

Cost accounting measures and reports short-term, long-term, financial, and non financial information.

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, Direct-Cost Variances, and Management Control

Flexible Budgets, Overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, Common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, Rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, Just-in-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing, and Multinational Considerations

Performance Measurement, Compensation, and Multinational Considerations

Filters

Management accountants serve as key business partners in the planning process because they understand the key factors that create .