Exam 1: Management Accounting in Context

For optimal planning success it is best if each business function within the value chain is performed one at a time in sequence.

Classify each of the following cost items of Ripon Printers 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 customer order forms b.cost of paper used in manufacture of books c.cost of paper used in packing cartons to ship books d.cost of paper used in display at national trade show e.depreciation of trucks used to transport books to college bookstores f.cost of the wood used to manufacture paper g.salary of the scientists attempting to find another source of printing ink h.cost of defining the book size so that a standard-sized box is filled to capacity

The Sarbanes-Oxley legislation in the USA was passed in response to a series of corporate scandals.

Identifying a company's most important customers does not help formulate strategy.

Cost accounting provides all of the following EXCEPT:

Management accountants calculate a ________ cost for a product by subtracting the operating profit per unit of product that the company thinks it can earn from the 'target price'.

Which statement concerning performance reports is NOT correct?

An effective way to cut costs is to eliminate activities that do not improve the product attributes that customers value.

________ is the after-sale support provided to customers.

Companies gain (in terms of cost,quality and the speed with which new products are developed)if two or more of the individual business functions of the value chain work concurrently as a team.

CPA Australia and the Institute of Chartered Accountants in Australia (ICAA)established the Accounting Professional and Ethical Standards Board (APESB)in 2006 as an independent body to produce the code of ethics and professional standards,and were joined by the Institute of Public Accountants in the following year.

Strategic management accounting focuses specifically on strategic issues.

What areas of responsibility does a Chief Financial Officer (CFO)have in a typical organisation?

________ is the acquisition,coordination,and assembly of resources to produce a product or deliver a service.

What are R&D,production,and customer service as business functions included as part of?

________ is an organisation's ability to offer products or services that its customers perceive to be superior and unique relative to the products or services of its competitors,and to earn a premium based on that differentiation.

Globalisation has accelerated as countries enter into trade agreements that reduce barriers and encourage the provision of products and services across national boundaries.

To take advantage of changing market opportunities,the annual budget should be strictly enforced.

If a management accountant were not keeping up with current developments in management accounting,that behaviour might violate the requirement for competence in standards for professional ethical behaviour.

The balance sheet,income statement,and cash flow statement are used for financial accounting,but not for management accounting.