Question 1

In keeping with the current trend of increased strategic planning, how have management accountants changed their use of life-cycle costing?

Accepted Answer

A) They have now shifted their focus from R&D costs to marketing and promotion costs. 
B) They have turned from a sole focus on manufacturing costs to a much wider outlook, taking into account costs from the entire product life-cycle. 
C) They stopped looking at the entire life-cycle, and now focus their attention on product design costs. 
D) Accountants don't use life-cycle costing, that task is left for the operations manager. 
A) They have now shifted their focus from R&D costs to marketing and promotion costs. 
B) They have turned from a sole focus on manufacturing costs to a much wider outlook, taking into account costs from the entire product life-cycle. 
C) They stopped looking at the entire life-cycle, and now focus their attention on product design costs. 
D) Accountants don't use life-cycle costing, that task is left for the operations manager. B

Question 2

In the current business environment, companies cannot survive without a long-term strategy.What exactly should an effective strategy include?

Accepted Answer

A) A set of plans for using resources to achieve sustainable goals. 
B) A focus on accurate financial data, thus allowing the firm to effectively compete in any environment. 
C) A focus on long-term nonfinancial information that will provide the company with versatile management techniques capable of being used in a wide variety of situations. 
D) A clear, concise mission statement, naming every product and outlining the company's long-term goals of success. 
A) A set of plans for using resources to achieve sustainable goals. 
B) A focus on accurate financial data, thus allowing the firm to effectively compete in any environment. 
C) A focus on long-term nonfinancial information that will provide the company with versatile management techniques capable of being used in a wide variety of situations. 
D) A clear, concise mission statement, naming every product and outlining the company's long-term goals of success. A

Question 3

If a firm decided to reevaluate and reorganize the way it did business, in hopes of creating competitive advantage, by changing or decreasing jobs, the company would be using which of the following management technique?

Accepted Answer

A) The value chain. 
B) Business intelligence. 
C) Business process improvement. 
D) Product reevaluation. 
E) Life cycle costing. 
A) The value chain. 
B) Business intelligence. 
C) Business process improvement. 
D) Product reevaluation. 
E) Life cycle costing. C

Question 4

Which of the following aspects of a company would not be considered a critical success factor, for a company that competes on differentiation?

Accepted Answer

A)  Cutting edge research and development. 
B)  Excellent customer service. 
C)  Award-winning product quality. 
D)  Continually beating competitors to the market with new, innovative products. 
E)  A high level of production efficiency. 
A)  Cutting edge research and development. 
B)  Excellent customer service. 
C)  Award-winning product quality. 
D)  Continually beating competitors to the market with new, innovative products. 
E)  A high level of production efficiency.

Question 5

Which of following statements is/are true concerning strategic positioning?

Accepted Answer

A) Once a firm has chosen a position, it is unwise to change it, even though the company or business environment might change. 
B) If a firm does decide to compete on more than one strategic position, it must carefully execute both strategies to be successful. 
C) Since the business environment is always changing, rather than stick constantly with one strategic position, firms should pay close attention during times of change, and adjust their strategies accordingly. 
D) A firm following both competitive strategies is likely to succeed only if it achieves one of them significantly. 
A) Once a firm has chosen a position, it is unwise to change it, even though the company or business environment might change. 
B) If a firm does decide to compete on more than one strategic position, it must carefully execute both strategies to be successful. 
C) Since the business environment is always changing, rather than stick constantly with one strategic position, firms should pay close attention during times of change, and adjust their strategies accordingly. 
D) A firm following both competitive strategies is likely to succeed only if it achieves one of them significantly.

Question 6

Corporate management is required to identify and solve problems from a cross-functional view.Instead of viewing a problem as related to a specific business function, management solves these problems by combining skills from different functions simultaneously.This approach is called:

Accepted Answer

A) Inclusive approach. 
B) Integrative approach. 
C) Intra-function approach. 
D) Multilateral approach. 
A) Inclusive approach. 
B) Integrative approach. 
C) Intra-function approach. 
D) Multilateral approach.

Question 7

A practical example of when the theory of constraints would not be an appropriate management technique to use would be:

Accepted Answer

A)  Long lines at checkout stands. 
B)  Busy signals on Internet server sites. 
C)  One critical production process provides 60 parts/min. output, compared with a company-wide output of 90 parts/min. 
D)  Balanced, fast movement of the product through the plant. 
A)  Long lines at checkout stands. 
B)  Busy signals on Internet server sites. 
C)  One critical production process provides 60 parts/min. output, compared with a company-wide output of 90 parts/min. 
D)  Balanced, fast movement of the product through the plant.

