Exam 1: The Changing Role of Managerial Accounting in a Dynamic Business Environment

Which of the following choices correctly depicts whether McDonald's, the University of Wisconsin, and Apple Inc. would have a need for managerial accounting? University of McDonald's Wisconsin Apple Inc. A. Yes Yes No B. Yes No Yes C. Yes Yes Yes D. No Yes No E. No Yes Yes

In order for a company to achieve a sustainable competitive advantage, it must perform value chain activities:

Which if the following would not be part of a value chain for a fast food restaurant?

Assume that a managerial accountant regularly communicates with business associates to avoid conflicts of interest and advises relevant parties of potential conflicts. In so doing, the accountant will have applied the ethical standard of:

Which of the following characteristic(s) relate(s) more to managerial accounting than to financial accounting?

A restaurant's value chain includes:

All of the following entities would have a need for managerial accounting information except:

The upper limit on the production of goods and services if everything works perfectly is known as practical capacity.

Which of the following choices correctly depicts activities that would be included in a manufacturer's value chain? Research and Development Marketing Distribution A. Yes Yes No B. Yes No Yes C. Yes Yes Yes D. No Yes No E. No Yes Yes

Which of the following perspectives is normally absent in a balanced scorecard?

The upper limit on the production of goods and services if everything works perfectly is known as:

Given the following information, what is the cost of unused capacity? Cost of material supplied is $3,200; Cost of material used is $3,000; Cost of material used per cake is $3; Cost of material supplied per cake is $3.20.

Managerial accounting:

Employee empowerment involves encouraging and authorizing workers to take initiatives to:

Which of the following would likely be considered an internal user of accounting information rather than an external user?

Tae Franklin is the sales manager of Darius Enterprises, a very profitable distributor of office furniture to local businesses. A recent economic downturn has created an extremely tight cash position, and the company has been hurt by the bankruptcy of two key customers. In late October, anticipating an economic recovery, Franklin began an extensive remodeling of the company's sales floor. Construction costs, decorating, and equipment purchases are projected to cost $250,000. Darius has a policy that individual expenditures in excess of $200,000 must be approved by the firm's board of directors. Franklin, unfortunately, missed the deadline to have the board consider this project at its regular September meeting. Not wanting to wait until the next meeting in December, he subdivided the project in two parts-construction and decorating ($190,000) and equipment purchases ($60,000)-neither of which needed board approval because of the dollar amounts involved. The project was recently completed and sales have begun to recover. Customers have raved about the new sales area, noting that it is far superior to those of Darius's competitors. Required: A. Would Franklin's approach of subdividing the project in two parts have any effect on the company's financial statements? Briefly explain. B. Briefly discuss whether Franklin behaved in an ethical manner. C. Which, if any, of the following standards of conduct would have applicability to Franklin's conduct: competence, confidentiality, integrity, or credibility? Briefly explain.

In order for a company to achieve a sustainable competitive advantage, it must:

Borders Overnight operates an overnight package delivery service that competes with Federal Express and United Parcel Service (UPS). Top management is considering the use of a balanced scorecard to evaluate operations. A. What is a balanced scorecard and other than customer-satisfaction measures, what are its typical key components? B. List four customer-satisfaction measures that Borders might use to evaluate performance.

Middle-level managers would likely be considered internal users of accounting information rather than external users.

Which of the following employees at Starbucks would likely be considered as holding a staff position?