Question 1

In general,accounting data serve both financial accounting and managerial accounting purposes.

Accepted Answer

A) True 
 B)False  True

Question 2

The lean thinking model is a five step management approach that organizes resources such as people and machines around the flow of business processes and that pulls units through these processes in response to customer orders.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following facets of the lean thinking model is often called just-in-time production?

Accepted Answer

A)  Identify value in specific products/services 
B)  Identify the business process that delivers value 
C)  Create a pull system that responds to customer orders 
D)  Organize work arrangements around the flow of the business process 
A)  Identify value in specific products/services 
B)  Identify the business process that delivers value 
C)  Create a pull system that responds to customer orders 
D)  Organize work arrangements around the flow of the business process C

Question 4

How much it costs a company to manufacture a particular product is one of the many questions that reports typically provided by managerial accountants help to answer.
Required:
Comment on the usefulness of a unit product cost information in the preparation of a set of financial statements?

Accepted Answer

Unlike a merchandising company,a manufac

Question 5

Samantha Galloway is a managerial accountant in the accounting department of Mustang Industries,Inc.Samantha has just discovered evidence that some of the corporation's marketing managers have been wrongfully inflating their expense reports in order to obtain higher reimbursements from the firm.According to the Institute of Management Accountants' Standards of Ethical Conduct,what should Samantha do upon discovering this evidence?

Accepted Answer

A)  Notify the controller. 
B)  Notify the marketing managers involved. 
C)  Notify the president of the corporation. 
D)  Ignore the evidence because she is not part of the Marketing Department. 
A)  Notify the controller. 
B)  Notify the marketing managers involved. 
C)  Notify the president of the corporation. 
D)  Ignore the evidence because she is not part of the Marketing Department.

Question 6

Which of the following is NOT one of the three major customer value propositions discussed in the text?

Accepted Answer

A)  customer intimacy 
B)  discount pricing 
C)  operational excellence 
D)  product leadership 
A)  customer intimacy 
B)  discount pricing 
C)  operational excellence 
D)  product leadership

Question 7

One consequence of a change from a push to a properly implemented pull production system can be which of the following?

Accepted Answer

A)  an increase in work in process inventories. 
B)  an extremely difficult cultural change due to enforced idleness when demand falls below production capacity. 
C)  an increased mismatch between what is produced and what is demanded by customers. 
D)  an increase in raw materials inventories. 
A)  an increase in work in process inventories. 
B)  an extremely difficult cultural change due to enforced idleness when demand falls below production capacity. 
C)  an increased mismatch between what is produced and what is demanded by customers. 
D)  an increase in raw materials inventories.

Question 8

Both financial and managerial accounting rely on the same underlying financial data but there are major differences.Managerial Accounting:

Accepted Answer

A)  Emphasizes financial consequences of past activities. 
B)  Emphasizes precision. 
C)  Emphasizes relevance. 
D)  Must follow GAAP. 
A)  Emphasizes financial consequences of past activities. 
B)  Emphasizes precision. 
C)  Emphasizes relevance. 
D)  Must follow GAAP.

Question 9

Day-to-day decision making is most common to which of the following activities managers are expected to carry on in organizations?

Accepted Answer

A)  Strategy formulation. 
B)  Directing and motivating. 
C)  Planning. 
D)  Controlling. 
A)  Strategy formulation. 
B)  Directing and motivating. 
C)  Planning. 
D)  Controlling.

Question 10

Budgeting is part of which of the following activities managers perform in organizations?

Accepted Answer

A)  Controlling. 
B)  Directing. 
C)  Planning. 
D)  Motivating. 
A)  Controlling. 
B)  Directing. 
C)  Planning. 
D)  Motivating.

Question 11

Which of the following is the stakeholder group whose interests are to be directly and formally protected by effective corporate governance?

Accepted Answer

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

Question 12

What would be an example of a performance report?

Accepted Answer

A)  An income statement reporting actual results for the past month. 
B)  An income statement showing the amounts budgeted for the past month. 
C)  A balance sheet showing the actual financial position at the end of the past month. 
D)  A production report showing budgeted and actual production for the past month. 
A)  An income statement reporting actual results for the past month. 
B)  An income statement showing the amounts budgeted for the past month. 
C)  A balance sheet showing the actual financial position at the end of the past month. 
D)  A production report showing budgeted and actual production for the past month.

Question 13

Which of the following groups should be the focal point of a company's strategy?

Accepted Answer

A)  Employees 
B)  Board of directors 
C)  Shareholders 
D)  Target customers 
A)  Employees 
B)  Board of directors 
C)  Shareholders 
D)  Target customers

Question 14

A customer value proposition is essentially a reason for customers to choose a company's products over its competitors' products.

