Exam 1: The Changing Business Environment - a Managers Perspective

Management accounting differs from financial accounting in many ways. Indicate with an "X" in the appropriate column whether each of the following characteristics relates to financial accounting, management accounting, or neither.

Each of the management tools can be used individually, or parts of them can be combined to create a new operating environment.

Which of the following is a nonfinancial performance measure?

Assume you are the president of the business club at your school. You are thinking about creating a fundraising project to generate money for next year's operations. Develop an outline of your ideas using the various stages of the management process. Note: Student answers will vary considerably; however, they should adequately cover the four stages of the management process. An example answer is given below.

A Taste of Italy is a pizza business that delivers only. A Taste of Italy's business objectives are as follows: 1. To be profitable and grow 2. To manage its food inventory carefully (especially the cheese!) 3. To provide fast and courteous service 4. To have repeat customers The following performance measures were developed: 5. Average unsold food at the end of the business day as a percentage of the total purchased that day 6. Growth in revenues per quarter and profit margin 7. Average customer wait time between order and delivery 8. Percentage of customers who have ordered before (All customers are identified by phone number.) Match each of the above business objectives and performance measures with the four perspectives of the balanced scorecard. (Identify by placing the number or numbers next to the perspective; each number can be used only once.) a. Financial Perspective ________________ b. Learning and Growth Perspective ________________ c. Internal Business Processes Perspective __________________ d. Customer Perspective _______________

Give two examples of nonfinancial performance measures.

The Chief Financial Officer (CFO) of your company has asked you to help her develop a cost control report to be distributed within the company. She wants your input concerning what she should think about before developing such a report. Discuss the significant points, in detail, the CFO should consider before the cost control report is prepared.

List three characteristics of a JIT operating environment.

Financial information included in financial statements prepared for external use is past data, summarized for the user as of a particular date.

TQM seeks to improve the quality of both the product and the work environment.

Management executes a plan by overseeing the daily operations of an organization.

Give two examples of each stage in the management process.

Like balance sheets and income statements, management accounting formats are much the same from company to company.

The ethical standards for management accountants state that accountants are obligated to maintain professional competence at all times when dealing with

Performance measures are used in

Sinopole's Pharmaceutical Delivery Company is a high-volume business that features home delivery services to elderly shut-ins. Located in Bakersfield, California, the company currently uses six delivery trucks to service the area within a 100-mile radius of the city. Each delivery truck can make a maximum of 600 deliveries per month. In June, the demand for these deliveries totaled 3,200, and the company has been experiencing a 2 percent increase in demand, compounded monthly. In which month must the company add a seventh delivery truck, given these estimates?

Identify three uses of the costs of quality information.

Management accounting and financial accounting are similar in which of the following respects?

Accumulating, interpreting, and reporting financial information is important for

If a report is urgently needed, some accuracy may have to be sacrificed in the interest of timeliness.