Question 1

Which of the following is a software system that integrates all of a company's departments?

Accepted Answer

A) ERP 
B) Total Integrated Software 
C) JIT 
D) TQM 
A) ERP 
B) Total Integrated Software 
C) JIT 
D) TQM A

Question 2

The IMA suggests that members discuss ethical dilemmas with the company's board of directors.

Accepted Answer

A) True 
 B)False  False

Question 3

The Sarbanes-Oxley Act requires companies to have their internal audit procedures assessed at least

Accepted Answer

A) monthly. 
B) quarterly. 
C) annually. 
D) at any time they choose. 
A) monthly. 
B) quarterly. 
C) annually. 
D) at any time they choose. C

Question 4

The IMA issues which of the following certifications?

Accepted Answer

A) CMA 
B) CIA 
C) CFP 
D) CPA 
A) CMA 
B) CIA 
C) CFP 
D) CPA

Question 5

Which of the following statements about XBRL is false?

Accepted Answer

A) XBRL is only required for publicly traded companies. 
B) XBRL will decrease the need for manual financial information searches. 
C) The US is the first country to mandate use of XBRL. 
D) XBRL should decrease the time companies spend converting their financial information into various government-prescribed formats. 
A) XBRL is only required for publicly traded companies. 
B) XBRL will decrease the need for manual financial information searches. 
C) The US is the first country to mandate use of XBRL. 
D) XBRL should decrease the time companies spend converting their financial information into various government-prescribed formats.

Question 6

The ________ is a subgroup of the Board of Directors.

Accepted Answer

A) managerial committee 
B) stockholders' committee 
C) audit committee 
D) financial committee 
A) managerial committee 
B) stockholders' committee 
C) audit committee 
D) financial committee

Question 7

Managerial accountants may be responsible for

Accepted Answer

A) providing decision support. 
B) communicating results. 
C) analyzing data. 
D) all of the above. 
A) providing decision support. 
B) communicating results. 
C) analyzing data. 
D) all of the above.

Question 8

Torque Engine Company is considering opening a plant in China. It will cost $3,500,000 to set up the plant and $750,000 to train employees. An additional $100,000 will be spent to build relationships with the local suppliers. The company anticipates gross profit of $4,400,000 from this new plant. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much?

Accepted Answer

A) Costs outweigh benefits by $150,000. 
B) Benefits outweigh costs by $150,000. 
C) Costs outweigh benefits by $50,000. 
D) Benefits outweigh costs by $50,000. 
A) Costs outweigh benefits by $150,000. 
B) Benefits outweigh costs by $150,000. 
C) Costs outweigh benefits by $50,000. 
D) Benefits outweigh costs by $50,000.

Question 9

The COO is responsible for managing which of the following aspect(s)of the company?

Accepted Answer

A) The annual audit 
B) Internal controls 
C) Research and development, production, and distribution 
D) Financial accounting, managerial accounting, and tax accounting 
A) The annual audit 
B) Internal controls 
C) Research and development, production, and distribution 
D) Financial accounting, managerial accounting, and tax accounting

Question 10

Budgets are a way for managers to communicate their

Accepted Answer

A) control. 
B) decision-making. 
C) hiring practices. 
D) plans. 
A) control. 
B) decision-making. 
C) hiring practices. 
D) plans.

Question 11

Directing means setting goals and objectives for the company and determining how to achieve them.

Accepted Answer

A) True 
 B)False

Question 12

What factor has changed the way that we now view managerial accountants?

Accepted Answer

A) Stricter GAAP standards 
B) Technology 
C) Stricter audit standards 
D) None of the above 
A) Stricter GAAP standards 
B) Technology 
C) Stricter audit standards 
D) None of the above

Question 13

Which of the following was not a result of the Sarbanes-Oxley Act?

Accepted Answer

A) The COO assumes financial statement responsibility. 
B) There are new requirements for CPA firms. 
C) There are stiffer consequences for white-collar crimes. 
D) Audit committees must be independent. 
A) The COO assumes financial statement responsibility. 
B) There are new requirements for CPA firms. 
C) There are stiffer consequences for white-collar crimes. 
D) Audit committees must be independent.

Question 14

Which of the following statements is false?

