Question 1

A well-conceived plan allows managers the ability to:

Accepted Answer

A) keep lower-level managers from implementing change. 
B) take advantage of unforeseen opportunities. 
C) not make decisions again until the next planning session. 
D) underestimate costs so that actual operating results will be favourable when comparisons are made. 
A) keep lower-level managers from implementing change. 
B) take advantage of unforeseen opportunities. 
C) not make decisions again until the next planning session. 
D) underestimate costs so that actual operating results will be favourable when comparisons are made.

Question 2

Management accounting is an integral part of the ________ function in an organisation.

Accepted Answer

A) taxation 
B) treasury 
C) internal audit 
D) None of the above. 
A) taxation 
B) treasury 
C) internal audit 
D) None of the above.

Question 3

Companies make a strategic decision to create and add value by operating across the entire supply chain for the industry or to select a segment of it.

Accepted Answer

A) True 
 B)False

Question 4

Managers and employees are internal stakeholders,while external stakeholders include shareholders,lenders,creditors,suppliers,customers,the government and the community at large.

Accepted Answer

A) True 
 B)False

Question 5

A ________ ,which is a one-sentence statement of the organisation's long-term goal or objective,usually accompanies the mission statement.

Accepted Answer

A) vision statement 
B) code of ethics 
C) statement of values 
D) strategic plan 
A) vision statement 
B) code of ethics 
C) statement of values 
D) strategic plan

Question 6

Customers generally demand improved performance related to:

Accepted Answer

A) both reduced costs and increased quality. 
B) reduced costs. 
C) lower costs,improved quality,and improved customer service. 
D) All of these answers are correct. 
A) both reduced costs and increased quality. 
B) reduced costs. 
C) lower costs,improved quality,and improved customer service. 
D) All of these answers are correct.

Question 7

________ is the manner by which companies promote and sell their products or services to customers or prospective customers.

Accepted Answer

A) Customer service 
B) Distribution 
C) Research and development 
D) Marketing 
A) Customer service 
B) Distribution 
C) Research and development 
D) Marketing

Question 8

The impact of the Sarbanes-Oxley legislation extends beyond the boundaries of the USA to Australian companies that trade with US companies.

Accepted Answer

A) True 
 B)False

Question 9

Key success factors can exist in both the ________ areas and the condition or circumstances of the company.

Accepted Answer

A) cultural 
B) structural 
C) functional 
D) logistical 
A) cultural 
B) structural 
C) functional 
D) logistical

Question 10

Customers demand increased levels of performance in all aspects of the value chain and the supply chain.

Accepted Answer

A) True 
 B)False

Question 11

If there is an ethical conflict concerning your direct supervisor,it may be appropriate to contact all of the following groups EXCEPT:

Accepted Answer

A) local media. 
B) audit committee. 
C) board of directors. 
D) executive committee. 
A) local media. 
B) audit committee. 
C) board of directors. 
D) executive committee.

Question 12

Linking rewards to performance:

Accepted Answer

A) should only be based on financial information. 
B) helps to motivate managers. 
C) allows companies to charge premium prices. 
D) All of these answers are correct. 
A) should only be based on financial information. 
B) helps to motivate managers. 
C) allows companies to charge premium prices. 
D) All of these answers are correct.

Question 13

Financial accounting:

Accepted Answer

A) reports include detailed information on the various operating segments of the business such as product lines or departments. 
B) focuses on the future and includes activities such as preparing next year's operating budget. 
C) is prepared for the use of department heads and other employees. 
D) must comply with GAAP (generally accepted accounting principles). 
A) reports include detailed information on the various operating segments of the business such as product lines or departments. 
B) focuses on the future and includes activities such as preparing next year's operating budget. 
C) is prepared for the use of department heads and other employees. 
D) must comply with GAAP (generally accepted accounting principles).

Question 14

Cost leadership 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) True 
 B)False

Question 15

Although there is a difference between management control and operational control,we simplify to two levels: ________ and operational.

Accepted Answer

A) strategic 
B) structural 
C) mission 
D) customer service 
A) strategic 
B) structural 
C) mission 
D) customer service

Question 16

The person MOST likely to use management accounting information is a(n):

Accepted Answer

A) governmental taxing authority. 
B) banker evaluating a credit application. 
C) assembly department supervisor. 
D) shareholder evaluating a share investment. 
A) governmental taxing authority. 
B) banker evaluating a credit application. 
C) assembly department supervisor. 
D) shareholder evaluating a share investment.

Question 17

Briefly explain the planning and control activities in management accounting,and how these two activities are linked to each other.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

Planning business operations relates to

Question 18

Which item is a guideline used by management accountants to assist in strategic and operational decision making?

Accepted Answer

A) All are guidelines 
B) Cost-benefit approach 
C) Different costs for different purposes 
D) Behavioural and technical considerations 
A) All are guidelines 
B) Cost-benefit approach 
C) Different costs for different purposes 
D) Behavioural and technical considerations

Question 19

Which of the following issues is NOT addressed by the Sarbanes-Oxley legislation?

Accepted Answer

A) Improving internal control 
B) Disclosure practices of private companies 
C) Corporate governance 
D) Disclosure practices of public corporations 
A) Improving internal control 
B) Disclosure practices of private companies 
C) Corporate governance 
D) Disclosure practices of public corporations

Question 20

A company needs to be ________ to be successful.

Accepted Answer

A) 'driven' by the board of directors 
B) management-driven 
C) employee-driven 
D) customer-driven 
A) 'driven' by the board of directors 
B) management-driven 
C) employee-driven 
D) customer-driven

Exam 1: Management Accounting in Context

A well-conceived plan allows managers the ability to:

Management accounting is an integral part of the ________ function in an organisation.

Companies make a strategic decision to create and add value by operating across the entire supply chain for the industry or to select a segment of it.

Managers and employees are internal stakeholders,while external stakeholders include shareholders,lenders,creditors,suppliers,customers,the government and the community at large.

A ________ ,which is a one-sentence statement of the organisation's long-term goal or objective,usually accompanies the mission statement.

Customers generally demand improved performance related to:

________ is the manner by which companies promote and sell their products or services to customers or prospective customers.

The impact of the Sarbanes-Oxley legislation extends beyond the boundaries of the USA to Australian companies that trade with US companies.

Key success factors can exist in both the ________ areas and the condition or circumstances of the company.

Customers demand increased levels of performance in all aspects of the value chain and the supply chain.

If there is an ethical conflict concerning your direct supervisor,it may be appropriate to contact all of the following groups EXCEPT:

Linking rewards to performance:

Financial accounting:

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

Although there is a difference between management control and operational control,we simplify to two levels: ________ and operational.

The person MOST likely to use management accounting information is a(n):

Which item is a guideline used by management accountants to assist in strategic and operational decision making?

Which of the following issues is NOT addressed by the Sarbanes-Oxley legislation?

A company needs to be ________ to be successful.

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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