Exam 1: Managerial Accounting and the Business Environment

The lean approach results in fewer defects,less wasted effort,and quicker customer response times than traditional production methods.

Customer value propositions tend to fall into three broad categories--customer intimacy,operational excellence,and product leadership.

Emphasis on the future is given equal weight by both managerial accounting and financial accounting.

Which of the following is part of managing and improving business processes?

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

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

You have recently been hired by a manufacturing company.Two days ago,you met with the top management of the company to discuss future strategies for the firm.During the meeting,the president of the company expressed concern about the profitability of the company and the company's ability to compete effectively in the future.You responded to the president's concerns by mentioning some articles you had read in professional accounting journals regarding the lean thinking model.The president responded to your comments by saying that although the lean thinking model sounded interesting,no one in the company was knowledgeable about it.The president then requested that you prepare a brief summary of the lean thinking model for the next strategic planning meeting.Required: a.Describe the lean thinking model and how it differs from traditional manufacturing methods b.List some of the benefits of the lean thinking model.

Many customers seek to purchase products and services from socially responsible companies.

The purpose of IFRS is:

In Canada,CPA Code of Ethics is an instrument for enforcing professional conduct for its members and comprise the following:

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

Lean production is often called just-in-time production.

Which of the following would be an example of a performance report?

Managerial accounting plays a critical role in providing information to management to facilitate strategy implementation and monitoring.

Lean thinking differs from traditional manufacturing methods,which organize work departmentally and encourage those departments to maximize their output even if it exceeds customer demand and bloats inventories.

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

Lean production is a management approach that organizes resources such as people and machines around the flow of business processes and that produces units only in response to customer orders.

Companies that adopt a customer intimacy strategy are in essence saying to their target customers,"The reason you should choose us is because we understand and respond to your individual needs better than our competitors."

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?

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