Question 1

Accounting data used for managerial reports

Accepted Answer

A) must be the same data used for reporting to shareholders,but may be different for tax purposes. 
B) must be the same data used for tax purposes,but may be different data for reporting to shareholders. 
C) must be the same data used for both tax purposes and reporting to shareholders. 
D) may be different from data used for both tax purposes and reporting to shareholders. 
A) must be the same data used for reporting to shareholders,but may be different for tax purposes. 
B) must be the same data used for tax purposes,but may be different data for reporting to shareholders. 
C) must be the same data used for both tax purposes and reporting to shareholders. 
D) may be different from data used for both tax purposes and reporting to shareholders. D

Question 2

All of the following are true regarding integrated information systems except:

Accepted Answer

A) Accounting and other databases can be integrated with numerous applications such as managing the supply chain,making general ledger entries,and reporting to top management. 
B) Integrated information systems imply that accountants no longer control a particular information domain. 
C) Accountants are no longer the source of accounting information because managers and staff can directly access accounting information in integrated information systems. 
D) Because accountants are no longer needed in an integrated information system environment,they typically do not serve on cross-functional teams. 
A) Accounting and other databases can be integrated with numerous applications such as managing the supply chain,making general ledger entries,and reporting to top management. 
B) Integrated information systems imply that accountants no longer control a particular information domain. 
C) Accountants are no longer the source of accounting information because managers and staff can directly access accounting information in integrated information systems. 
D) Because accountants are no longer needed in an integrated information system environment,they typically do not serve on cross-functional teams. D

Question 3

Which of the following are Canadian designations that are similar to the CPA designation in the United States?
I.CA
II.CMA
III.CGA
IV.CASB

Accepted Answer

A) I & II 
B) I & III 
C) III & IV 
D) I & IV 
A) I & II 
B) I & III 
C) III & IV 
D) I & IV B

Question 4

Which of the following reflects the correct order in a value-chain?

Accepted Answer

A) Research & Development,Design,Production 
B) Distribution,Customer Service,Marketing 
C) Design,Research & Development,Production 
D) Distribution,Marketing,Research & Development 
A) Research & Development,Design,Production 
B) Distribution,Customer Service,Marketing 
C) Design,Research & Development,Production 
D) Distribution,Marketing,Research & Development

Question 5

Ethical standards that comprise the Institute of Management Accountant's Code of Ethics do not include which of the following?

Accepted Answer

A) competence. 
B) collegiality. 
C) integrity. 
D) objectivity. 
A) competence. 
B) collegiality. 
C) integrity. 
D) objectivity.

Question 6

Managerial accountants would most likely assist organizations in the performance of all of the following functions except:

Accepted Answer

A) Monitoring,evaluating,and rewarding performance. 
B) The preparation of income tax returns. 
C) Planning and decision-making. 
D) The assignment of decision-making authority over company assets. 
A) Monitoring,evaluating,and rewarding performance. 
B) The preparation of income tax returns. 
C) Planning and decision-making. 
D) The assignment of decision-making authority over company assets.

Question 7

All of the following are ways in which IFRS may relate to managerial accounting except:

Accepted Answer

A) IFRS governs managerial accounting methods. 
B) Managerial accountants usually do not use LIFO for internal reports,so managerial accounting reports are more likely to agree with IFRS than with U.S.GAAP,if the U.S.GAAP reports use LIFO. 
C) If the current IFRS approach of capitalizing R & D costs as assets prevails in the United States,then we are likely to see development costs capitalized for managerial reports. 
D) The accounting information that managers use in making decisions and evaluating performance need not comply with IFRS. 
A) IFRS governs managerial accounting methods. 
B) Managerial accountants usually do not use LIFO for internal reports,so managerial accounting reports are more likely to agree with IFRS than with U.S.GAAP,if the U.S.GAAP reports use LIFO. 
C) If the current IFRS approach of capitalizing R & D costs as assets prevails in the United States,then we are likely to see development costs capitalized for managerial reports. 
D) The accounting information that managers use in making decisions and evaluating performance need not comply with IFRS.

Question 8

Explain the difference between managerial and financial accounting.

Accepted Answer

Managerial accounting provides informati

Question 9

Compare and contrast income statements prepared for managerial use and those prepared for external reporting.

