Question 1

Planning involves which of the following activities?

Accepted Answer

A)  Setting goals and objectives for the company 
B)  Overseeing the company's day-to-day operations 
C)  Evaluating the results of operations 
D)  Getting feedback on results 
A)  Setting goals and objectives for the company 
B)  Overseeing the company's day-to-day operations 
C)  Evaluating the results of operations 
D)  Getting feedback on results

Question 2

Managerial accountants only need a solid understanding of managerial accounting, and not financial accounting.

Accepted Answer

A) True 
 B)False

Question 3

Sustainability is generally described as the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.

Accepted Answer

A) True 
 B)False

Question 4

Managerial accountants are now considered to be similar to advisors and business analysts.

Accepted Answer

A) True 
 B)False

Question 5

Who is primarily responsible for raising capital and investing funds?

Accepted Answer

A)  The CEO 
B)  The CFO 
C)  The COO 
D)  The Treasurer 
A)  The CEO 
B)  The CFO 
C)  The COO 
D)  The Treasurer

Question 6

Managerial accounting gathers, summarizes, and reports the cost and revenue data relevant to decisions.

Accepted Answer

A) True 
 B)False

Question 7

Which term below best describes the quality cost category for "preventive maintenance on machinery"?

Accepted Answer

A)  Prevention costs 
B)  Appraisal costs 
C)  Internal failure costs 
D)  External failure costs 
A)  Prevention costs 
B)  Appraisal costs 
C)  Internal failure costs 
D)  External failure costs

Question 8

Oral and written communications skills are considered among the most valuable skills a management accountant can possess.

Accepted Answer

A) True 
 B)False

Question 9

Lean production may be regarded as a general philosophy of manufacturing without waste, rather than a particular type of manufacturing process.

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following manager responsibilities encompasses the other three?

Accepted Answer

A)  Decision-making 
B)  Feedback 
C)  Planning 
D)  Controlling 
A)  Decision-making 
B)  Feedback 
C)  Planning 
D)  Controlling

Question 11

The cost of training production personnel on their job tasks is an example of a(n)

Accepted Answer

A)  internal failure cost. 
B)  external failure cost. 
C)  prevention cost. 
D)  appraisal cost. 
A)  internal failure cost. 
B)  external failure cost. 
C)  prevention cost. 
D)  appraisal cost.

Question 12

Management accounting

Accepted Answer

A)  helps managers make decisions. 
B)  is useful for external and internal users. 
C)  creates technical reports that require external audit for verification. 
D)  is the same as cost accounting. 
A)  helps managers make decisions. 
B)  is useful for external and internal users. 
C)  creates technical reports that require external audit for verification. 
D)  is the same as cost accounting.

Question 13

The cost of warranty work is an example of a(n)

Accepted Answer

A)  prevention cost. 
B)  appraisal cost. 
C)  internal failure cost. 
D)  external failure cost. 
A)  prevention cost. 
B)  appraisal cost. 
C)  internal failure cost. 
D)  external failure cost.

Question 14

Which of following is TRUE?

Accepted Answer

A)  Management accounting focuses on historical transactions. 
B)  Financial accounting uses the cash basis for recording transactions. 
C)  Financial accounting focuses on future data. 
D)  Management accounting focuses on relevant data. 
A)  Management accounting focuses on historical transactions. 
B)  Financial accounting uses the cash basis for recording transactions. 
C)  Financial accounting focuses on future data. 
D)  Management accounting focuses on relevant data.

Question 15

The primary goal of managerial accounting is to provide information to

Accepted Answer

A)  shareholders. 
B)  creditors. 
C)  internal decision-makers. 
D)  both shareholders and creditors. 
A)  shareholders. 
B)  creditors. 
C)  internal decision-makers. 
D)  both shareholders and creditors.

Question 16

Which of the following statements is true regarding the changing role of management accountants?

