Exam 15: The Changing Business Environment - a Managers Perspective

JIT,TQM,ABM,and TOC all make a contribution to continuous improvement and are applicable in service businesses as well as in manufacturing and retail businesses.

Although management accountants should try not to engage in activities that would prejudice their ability to carry out their duties,they are not obligated to refrain from such activities after business hours,as long as these activities take place off company premises.

If a management accountant confides to a relative that his or her company has a confidential plan to merge with another company in the near future,the accountant has

Activity-based costing traces costs to a company's activities related to

What are the results of the successful implementation of a JIT operating environment?

Services that support the primary processes in the value chain are

Assume your club makes and sells boxes of chocolate every year as a fundraising project for Valentine's Day.As the current director of projects,you are interested in improving the quality of the service and the product your club offers.You have just learned about continuous improvement.Discuss how your club could use JIT,TQM,and ABM to achieve improved quality.

The management accountant who is responsible only for nonfinancial reports to management does not have to remain objective,using the doctrine of fairness,when preparing all reports and analyses.

Identify three uses of the costs of quality information.

Management accounting differs from financial accounting in many ways.Indicate with an "X" in the appropriate column whether each of the following characteristics relates to financial accounting,management accounting,or neither.

Benchmarking enables a company to determine whether it is making continuous improvement in its operations without regard to competition.

Suppose a management accountant becomes aware of a confidential but illegal act that has occurred within her company.The management accountant must consider what she is ethically bound to do about this situation.Three alternative responses to this situation are given below.State whether you agree or disagree with each,and briefly detail your reasons. a. The accountant must remain loyal to the company at all times and should report the occurrence only to appropriate officials within the company. b. The accountant is bound to inform officials only if she stands to personally gain (make money) from knowledge of the illegal act. c. The accountant must exercise personal judgment; a clear-cut answer does not exist given the limited information provided.

Financial accounting information is determined objectively and is verifiable,whereas management accounting usually represents subjective estimates of future events.

Which of the following statements is true regarding the ethical standards of management accountants?

All of the following are "Who" questions that dictate a managerial report's format except

Which of the following is not a key question to be addressed when preparing a report?

Management accounting is not a subordinate activity to financial accounting.

Performance measures are used only in the evaluation stage of the management process.

A value chain includes only processes and services that add value to the final product or service.

Management accounting and financial accounting are similar in which of the following respects?