Question 1

Management accounting is not a subordinate activity to financial accounting.

Accepted Answer

A) True 
 B)False  True

Question 2

Neither the amount of detail nor the format of a management accounting report is affected by those to whom the report is sent.

Accepted Answer

A) True 
 B)False  False

Question 3

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.

Accepted Answer

A) True 
 B)False  False

Question 4

Suppose a management accountant becomes aware of a confidential but illegal act that has occurred within her company. The management accountant must consider what she is ethically bound to do about this situation. Three alternative responses to this situation are given below. State whether you agree or disagree with each, and briefly detail your reasons.
a. The accountant must remain loyal to the company at all times and should report the occurrence only to appropriate officials within the company.
b. The accountant is bound to inform officials only if she stands to personally gain (make money) from knowledge of the illegal act.
c. The accountant must exercise personal judgment; a clear-cut answer does not exist given the limited information provided.

Accepted Answer

a. The confidentiality standards state t

Question 5

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.

Accepted Answer

A) True 
 B)False

Question 6

An advantage of value chain analysis is that it allows a company to

Accepted Answer

A)  evaluate ethical conduct. 
B)  focus on its core competencies. 
C)  use the four "w's." 
D)  increase sales to customers. 
A)  evaluate ethical conduct. 
B)  focus on its core competencies. 
C)  use the four "w's." 
D)  increase sales to customers.

Question 7

In today's competitive business environment, managers

Accepted Answer

A)  need only be concerned with quality. 
B)  must provide the highest value at the highest cost to customers. 
C)  must provide the highest value at the lowest cost to customers. 
D)  need not be concerned with the cost to the customers. 
A)  need only be concerned with quality. 
B)  must provide the highest value at the highest cost to customers. 
C)  must provide the highest value at the lowest cost to customers. 
D)  need not be concerned with the cost to the customers.

Question 8

Hiring a janitorial service firm rather than employing full-time employees is an example of outsourcing.

Accepted Answer

A) True 
 B)False

Question 9

Management accountants working in purchasing must decline gifts from company vendors, because acceptance of a gift might influence or be perceived as influencing their performance or decision analyses.

Accepted Answer

A) True 
 B)False

Question 10

Activity-based management focuses on enhancing activities that add value to the product and reducing those that do not.

Accepted Answer

A) True 
 B)False

Question 11

The management process and management accounting are identical.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Management accounting provides reports that are future oriented.

Accepted Answer

A) True 
 B)False

Question 14

Financial accounting comprises all rules governing the accounting for and reporting of financial information that must be disclosed to people outside the company.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Management accounting reports can

Accepted Answer

A)  use a flexible format. 
B)  use financial and nonfinancial data. 
C)  be prepared for any time period. 
D)  include all of these. 
A)  use a flexible format. 
B)  use financial and nonfinancial data. 
C)  be prepared for any time period. 
D)  include all of these.

Question 18

Analysis of nonfinancial data is important to the management accountant because

Accepted Answer

A)  financial data are usually irrelevant. 
B)  nonfinancial data lend themselves more to computer analysis than do financial data. 
C)  managers make many decisions based solely on nonfinancial data. 
D)  nonfinancial data are easier to work with than financial data. 
A)  financial data are usually irrelevant. 
B)  nonfinancial data lend themselves more to computer analysis than do financial data. 
C)  managers make many decisions based solely on nonfinancial data. 
D)  nonfinancial data are easier to work with than financial data.

Question 19

The Assembly Department of KEIA employs three direct laborers and two supervisory personnel. For the past several months, the employees have been assembling desks from pieces prepared in the Cutting Department. Three desks are expected to be produced for every labor hour incurred in the department. The hours worked in April, May, and June appear below.
 $\begin{array}{|c|c|c|c|c|c|c|}
\hline & \text { April } & \text { May } & \text { June } & & & \
\hline \text { Simployee } & \text { Direct Labor } & \text { Supervisory } & \text { Direct Labor } & \text { Supervisory } & \text { Direct Labor } & \text { Supervisory } \
\hline \text { M. Jackson } & & 178 & & 180 & & 185 \
\hline \text { I. Taylor } & 172 & & 182 & & 178 & \
\hline \text { C. Dion } & 182 & & 178 & & 190 & \
\hline \text { B. Dylan } & 188 & & 176 & & 184 & \
\hline \text { J. Baez } & & 167 & & 188 & & 195 \
\hline
\end{array}$
 Actual production of desks for April was 2,501; May, 2,532; and June, 2,601.
a. Calculate the number of desks expected to be produced each month.
b. By what percentage did production fall short of expectations each month?
c. Comment on your calculations, and recommend what actions should be taken by the plant manager.

Accepted Answer

a. Calculation of expected production:
-

Question 20

Management accounting exists primarily for the benefit of people outside the company.

Accepted Answer

A) True 
 B)False

Management accounting is not a subordinate activity to financial accounting.

Neither the amount of detail nor the format of a management accounting report is affected by those to whom the report is sent.

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.

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.

An advantage of value chain analysis is that it allows a company to

In today's competitive business environment, managers

Hiring a janitorial service firm rather than employing full-time employees is an example of outsourcing.

Management accountants working in purchasing must decline gifts from company vendors, because acceptance of a gift might influence or be perceived as influencing their performance or decision analyses.

Activity-based management focuses on enhancing activities that add value to the product and reducing those that do not.

The management process and management accounting are identical.

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

Management accounting provides reports that are future oriented.

Financial accounting comprises all rules governing the accounting for and reporting of financial information that must be disclosed to people outside the company.

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

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

Management accounting reports can

Analysis of nonfinancial data is important to the management accountant because

Management accounting exists primarily for the benefit of people outside the company.

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, Incl Target Costing and Transfer Pricing

Quality Management and Measurement

Financial Analysis of Performance

Filters

Exam 1: The Changing Business Environment - a Managers Perspective

Management accounting is not a subordinate activity to financial accounting.

Neither the amount of detail nor the format of a management accounting report is affected by those to whom the report is sent.

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.

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.

An advantage of value chain analysis is that it allows a company to

In today's competitive business environment, managers

Hiring a janitorial service firm rather than employing full-time employees is an example of outsourcing.

Management accountants working in purchasing must decline gifts from company vendors, because acceptance of a gift might influence or be perceived as influencing their performance or decision analyses.

Activity-based management focuses on enhancing activities that add value to the product and reducing those that do not.

The management process and management accounting are identical.

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

Management accounting provides reports that are future oriented.

Financial accounting comprises all rules governing the accounting for and reporting of financial information that must be disclosed to people outside the company.

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

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

Management accounting reports can

Analysis of nonfinancial data is important to the management accountant because

Management accounting exists primarily for the benefit of people outside the company.

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, Incl Target Costing and Transfer Pricing

Quality Management and Measurement

Financial Analysis of Performance

Filters