Exam 1: Introduction to Managerial Accounting

Carl Clarkson and Lenny Lenid have been assigned to review the costs of quality at the Sprotton Chemicals Ltd. for the month of September. All amounts are in thousands (000's). Some information from a competitor, Sheltonville Industries, has been leaked. You learn that Sheltonville's costs of quality (as a percentage of total costs of quality) is 15% on external failure, 20% on internal failure, 35% on appraisal and the rest on prevention. Required: a. Prepare a cost of quality report for September for the Sprotton Chemicals including calculations of each cost category as a percentage of total costs of quality. b. Compare Sprotton's approach to quality management to Sheltonville's. Comment on your findings. (What are the implications of the differences?)

In recent years, there has been an increasing awareness and growing interest in ________ and social responsibility by both consumers and corporations.

Prevention and appraisal costs are sometimes referred to as "conformance costs."

Lean production cuts the throughput time of a manufacturing concern.

Using product cost information to determine sales prices is an example of

Which of the following organizations is the association of professional accountants in Canada?

Which would be a subgroup of the Board of Directors?

Who typically manages the daily operations of a company?

Recognition of ethical issues that may arise in work to be performed is evidence of ________ in the CPA Guidelines for Ethical Behaviour.

Wonder Company is considering installing an ERP system. To make a good decision, Wonder needs to conduct a(n)

Describe the position of the CFO, the treasurer, and the controller within the organization. Describe the main functions of the treasurer and the controller.

What has been the key factor in changing the role of managerial accountants?

Which of the following groups are most likely to use a company's budget information?

Which person is hired directly by the board of directors to run the company?

E-commerce refers to the

Having the requisite knowledge to perform certain tasks is an example of Adherence to Rules of Professional Conduct in the CPA Guidelines for Ethical Behaviour.

Which term listed below describes a system where companies purchase raw materials when needed in production and complete finished goods when needed by customers?

Evaluating the results of business operations against a plan and then making adjustments to that plan is called budgeting.

Company initiatives to address sustainability and corporate responsibility not only "do the right thing," but also can lead to economic profits by increasing demand for the company's products and services.

Trends in the modern business environment include a shift to a service economy and the rise of the global marketplace.