Question 8

Identify two of the most successful companies or organizations in today's business environment, in your opinion. Explain why they are so successful.

Accepted Answer

There are a number of possible answers,

Question 9

At one time, management at General Motors decided to improve the competitiveness of its products by stressing product quality, style, and innovation. The objective was to improve the image of GM vehicles and thus improve sales and brand loyalty. Managers decided to push this strategy in both the manufacturing and marketing divisions of the firm. One of the key moves to implement this strategy was to insist that GM dealers stop price-cutting and push brand value and image instead. GM exerted some control over dealers' pricing/selling strategy in part by reducing the money it set aside for dealers to use in local ads.
Required:
Was General Motors following a strategy of cost leadership or differentiation at this time? Comment on how effective you think the new strategy in dealer relations is likely to be.

Accepted Answer

The strategy adopted by GM in the late 1

Question 10

The five steps of strategic decision making include all of the following except:

Accepted Answer

A) Identify the alternative actions. 
B) Gather, summarize, and report accounting information. 
C) Determine the strategic issues surrounding the problem. 
D) Choose and implement the desired alternative. 
E) Provide an ongoing evaluation of the effectiveness of implementation. 
A) Identify the alternative actions. 
B) Gather, summarize, and report accounting information. 
C) Determine the strategic issues surrounding the problem. 
D) Choose and implement the desired alternative. 
E) Provide an ongoing evaluation of the effectiveness of implementation.

Question 11

The difference between wholesalers and retailers is:

Accepted Answer

A)  Wholesalers are merchandisers that sell directly to customers whereas retailers are merchandisers that sell to other merchandisers. 
B)  Wholesalers are merchandisers that sell to other merchandisers whereas retailers are merchandisers that sell directly to consumers. 
C)  Wholesalers are merchandisers that sell directly to the government whereas retailers are merchandisers that sell to other merchandisers. 
D)  Wholesalers are merchandisers that sell directly to customers whereas retailers are merchandisers that sell directly to the government. 
E)  There is no difference between wholesalers and retailers. 
A)  Wholesalers are merchandisers that sell directly to customers whereas retailers are merchandisers that sell to other merchandisers. 
B)  Wholesalers are merchandisers that sell to other merchandisers whereas retailers are merchandisers that sell directly to consumers. 
C)  Wholesalers are merchandisers that sell directly to the government whereas retailers are merchandisers that sell to other merchandisers. 
D)  Wholesalers are merchandisers that sell directly to customers whereas retailers are merchandisers that sell directly to the government. 
E)  There is no difference between wholesalers and retailers.

Question 12

The Dodd-Frank Act (2010) includes a variety of new regulations, including the creation of:

Accepted Answer

A) The Cost Accounting Standards Board. 
B) The Consumer Financial Protection Bureau. 
C) The Financial Services Industry Control Commission. 
D) The Wall Street Reform and Protection Board. 
E) The Executive Compensation Review Board. 
A) The Cost Accounting Standards Board. 
B) The Consumer Financial Protection Bureau. 
C) The Financial Services Industry Control Commission. 
D) The Wall Street Reform and Protection Board. 
E) The Executive Compensation Review Board.

Question 13

Which of the following is not a major change in the business environment that has affected the way many companies think about conducting business?

Accepted Answer

A) An increased focus on the customer, especially their opinions about functionality and quality. 
B) A growing emphasis on globalization -new markets for products and new competitors. 
C) A larger number of companies are starting to use advanced information technologies, such as business intelligence. 
D) The development of improved cost management methods. 
A) An increased focus on the customer, especially their opinions about functionality and quality. 
B) A growing emphasis on globalization -new markets for products and new competitors. 
C) A larger number of companies are starting to use advanced information technologies, such as business intelligence. 
D) The development of improved cost management methods.

Question 14

According to the IMA Statement of Ethical Professional Practice, what should a management accountant do if a significant ethical situation can't be resolved?

