Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

Neither the amount of detail nor the format of a management accounting report is affected by those to whom the report is sent.

Accepted Answer

A) True 
 B)False  False

Question 4

Financial accounting comprises all rules governing the accounting for and reporting of financial information that must be disclosed to people outside the company.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a nonfinancial performance measure?

Accepted Answer

A)  Return on investment 
B)  Net income as a percentage of sales 
C)  Cost of poor quality as a percentage of sales 
D)  Average number of customers served per hour 
A)  Return on investment 
B)  Net income as a percentage of sales 
C)  Cost of poor quality as a percentage of sales 
D)  Average number of customers served per hour

Question 6

The management accountant must be knowledgeable about all relevant laws,regulations,and technical standards that pertain to his or her duties.

Accepted Answer

A) True 
 B)False

Question 7

The unit of measurement used in management accounting is

Accepted Answer

A)  primarily the historical dollar. 
B)  usually current replacement cost. 
C)  any measurement unit that is useful in a particular situation. 
D)  the measurement unit used by competing companies. 
A)  primarily the historical dollar. 
B)  usually current replacement cost. 
C)  any measurement unit that is useful in a particular situation. 
D)  the measurement unit used by competing companies.

Question 8

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 9

Give two examples of nonfinancial performance measures.

Accepted Answer

Examples include number of cus

Question 10

Accountants have ranked among the highest in ethics among business professions and other occupations. List and briefly describe five ethical standards that management accountants subscribe to that, in your opinion, help maintain the impression that accountants are highly ethical.

Accepted Answer

The student should list any five of the

Question 11

The fathers of the balanced scorecard,Drs.Kaplan & Norton,introduced four generic perspectives from which to view a business.Consider the following four questions and briefly describe the generic perspective that relates to the question and why.
1.How should we present ourselves to our investors and owners to be considered by them as a financial success and an attractive investment?
2.What do we have to offer our customers related to our product,customer intimacy,and operational excellence?
3.In what activities must we excel to be able to accomplish our financial and customer-oriented objectives?
4.What do we need to change in our infrastructure to achieve number 3?

Accepted Answer

1.Financial Perspective: Investors and o

Question 12

Hiring a janitorial service firm rather than employing full-time employees is an example of outsourcing.

Accepted Answer

A) True 
 B)False

Question 13

TQM seeks to improve the quality of both the product and the work environment.

Accepted Answer

A) True 
 B)False

Question 14

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 15

The Chief Financial Officer (CFO)of your company has asked you to help her develop a cost control report to be distributed within the company.She wants your input concerning what she should think about before developing such a report.Discuss the significant points,in detail,the CFO should consider before the cost control report is prepared.

Accepted Answer

In addition to identifying the Why,Who,W

Question 16

"Hours of inspection" is an example of a nonfinancial performance measure.

Accepted Answer

A) True 
 B)False

Question 17

Assume you are the president of the business club at your school.You are thinking about creating a fundraising project to generate money for next year's operations.Develop an outline of your ideas using the various stages of the management process.

Accepted Answer

Note: Student answers will vary consider

Question 18

In making the transition from financial accounting to management accounting,you must become accustomed to using the historical dollar as the primary unit of measurement.

Accepted Answer

A) True 
 B)False

Question 19

Activity-based management focuses on enhancing activities that add value to the product and reducing those that do not.

Accepted Answer

A) True 
 B)False

Question 20

Most management decisions are based on analyses using expected future dollars.

Accepted Answer

A) True 
 B)False

Exam 15: The Changing Business Environment - a Managers Perspective

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

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

Neither the amount of detail nor the format of a management accounting report is affected by those to whom the report is sent.

Financial accounting comprises all rules governing the accounting for and reporting of financial information that must be disclosed to people outside the company.

Which of the following is a nonfinancial performance measure?

The management accountant must be knowledgeable about all relevant laws,regulations,and technical standards that pertain to his or her duties.

The unit of measurement used in management accounting is

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

Give two examples of nonfinancial performance measures.

Accountants have ranked among the highest in ethics among business professions and other occupations. List and briefly describe five ethical standards that management accountants subscribe to that, in your opinion, help maintain the impression that accountants are highly ethical.

Hiring a janitorial service firm rather than employing full-time employees is an example of outsourcing.

TQM seeks to improve the quality of both the product and the work environment.

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

"Hours of inspection" is an example of a nonfinancial performance measure.

Assume you are the president of the business club at your school.You are thinking about creating a fundraising project to generate money for next year's operations.Develop an outline of your ideas using the various stages of the management process.

In making the transition from financial accounting to management accounting,you must become accustomed to using the historical dollar as the primary unit of measurement.

Activity-based management focuses on enhancing activities that add value to the product and reducing those that do not.

Most management decisions are based on analyses using expected future dollars.

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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