Question 1

The best-designed strategies are valuable whether or not they are effectively implemented.

Accepted Answer

A) True 
 B)False

Question 2

The Sarbanes-Oxley legislation does NOT provide a process for employees to report violations of illegal and unethical acts.

Accepted Answer

A) True 
 B)False

Question 3

While financial accounting provides a historical perspective,what does management accounting emphasise?

Accepted Answer

A) past transactions 
B) the future 
C) reports to shareholders 
D) a current perspective 
A) past transactions 
B) the future 
C) reports to shareholders 
D) a current perspective

Question 4

________ is the delivery of products or services to customers.

Accepted Answer

A) Distribution 
B) Production 
C) Customer service 
D) Design of products,services,or processes 
A) Distribution 
B) Production 
C) Customer service 
D) Design of products,services,or processes

Question 5

Responsibilities of a Chief Financial Officer (CFO )include all of the following EXCEPT:

Accepted Answer

A) chairing the board of directors. 
B) supervising the preparation of tax returns. 
C) managing short-term and long-term financing. 
D) providing financial reports to shareholders. 
A) chairing the board of directors. 
B) supervising the preparation of tax returns. 
C) managing short-term and long-term financing. 
D) providing financial reports to shareholders.

Question 6

Is financial accounting or management accounting more useful to an operations manager? Why?

Accepted Answer

Management accounting is more useful to

Question 7

The best-designed strategies and the best-developed capabilities are useless unless they are executed effectively.

Accepted Answer

A) True 
 B)False

Question 8

Who is primarily responsible for management accounting and financial accounting?

Accepted Answer

A) CIO (Chief Information Officer) 
B) COO (Chief Operating Officer) 
C) Treasurer 
D) Chief Management Accounting officer or controller 
A) CIO (Chief Information Officer) 
B) COO (Chief Operating Officer) 
C) Treasurer 
D) Chief Management Accounting officer or controller

Question 9

Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning their direct supervisor?

Accepted Answer

A) Confront their supervisor directly. 
B) Discuss the situation with their supervisor's direct supervisor. 
C) Review their organisation's procedures concerning resolution of such a conflict. 
D) Inform the Board of Directors of the existence of a potential conflict. 
A) Confront their supervisor directly. 
B) Discuss the situation with their supervisor's direct supervisor. 
C) Review their organisation's procedures concerning resolution of such a conflict. 
D) Inform the Board of Directors of the existence of a potential conflict.

Question 10

By analysing activities,managers are able to integrate and coordinate them across suppliers and customers in the supply chain,as well as across business functions in an individual company's value chain,with a view to reducing costs.

Accepted Answer

A) True 
 B)False

Question 11

An organisation's ________ identifies the organisation's purpose objective,its output/market scope and the way it conducts its operations;the output/market scope includes customer groups served,customer functions and technologies used.

Accepted Answer

A) strategy 
B) code of ethics 
C) mission statement 
D) structure 
A) strategy 
B) code of ethics 
C) mission statement 
D) structure

Question 12

Successful strategy implementation requires more than value-chain and supply-chain analysis and execution of key success factors.

Accepted Answer

A) True 
 B)False

Question 13

An ideal database should consist of data that could be used for a single purpose only.

Accepted Answer

A) True 
 B)False

Question 14

Cost management provides information that helps increase value for customers.

Accepted Answer

A) True 
 B)False

Question 15

Place the four business functions in the order they appear along the value chain:
A = Customer service
B = Design
C = Distribution
D = Production

Accepted Answer

A) B A D C 
B) A B D C 
C) A C D B 
D) B D C A 
A) B A D C 
B) A B D C 
C) A C D B 
D) B D C A

Question 16

When a particular aspect of employee performance is measured,employees pay more attention to it.

Accepted Answer

A) True 
 B)False

Question 17

Where an organisation is large enough to employ both a chief financial officer (CFO)and a management accountant,the management accountant reports to the ________ .

Accepted Answer

A) president 
B) board of directors 
C) CEO 
D) CFO 
A) president 
B) board of directors 
C) CEO 
D) CFO

Question 18

________ is an organisation's ability to achieve lower costs relative to competitors through productivity and efficiency improvements,elimination of waste,and tight cost control.

Accepted Answer

A) Product differentiating 
B) Cost leadership 
C) Market growth 
D) Product pricing 
A) Product differentiating 
B) Cost leadership 
C) Market growth 
D) Product pricing

Question 19

Companies can decide on an appropriate strategy based strictly on internally available information.

Accepted Answer

A) True 
 B)False

Question 20

Strategy does NOT specify how an organisation matches its capabilities with the opportunities in the market place.

Accepted Answer

A) True 
 B)False

Exam 1: Management Accounting in Context

The best-designed strategies are valuable whether or not they are effectively implemented.

The Sarbanes-Oxley legislation does NOT provide a process for employees to report violations of illegal and unethical acts.

While financial accounting provides a historical perspective,what does management accounting emphasise?

________ is the delivery of products or services to customers.

Responsibilities of a Chief Financial Officer (CFO )include all of the following EXCEPT:

Is financial accounting or management accounting more useful to an operations manager? Why?

The best-designed strategies and the best-developed capabilities are useless unless they are executed effectively.

Who is primarily responsible for management accounting and financial accounting?

Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning their direct supervisor?

By analysing activities,managers are able to integrate and coordinate them across suppliers and customers in the supply chain,as well as across business functions in an individual company's value chain,with a view to reducing costs.

An organisation's ________ identifies the organisation's purpose objective,its output/market scope and the way it conducts its operations;the output/market scope includes customer groups served,customer functions and technologies used.

Successful strategy implementation requires more than value-chain and supply-chain analysis and execution of key success factors.

An ideal database should consist of data that could be used for a single purpose only.

Cost management provides information that helps increase value for customers.

Place the four business functions in the order they appear along the value chain: A = Customer service B = Design C = Distribution D = Production

When a particular aspect of employee performance is measured,employees pay more attention to it.

Where an organisation is large enough to employ both a chief financial officer (CFO)and a management accountant,the management accountant reports to the ________ .

________ is an organisation's ability to achieve lower costs relative to competitors through productivity and efficiency improvements,elimination of waste,and tight cost control.

Companies can decide on an appropriate strategy based strictly on internally available information.

Strategy does NOT specify how an organisation matches its capabilities with the opportunities in the market place.

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

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