Accepted Answer

A) Financial accounting helps investors make decisions. 
B) Financial accounting provides sufficient information for managers to effectively plan and control operations. 
C) Financial accounting reports help creditors make decisions. 
D) Financial accounting provides external reports. 
A) Financial accounting helps investors make decisions. 
B) Financial accounting provides sufficient information for managers to effectively plan and control operations. 
C) Financial accounting reports help creditors make decisions. 
D) Financial accounting provides external reports.

Question 15

Management accountants spend more time planning, analyzing and interpreting accounting data and less time recording routine accounting transactions than they have in the past.

Accepted Answer

A) True 
 B)False

Question 16

Pete's Cola Company is investigating the possibility of adopting a lean thinking philosophy throughout their organization. Estimated costs to set up the computer system are $1,650,000; training employees in lean operations is estimated to cost $175,000; and the general expenses of establishing the program are estimated at $315,000. The estimated value of the potential savings is $1,975,000. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much?

Accepted Answer

A) Costs outweigh benefits by $150,000. 
B) Benefits outweigh costs by $150,000. 
C) Costs outweigh benefits by $165,000. 
D) Benefits outweigh costs by $165,000. 
A) Costs outweigh benefits by $150,000. 
B) Benefits outweigh costs by $150,000. 
C) Costs outweigh benefits by $165,000. 
D) Benefits outweigh costs by $165,000.

Question 17

The American Institute of Certified Public Accountants was the first professional membership organization in the United States to earn the ISO 9001 certification.

Accepted Answer

A) True 
 B)False

Question 18

What are the three primary responsibilities of managers as described in the chapter? Give an example of each type of responsibility.

Accepted Answer

The following are managers' three primar

Question 19

A company's budget information is most likely to be used by which of the following groups?

Accepted Answer

A) Suppliers 
B) Creditors 
C) Customers 
D) Managers 
A) Suppliers 
B) Creditors 
C) Customers 
D) Managers

Question 20

Budgets are the quantitative expression of management's plans.

Accepted Answer

A) True 
 B)False

Which of the following is a software system that integrates all of a company's departments?

The IMA suggests that members discuss ethical dilemmas with the company's board of directors.

The Sarbanes-Oxley Act requires companies to have their internal audit procedures assessed at least

The IMA issues which of the following certifications?

Which of the following statements about XBRL is false?

The ________ is a subgroup of the Board of Directors.

Managerial accountants may be responsible for

The COO is responsible for managing which of the following aspect(s)of the company?

Budgets are a way for managers to communicate their

Directing means setting goals and objectives for the company and determining how to achieve them.

What factor has changed the way that we now view managerial accountants?

Which of the following was not a result of the Sarbanes-Oxley Act?

Which of the following statements is false?

Management accountants spend more time planning, analyzing and interpreting accounting data and less time recording routine accounting transactions than they have in the past.

The American Institute of Certified Public Accountants was the first professional membership organization in the United States to earn the ISO 9001 certification.

What are the three primary responsibilities of managers as described in the chapter? Give an example of each type of responsibility.

A company's budget information is most likely to be used by which of the following groups?

Budgets are the quantitative expression of management's plans.

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 1: Introduction to Managerial Accounting

Which of the following is a software system that integrates all of a company's departments?

The IMA suggests that members discuss ethical dilemmas with the company's board of directors.

The Sarbanes-Oxley Act requires companies to have their internal audit procedures assessed at least

The IMA issues which of the following certifications?

Which of the following statements about XBRL is false?

The ________ is a subgroup of the Board of Directors.

Managerial accountants may be responsible for

The COO is responsible for managing which of the following aspect(s)of the company?

Budgets are a way for managers to communicate their

Directing means setting goals and objectives for the company and determining how to achieve them.

What factor has changed the way that we now view managerial accountants?

Which of the following was not a result of the Sarbanes-Oxley Act?

Which of the following statements is false?

Management accountants spend more time planning, analyzing and interpreting accounting data and less time recording routine accounting transactions than they have in the past.

The American Institute of Certified Public Accountants was the first professional membership organization in the United States to earn the ISO 9001 certification.

What are the three primary responsibilities of managers as described in the chapter? Give an example of each type of responsibility.

A company's budget information is most likely to be used by which of the following groups?

Budgets are the quantitative expression of management's plans.

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters