Question 1

Accounting

Accepted Answer

A)  always has an external orientation. 
B)  always has an internal orientation. 
C)  information assists in planning and controlling. 
D)  terms serve as a model of the organization. 
A)  always has an external orientation. 
B)  always has an internal orientation. 
C)  information assists in planning and controlling. 
D)  terms serve as a model of the organization.

Question 2

Management accounting is concerned with which kind of decision?

Accepted Answer

A)  product costing and pricing 
B)  continuous operational improvement 
C)  financial control 
D)  all of the above 
A)  product costing and pricing 
B)  continuous operational improvement 
C)  financial control 
D)  all of the above

Question 3

Which of the following statements is NOT true about world-class firms?

Accepted Answer

A)  World-class firms are firms that are poor in customer support. 
B)  World-class firms know their market and their products. 
C)  World-class firms strive continually to improve product design, manufacture, and delivery. 
D)  World-class firms can compete with the best of the best in a global environment. 
A)  World-class firms are firms that are poor in customer support. 
B)  World-class firms know their market and their products. 
C)  World-class firms strive continually to improve product design, manufacture, and delivery. 
D)  World-class firms can compete with the best of the best in a global environment.

Question 4

Which of the following activities is NOT significant to the advancement of information technology?

Accepted Answer

A)  enterprise resource planning software 
B)  emergence of electronic commerce 
C)  theory of constraints 
D)  decision support systems 
A)  enterprise resource planning software 
B)  emergence of electronic commerce 
C)  theory of constraints 
D)  decision support systems

Question 5

You are a management accountant for Burn's Ltd. Ruth Hamilton, the sales representative for one of Burn's suppliers, invited you to attend a professional sporting event. Because you are an avid sports fan, you accepted Ruth's invitation.
At the sporting event, Ruth begins talking about Burn's upcoming contract renewals with suppliers. Because there is intense competition and because it is the first bid she will submit to Burn's Ltd., she asks you to review her bid to make sure "it is good enough" before she submits it to the company. In addition, because you are knowledgeable about costs, especially regarding this contract, she asks you to tell her if her bid is "in the ballpark" or "needs improvement." She indicates that if she wins the contract, you will be provided with season tickets for the rest of the year.
Considering the Standards of Ethical Conduct for Management Accountants, how would you respond to Ruth's request?

Accepted Answer

According to the Standards of Ethical Co

Question 6

Discuss how the goal of profit maximization is affected by ethical considerations. What incentives are there for managers to manipulate accounting data in unethical ways in order to increase profits?

Accepted Answer

The objective of profit maximization sho

Question 7

Inspecting units produced to determine if they meet specifications is an example of

Accepted Answer

A)  planning. 
B)  control. 
C)  decision making. 
D)  both a and c 
A)  planning. 
B)  control. 
C)  decision making. 
D)  both a and c

Question 8

The planning process includes

Accepted Answer

A)  setting objectives. 
B)  identifying means of achieving the objectives. 
C)  making decisions. 
D)  all of the above. 
A)  setting objectives. 
B)  identifying means of achieving the objectives. 
C)  making decisions. 
D)  all of the above.

Question 9

Explain what is meant by confidentiality and why it is important.

Accepted Answer

Management accountants are entrusted wit

Question 10

Financial accounting information is least useful in providing:

Accepted Answer

A)  information for stating corporate wide goals. 
B)  information for internal decision makers. 
C)  periodic reports for shareholders. 
D)  aggregate information about an organization's assets, obligations and performance. 
A)  information for stating corporate wide goals. 
B)  information for internal decision makers. 
C)  periodic reports for shareholders. 
D)  aggregate information about an organization's assets, obligations and performance.

Question 11

Setting the selling price of a company's product is an example of

Accepted Answer

A)  planning. 
B)  control. 
C)  decision making. 
D)  all of the above. 
A)  planning. 
B)  control. 
C)  decision making. 
D)  all of the above.

Question 12

Personal computers significantly increase a manager's capabilities to process and use accounting information. Do you agree? Explain.

Accepted Answer

Yes. Personal computers allow

Question 13

A(n) _____ is a computerized information system that strives to input data once and make it available to people across the company for different purposes.

Accepted Answer

A)  cost management information system 
B)  enterprise resource planning system 
C)  internal accounting system 
D)  financial accounting information system 
A)  cost management information system 
B)  enterprise resource planning system 
C)  internal accounting system 
D)  financial accounting information system

Question 14

Give some examples of reporting feedback that will assist in continuous improvement of a dry cleaning company.

Accepted Answer

A dry cleaners will be interested in mon

Question 15

Which of the following statements most accurately describes an effect of employee empowerment?

