Question 1

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 2

Management accounting information is more subjective than financial accounting information.

Accepted Answer

A) True 
 B)False

Question 3

Financial accounting's main emphasis is on full and accurate accounting for and disclosure of a company's operating results.

Accepted Answer

A) True 
 B)False

Question 4

Jillian Harmon supervises 5 cashiers at Jack's Market.In the past,each cashier served an average of 25 customers per hour.Two months ago,management remodeled the store and installed a new cash register system.Customers no longer need to take their groceries out of the basket.Last month the number of customers served was 5,185 and each cashier worked an average of 170 hours for the month.Based on this information,the service rate has

Accepted Answer

A)  increased 19 percent. 
B)  decreased 21 percent. 
C)  increased 22 percent. 
D)  decreased 20 percent. 
A)  increased 19 percent. 
B)  decreased 21 percent. 
C)  increased 22 percent. 
D)  decreased 20 percent.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Sinopole's Pharmaceutical Delivery Company is a high-volume business that features home delivery services to elderly shut-ins.Located in Bakersfield,California,the company currently uses six delivery trucks to service the area within a 100-mile radius of the city.Each delivery truck can make a maximum of 600 deliveries per month.In June,the demand for these deliveries totaled 3,200,and the company has been experiencing a 2 percent increase in demand,compounded monthly.In which month must the company add a seventh delivery truck,given these estimates?

Accepted Answer

A)  August 
B)  October 
C)  February of next year 
D)  December 
A)  August 
B)  October 
C)  February of next year 
D)  December

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

In comparing management accounting with financial accounting,which of the following statements is true?

Accepted Answer

A)  Both use historical costs as their primary unit of measurement. 
B)  Both depend on the double-entry system of accounting. 
C)  Both require adherence to GAAP. 
D)  Financial accounting reports are more objective, whereas management accounting reports are more subjective. 
A)  Both use historical costs as their primary unit of measurement. 
B)  Both depend on the double-entry system of accounting. 
C)  Both require adherence to GAAP. 
D)  Financial accounting reports are more objective, whereas management accounting reports are more subjective.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  who should write the report? 
B)  to whom should the report be distributed? 
C)  who will read the report? 
D)  for whom is the report being prepared? 
A)  who should write the report? 
B)  to whom should the report be distributed? 
C)  who will read the report? 
D)  for whom is the report being prepared?

Question 11

Mi Casa is a housekeeping company in Brownsville,Texas.The corporation is owned 100 percent by Jean Kline.Jean plans to develop the company into a multimillion-dollar company as the demand for housekeeping services in Brownsville is increasing at a rapid pace as the community grows.
Currently,Jean has three housekeepers who each work a 40-hour week.Over the past four weeks,the actual hours worked were as follows:
 $$\begin{array} { | l | c | c | c | c | c | } 
\hline & \text { Weak 1 } & \text { Weak 2 } & \text { Weak 3 } & \text { Weak 4 } & \text { Total } \
\hline \text { Hausekeepers } & 136 & 140 & 145 & 145 & 566 \
\hline
\end{array}$$
 Jean is concerned with the hours worked.Analyze the activity for the four weeks by preparing a table showing the estimated hours,actual hours,and the hours under (or over)estimate.Based on the information in your table,does Jean have reason for concern? If so,what could some of the possible reasons be for the hours spent?

Accepted Answer

\[\begin{array} { | c | c | c | c | } 
\

Question 12

The just-in-time philosophy emphasizes

Accepted Answer

A)  completing products on schedule. 
B)  increasing production. 
C)  finishing all products before starting new ones. 
D)  eliminating waste. 
A)  completing products on schedule. 
B)  increasing production. 
C)  finishing all products before starting new ones. 
D)  eliminating waste.

Question 13

Activity-based costing (ABC)is used most often to improve the assignment of overhead costs to products.

Accepted Answer

A) True 
 B)False

Question 14

An advantage of value chain analysis is that it allows a company to focus on what a company does best.

Accepted Answer

A) True 
 B)False

Question 15

Management accounting

Accepted Answer

A)  deals primarily with people and organizations outside of the business entity. 
B)  requires only periodic reporting on a regular basis. 
C)  uses any type of useful measurement unit, including physical as well as monetary measures. 
D)  deals only with the double-entry recording system. 
A)  deals primarily with people and organizations outside of the business entity. 
B)  requires only periodic reporting on a regular basis. 
C)  uses any type of useful measurement unit, including physical as well as monetary measures. 
D)  deals only with the double-entry recording system.

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

Although some management accountants strive to update their knowledge and skills,such updating is not within the realm of management accountants' ethical standards.

Accepted Answer

A) True 
 B)False

Question 18

The main goal of total quality management is to reduce product costs.

Accepted Answer

A) True 
 B)False

Question 19

Identify three uses of the costs of quality information.

Accepted Answer

Uses of the cost of quality information

Question 20

The management process and management accounting are identical.

Accepted Answer

A) True 
 B)False

Exam 15: The Changing Business Environment - a Managers Perspective

Integrity standards of management accountants include

Management accounting information is more subjective than financial accounting information.

Financial accounting's main emphasis is on full and accurate accounting for and disclosure of a company's operating results.

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

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

In comparing management accounting with financial accounting,which of the following statements is true?

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

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

The just-in-time philosophy emphasizes

Activity-based costing (ABC)is used most often to improve the assignment of overhead costs to products.

An advantage of value chain analysis is that it allows a company to focus on what a company does best.

Management accounting

Although some management accountants strive to update their knowledge and skills,such updating is not within the realm of management accountants' ethical standards.

The main goal of total quality management is to reduce product costs.

Identify three uses of the costs of quality information.

The management process and management accounting are identical.

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

Filters