Exam 15: The Changing Business Environment - a Managers Perspective

Financial information included in financial statements prepared for external use is past data,summarized for the user as of a particular date.

The balance scorecard

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

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.

Financial accounting usually involves analyses of various segments of a business,such as cost centers,profit centers,or departments,or of some specific aspect of its operations.

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

Management accounting is not a subordinate activity to financial accounting.

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

Internal accounting reports should be prepared when they are needed,without regard to calendar dates or regularity of issue.

The analyses and flow of accounting data inside a company need not depend on the double-entry format.

Comparing the number of bytes processed per nanosecond by each computer is an example of using nonfinancial data analysis.

Suppose a management accountant becomes aware that a poor judgment he or she made has resulted in the loss of one of the company's clients.Is the accountant bound to share this information with the company? (The accountant doubts that the company will ever find out about it directly.)

Give two examples of each stage in the management process.

Like balance sheets and income statements,management accounting formats are much the same from company to company.

JIT,TQM,and ABM all seek continuous improvement in operations.

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

List three characteristics of a JIT operating environment.

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.

Which of the following is not a result of adopting a just-in-time operating environment?

In order to obtain information about benchmarks,a manager might join a trade association for the company's particular industry.