Accepted Answer

A)  Management accountants are no longer involved with recording transactions. 
B)  Because of the increased emphasis on analyzing business operations, management accountants have become key organizational decision makers. 
C)  The increasing scope of the regulatory environment has changed the focus of management accountants. 
D)  Technology has changed the role of management accountants. 
A)  Management accountants are no longer involved with recording transactions. 
B)  Because of the increased emphasis on analyzing business operations, management accountants have become key organizational decision makers. 
C)  The increasing scope of the regulatory environment has changed the focus of management accountants. 
D)  Technology has changed the role of management accountants.

Question 17

The only skill required of managerial accountants is that they have a solid knowledge of both financial and managerial accounting.

Accepted Answer

A) True 
 B)False

Question 18

Why is it important that all managerial accountants adhere to professional and ethical standards as codified by the profession?

Accepted Answer

At the root of all b

Question 19

The CEO of Prairie Machine Parts (PMP) is concerned with the quality of its products and the amount of resources currently spent on customer returns. The CEO would like to analyze the costs incurred in conjunction with the quality of the product.
The following information was collected from various departments within the company:
 
Required:
A. Complete the Cost of Quality Report.
B. Do any additional subjective costs appear to be missing from the report?
C. What can be learned from the report?

Accepted Answer

Requirement A:
 @#IMG-DLM& 
Requirement B:
Because

Question 20

The treasurer and the controller report directly to the CFO.

Accepted Answer

A) True 
 B)False

Planning involves which of the following activities?

Managerial accountants only need a solid understanding of managerial accounting, and not financial accounting.

Sustainability is generally described as the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.

Managerial accountants are now considered to be similar to advisors and business analysts.

Who is primarily responsible for raising capital and investing funds?

Managerial accounting gathers, summarizes, and reports the cost and revenue data relevant to decisions.

Which term below best describes the quality cost category for "preventive maintenance on machinery"?

Oral and written communications skills are considered among the most valuable skills a management accountant can possess.

Lean production may be regarded as a general philosophy of manufacturing without waste, rather than a particular type of manufacturing process.

Which one of the following manager responsibilities encompasses the other three?

The cost of training production personnel on their job tasks is an example of a(n)

Management accounting

The cost of warranty work is an example of a(n)

Which of following is TRUE?

The primary goal of managerial accounting is to provide information to

Which of the following statements is true regarding the changing role of management accountants?

The only skill required of managerial accountants is that they have a solid knowledge of both financial and managerial accounting.

Why is it important that all managerial accountants adhere to professional and ethical standards as codified by the profession?

The treasurer and the controller report directly to the CFO.

Building Blocks of Managerial Accounting

Cost Behaviour

Cost-Volume-Profit Analysis

Job Costing

Process Costing

Activity Based Costing

Short-Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Capital Investment Decisions and the Time Value of Money

Filters

Exam 1: Introduction to Managerial Accounting

Planning involves which of the following activities?

Managerial accountants only need a solid understanding of managerial accounting, and not financial accounting.

Sustainability is generally described as the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.

Managerial accountants are now considered to be similar to advisors and business analysts.

Who is primarily responsible for raising capital and investing funds?

Managerial accounting gathers, summarizes, and reports the cost and revenue data relevant to decisions.

Which term below best describes the quality cost category for "preventive maintenance on machinery"?

Oral and written communications skills are considered among the most valuable skills a management accountant can possess.

Lean production may be regarded as a general philosophy of manufacturing without waste, rather than a particular type of manufacturing process.

Which one of the following manager responsibilities encompasses the other three?

The cost of training production personnel on their job tasks is an example of a(n)

Management accounting

The cost of warranty work is an example of a(n)

Which of following is TRUE?

The primary goal of managerial accounting is to provide information to

Which of the following statements is true regarding the changing role of management accountants?

The only skill required of managerial accountants is that they have a solid knowledge of both financial and managerial accounting.

Why is it important that all managerial accountants adhere to professional and ethical standards as codified by the profession?

The treasurer and the controller report directly to the CFO.

Building Blocks of Managerial Accounting

Cost Behaviour

Cost-Volume-Profit Analysis

Job Costing

Process Costing

Activity Based Costing

Short-Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Capital Investment Decisions and the Time Value of Money

Filters