Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

List the four standards of ethical conduct for management accountants. For each standard, give an example that demonstrates compliance with that standard.

Accepted Answer

Please note that answers may vary, but m

Question 3

A management accountant who is not capable of completing a project because her skills, knowledge, and abilities are lacking could be ethically in violation of the competence standard.

Accepted Answer

A) True 
 B)False

Question 4

The controller is usually responsible for budgeting.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements about a company's supply chain is true?

Accepted Answer

A)  A company's supply chain is always internal to a firm. 
B)  A company's supply chain is always external to a firm. 
C)  A company's supply chain is the same thing as a company's value chain. 
D)  Management accountants provide information to enhance a company's supply chain. 
A)  A company's supply chain is always internal to a firm. 
B)  A company's supply chain is always external to a firm. 
C)  A company's supply chain is the same thing as a company's value chain. 
D)  Management accountants provide information to enhance a company's supply chain.

Question 6

Which of the following is an area that customers want to see improved levels of performance?

Accepted Answer

A)  higher sales margin 
B)  quality of the product 
C)  lower marginal costs 
D)  profit margins 
A)  higher sales margin 
B)  quality of the product 
C)  lower marginal costs 
D)  profit margins

Question 7

That part of the value chain that includes ordering and shipping the product to retail outlets is ________.

Accepted Answer

A)  Customer service 
B)  Production 
C)  Marketing 
D)  Distribution 
A)  Customer service 
B)  Production 
C)  Marketing 
D)  Distribution

Question 8

The process of preparing a budget encourages coordination and communication throughout the company.

Accepted Answer

A) True 
 B)False

Question 9

Classify each cost item of Ripon Printers given below into one of the business functions of the value chain, either (1) R&D, (2) design of products and processes, (3) production, (4) marketing (including sales), (5) distribution, or (6) customer service.
Item:
a.cost of customer order forms
b.cost of paper used in manufacture of books
c.cost of paper used in packing cartons to ship books
d.cost of paper used in display at national trade show
e.depreciation of trucks used to transport books to college bookstores
f.cost of the wood used to manufacture paper
g.salary of the scientists attempting to find another source of printing ink
h.cost of designing the book size so that a standard-sized box is filled to capacity

Accepted Answer

a.(4) marketing (including sales)
b.(3)

Question 10

Which of the following is true of a budgeting system?

Accepted Answer

A)  It compels managers to plan ahead. 
B)  It increases agency costs. 
C)  It is easy to measure the exact benefits of a budgeting system. 
D)  It leads to operational inefficiency. 
A)  It compels managers to plan ahead. 
B)  It increases agency costs. 
C)  It is easy to measure the exact benefits of a budgeting system. 
D)  It leads to operational inefficiency.

Question 11

Technological innovation has led to shorter product-life cycles and increased the need to bring new products to market more rapidly.

Accepted Answer

A) True 
 B)False

Question 12

The supply chain always occurs within a single organization.

Accepted Answer

A) True 
 B)False

Question 13

The treasurer (also called the chief accounting officer) is the financial executive primarily responsible for both management accounting and financial accounting.

Accepted Answer

A) True 
 B)False

Question 14

As per IMA statement of ethical professional practice, integrity refers to disclosing all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations is a responsibility.

Accepted Answer

A) True 
 B)False

Question 15

Value chain refers to its value to the employee.

Accepted Answer

A) True 
 B)False

Question 16

Managers track the costs incurred in each value-chain category is to reduce costs and to improve efficiency.

Accepted Answer

A) True 
 B)False

Question 17

Sustainability is a strategy to achieve long term ________.

Accepted Answer

A)  cost reductions and efficiency objectives. 
B)  financial and quality goals. 
C)  financial, social, and environmental goals. 
D)  innovation and technology goals. 
A)  cost reductions and efficiency objectives. 
B)  financial and quality goals. 
C)  financial, social, and environmental goals. 
D)  innovation and technology goals.

Question 18

Which of the following differentiates cost accounting and financial accounting?

Accepted Answer

A)  The primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers. 
B)  Cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products. 
C)  Cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions. 
D)  Cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties. 
A)  The primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers. 
B)  Cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products. 
C)  Cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions. 
D)  Cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties.

Question 19

There is an overlap or intersection between management accounting and financial accounting. Explain.

Accepted Answer

Management accounting develops

Question 20

Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting.

Accepted Answer

A) True 
 B)False

Exam 1: The Manager and Management Accounting

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

List the four standards of ethical conduct for management accountants. For each standard, give an example that demonstrates compliance with that standard.

A management accountant who is not capable of completing a project because her skills, knowledge, and abilities are lacking could be ethically in violation of the competence standard.

The controller is usually responsible for budgeting.

Which of the following statements about a company's supply chain is true?

Which of the following is an area that customers want to see improved levels of performance?

That part of the value chain that includes ordering and shipping the product to retail outlets is ________.

The process of preparing a budget encourages coordination and communication throughout the company.

Which of the following is true of a budgeting system?

Technological innovation has led to shorter product-life cycles and increased the need to bring new products to market more rapidly.

The supply chain always occurs within a single organization.

The treasurer (also called the chief accounting officer) is the financial executive primarily responsible for both management accounting and financial accounting.

As per IMA statement of ethical professional practice, integrity refers to disclosing all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations is a responsibility.

Value chain refers to its value to the employee.

Managers track the costs incurred in each value-chain category is to reduce costs and to improve efficiency.

Sustainability is a strategy to achieve long term ________.

Which of the following differentiates cost accounting and financial accounting?

There is an overlap or intersection between management accounting and financial accounting. Explain.

Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting.

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

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