Accepted Answer

A) The accountant should confront the guilty party and demand the unethical action be stopped. 
B) The accountant should try to rationalize and understand the position of the other party. 
C) The accountant should say nothing about the matter until he or she has retired. 
D) The accountant should first discuss the matter with the immediate supervisor. 
A) The accountant should confront the guilty party and demand the unethical action be stopped. 
B) The accountant should try to rationalize and understand the position of the other party. 
C) The accountant should say nothing about the matter until he or she has retired. 
D) The accountant should first discuss the matter with the immediate supervisor.

Question 15

Which of the following is considered to be an advantage of using both nonfinancial and financial information in the balanced scorecard?

Accepted Answer

A) Nonfinancial information is most helpful in analyzing a company's past performance, while financial information is most useful in evaluating potential future performance. 
B) Nonfinancial information provides the short-term perspective while financial information provides the long-term perspective of performance. 
C) Nonfinancial information reflects the company's current and potential competitive advantage, while financial information tends to focus on a firm's achieved financial performance. 
D) Nonfinancial information should be included with financial information because it is more reliable than financial information. 
A) Nonfinancial information is most helpful in analyzing a company's past performance, while financial information is most useful in evaluating potential future performance. 
B) Nonfinancial information provides the short-term perspective while financial information provides the long-term perspective of performance. 
C) Nonfinancial information reflects the company's current and potential competitive advantage, while financial information tends to focus on a firm's achieved financial performance. 
D) Nonfinancial information should be included with financial information because it is more reliable than financial information.

Question 16

Which of the following is not a way for a management accountant to resolve an ethical conflict?

Accepted Answer

A) Bring the matter to the attention of the company's auditor. 
B) Consult an attorney concerning the ethical conflict. 
C) Initiate a confidential discussion with an IMA Ethics Counselor. 
D) Discuss the issue with the management accountant's immediate supervisor except when the supervisor is involved. 
A) Bring the matter to the attention of the company's auditor. 
B) Consult an attorney concerning the ethical conflict. 
C) Initiate a confidential discussion with an IMA Ethics Counselor. 
D) Discuss the issue with the management accountant's immediate supervisor except when the supervisor is involved.

Question 17

Non-financial measures of operations include all the following except:

Accepted Answer

A) Stock price. 
B) Product quality. 
C) Customer satisfaction. 
D) Market share. 
E) Growth opportunities. 
A) Stock price. 
B) Product quality. 
C) Customer satisfaction. 
D) Market share. 
E) Growth opportunities.

Question 18

The story of the telecom giant WorldCom came to a sad turn in 2002 as the firm filed for bankruptcy, with some of the managers facing criminal charges for fraud. In 2000 a severe slump in the telecom business led to pressures within WorldCom to reduce expenses and improve the financial statements to meet investor expectations. On orders from top managers, accountants within the firm created fraudulent financial statements, ultimately resulting in an $11 billion fraud. The fraud was detected as a result of an inquiry by the SEC, which led an internal auditor within WorldCom to start an investigation that uncovered the fraud in 2002. The successor firm, MCI (which had previously merged with WorldCom and is, since 2006, a part of Verizon), under the leadership of new top management, formed the office of chief ethics officer who had the responsibility for MCI's policy of training all MCI's U.S.-based employees, an ethics hotline, an ethics pledge signed by the firm's top 100 executives, and a company code of ethics, among other responsibilities.
Required:
What should be the role of an ethics officer? To whom should the ethics officer report within the organization? Do you think MCI had a good plan for ensuring ethical behavior within the firm? How would you change the MCI ethics policy, if at all?

Accepted Answer

The WorldCom scandal is one of the most

Question 19

Which of the following is not considered part of the Institute of Management Accountants' definition of management accounting?

Accepted Answer

A) partnering in management decision making. 
B) devising planning and performance management systems. 
C) analyzing data and providing information. 
D) providing expertise in financial reporting and control. 
E) assisting management in the formulation and implementation of an organization's strategy. 
A) partnering in management decision making. 
B) devising planning and performance management systems. 
C) analyzing data and providing information. 
D) providing expertise in financial reporting and control. 
E) assisting management in the formulation and implementation of an organization's strategy.

Question 20

When managers produce value for the customer, their orientation consists of all the following except:

Accepted Answer

A)  Quality and Service. 
B)  Timeliness of delivery. 
C)  The ability to respond to the customer's desire for specific features. 
D)  State of the art manufacturing facilities. 
A)  Quality and Service. 
B)  Timeliness of delivery. 
C)  The ability to respond to the customer's desire for specific features. 
D)  State of the art manufacturing facilities.