Accepted Answer

Income statements prepared for internal,

Question 10

Which of the following is most likely to be a fixed cost for a company?

Accepted Answer

A) Sales commissions. 
B) Depreciation on factory equipment 
C) The cost of materials used in production. 
D) The cost of shipping finished goods. 
A) Sales commissions. 
B) Depreciation on factory equipment 
C) The cost of materials used in production. 
D) The cost of shipping finished goods.

Question 11

Which of the following accurately describes the managerial accountants' professional environment and ethical responsibilities?

Accepted Answer

A) Stockholders have an ethical responsibility to report accurately even when their own compensation suffers. 
B) Financial analysts have an ethical responsibility to report accurately even when their own compensation suffers. 
C) Managers have an ethical responsibility to report accurately even when their own compensation suffers. 
D) Managers do not have an ethical responsibility to report accurately even when their own compensation suffers. 
A) Stockholders have an ethical responsibility to report accurately even when their own compensation suffers. 
B) Financial analysts have an ethical responsibility to report accurately even when their own compensation suffers. 
C) Managers have an ethical responsibility to report accurately even when their own compensation suffers. 
D) Managers do not have an ethical responsibility to report accurately even when their own compensation suffers.

Question 12

Which of the following is the organization that sponsors the major certification of accountants known as the CMA?

Accepted Answer

A) The Canadian Institute of Chartered Accountants 
B) The Cost Accounting Standards Board 
C) The Institute of Management Accountants 
D) The American Institute of Certified Public Accountants 
A) The Canadian Institute of Chartered Accountants 
B) The Cost Accounting Standards Board 
C) The Institute of Management Accountants 
D) The American Institute of Certified Public Accountants

Question 13

What recent management innovation is the continuous process of measuring one's own products,services,and activities against the best levels of performance inside one's own organization or in other organizations?

Accepted Answer

A) Benchmarking 
B) Total quality management 
C) Theory of constraints 
D) Strategic cost analysis 
A) Benchmarking 
B) Total quality management 
C) Theory of constraints 
D) Strategic cost analysis

Question 14

Who is the manager in charge of raising cash for operations and managing cash and near-cash assets?

Accepted Answer

A) Chief financial officer. 
B) Controller. 
C) Treasurer. 
D) Internal auditor. 
A) Chief financial officer. 
B) Controller. 
C) Treasurer. 
D) Internal auditor.

Question 15

What is an opportunity cost?

Accepted Answer

A) The difference in total costs which results from selecting one choice instead of another. 
B) The profit forgone by selecting one choice instead of another. 
C) A cost that may be saved by not adopting an alternative. 
D) A cost that may be shifted to the future with little or no effect on current operations. 
A) The difference in total costs which results from selecting one choice instead of another. 
B) The profit forgone by selecting one choice instead of another. 
C) A cost that may be saved by not adopting an alternative. 
D) A cost that may be shifted to the future with little or no effect on current operations.

Question 16

Compare and contrast the functions of the controller,internal auditor,and treasurer.Can one person effectively perform all of these functions in a small business?

Accepted Answer

The response should include a descriptio

Question 17

In 2002,Congress passed the Sarbanes-Oxley Act.Which of the following is not a provision of that act?

Accepted Answer

A) The law empowered the American Institute of Certified Public Accountants (AICP
A) to oversee licensure of auditors. 
B) The Chief Executive Officer (CEO)must sign the company's financial statements attesting to the inclusion of all material information. 
C) The Public Company Accounting Oversight Board (PCAO
B) was created. 
D) The CEO and Chief Financial Officer (CFO)must indicate that they are responsible for the company's system of internal control. 
A) The law empowered the American Institute of Certified Public Accountants (AICP
A) to oversee licensure of auditors. 
B) The Chief Executive Officer (CEO)must sign the company's financial statements attesting to the inclusion of all material information. 
C) The Public Company Accounting Oversight Board (PCAO
B) was created. 
D) The CEO and Chief Financial Officer (CFO)must indicate that they are responsible for the company's system of internal control.

Question 18

What modern production methodology emphasizes strengthening the weakest link of the company to improve operations to become more efficient and effective?

