Exam 1: The Changing Business Environment - a Managers Perspective

The objectivity standards of management accountants state that management accountants must communicate information fairly and objectively. This means essentially that accountants must perform each task

Management accounting must observe both financial accounting standards and cost accounting standards if it is to be useful to the organization's management.

In a JIT system, materials and parts are not stockpiled.

Suppose a management accountant becomes aware that a poor judgment he or she made has resulted in the loss of one of the company's clients. Is the accountant bound to share this information with the company? (The accountant doubts that the company will ever find out about it directly.)

In a JIT system, workers are trained to specialize in one specific task.

Although management accountants should try not to engage in activities that would prejudice their ability to carry out their duties, they are not obligated to refrain from such activities after business hours, as long as these activities take place off company premises.

The unit of measurement used in management accounting is

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

The balance scorecard

"Hours of inspection" is an example of a nonfinancial performance measure.

Similar to financial accounting reports, management accounting reports are standardized in format.

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

The management accountant must be knowledgeable about all relevant laws, regulations, and technical standards that pertain to his or her duties.

The overall guideline or limit for management accounting information is that the report or analysis must be meaningful and must answer the questions or issues under review.

Accountants have ranked among the highest in ethics among business professions and other occupations. List and briefly describe five ethical standards that management accountants subscribe to that, in your opinion, help maintain the impression that accountants are highly ethical. The student should list any five of the following ethical standards:

In analyzing nonfinancial data, it is important to link the performance measures to the four perspectives of the balanced scorecard and to the objectives that are to be achieved.

Which of the following is not included in the cost of quality?

When unable to resolve an ethical conflict, the accountant should consider consulting with an attorney as to the legal obligations and rights concerning the ethical conflict.

Total quality management focuses on reducing waste.

TQM can be used in