Question 1

How does a controller help 'control' a company?

Accepted Answer

By reporting and interpreting relevant data,the controller exerts a force or influence that impels management toward making better-informed decisions.
The controller of Caterpillar described the job as 'a business advisor to...help the team develop strategy and focus the team all the way through recommendations and implementation'.

Question 2

Distribution refers to promoting and selling products or services to customers or prospective customers.

Accepted Answer

A) True 
 B)False  False

Question 3

SWOT analysis entails:

Accepted Answer

A) an analysis of strengths,weaknesses,opportunities and threats. 
B) how an organisation chooses to compete and highlights the opportunities its managers should evaluate and pursue if advantageous. 
C) showing how management accounting connects with sustainability. 
D) bringing relevant costs and benefits of sustainability to the attention of decision makers in the public arena,such as city councillors or government ministers. 
A) an analysis of strengths,weaknesses,opportunities and threats. 
B) how an organisation chooses to compete and highlights the opportunities its managers should evaluate and pursue if advantageous. 
C) showing how management accounting connects with sustainability. 
D) bringing relevant costs and benefits of sustainability to the attention of decision makers in the public arena,such as city councillors or government ministers. A

Question 4

Most managers are likely to find that an established approach or framework is useful in guiding their decision making.

Accepted Answer

A) True 
 B)False

Question 5

Management accountants should have little or no role in deciding on a company's strategy.

Accepted Answer

A) True 
 B)False

Question 6

Complete a performance report for the month of May 2017,for the Bathurst Bulletin,a regional newspaper showing four columns: 1)Actual Result;2)Budgeted Amount;3)Difference: Actual Result minus Budgeted Amount;4)Difference as a Percentage of Budgeted Amount,given the following data:
 $$\begin{array} { | l | l | } 
\hline \text { Advertising pages sold } & 300 \
\hline \text { Budgeted advertising pages } & 910 \
\hline \text { Advertising revenue } & \$ 4368000 \
\hline \text { Budgeted advertising revenue } & \$ 4410000 \
\hline
\end{array}$$ 
Does the report indicate any cause for managerial investigation?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The performance report should look somet

Question 7

Which of the following is NOT a way for a company to improve customer response time?

Accepted Answer

A) Produce the product more quickly. 
B) Purchase material in larger quantities. 
C) Increase capacity of bottleneck operations. 
D) Use faster delivery procedures. 
A) Produce the product more quickly. 
B) Purchase material in larger quantities. 
C) Increase capacity of bottleneck operations. 
D) Use faster delivery procedures.

Question 8

List four principles of ethical conduct for management accountants.For each principle,give an example that demonstrates compliance with that principle.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

Please note that answers may vary,but ma

Question 9

The value chain refers to the sequence of business functions in which customer usefulness is added to products or services.

Accepted Answer

A) True 
 B)False

Question 10

When confronted with a potential ethical conflict,a management accountant should not contact his or her personal lawyer concerning rights and obligations.

Accepted Answer

A) True 
 B)False

Question 11

Classify each of the following cost items into one of the business functions of the value chain,either (1)R&D, (2)design, (3)production, (4)marketing, (5)distribution,or (6)customer service.
Item:
a.cost of samples mailed to promote sales of a new product
b.labour cost of workers in the manufacturing plant
c.bonus paid to a person with a 90% satisfaction rating in handling customers with complaints
d.transportation costs for shipping products to retail outlets

Accepted Answer

a.(4)marketing
b.(3)

Question 12

The supply chain describes the flow of goods,services,and information from the initial sources of materials and services to the delivery of products to consumers.

Accepted Answer

A) True 
 B)False

Question 13

Discuss the potential behaviour implications of performance evaluation.

Accepted Answer

As measurements are made on operations a

Question 14

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as:

Accepted Answer

A) enterprise resource planning. 
B) customer value management. 
C) value chain management. 
D) cost management. 
A) enterprise resource planning. 
B) customer value management. 
C) value chain management. 
D) cost management.

Question 15

In forming strategy,senior management must first thoroughly understand the organisation
and its environment.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following best describes an Enterprise Resource Planning System?

Accepted Answer

A) A database that is primarily used by a purchasing department to determine the correct amount of a particular supply item to purchase 
B) A sophisticated means of linking two or more companies to facilitate their planning processes 
C) A single database that collects data and feeds it into applications that support each of the company's business activities,such as purchases,production,distribution,and sales 
D) A collection of programs that use a variety of unconnected databases 
A) A database that is primarily used by a purchasing department to determine the correct amount of a particular supply item to purchase 
B) A sophisticated means of linking two or more companies to facilitate their planning processes 
C) A single database that collects data and feeds it into applications that support each of the company's business activities,such as purchases,production,distribution,and sales 
D) A collection of programs that use a variety of unconnected databases

Question 17

Linking rewards to performance is a major deterrent to good management performance.