Accepted Answer

A)  Employee empowerment reduces the cost of implementing decisions. 
B)  Employee empowerment decreases the speed in which decisions are made. 
C)  Employee empowerment leads to an increased number of corporate staff positions 
D)  Employee empowerment places greater emphasis on decisions made by upper management. 
A)  Employee empowerment reduces the cost of implementing decisions. 
B)  Employee empowerment decreases the speed in which decisions are made. 
C)  Employee empowerment leads to an increased number of corporate staff positions 
D)  Employee empowerment places greater emphasis on decisions made by upper management.

Question 16

Determining the bid your company should submit on a construction contract is an example of

Accepted Answer

A)  planning. 
B)  control. 
C)  decision making. 
D)  both a and b 
A)  planning. 
B)  control. 
C)  decision making. 
D)  both a and b

Question 17

Performance reports are accounting reports that compare

Accepted Answer

A)  planned data with actual data. 
B)  audited data with actual data. 
C)  managers' bonuses with performance ratings by supervisors. 
D)  actual data with industry standards. 
A)  planned data with actual data. 
B)  audited data with actual data. 
C)  managers' bonuses with performance ratings by supervisors. 
D)  actual data with industry standards.

Question 18

What is the role of management accounting information in strategic cost management?

Accepted Answer

Firms generally choose a strategy of cos

Question 19

_____ is devoted to providing information for external users.

Accepted Answer

A)  Management accounting 
B)  Financial accounting 
C)  Internal accounting 
D)  Cost accounting 
A)  Management accounting 
B)  Financial accounting 
C)  Internal accounting 
D)  Cost accounting

Question 20

Which of the following activities is NOT associated with the financial accounting information system?

Accepted Answer

A)  reporting on the cost of quality 
B)  reporting to the shareholders 
C)  preparing reports for the tax authorities 
D)  preparing a statement of cash flows 
A)  reporting on the cost of quality 
B)  reporting to the shareholders 
C)  preparing reports for the tax authorities 
D)  preparing a statement of cash flows

Accounting

Management accounting is concerned with which kind of decision?

Which of the following statements is NOT true about world-class firms?

Which of the following activities is NOT significant to the advancement of information technology?

Discuss how the goal of profit maximization is affected by ethical considerations. What incentives are there for managers to manipulate accounting data in unethical ways in order to increase profits?

Inspecting units produced to determine if they meet specifications is an example of

The planning process includes

Explain what is meant by confidentiality and why it is important.

Financial accounting information is least useful in providing:

Setting the selling price of a company's product is an example of

Personal computers significantly increase a manager's capabilities to process and use accounting information. Do you agree? Explain.

A(n) _____ is a computerized information system that strives to input data once and make it available to people across the company for different purposes.

Give some examples of reporting feedback that will assist in continuous improvement of a dry cleaning company.

Which of the following statements most accurately describes an effect of employee empowerment?

Determining the bid your company should submit on a construction contract is an example of

Performance reports are accounting reports that compare

What is the role of management accounting information in strategic cost management?

_____ is devoted to providing information for external users.

Which of the following activities is NOT associated with the financial accounting information system?

An Introduction to Cost Terms and Concepts

Cost-Volume-Profit Analysis

Measuring Relevant Costs and Revenues for Decision-Making

Pricing Decisions and Profitability Analysis

Capital Investment Decisions

Cost Assignment

Activity-Based Costing

The Budgeting Process

Management Control Systems

Standard Costing and Variance Analysis

Divisional Financial Performance Measurement

Transfer Pricing in Divisionalized Companies

Cost Management

Strategic Performance Management

Filters

Exam 1: Introduction to Management Accounting

Accounting

Management accounting is concerned with which kind of decision?

Which of the following statements is NOT true about world-class firms?

Which of the following activities is NOT significant to the advancement of information technology?

Discuss how the goal of profit maximization is affected by ethical considerations. What incentives are there for managers to manipulate accounting data in unethical ways in order to increase profits?

Inspecting units produced to determine if they meet specifications is an example of

The planning process includes

Explain what is meant by confidentiality and why it is important.

Financial accounting information is least useful in providing:

Setting the selling price of a company's product is an example of

Personal computers significantly increase a manager's capabilities to process and use accounting information. Do you agree? Explain.

A(n) _____ is a computerized information system that strives to input data once and make it available to people across the company for different purposes.

Give some examples of reporting feedback that will assist in continuous improvement of a dry cleaning company.

Which of the following statements most accurately describes an effect of employee empowerment?

Determining the bid your company should submit on a construction contract is an example of

Performance reports are accounting reports that compare

What is the role of management accounting information in strategic cost management?

_____ is devoted to providing information for external users.

Which of the following activities is NOT associated with the financial accounting information system?

An Introduction to Cost Terms and Concepts

Cost-Volume-Profit Analysis

Measuring Relevant Costs and Revenues for Decision-Making

Pricing Decisions and Profitability Analysis

Capital Investment Decisions

Cost Assignment

Activity-Based Costing

The Budgeting Process

Management Control Systems

Standard Costing and Variance Analysis

Divisional Financial Performance Measurement

Transfer Pricing in Divisionalized Companies

Cost Management

Strategic Performance Management

Filters