Exam 1: Accounting As a Tool for Management

Your boss has asked you to lead a committee to develop a code of conduct for the company.Write a memo to the committee members to schedule your first meeting.In your memo list the six components you believe are most important to be included in the code and explain why.

Managerial and financial accounting differ in several different ways.Explain these differences by completing the table below.

A divest strategy is appropriate when a company desires to enter a particular market.

The supply chain's goal is to

The leading professional organization for management accountants is the

Which of the following is a type of unethical behavior employees might observe?

A harvest strategy focuses on short-term profits and cash,even at the expense of market share.

Under a build strategy,a company aims to increase its market share and competitive position relative to others in the industry,maximizing its short-term earnings and positive cash flow.

What are the requirements Section 406 of the Sarbanes-Oxley Act regarding publicly traded company's code of conduct?

Assume your roommate is a management major and must take this course next semester.You have explained some of the things you have learned thus far,but your roommate states,"I don't know why I would need to know anything about managerial accounting! I am not an accounting major and will NEVER be preparing any managerial accounting reports.As long as I make a profit for the company I will work for,who cares what the accountants' reports say?" How would you respond?

Michael Porter,a management strategy expert,developed a strategic framework in which a firm has ways to develop a competitive advantage.Which of the following is not one of the ways Porter suggested a firm use to develop a competitive advantage?

Since internal users have access to all the underlying data used for managerial accounting reports,

Juan's Ortiz's taco stand in Bomfa,California,specializes in fresh,handmade tacos.While Juan's business does not yet have a national presence,he does have a strong citywide reputation.Recently,Juan has been receiving some orders from other parts of the country through the company's website.He is beginning to think about the potential for growing his out-of-city business. a.How can managerial accounting information be useful to Juan as he thinks about growing his out-of-city business? b.What decisions might Juan need to make if he decides to grow his out-of-city business? c.What managerial accounting information might Juan find useful as he decides how to grow his out-of-city business?

A company that wants to be successful needs to know:

Preparers of managerial accounting information are generally not active participants in the decision making process.

Which of the following is not a component of the IMA Statement of Ethical Professional Practice standards?

All other things held equal

Managerial accounting is designed to assist managers with which of the following activities?

The task of assessing how well employees have performed relative to expectations is a controlling activity.

Michael Mounts owns several used book stores in Cleveland,MS.Identify each of the following actions he performs as a planning,controlling,evaluating or decision making activity: