Exam 1: The Changing Role of Managerial Accounting in a Dynamic Business Environment

A company has a bottleneck operation that slows production.Which of the following tools or approaches could the firm use to determine the most cost-effective ways to eliminate this problem?

The process of managing the various activities in the value chain,along with the associated costs,is commonly known as:

DreamWorks Pictures produces both motion pictures for theaters as well as a variety of television series.Consider the seven activities that follow. 1.Auditions for actors and actresses 2.Development of promotional materials for use by local newspapers 3.Focus groups to evaluate ideas for potential television comedy series 4.Production of DVDs for release to Best Buy and Blockbuster Video 5.On-location shooting of scenes 6.Fine-tuning and rewrites of scripts 7.Set design and construction for a new medical drama Required: A. A.Evaluate the seven activities as upstream (pre-production),production,or downstream (post-production)in nature. B.Generally speaking,which activities (upstream,production,or downstream),if any,can management ignore if the company is to be successful in achieving its key strategic goals? B.None.All are important and must be considereD.

Given the following information,what is the cost of unused capacity? Cost of material supplied is $8,600;Cost of material used is $8,000;Cost of material used per shelf is $8;Cost of material supplied per shelf is $8.60.

Which of the following employees would be considered as holding a line position?

Consider the descriptors that follow. 1.Is heavily involved with the recordkeeping and reporting of assets,liabilities,and stockholders' equity. 2.Focuses on planning,decision making,directing,and control. 3.Is heavily regulated. 4.A field that is becoming more "cross-functional" in nature. 5.Much of the field is based on costs and benefits. 6.Is involved almost exclusively with past transactions and events. 7.Much of the information provided is directed toward stockholders,financial analysts,creditors,and other external parties. 8.Tends to focus more on subunits within an entity rather than the organization as a whole. 9.May become involved with measures of customer satisfaction,and the amount of actual cost incurred vs.budgeted targets. Required: Determine whether the descriptors are most closely associated with financial accounting or managerial accounting.

The two dimensions of managerial accounting are:

Cross-functional teams and time-based competition are two themes of contemporary management accounting.Briefly explain these two concepts.

Which of the following statements about the ethical climate of business is false?

Many professions have adopted a series of ethical standards to provide guidance for their memberships.The Institute of Management Accountants (IMA),for example,has published standards that focus on competence,confidentiality,integrity,and credibility.In light of these standards,consider the three cases that follow. Case A-Leston Corporation has experienced serious financial difficulties in recent years.John Young,the company's chief financial officer,has just learned that a major competitor was likely to file for bankruptcy;however,he failed to disclose this information at a board meeting held later that day when a plant closure decision was being discussed.The board evaluated several proposals during the session that focused on improving Leston's financial position. Case B-QBX Company manufactures fertilizer from various raw materials,including a raw material know as Felstar.Paul Kelly,the firm's purchasing manager,purposely acquired a lower grade of Felstar than normal because of a very attractive price.The lower-grade product resulted in increased usage during the manufacturing process but had no effect on the fertilizer's overall quality.An end-of-period report showed that QBX profited from Kelly's actions,with the overall savings in purchase price more than offsetting the cost of added consumption. Case C-Central Distributing has a participative budgeting process,allowing employees to have a say in projected sales targets for the upcoming period.These targets are reflected in a series of performance reports that compare actual sales achieved against targeted amounts.Hillary Baxter submitted very low sales targets because,as she confided in a colleague,"I always want to look good in terms of meeting targets,even if anticipated sales and closures don't materialize." Required: Evaluate the three cases and determine the ethical issues,if any,that are involved.Cite the IMA's standards if appropriate.

Kaizen costing is consistent with:

Which of the following choices correctly depicts activities that would be included in a manufacturer's value chain?

Which of the following is not an element of competency?

Controlling involves the coordination of daily business functions within an organization.

Taurus Company has set various goals,and management is now taking appropriate action to ensure that the firm achieves these goals.One such action is to reduce outlays for overhead,which have exceeded budgeted amounts.Which of the following functions best describes this process?

Much of managerial accounting information is based on:

Which of the following business models considers financial,customer,internal operating,and other measures in the evaluation of performance?

The value chain is a key component of contemporary management accounting.Define the term "value chain" and explain how it would relate to an airline.

Briefly distinguish between managerial accounting and financial accounting.Be sure to comment on the general focus,users,and regulation related to the two fields.

Managerial accountants: