Question 1

The scenario that says resources should be spent if the expected benefits to the company exceed the expected costs describes ________.

Accepted Answer

A)  cost-benefit approach 
B)  behavioral and technical considerations 
C)  balanced scorecard 
D)  different costs for different purposes 
A)  cost-benefit approach 
B)  behavioral and technical considerations 
C)  balanced scorecard 
D)  different costs for different purposes

Question 2

In designing strategy, a company must match its opportunities in the marketplace with ________.

Accepted Answer

A)  environmental friendly goals 
B)  its resources and capabilities 
C)  branding opportunities 
D)  the requirements of credit rating agencies 
A)  environmental friendly goals 
B)  its resources and capabilities 
C)  branding opportunities 
D)  the requirements of credit rating agencies

Question 3

Examining past performance and exploring alternative ways to make better informed decisions in the future is ________.

Accepted Answer

A)  control 
B)  planning 
C)  learning 
D)  implementation 
A)  control 
B)  planning 
C)  learning 
D)  implementation

Question 4

Which of the following statements about the cost-benefit approach is true?

Accepted Answer

A)  Resources should be spent if the expected costs exceed the expected benefits of the company. 
B)  In a cost-benefit analysis, both costs and benefits are not easy to measure. 
C)  Resources should be spent if the costs of a decision outweigh the benefits of the decision. 
D)  A cost-benefit approach would not be appropriate for a decision to install a budgeting system. 
A)  Resources should be spent if the expected costs exceed the expected benefits of the company. 
B)  In a cost-benefit analysis, both costs and benefits are not easy to measure. 
C)  Resources should be spent if the costs of a decision outweigh the benefits of the decision. 
D)  A cost-benefit approach would not be appropriate for a decision to install a budgeting system.

Question 5

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

Accepted Answer

A)  Refrain from engaging in any conduct that would prejudice carrying out duties ethically. 
B)  Communicate information fairly and objectively. 
C)  Keep information confidential except when disclosure is authorized or legally required. 
D)  Recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity. 
A)  Refrain from engaging in any conduct that would prejudice carrying out duties ethically. 
B)  Communicate information fairly and objectively. 
C)  Keep information confidential except when disclosure is authorized or legally required. 
D)  Recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity.

Question 6

The successful management accountant possesses several skills and characteristics that reach well beyond
basic analytical abilities. Discuss.

Accepted Answer

The skills required are as follows:
Mana

Question 7

The Institute of Management Accountants provides a hotline to discuss ethical issues.

Accepted Answer

A) True 
 B)False

Question 8

One of the steps in planning is evaluating the performance and taking corrective measures.

Accepted Answer

A) True 
 B)False

Question 9

For optimal planning success it is best if each business function within the value chain is performed one at a time in sequence.

Accepted Answer

A) True 
 B)False

Question 10

Financial accounting is concerned primarily with ________.

Accepted Answer

A)  external reporting to investors, creditors, and government authorities 
B)  cost planning and cost controls 
C)  product design and marketing strategies 
D)  providing information for strategic and tactical decisions 
A)  external reporting to investors, creditors, and government authorities 
B)  cost planning and cost controls 
C)  product design and marketing strategies 
D)  providing information for strategic and tactical decisions

Question 11

Staff management, such as management accountants and information technology and human-resources management, provides advice, support, and assistance to line management.

Accepted Answer

A) True 
 B)False

Question 12

A performance report compares actual performance to the amount budgeted.

Accepted Answer

A) True 
 B)False

Question 13

Describe management accounting and financial accounting.

Accepted Answer

Management accounting provides informati

Question 14

Increased global competition is placing pressure on companies to reduce costs.

Accepted Answer

A) True 
 B)False

Question 15

________ is an after-sale support provided to customers.

Accepted Answer

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

Question 16

Financial accounting ________.

Accepted Answer

A)  focuses on the future and includes activities such as preparing next year's operating budget 
B)  must comply with GAAP (generally accepted accounting principles) 
C)  is the process of measuring, analyzing, and reporting financial and nonfinancial information related to the costs of acquiring or using resources in an organization 
D)  is prepared for the use of department heads and other employees 
A)  focuses on the future and includes activities such as preparing next year's operating budget 
B)  must comply with GAAP (generally accepted accounting principles) 
C)  is the process of measuring, analyzing, and reporting financial and nonfinancial information related to the costs of acquiring or using resources in an organization 
D)  is prepared for the use of department heads and other employees

Question 17

A company's strategy specifies how an organization matches its capabilities with the opportunities in the marketplace.

Accepted Answer

A) True 
 B)False

Question 18

________ is the generation of, and experimentation with, ideas related to new products, services, or processes.

Accepted Answer

A)  Research and development 
B)  Design of products, services, or processes 
C)  Production 
D)  Marketing 
A)  Research and development 
B)  Design of products, services, or processes 
C)  Production 
D)  Marketing

Question 19

Customer response time involves ________.

Accepted Answer

A)  the speed it takes a customer to respond to an advertisement and place an order 
B)  the speed at which an organization responds to customer requests 
C)  the speed it takes to develop a new product 
D)  the speed it takes an organization to develop a Total Quality Management (TQM) program 
A)  the speed it takes a customer to respond to an advertisement and place an order 
B)  the speed at which an organization responds to customer requests 
C)  the speed it takes to develop a new product 
D)  the speed it takes an organization to develop a Total Quality Management (TQM) program

Question 20

A data warehouse or infobarn ________.

Accepted Answer

A)  is reserved for exclusive use by the CFO 
B)  is primarily used for financial reporting purposes 
C)  stores information used by different managers for multiple purposes 
D)  gathers only nonfinancial information 
A)  is reserved for exclusive use by the CFO 
B)  is primarily used for financial reporting purposes 
C)  stores information used by different managers for multiple purposes 
D)  gathers only nonfinancial information

Exam 1: The Manager and Management Accounting

The scenario that says resources should be spent if the expected benefits to the company exceed the expected costs describes ________.

In designing strategy, a company must match its opportunities in the marketplace with ________.

Examining past performance and exploring alternative ways to make better informed decisions in the future is ________.

Which of the following statements about the cost-benefit approach is true?

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

The successful management accountant possesses several skills and characteristics that reach well beyond basic analytical abilities. Discuss.

The Institute of Management Accountants provides a hotline to discuss ethical issues.

One of the steps in planning is evaluating the performance and taking corrective measures.

For optimal planning success it is best if each business function within the value chain is performed one at a time in sequence.

Financial accounting is concerned primarily with ________.

Staff management, such as management accountants and information technology and human-resources management, provides advice, support, and assistance to line management.

A performance report compares actual performance to the amount budgeted.

Describe management accounting and financial accounting.

Increased global competition is placing pressure on companies to reduce costs.

________ is an after-sale support provided to customers.

Financial accounting ________.

A company's strategy specifies how an organization matches its capabilities with the opportunities in the marketplace.

________ is the generation of, and experimentation with, ideas related to new products, services, or processes.

Customer response time involves ________.

A data warehouse or infobarn ________.

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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