In keeping with the current trend of increased strategic planning, how have management accountants changed their use of life-cycle costing?

In the current business environment, companies cannot survive without a long-term strategy.What exactly should an effective strategy include?

If a firm decided to reevaluate and reorganize the way it did business, in hopes of creating competitive advantage, by changing or decreasing jobs, the company would be using which of the following management technique?

Which of the following aspects of a company would not be considered a critical success factor, for a company that competes on differentiation?

Which of following statements is/are true concerning strategic positioning?

Corporate management is required to identify and solve problems from a cross-functional view.Instead of viewing a problem as related to a specific business function, management solves these problems by combining skills from different functions simultaneously.This approach is called:

A practical example of when the theory of constraints would not be an appropriate management technique to use would be:

Identify two of the most successful companies or organizations in today's business environment, in your opinion. Explain why they are so successful.

The five steps of strategic decision making include all of the following except:

The difference between wholesalers and retailers is:

The Dodd-Frank Act (2010) includes a variety of new regulations, including the creation of:

Which of the following is not a major change in the business environment that has affected the way many companies think about conducting business?

According to the IMA Statement of Ethical Professional Practice, what should a management accountant do if a significant ethical situation can't be resolved?

Which of the following is considered to be an advantage of using both nonfinancial and financial information in the balanced scorecard?

Which of the following is not a way for a management accountant to resolve an ethical conflict?

Non-financial measures of operations include all the following except:

Which of the following is not considered part of the Institute of Management Accountants' definition of management accounting?

When managers produce value for the customer, their orientation consists of all the following except:

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters

Exam 1: Cost Management and Strategy

In keeping with the current trend of increased strategic planning, how have management accountants changed their use of life-cycle costing?

In the current business environment, companies cannot survive without a long-term strategy.What exactly should an effective strategy include?

If a firm decided to reevaluate and reorganize the way it did business, in hopes of creating competitive advantage, by changing or decreasing jobs, the company would be using which of the following management technique?

Which of the following aspects of a company would not be considered a critical success factor, for a company that competes on differentiation?

Which of following statements is/are true concerning strategic positioning?

Corporate management is required to identify and solve problems from a cross-functional view.Instead of viewing a problem as related to a specific business function, management solves these problems by combining skills from different functions simultaneously.This approach is called:

A practical example of when the theory of constraints would not be an appropriate management technique to use would be:

Identify two of the most successful companies or organizations in today's business environment, in your opinion. Explain why they are so successful.

The five steps of strategic decision making include all of the following except:

The difference between wholesalers and retailers is:

The Dodd-Frank Act (2010) includes a variety of new regulations, including the creation of:

Which of the following is not a major change in the business environment that has affected the way many companies think about conducting business?

According to the IMA Statement of Ethical Professional Practice, what should a management accountant do if a significant ethical situation can't be resolved?

Which of the following is considered to be an advantage of using both nonfinancial and financial information in the balanced scorecard?

Which of the following is not a way for a management accountant to resolve an ethical conflict?

Non-financial measures of operations include all the following except:

Which of the following is not considered part of the Institute of Management Accountants' definition of management accounting?

When managers produce value for the customer, their orientation consists of all the following except:

Implementing Strategy: The Value Chain, the Balanced Scorecard, and the Strategy Map

Basic Cost Management Concepts

Job Costing

Activity-Based Costing and Customer Profitability Analysis

Process Costing

Cost Allocation: Departments, Joint Products, and By-Products

Cost Estimation

Short-Term Profit Planning: Cost-Volume-Profit CVP Analysis

Strategy and the Master Budget

Decision Making With a Strategic Emphasis

Strategy and the Analysis of Capital Investments

Cost Planning for the Product Life Cycle: Target Costing, Theory of Constraints, and Strategic Pricing

Operational Performance Measurement: Sales, Direct-Cost Variances, and the Role of Nonfinancial Performance Measures

Operational Performance Measurement: Indirect-Cost Variances and Resource-Capacity Management

Operational Performance Measurement: Further Analysis of Productivity and Sales

The Management and Control of Quality

Strategic Performance Measurement: Cost Centers, Profit Centers, and the Balanced Scorecard

Strategic Performance Measurement: Investment Centers and Transfer Pricing

Management Compensation, Business Analysis, and Business Valuation

Filters