Exam 1: The Manager and Management Accounting

Classify each cost item into one of the business functions of the value chain, either (1) R&D, (2) design, (3) production, (4) marketing, (5) distribution, or (6) customer service. Item: a.cost of samples mailed to promote sales of a new product b.labor cost of workers in the manufacturing plant c.bonus paid to a person with a 90% satisfaction rating in handling customers with complaints d.transportation costs for shipping products to retail outlets

Identifying a company's most important customers helps to formulate a strategy.

Management accountants must promote fact-based analysis and make tough-minded, critical judgments without being adversarial.

The technical considerations of budgeting encourage managers and other employees to strive for achieving the goals of the organization.

A budget is a benchmark against which actual performance can be compared.

When managers determine whether it is less expensive to buy products from a vendor or make them in house they are performing ________.

________ is a strategy that integrates people and technology in all business functions to enhance relationships with customers, partners, and distributors.

Linking rewards to performance helps motivate managers and leads to good management performance.

Which item is an indication of credibility under the Standards of Ethical Conduct?

Performing professional duties in accordance with relevant laws, regulations, and technical standards is a competent responsibility.

If a managerial accountant suspected his or her immediate superior of unethical behavior, who happens to be a chief executive officer or equivalent, the managerial accountant should request an immediate meeting with the executive committee or the audit committee.

An effective way to cut costs is to eliminate activities that do NOT improve the product attributes that customers value.

Companies can decide on an appropriate strategy based strictly on internally available information.

What areas of responsibility does a chief financial officer have in a typical organization?

Which of the following is not a concern for management accountants in formulating a strategy?

Strategy is formulated ________.

A budget serves as much as a control tool as a planning tool because ________.

Cost accounting ________.

Control comprises taking actions that implement the planning decisions, evaluating past performance, and providing feedback and learning to help future decision making.

Financial accounting provides a historical perspective, whereas management accounting emphasizes ________.