Question 1

Both the controller and CFO are staff positions.

Accepted Answer

A) True 
 B)False

Question 2

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.

Accepted Answer

a.The lean thinking model is a managemen

Question 3

Which of the following is NOT an example of a business risk?

Accepted Answer

A)  Products harming customers. 
B)  A website malfunctioning. 
C)  A customer value proposition. 
D)  An employee accessing unauthorized information. 
A)  Products harming customers. 
B)  A website malfunctioning. 
C)  A customer value proposition. 
D)  An employee accessing unauthorized information.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

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 8

Top management make most of the decisions in decentralized organizations.

Accepted Answer

A) True 
 B)False

Question 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Question 12

The purpose of IFRS is:

Accepted Answer

A)  To encourage Strategic planning. 
B)  To enhance the comparability and clarity of financial information on a global basis. 
C)  To encourage disclosure of Non-Financial data. 
D)  To change how management accountants prepare reports. 
A)  To encourage Strategic planning. 
B)  To enhance the comparability and clarity of financial information on a global basis. 
C)  To encourage disclosure of Non-Financial data. 
D)  To change how management accountants prepare reports.

Question 13

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."

Accepted Answer

A) True 
 B)False

Question 14

Which of the following 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 15

The delegation of decision making throughout an organization by providing managers at various operating levels with the authority to make key decisions relating to their area of responsibility is which of the following?

Accepted Answer

A)  Risk management. 
B)  Corporate social responsibility. 
C)  Decentralization. 
D)  A staff position. 
A)  Risk management. 
B)  Corporate social responsibility. 
C)  Decentralization. 
D)  A staff position.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

Which of the following is NOT a topic relating to managing and improving business processes?

Accepted Answer

A)  Lean Production. 
B)  Corporate Governance. 
C)  Enterprise Systems. 
D)  Risk Management. 
A)  Lean Production. 
B)  Corporate Governance. 
C)  Enterprise Systems. 
D)  Risk Management.

Both the controller and CFO are staff positions.

Which of the following is NOT an example of a business risk?

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

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

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

Top management make most of the decisions in decentralized organizations.

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

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

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

The purpose of IFRS is:

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."

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

The delegation of decision making throughout an organization by providing managers at various operating levels with the authority to make key decisions relating to their area of responsibility is which of the following?

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

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

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

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

Which of the following is NOT a topic relating to managing and improving business processes?

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 Online

Filters

Exam 1: Managerial Accounting and the Business Environment

Both the controller and CFO are staff positions.

Which of the following is NOT an example of a business risk?

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

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

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

Top management make most of the decisions in decentralized organizations.

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

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

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

The purpose of IFRS is:

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."

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

The delegation of decision making throughout an organization by providing managers at various operating levels with the authority to make key decisions relating to their area of responsibility is which of the following?

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

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

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

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

Which of the following is NOT a topic relating to managing and improving business processes?

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 Online

Filters