Exam 1: The Changing Business Environment - a Managers Perspective

Practitioners of management accounting and financial management have a responsibility to communicate information fairly and objectively.

Planning involves which of the following?

Financial accounting information is determined objectively and is verifiable, whereas management accounting usually represents subjective estimates of future events.

Performance measures are used only in the evaluation stage of the management process.

Which of the following types of information is not essential for a manager to run a business effectively?

Integrity standards of management accountants include

Management accounting data may be gathered for small segments or large divisions and may be expressed in units of measurement other than historical dollars.

The just-in-time philosophy emphasizes

Financial performance measures are useful in reducing waste and inefficiencies in operating activities.

All of the following are "Who" questions that dictate a managerial report's format except

When there is an ethical conflict, the management accountant should resign if the immediate supervisor is involved with the conflict.

If a management accountant gives information about a future merger of his or her company to a relative, the accountant has acted unethically.

Financial accounting is concerned primarily with planning and control of internal operations.

Internal accounting reports should be prepared when they are needed, without regard to calendar dates or regularity of issue.

Management accounting

Which of the following is not a key question to be addressed when preparing a report?

Jillian Harmon supervises 5 cashiers at Jack's Market. In the past, each cashier served an average of 25 customers per hour. Two months ago, management remodeled the store and installed a new cash register system. Customers no longer need to take their groceries out of the basket. Last month the number of customers served was 5,185 and each cashier worked an average of 170 hours for the month. Based on this information, the service rate has

JIT, TQM, and ABM all seek continuous improvement in operations.

A value chain includes only processes and services that add value to the final product or service.

Chris Tyler owns and operates Surf's Up, a shop in Florida that sells surfboards and beachwear. The shop has been very successful, and now Chris is thinking of manufacturing his own brand of surfboards. Chris discussed the following with you: 1. He plans to add value by making boards that are easier to maneuver and faster in the water. 2. Chris wants to purchase high-quality materials. 3. He wants a logo that will be distinctive and recognizable. 4. He would like to implement efficient manufacturing processes that will enable him to quickly produce the boards when an order is placed. 5. He feels advertising is important. 6. Chris believes in customer satisfaction and wants to have courteous and efficient service for his customers. He also would like to develop a website to establish Internet customers. 7. Because Chris believes in customer service, he would like to provide a warranty service offering a free replacement if the customer is not satisfied. 8. Chris will need to hire and train employees to make the boards. 9. He will need legal advice when applying for a trademark and signing contracts. 10. He wants a computerized accounting system that also provides customer information and the ability to develop management reports. a. Identify from the value chain the primary processes that add value to the surfboards. b. Identify the support services that are part of the same value chain.