Question 1

The keys to successful report writing include identifying the who,what,when,and why of the report.

Accepted Answer

A) True 
 B)False

Question 2

Comparing actual performance with expected performance levels is an evaluation activity.

Accepted Answer

A) True 
 B)False

Question 3

If the report is urgently needed,it is sometimes necessary to sacrifice accuracy for

Accepted Answer

A)  timeliness. 
B)  personal feelings. 
C)  profits. 
D)  expectations. 
A)  timeliness. 
B)  personal feelings. 
C)  profits. 
D)  expectations.

Question 4

What steps would a company using TQM take to improve product or service quality?

Accepted Answer

The company would focus on improving qua

Question 5

Management executes a plan by overseeing the daily operations of an organization.

Accepted Answer

A) True 
 B)False

Question 6

Management accountants working in purchasing must decline gifts from company vendors,because acceptance of a gift might influence or be perceived as influencing their performance or decision analyses.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

Management accounting accumulates,maintains,and processes an organization's financial and nonfinancial information.

Accepted Answer

A) True 
 B)False

Question 10

Management accounting reports can

Accepted Answer

A)  use a flexible format. 
B)  use financial and nonfinancial data. 
C)  be prepared for any time period. 
D)  include all of these. 
A)  use a flexible format. 
B)  use financial and nonfinancial data. 
C)  be prepared for any time period. 
D)  include all of these.

Question 11

Total quality management has many of the same characteristics as the JIT philosophy.

Accepted Answer

A) True 
 B)False

Question 12

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 13

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.

Accepted Answer

a.The confidentiality standards state th

Question 14

Chris Tyler owns and operates Surf's Up,a shop in Florida that sells surfboards and beachwear.The shop has been very successful,and now Chris is thinking of manufacturing his own brand of surfboards.Chris discussed the following with you:
1.He plans to add value by making boards that are easier to maneuver and faster in the water.
2.Chris wants to purchase high-quality materials.
3.He wants a logo that will be distinctive and recognizable.
4.He would like to implement efficient manufacturing processes that will enable him to quickly produce the boards when an order is placed.
5.He feels advertising is important.
6.Chris believes in customer satisfaction and wants to have courteous and efficient service for his customers.He also would like to develop a website to establish Internet customers.
7.Because Chris believes in customer service,he would like to provide a warranty service offering a free replacement if the customer is not satisfied.
8.Chris will need to hire and train employees to make the boards.
9.He will need legal advice when applying for a trademark and signing contracts.
10.He wants a computerized accounting system that also provides customer information and the ability to develop management reports.
a.Identify from the value chain the primary processes that add value to the surfboards.
b.Identify the support services that are part of the same value chain.

Accepted Answer

a.Research and development (Discussion i

Question 15

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 16

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 17

Management accounting is the process of identifying,measuring,accumulating,analyzing,preparing,and communicating financial information used by management.

Accepted Answer

A) True 
 B)False

Question 18

Management accounting complements each stage in the management process.

Accepted Answer

A) True 
 B)False

Question 19

Analysis of nonfinancial data is important to the management accountant because

Accepted Answer

A)  financial data are usually irrelevant. 
B)  nonfinancial data lend themselves more to computer analysis than do financial data. 
C)  managers make many decisions based solely on nonfinancial data. 
D)  nonfinancial data are easier to work with than financial data. 
A)  financial data are usually irrelevant. 
B)  nonfinancial data lend themselves more to computer analysis than do financial data. 
C)  managers make many decisions based solely on nonfinancial data. 
D)  nonfinancial data are easier to work with than financial data.

Question 20

Rules applicable to accounting information created and prepared for management use are the same as those for information reported to the general public.

Accepted Answer

A) True 
 B)False

Exam 15: The Changing Business Environment - a Managers Perspective

The keys to successful report writing include identifying the who,what,when,and why of the report.

Comparing actual performance with expected performance levels is an evaluation activity.

If the report is urgently needed,it is sometimes necessary to sacrifice accuracy for

What steps would a company using TQM take to improve product or service quality?

Management executes a plan by overseeing the daily operations of an organization.

Management accountants working in purchasing must decline gifts from company vendors,because acceptance of a gift might influence or be perceived as influencing their performance or decision analyses.

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

In today's competitive business environment,managers

Management accounting accumulates,maintains,and processes an organization's financial and nonfinancial information.

Management accounting reports can

Total quality management has many of the same characteristics as the JIT philosophy.

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

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

Activity-based management's primary goal is to reduce

Management accounting is the process of identifying,measuring,accumulating,analyzing,preparing,and communicating financial information used by management.

Management accounting complements each stage in the management process.

Analysis of nonfinancial data is important to the management accountant because

Rules applicable to accounting information created and prepared for management use are the same as those for information reported to the general public.

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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