Question 1

Financial performance measures are useful in reducing waste and inefficiencies in operating activities.

Accepted Answer

A) True 
 B)False

Question 2

In a JIT system,materials and parts are not stockpiled.

Accepted Answer

A) True 
 B)False

Question 3

Jillian Harmon supervises 5 cashiers at Jack's Market.In the past,each cashier served an average of 25 customers per hour.Two months ago,management remodeled the store and installed a new cash register system.Customers no longer need to take their groceries out of the basket.Last month the number of customers served was 5,185 and each cashier worked an average of 170 hours for the month.Based on this information,the service rate has

Accepted Answer

A)  increased 19 percent. 
B)  decreased 21 percent. 
C)  increased 22 percent. 
D)  decreased 20 percent. 
A)  increased 19 percent. 
B)  decreased 21 percent. 
C)  increased 22 percent. 
D)  decreased 20 percent.

Question 4

Management accounting data may be gathered for small segments or large divisions and may be expressed in units of measurement other than historical dollars.

Accepted Answer

A) True 
 B)False

Question 5

Practitioners of management accounting and financial management have a responsibility to communicate information fairly and objectively.

Accepted Answer

A) True 
 B)False

Question 6

The four stages of the management process are plan,perform,evaluate,and communicate.

Accepted Answer

A) True 
 B)False

Question 7

Financial accounting is defined as the use of management information to plan,evaluate,and control within the organization and to ensure appropriate use and accountability for its resources.

Accepted Answer

A) True 
 B)False

Question 8

Although some management accountants strive to update their knowledge and skills,such updating is not within the realm of management accountants' ethical standards.

Accepted Answer

A) True 
 B)False

Question 9

In comparing management accounting with financial accounting,which of the following statements is true?

Accepted Answer

A)  Both use historical costs as their primary unit of measurement. 
B)  Both depend on the double-entry system of accounting. 
C)  Both require adherence to GAAP. 
D)  Financial accounting reports are more objective, whereas management accounting reports are more subjective. 
A)  Both use historical costs as their primary unit of measurement. 
B)  Both depend on the double-entry system of accounting. 
C)  Both require adherence to GAAP. 
D)  Financial accounting reports are more objective, whereas management accounting reports are more subjective.

Question 10

In analyzing nonfinancial data,it is important to link the performance measures to the four perspectives of the balanced scorecard and to the objectives that are to be achieved.

Accepted Answer

A) True 
 B)False

Question 11

When unable to resolve an ethical conflict,the accountant should consider consulting with an attorney as to the legal obligations and rights concerning the ethical conflict.

Accepted Answer

A) True 
 B)False

Question 12

Management accounting

Accepted Answer

A)  deals primarily with people and organizations outside of the business entity. 
B)  requires only periodic reporting on a regular basis. 
C)  uses any type of useful measurement unit, including physical as well as monetary measures. 
D)  deals only with the double-entry recording system. 
A)  deals primarily with people and organizations outside of the business entity. 
B)  requires only periodic reporting on a regular basis. 
C)  uses any type of useful measurement unit, including physical as well as monetary measures. 
D)  deals only with the double-entry recording system.

Question 13

Which of the following types of information is not essential for a manager to run a business effectively?

Accepted Answer

A)  Product or service costing information 
B)  Data for planning and controlling of operations 
C)  Special reports and analyses to support decisions 
D)  Quote of the current price of the company's stock 
A)  Product or service costing information 
B)  Data for planning and controlling of operations 
C)  Special reports and analyses to support decisions 
D)  Quote of the current price of the company's stock

Question 14

If a management accountant gives information about a future merger of his or her company to a relative,the accountant has acted unethically.

Accepted Answer

A) True 
 B)False

Question 15

The balance scorecard

Accepted Answer

A)  is rarely used. 
B)  produces formal reports. 
C)  only applies to manufacturing companies. 
D)  links the organization's perspectives with stakeholders. 
A)  is rarely used. 
B)  produces formal reports. 
C)  only applies to manufacturing companies. 
D)  links the organization's perspectives with stakeholders.

Question 16

Management accountants who alter reports to meet targeted levels of performance are not acting unethically,because their job is to provide information that will aid in communicating the goals of the business.

Accepted Answer

A) True 
 B)False

Question 17

An advantage of value chain analysis is that it allows a company to focus on what a company does best.

Accepted Answer

A) True 
 B)False

Question 18

Management accounting provides reports that are future oriented.

Accepted Answer

A) True 
 B)False

Question 19

Support services,such as legal services,are critical to making an efficient and effective value chain.

Accepted Answer

A) True 
 B)False

Question 20

The balanced scorecard has gained little acceptance as an approach to establish effective performance measurement.

Accepted Answer

A) True 
 B)False

Exam 15: The Changing Business Environment - a Managers Perspective

Financial performance measures are useful in reducing waste and inefficiencies in operating activities.

In a JIT system,materials and parts are not stockpiled.

Management accounting data may be gathered for small segments or large divisions and may be expressed in units of measurement other than historical dollars.

Practitioners of management accounting and financial management have a responsibility to communicate information fairly and objectively.

The four stages of the management process are plan,perform,evaluate,and communicate.

Financial accounting is defined as the use of management information to plan,evaluate,and control within the organization and to ensure appropriate use and accountability for its resources.

Although some management accountants strive to update their knowledge and skills,such updating is not within the realm of management accountants' ethical standards.

In comparing management accounting with financial accounting,which of the following statements is true?

In analyzing nonfinancial data,it is important to link the performance measures to the four perspectives of the balanced scorecard and to the objectives that are to be achieved.

When unable to resolve an ethical conflict,the accountant should consider consulting with an attorney as to the legal obligations and rights concerning the ethical conflict.

Management accounting

Which of the following types of information is not essential for a manager to run a business effectively?

If a management accountant gives information about a future merger of his or her company to a relative,the accountant has acted unethically.

The balance scorecard

Management accountants who alter reports to meet targeted levels of performance are not acting unethically,because their job is to provide information that will aid in communicating the goals of the business.

An advantage of value chain analysis is that it allows a company to focus on what a company does best.

Management accounting provides reports that are future oriented.

Support services,such as legal services,are critical to making an efficient and effective value chain.

The balanced scorecard has gained little acceptance as an approach to establish effective performance measurement.

Uses of Accounting Information and the Financial Statements

Analyzing Business Transactions

Measuring Business Income

Supplement - Closing Entries and the Work Sheet

Financial Reporting and Analysis

The Operating Cycle and Merchandising Operations

Inventories

Cash and Receivables

Current Liabilities and Fair Value Accounting

Long Term Assets

Long-Term Liabilities

Contributed Capital

Investments

The Corporate Income Statement and the Statement of Stockholders Equity

The Statement of Cash Flows

Cost Concepts and Cost Allocation

Costing Systems- Job Order Costing

Costing Systems- Process Costing

Value-Based Systems- Abm and Lean

Cost Behavior Analysis

The Budgeting Process

Performance Management and Evaluation

Standard Costing and Variance Analysis

Short Run Decision Analysis

Capital Investment Analysis

Pricing Decisions,incltarget Costing and Transfer Pricing

Quality Management and Measurement

Financial Analysis of Performance

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