Question 1

In today's competitive business environment,managers

Accepted Answer

A)  need only be concerned with quality. 
B)  must provide the highest value at the highest cost to customers. 
C)  must provide the highest value at the lowest cost to customers. 
D)  need not be concerned with the cost to the customers. 
A)  need only be concerned with quality. 
B)  must provide the highest value at the highest cost to customers. 
C)  must provide the highest value at the lowest cost to customers. 
D)  need not be concerned with the cost to the customers.

Question 2

What would a company using an activity-based management approach attempt to do in regard to activities that add value to the product and those that do not?

Accepted Answer

Companies employing the activity-based m

Question 3

Similar to financial accounting reports,management accounting reports are standardized in format.

Accepted Answer

A) True 
 B)False

Question 4

The ethical standards for management accountants state that accountants are obligated to maintain professional competence at all times when dealing with

Accepted Answer

A)  people outside the company. 
B)  regulatory bodies. 
C)  the world marketplace. 
D)  people and resources of one's own company, outside entities, and the world marketplace. 
A)  people outside the company. 
B)  regulatory bodies. 
C)  the world marketplace. 
D)  people and resources of one's own company, outside entities, and the world marketplace.

Question 5

Activity-based management's primary goal is to reduce

Accepted Answer

A)  nonvalue-adding costs. 
B)  defects. 
C)  inventory size. 
D)  machine setup time. 
A)  nonvalue-adding costs. 
B)  defects. 
C)  inventory size. 
D)  machine setup time.

Question 6

List three characteristics of a JIT operating environment.

Accepted Answer

The just-in-time operating environment i

Question 7

Activity-based management is an extension of activity-based costing.

Accepted Answer

A) True 
 B)False

Question 8

The costs of quality consist entirely of rework costs and customer complaint costs.

Accepted Answer

A) True 
 B)False

Question 9

Each of the management tools can be used individually,or parts of them can be combined to create a new operating environment.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not part of the "perform" stage in the management process?

Accepted Answer

A)  Matching human resources to the task to be performed 
B)  Hiring and training personnel 
C)  Identifying operating activities that minimize waste 
D)  Controlling operations 
A)  Matching human resources to the task to be performed 
B)  Hiring and training personnel 
C)  Identifying operating activities that minimize waste 
D)  Controlling operations

Question 11

Management accounting activities

Accepted Answer

A)  are synonymous with financial accounting activities. 
B)  substitute for the management cycle. 
C)  complement the management cycle. 
D)  have nothing to do with the management cycle. 
A)  are synonymous with financial accounting activities. 
B)  substitute for the management cycle. 
C)  complement the management cycle. 
D)  have nothing to do with the management cycle.

Question 12

Management accounting exists primarily for the benefit of people outside the company.

Accepted Answer

A) True 
 B)False

Question 13

Integrity standards of management accountants include

Accepted Answer

A)  refraining from accepting hospitality gifts from coworkers. 
B)  refraining from activities that the company does not actively endorse. 
C)  avoiding actual or apparent conflicts of interest. 
D)  avoiding only those conflicts of interest that occur between coworkers. 
A)  refraining from accepting hospitality gifts from coworkers. 
B)  refraining from activities that the company does not actively endorse. 
C)  avoiding actual or apparent conflicts of interest. 
D)  avoiding only those conflicts of interest that occur between coworkers.

Question 14

Which of the following is not included in the cost of quality?

Accepted Answer

A)  Inspection costs 
B)  Costs of handling customer complaints 
C)  Rework costs 
D)  Inventory ordering costs 
A)  Inspection costs 
B)  Costs of handling customer complaints 
C)  Rework costs 
D)  Inventory ordering costs

Question 15

Identify and explain the important questions a manager must address before preparing a managerial report.(Hint: Think "w's.")

Accepted Answer

Why: To establish the purpose of the rep

Question 16

A Taste of Italy is a pizza business that delivers only.A Taste of Italy's business objectives are as follows:
1.To be profitable and grow
2.To manage its food inventory carefully (especially the cheese!)
3.To provide fast and courteous service
4.To have repeat customers
The following performance measures were developed:
5.Average unsold food at the end of the business day as a percentage of the total purchased that day
6.Growth in revenues per quarter and profit margin
7.Average customer wait time between order and delivery
8.Percentage of customers who have ordered before (All customers are identified by phone number.)
Match each of the above business objectives and performance measures with the four perspectives of the balanced scorecard.(Identify by placing the number or numbers next to the perspective; each number can be used only once.)
a.Financial Perspective ________________
b.Learning and Growth Perspective ________________
c.Internal Business Processes Perspective __________________
d.Customer Perspective _______________

Accepted Answer

a.1,6
b.4,

Question 17

If a report is urgently needed,some accuracy may have to be sacrificed in the interest of timeliness.

Accepted Answer

A) True 
 B)False

Question 18

Total quality management focuses on reducing waste.

Accepted Answer

A) True 
 B)False

Question 19

Evaluating employees based upon their performance is an example of developing benchmarks.

Accepted Answer

A) True 
 B)False

Question 20

Management accounting must observe both financial accounting standards and cost accounting standards if it is to be useful to the organization's management.

Accepted Answer

A) True 
 B)False

Exam 15: The Changing Business Environment - a Managers Perspective

In today's competitive business environment,managers

What would a company using an activity-based management approach attempt to do in regard to activities that add value to the product and those that do not?

Similar to financial accounting reports,management accounting reports are standardized in format.

The ethical standards for management accountants state that accountants are obligated to maintain professional competence at all times when dealing with

Activity-based management's primary goal is to reduce

List three characteristics of a JIT operating environment.

Activity-based management is an extension of activity-based costing.

The costs of quality consist entirely of rework costs and customer complaint costs.

Each of the management tools can be used individually,or parts of them can be combined to create a new operating environment.

Which of the following is not part of the "perform" stage in the management process?

Management accounting activities

Management accounting exists primarily for the benefit of people outside the company.

Integrity standards of management accountants include

Which of the following is not included in the cost of quality?

Identify and explain the important questions a manager must address before preparing a managerial report.(Hint: Think "w's.")

If a report is urgently needed,some accuracy may have to be sacrificed in the interest of timeliness.

Total quality management focuses on reducing waste.

Evaluating employees based upon their performance is an example of developing benchmarks.

Management accounting must observe both financial accounting standards and cost accounting standards if it is to be useful to the organization's management.

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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