Accepted Answer

A) True 
 B)False

Question 18

Briefly describe how managers make use of management accounting information.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

ONE:To choose strategy,to communicate it

Question 19

The Chartered Institute of Management Accountants (CIMA):

Accepted Answer

A) issues standards for financial accounting. 
B) has its headquarters in the USA. 
C) is a professional organisation of management accountants. 
D) is a professional organisation of financial accountants. 
A) issues standards for financial accounting. 
B) has its headquarters in the USA. 
C) is a professional organisation of management accountants. 
D) is a professional organisation of financial accountants.

Question 20

All of the following report to the Chief Financial Officer (CFO)EXCEPT the:

Accepted Answer

A) Production Manager. 
B) Company Secretary. 
C) Chief Management Accountant. 
D) Tax Department Manager. 
A) Production Manager. 
B) Company Secretary. 
C) Chief Management Accountant. 
D) Tax Department Manager.

How does a controller help 'control' a company?

Distribution refers to promoting and selling products or services to customers or prospective customers.

SWOT analysis entails:

Most managers are likely to find that an established approach or framework is useful in guiding their decision making.

Management accountants should have little or no role in deciding on a company's strategy.

Which of the following is NOT a way for a company to improve customer response time?

List four principles of ethical conduct for management accountants.For each principle,give an example that demonstrates compliance with that principle. _ _

The value chain refers to the sequence of business functions in which customer usefulness is added to products or services.

When confronted with a potential ethical conflict,a management accountant should not contact his or her personal lawyer concerning rights and obligations.

The supply chain describes the flow of goods,services,and information from the initial sources of materials and services to the delivery of products to consumers.

Discuss the potential behaviour implications of performance evaluation.

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as:

In forming strategy,senior management must first thoroughly understand the organisation and its environment.

Which of the following best describes an Enterprise Resource Planning System?

Linking rewards to performance is a major deterrent to good management performance.

Briefly describe how managers make use of management accounting information. _ _

The Chartered Institute of Management Accountants (CIMA):

All of the following report to the Chief Financial Officer (CFO)EXCEPT the:

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters

Exam 1: Management Accounting in Context

How does a controller help 'control' a company?

Distribution refers to promoting and selling products or services to customers or prospective customers.

SWOT analysis entails:

Most managers are likely to find that an established approach or framework is useful in guiding their decision making.

Management accountants should have little or no role in deciding on a company's strategy.

Which of the following is NOT a way for a company to improve customer response time?

The value chain refers to the sequence of business functions in which customer usefulness is added to products or services.

When confronted with a potential ethical conflict,a management accountant should not contact his or her personal lawyer concerning rights and obligations.

The supply chain describes the flow of goods,services,and information from the initial sources of materials and services to the delivery of products to consumers.

Discuss the potential behaviour implications of performance evaluation.

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as:

In forming strategy,senior management must first thoroughly understand the organisation and its environment.

Which of the following best describes an Enterprise Resource Planning System?

Linking rewards to performance is a major deterrent to good management performance.

Briefly describe how managers make use of management accounting information. _____________________________________________________________________________________________ _____________________________________________________________________________________________

The Chartered Institute of Management Accountants (CIMA):

All of the following report to the Chief Financial Officer (CFO)EXCEPT the:

Different Costs for Different Purposes

Determining How Costs Behave

Costvolumeprofit Analysis

Estimating the Cost of Producing Services

Estimating the Costs of Products and Inventory

Target Costing, Managing Activities and Managing Capacity

Activity-Based Management and Activity-Based Costing

Pricing and Customer Profitability

Decision Making and Relevant Information

Budgeting, Management Control and Responsibility Accounting

Flexible Budgets, Direct Cost Variances and Management Control

Flexible Budgets, Overhead Cost Variances and Management Control

Allocation of Support-Department Costs, Common Costs and Revenues

Strategy Formation, Strategic Control and the Balanced Scorecard

Quality, Time and the Balanced Scorecard

Inventory Management, Just-In-Time and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, Transfer Pricing and Multinational Considerations

Performance Measurement, Compensation and Multinational Considerations

Measuring and Reporting Sustainability

Filters

Briefly describe how managers make use of management accounting information. _ _