Question 1

Many organizations use extrinsic incentives to highlight important goals and to motivate employees to achieve them.

Accepted Answer

A) True 
 B)False  True

Question 2

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. C

Question 3

Which of the following best describes the function of managerial accounting within an organization?

Accepted Answer

A)  It has its primary emphasis on the future. 
B)  It is required by regulatory bodies such as the Ontario Securities Commission. 
C)  It focuses on the organization as a whole, rather than on the organization's segments. 
D)  It places more emphasis on precision of data than financial accounting does. 
A)  It has its primary emphasis on the future. 
B)  It is required by regulatory bodies such as the Ontario Securities Commission. 
C)  It focuses on the organization as a whole, rather than on the organization's segments. 
D)  It places more emphasis on precision of data than financial accounting does. A

Question 4

Upon which of the following does managerial accounting place considerable weight?

Accepted Answer

A)  Generally accepted accounting principles. 
B)  The financial history of the entity. 
C)  Ensuring that all transactions are properly recorded. 
D)  Detailed segment reports about departments, products, and customers. 
A)  Generally accepted accounting principles. 
B)  The financial history of the entity. 
C)  Ensuring that all transactions are properly recorded. 
D)  Detailed segment reports about departments, products, and customers.

Question 5

To reduce the likelihood that employees will engage in undesirable activities that may harm various stakeholders,many companies prepare a formal code of conduct to reflect their values and moral system.

Accepted Answer

A) True 
 B)False

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

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 8

Managerial accounting is NOT governed by generally accepted accounting principles (GAAP).

Accepted Answer

A) True 
 B)False

Question 9

Professional accounting body in Canada (CPA)require their members to undertake professional development and/or continuing education.This practice is intended to directly satisfy which of these rules of ethical conduct in line with other code of ethics?

Accepted Answer

A)  Integrity. 
B)  Objectivity. 
C)  Competence. 
D)  Confidentiality. 
A)  Integrity. 
B)  Objectivity. 
C)  Competence. 
D)  Confidentiality.

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

Companies that choose an operational excellence strategy are in essence saying to their customers,"Choose us rather than our competitors because we strive for zero defects."

Accepted Answer

A) True 
 B)False

Question 12

Which one of the following is NOT an activity in the planning and control cycle?

Accepted Answer

A)  Comparing actual to planned performance. 
B)  Raw materials are released to production far in advance of being needed to ensure no interruptions in work flows due to shortages of raw materials. 
C)  Formulating long and short-term plans. 
D)  Measuring performance. 
A)  Comparing actual to planned performance. 
B)  Raw materials are released to production far in advance of being needed to ensure no interruptions in work flows due to shortages of raw materials. 
C)  Formulating long and short-term plans. 
D)  Measuring performance.

Question 13

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

Accepted Answer

A)  Customers 
B)  Creditors 
C)  All Stakeholders 
D)  Suppliers 
A)  Customers 
B)  Creditors 
C)  All Stakeholders 
D)  Suppliers

Question 14

Which is the most common risk management tactic?

Accepted Answer

A)  Accept the risk. 
B)  Avoid the risk. 
C)  Reduce the risk. 
D)  Share the risk. 
A)  Accept the risk. 
B)  Avoid the risk. 
C)  Reduce the risk. 
D)  Share the risk.

Question 15

Obtaining feedback is generally identified most directly with which of these functions of management?

Accepted Answer

A)  Planning. 
B)  Directing and motivating. 
C)  Controlling. 
D)  Decision making. 
A)  Planning. 
B)  Directing and motivating. 
C)  Controlling. 
D)  Decision making.

Question 16

Product harming customers is NOT a business risk.

Accepted Answer

A) True 
 B)False

Question 17

Which one of the following is NOT an example of corporate social responsibility provided to customers?

Accepted Answer

A)  Safe, high- quality products that are fairly priced. 
B)  Full disclosure of product related risks. 
C)  Opportunities for training, promotion and personal development. 
D)  Easy to use information systems for shopping and tracking orders. 
A)  Safe, high- quality products that are fairly priced. 
B)  Full disclosure of product related risks. 
C)  Opportunities for training, promotion and personal development. 
D)  Easy to use information systems for shopping and tracking orders.

Question 18

Managerial accounting is not mandatory.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Provide three examples of common business risks faced by companies.

Accepted Answer

Some examples of common business risks i

Many organizations use extrinsic incentives to highlight important goals and to motivate employees to achieve them.

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

Which of the following best describes the function of managerial accounting within an organization?

Upon which of the following does managerial accounting place considerable weight?

To reduce the likelihood that employees will engage in undesirable activities that may harm various stakeholders,many companies prepare a formal code of conduct to reflect their values and moral system.

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

Managerial accounting is NOT governed by generally accepted accounting principles (GAAP).

Professional accounting body in Canada (CPA)require their members to undertake professional development and/or continuing education.This practice is intended to directly satisfy which of these rules of ethical conduct in line with other code of ethics?

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

Companies that choose an operational excellence strategy are in essence saying to their customers,"Choose us rather than our competitors because we strive for zero defects."

Which one of the following is NOT an activity in the planning and control cycle?

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

Which is the most common risk management tactic?

Obtaining feedback is generally identified most directly with which of these functions of management?

Product harming customers is NOT a business risk.

Which one of the following is NOT an example of corporate social responsibility provided to customers?

Managerial accounting is not mandatory.

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

Provide three examples of common business risks faced by companies.

Cost Terms,concepts,and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: A Tool to Aid Decision Making

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

Many organizations use extrinsic incentives to highlight important goals and to motivate employees to achieve them.

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

Which of the following best describes the function of managerial accounting within an organization?

Upon which of the following does managerial accounting place considerable weight?

To reduce the likelihood that employees will engage in undesirable activities that may harm various stakeholders,many companies prepare a formal code of conduct to reflect their values and moral system.

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

Managerial accounting is NOT governed by generally accepted accounting principles (GAAP).

Professional accounting body in Canada (CPA)require their members to undertake professional development and/or continuing education.This practice is intended to directly satisfy which of these rules of ethical conduct in line with other code of ethics?

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

Companies that choose an operational excellence strategy are in essence saying to their customers,"Choose us rather than our competitors because we strive for zero defects."

Which one of the following is NOT an activity in the planning and control cycle?

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

Which is the most common risk management tactic?

Obtaining feedback is generally identified most directly with which of these functions of management?

Product harming customers is NOT a business risk.

Which one of the following is NOT an example of corporate social responsibility provided to customers?

Managerial accounting is not mandatory.

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

Provide three examples of common business risks faced by companies.

Cost Terms,concepts,and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Job-Order Costing

Systems Design: Process Costing

Activity-Based Costing: A Tool to Aid Decision Making

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