Exam 1: Accounting As a Tool for Management

A relatively new tool that managerial accountants have developed to assist is the balanced scorecard. Required: Explain the purpose of the balanced scorecard.List the various perspectives comprising the balanced scorecard,and explain what each perspective measures.

Under the Sarbanes-Oxley Act,which of the following related to the corporate code of ethics is not required?

Which of the following is not a type of unethical behavior employees might observe?

All public companies that are traded on a stock exchange and governed by the Securities and Exchange Commission must prepare financial statements following

A key component of a positive ethical environment is "tone at the top." Discuss what this term means,and why this is a key component.

In the context of managerial accounting,relevant information

For each statement below,indicate the management tool being implemented.

One purpose of planning activities is to monitor day-to-day operations to ensure that processes are operating as expected.

Long-term planning is often referred to as

When using just-in-time inventory management,a company puts good into production

To help managers with their evaluations,managerial accountants often perform

An example of an external user is a

In each of the following situations,identify whether the setting is primarily financial accounting or managerial accounting. a.Abba Company purchased a new telephone system costing $132,000 for its sales division.The new phone system will be depreciated using the straight-line method over a period of five years and has an estimated salvage value of $5,000. b.Bandex Company has had several customers who are experiencing the negative effects of the downturn in the economy.As a result,the company believes its allowance for doubtful accounts should be increased from 1% of credit sales to 1.5% of credit sales. c.Cortez,Inc.has experienced a decline in net income over the past three years.The engineering department is considering redesigning a product to eliminate waste and inefficiency in the production process. d.The sales manager of Decca Corporation believes one salesman is creating fictitious sales to inflate his commission.The sales manager has asked the controller for a detailed report of sales by salesman. e.Essex,Inc.executives are meeting to analyze the company's actual results compared to budgeted amounts. Unit 1-1 -

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

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

Managerial accounting provides reports and information for a range of decision makers outside an organization.

One of the primary products of the operations planning stage will likely be a

As part of their continuing effort to improve business processes to deliver maximum value to their customers,many business have adopted one or more of the following systems: a.Supply chain management b.Just-in-time-inventory JIT c.Enterprise resource planning ERP systems Required: Describe each of the above systems and their goal. Unit 1-2 -

Compare and contrast strategic planning and operational planning.

Just-in-time inventory management is an inventory strategy that focuses on reducing waste and inefficiency by ordering inventory items so that they arrive just when they are needed.