Accepted Answer

A) True 
 B)False

Question 15

A strategy is a game plan that enables a company to attract customers by distinguishing itself from competitors.

Accepted Answer

A) True 
 B)False

Question 16

A value chain consists of the major business functions that add value to the company's products and services.

Accepted Answer

A) True 
 B)False

Question 17

Managerial accounting places less emphasis on precision and more emphasis on timeliness of data than financial accounting does.

Accepted Answer

A) True 
 B)False

Question 18

Identifying alternatives and selecting the best among them is part of which of the following activities which managers carry on in organizations?

Accepted Answer

A)  Controlling. 
B)  Directing. 
C)  Planning. 
D)  Motivating. 
A)  Controlling. 
B)  Directing. 
C)  Planning. 
D)  Motivating.

Question 19

After careful planning,Jammu Manufacturing Corporation has decided to switch to a just-in-time inventory system as a component of the lean thinking model.At the beginning of this switch,Jammu has 30 units of product in inventory.Jammu has 2,000 labour hours available in the first month of this switch.These hours could produce 500 units of product.Customer demand for this first month is 400 units.If just-in-time principles are correctly followed,how many units should Jammu plan to produce in the first month of the switch?

Accepted Answer

A)  370 
B)  400 
C)  430 
D)  470 
A)  370 
B)  400 
C)  430 
D)  470

Question 20

Corporate governance is the legal framework that allows managers to control and direct lower-level workers on the job.

Accepted Answer

A) True 
 B)False

In general,accounting data serve both financial accounting and managerial accounting purposes.

The lean thinking model is a five step management approach that organizes resources such as people and machines around the flow of business processes and that pulls units through these processes in response to customer orders.

Which of the following facets of the lean thinking model is often called just-in-time production?

How much it costs a company to manufacture a particular product is one of the many questions that reports typically provided by managerial accountants help to answer. Required: Comment on the usefulness of a unit product cost information in the preparation of a set of financial statements?

Which of the following is NOT one of the three major customer value propositions discussed in the text?

One consequence of a change from a push to a properly implemented pull production system can be which of the following?

Both financial and managerial accounting rely on the same underlying financial data but there are major differences.Managerial Accounting:

Day-to-day decision making is most common to which of the following activities managers are expected to carry on in organizations?

Budgeting is part of which of the following activities managers perform in organizations?

Which of the following is the stakeholder group whose interests are to be directly and formally protected by effective corporate governance?

What would be an example of a performance report?

Which of the following groups should be the focal point of a company's strategy?

A customer value proposition is essentially a reason for customers to choose a company's products over its competitors' products.

A strategy is a game plan that enables a company to attract customers by distinguishing itself from competitors.

A value chain consists of the major business functions that add value to the company's products and services.

Managerial accounting places less emphasis on precision and more emphasis on timeliness of data than financial accounting does.

Identifying alternatives and selecting the best among them is part of which of the following activities which managers carry on in organizations?

Corporate governance is the legal framework that allows managers to control and direct lower-level workers on the job.

Cost Terms, Concepts, and Classifications

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: A Tool to Aid Decision Making

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Variable Costing: A Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis

Filters

Exam 1: Managerial Accounting and the Business Environment

In general,accounting data serve both financial accounting and managerial accounting purposes.

The lean thinking model is a five step management approach that organizes resources such as people and machines around the flow of business processes and that pulls units through these processes in response to customer orders.

Which of the following facets of the lean thinking model is often called just-in-time production?

How much it costs a company to manufacture a particular product is one of the many questions that reports typically provided by managerial accountants help to answer. Required: Comment on the usefulness of a unit product cost information in the preparation of a set of financial statements?

Which of the following is NOT one of the three major customer value propositions discussed in the text?

One consequence of a change from a push to a properly implemented pull production system can be which of the following?

Both financial and managerial accounting rely on the same underlying financial data but there are major differences.Managerial Accounting:

Day-to-day decision making is most common to which of the following activities managers are expected to carry on in organizations?

Budgeting is part of which of the following activities managers perform in organizations?

Which of the following is the stakeholder group whose interests are to be directly and formally protected by effective corporate governance?

What would be an example of a performance report?

Which of the following groups should be the focal point of a company's strategy?

A customer value proposition is essentially a reason for customers to choose a company's products over its competitors' products.

A strategy is a game plan that enables a company to attract customers by distinguishing itself from competitors.

A value chain consists of the major business functions that add value to the company's products and services.

Managerial accounting places less emphasis on precision and more emphasis on timeliness of data than financial accounting does.

Identifying alternatives and selecting the best among them is part of which of the following activities which managers carry on in organizations?

Corporate governance is the legal framework that allows managers to control and direct lower-level workers on the job.

Cost Terms, Concepts, and Classifications

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: A Tool to Aid Decision Making

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Variable Costing: A Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis

Filters