Accepted Answer

A) Weakest link theory 
B) Just-in-time 
C) Total quality 
D) Theory of constraints. 
A) Weakest link theory 
B) Just-in-time 
C) Total quality 
D) Theory of constraints.

Question 19

For a furniture manufacturer,which of the following activities could not be eliminated without changing the customer's perception of the product's desirability?

Accepted Answer

A) Set-up of machinery to produce different pieces of furniture. 
B) Reducing the product's distribution network. 
C) Inspection of incoming shipments of wood and fabrics. 
D) Movement of work-in-process from one work station to another. 
A) Set-up of machinery to produce different pieces of furniture. 
B) Reducing the product's distribution network. 
C) Inspection of incoming shipments of wood and fabrics. 
D) Movement of work-in-process from one work station to another.

Question 20

In principle,a cost is

Accepted Answer

A) a sacrifice of resources. 
B) something used up to produce revenues in a particular accounting period. 
C) only comprised of direct material and direct labor. 
D) something measured in conformity with generally accepted accounting principles. 
A) a sacrifice of resources. 
B) something used up to produce revenues in a particular accounting period. 
C) only comprised of direct material and direct labor. 
D) something measured in conformity with generally accepted accounting principles.

Accounting data used for managerial reports

All of the following are true regarding integrated information systems except:

Which of the following are Canadian designations that are similar to the CPA designation in the United States? I.CA II.CMA III.CGA IV.CASB

Which of the following reflects the correct order in a value-chain?

Ethical standards that comprise the Institute of Management Accountant's Code of Ethics do not include which of the following?

Managerial accountants would most likely assist organizations in the performance of all of the following functions except:

All of the following are ways in which IFRS may relate to managerial accounting except:

Explain the difference between managerial and financial accounting.

Compare and contrast income statements prepared for managerial use and those prepared for external reporting.

Which of the following is most likely to be a fixed cost for a company?

Which of the following accurately describes the managerial accountants' professional environment and ethical responsibilities?

Which of the following is the organization that sponsors the major certification of accountants known as the CMA?

What recent management innovation is the continuous process of measuring one's own products,services,and activities against the best levels of performance inside one's own organization or in other organizations?

Who is the manager in charge of raising cash for operations and managing cash and near-cash assets?

What is an opportunity cost?

Compare and contrast the functions of the controller,internal auditor,and treasurer.Can one person effectively perform all of these functions in a small business?

In 2002,Congress passed the Sarbanes-Oxley Act.Which of the following is not a provision of that act?

What modern production methodology emphasizes strengthening the weakest link of the company to improve operations to become more efficient and effective?

For a furniture manufacturer,which of the following activities could not be eliminated without changing the customer's perception of the product's desirability?

In principle,a cost is

Measuring Product Costs

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters

Exam 1: Fundamental Concepts

Accounting data used for managerial reports

All of the following are true regarding integrated information systems except:

Which of the following are Canadian designations that are similar to the CPA designation in the United States? I.CA II.CMA III.CGA IV.CASB

Which of the following reflects the correct order in a value-chain?

Ethical standards that comprise the Institute of Management Accountant's Code of Ethics do not include which of the following?

Managerial accountants would most likely assist organizations in the performance of all of the following functions except:

All of the following are ways in which IFRS may relate to managerial accounting except:

Explain the difference between managerial and financial accounting.

Compare and contrast income statements prepared for managerial use and those prepared for external reporting.

Which of the following is most likely to be a fixed cost for a company?

Which of the following accurately describes the managerial accountants' professional environment and ethical responsibilities?

Which of the following is the organization that sponsors the major certification of accountants known as the CMA?

What recent management innovation is the continuous process of measuring one's own products,services,and activities against the best levels of performance inside one's own organization or in other organizations?

Who is the manager in charge of raising cash for operations and managing cash and near-cash assets?

What is an opportunity cost?

Compare and contrast the functions of the controller,internal auditor,and treasurer.Can one person effectively perform all of these functions in a small business?

In 2002,Congress passed the Sarbanes-Oxley Act.Which of the following is not a provision of that act?

What modern production methodology emphasizes strengthening the weakest link of the company to improve operations to become more efficient and effective?

For a furniture manufacturer,which of the following activities could not be eliminated without changing the customer's perception of the product's desirability?

In principle,a cost is

Measuring Product Costs

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters