Question 1

One of the steps in planning is identifying and evaluating potential courses of action.

Accepted Answer

A) True 
 B)False

Question 2

Companies use the term ________ to describe a strategy that integrates people and technology in all business functions to enhance relationships with customers,partners and distributors.

Accepted Answer

A) cost leadership 
B) product differentiation 
C) market penetration 
D) customer relationship management 
A) cost leadership 
B) product differentiation 
C) market penetration 
D) customer relationship management

Question 3

A managerial accountant should not disclose confidential information to an outside party (such as a newspaper)unless legally obligated to do so.

Accepted Answer

A) True 
 B)False

Question 4

In most organisations,there are also ________ relationships that managers must understand when they attempt to implement their decisions.

Accepted Answer

A) informal 
B) strategic 
C) interpersonal 
D) tactical 
A) informal 
B) strategic 
C) interpersonal 
D) tactical

Question 5

When faced with a potential ethical conflict,the management accountant should first consult any internal procedures of their organisation.

Accepted Answer

A) True 
 B)False

Question 6

The CIMA Code of Ethics for management accountants includes concepts related to:

Accepted Answer

A) experience,integrity,reporting,and objectivity. 
B) competence,performance,integrity,and reporting. 
C) competence,confidentiality,integrity,and professional behaviour. 
D) None of these answers are correct. 
A) experience,integrity,reporting,and objectivity. 
B) competence,performance,integrity,and reporting. 
C) competence,confidentiality,integrity,and professional behaviour. 
D) None of these answers are correct.

Question 7

Tracking what is happening in other companies is illegal.

Accepted Answer

A) True 
 B)False

Question 8

Companies have to follow strict guidelines when designing a management accounting system.

Accepted Answer

A) True 
 B)False

Question 9

Is it possible to have an active cost management program without an Enterprise Resource Planning (ERP)System?

Accepted Answer

Yes,an active cost management program ca

Question 10

What is the most important planning tool?

Accepted Answer

A) Budget 
B) Goal 
C) Performance evaluation report 
D) Balanced scorecard 
A) Budget 
B) Goal 
C) Performance evaluation report 
D) Balanced scorecard

Question 11

Examples of the Chief Management Accountant's functions include all EXCEPT:

Accepted Answer

A) planning. 
B) investor relations. 
C) operations administration. 
D) budgeting. 
A) planning. 
B) investor relations. 
C) operations administration. 
D) budgeting.

Question 12

Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting.

Accepted Answer

A) True 
 B)False

Question 13

Companies report on their approach to maintaining sustainability in:

Accepted Answer

A) the report on social responsibility. 
B) the income statement. 
C) the balance sheet. 
D) None of the above. 
A) the report on social responsibility. 
B) the income statement. 
C) the balance sheet. 
D) None of the above.

Question 14

Strategy should focus PRIMARILY on the organisation's:

Accepted Answer

A) customers. 
B) products. 
C) employees. 
D) shareholders. 
A) customers. 
B) products. 
C) employees. 
D) shareholders.

Question 15

Technological innovation has led to longer product life cycles and hence a need to bring new products to market more rapidly.

Accepted Answer

A) True 
 B)False

Question 16

A data warehouse or infobarn:

Accepted Answer

A) is primarily used for financial reporting purposes. 
B) stores information used by different managers for multiple purposes. 
C) gathers only non-financial information. 
D) is reserved for exclusive use by the CFO. 
A) is primarily used for financial reporting purposes. 
B) stores information used by different managers for multiple purposes. 
C) gathers only non-financial information. 
D) is reserved for exclusive use by the CFO.

Question 17

Generally,companies follow one of two broad strategies: offering a quality product at a low price,or offering a unique product or service priced higher than the competition.Is it possible to follow a strategy that is 'in the middle?'
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

There is some dispute about the correct

Question 18

Feedback and learning hinders the future decision-making process.

Accepted Answer

A) True 
 B)False

Question 19

What is strategy? Briefly describe the two broad types of strategies that companies may choose to pursue.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

Strategy specifies how an organisation m

Question 20

Which of these types of information are used in management accounting?

Accepted Answer

A) Financial information 
B) Information focused on the long term 
C) Non-financial information 
D) All of these answers are correct. 
A) Financial information 
B) Information focused on the long term 
C) Non-financial information 
D) All of these answers are correct.

Exam 1: Management Accounting in Context

One of the steps in planning is identifying and evaluating potential courses of action.

Companies use the term ________ to describe a strategy that integrates people and technology in all business functions to enhance relationships with customers,partners and distributors.

A managerial accountant should not disclose confidential information to an outside party (such as a newspaper)unless legally obligated to do so.

In most organisations,there are also ________ relationships that managers must understand when they attempt to implement their decisions.

When faced with a potential ethical conflict,the management accountant should first consult any internal procedures of their organisation.

The CIMA Code of Ethics for management accountants includes concepts related to:

Tracking what is happening in other companies is illegal.

Companies have to follow strict guidelines when designing a management accounting system.

Is it possible to have an active cost management program without an Enterprise Resource Planning (ERP)System?

What is the most important planning tool?

Examples of the Chief Management Accountant's functions include all EXCEPT:

Management accounting has to strictly follow the rules of generally accepted accounting principles for the purposes of measurement and reporting.

Companies report on their approach to maintaining sustainability in:

Strategy should focus PRIMARILY on the organisation's:

Technological innovation has led to longer product life cycles and hence a need to bring new products to market more rapidly.

A data warehouse or infobarn:

Feedback and learning hinders the future decision-making process.

What is strategy? Briefly describe the two broad types of strategies that companies may choose to pursue. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Which of these types of information are used in management accounting?

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

What is strategy? Briefly describe the two broad types of strategies that companies may choose to pursue. _ _