Question 1

Which of the following is not an objective of managerial accounting?

Accepted Answer

A)  Providing information for decision making and planning. 
B)  Assisting in directing and controlling operations. 
C)  Maximizing profits and minimizing costs. 
D)  Measuring the performance of managers and subunits. 
E)  Motivating managers toward the organization's goals. 
A)  Providing information for decision making and planning. 
B)  Assisting in directing and controlling operations. 
C)  Maximizing profits and minimizing costs. 
D)  Measuring the performance of managers and subunits. 
E)  Motivating managers toward the organization's goals.

Question 2

Present several examples of managerial accounting information that could help a manager make each of the following decisions:
A. A manufacturing company is currently making a part that is a production headache. The firm is deciding whether to abandon production and buy the part from an outside supplier.
B. An operator of fast-food restaurants is deciding whether to open a new store in Dallas.
Note: Many correct answers are possible.

Accepted Answer

A. The cost of each alternative (make vs

Question 3

Unused or excess capacity is a key component of contemporary management accounting. Define the term "excess capacity" and explain how it would relate to a coffee shop.

Accepted Answer

Excess capacity is the difference betwee

Question 4

Which of the following typically does not relate to the role of a controller?

Accepted Answer

A)  A controller supervises the accounting department. 
B)  A controller safeguards an organization's assets. 
C)  A controller oversees the preparation of reports required by governmental authorities. 
D)  A controller normally assumes a narrow role within the organization, often preventing the individual's rise to top management ranks. 
E)  A controller safeguards an organization's assets and a controller normally assumes a narrow role within the organization, often preventing the individual's rise to top management ranks. 
A)  A controller supervises the accounting department. 
B)  A controller safeguards an organization's assets. 
C)  A controller oversees the preparation of reports required by governmental authorities. 
D)  A controller normally assumes a narrow role within the organization, often preventing the individual's rise to top management ranks. 
E)  A controller safeguards an organization's assets and a controller normally assumes a narrow role within the organization, often preventing the individual's rise to top management ranks.

Question 5

The role of managerial accounting information in assisting management is a(n):

Accepted Answer

A)  financial-directing role. 
B)  attention-directing role. 
C)  planning and controlling role. 
D)  organizational role. 
E)  problem-solving role. 
A)  financial-directing role. 
B)  attention-directing role. 
C)  planning and controlling role. 
D)  organizational role. 
E)  problem-solving role.

Question 6

Which of the following business models considers financial, customer, internal operating, and other measures in the evaluation of performance?

Accepted Answer

A)  Deterministic simulation. 
B)  Balanced scorecard. 
C)  Payoff matrix. 
D)  Decision tree. 
E)  Chart of operating performance (COP). 
A)  Deterministic simulation. 
B)  Balanced scorecard. 
C)  Payoff matrix. 
D)  Decision tree. 
E)  Chart of operating performance (COP).

Question 7

Which of the following functions is best described as choosing among available alternatives?

Accepted Answer

A)  Decision making. 
B)  Planning. 
C)  Directing operational activities. 
D)  Controlling. 
E)  Budgeting. 
A)  Decision making. 
B)  Planning. 
C)  Directing operational activities. 
D)  Controlling. 
E)  Budgeting.

Question 8

Controlling involves the coordination of daily business functions within an organization.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following involves the coordination of daily business functions within an organization?

Accepted Answer

A)  Decision making. 
B)  Planning. 
C)  Directing operational activities. 
D)  Controlling. 
E)  Motivating. 
A)  Decision making. 
B)  Planning. 
C)  Directing operational activities. 
D)  Controlling. 
E)  Motivating.

Question 10

Which of the following statements represents a similarity between financial and managerial accounting?

Accepted Answer

A)  Both are useful in providing information for external users. 
B)  Both are governed by GAAP. 
C)  Both draw upon data from an organization's accounting system. 
D)  Both rely heavily on published financial statements. 
E)  Both are solely concerned with historical transactions. 
A)  Both are useful in providing information for external users. 
B)  Both are governed by GAAP. 
C)  Both draw upon data from an organization's accounting system. 
D)  Both rely heavily on published financial statements. 
E)  Both are solely concerned with historical transactions.

Question 11

A controller is normally involved with:

Accepted Answer

A)  preparing financial statements. 
B)  managing investments. 
C)  raising capital. 
D)  safeguarding assets. 
E)  managing the firm's credit policy. 
A)  preparing financial statements. 
B)  managing investments. 
C)  raising capital. 
D)  safeguarding assets. 
E)  managing the firm's credit policy.

Question 12

Taurus Company has set various goals, and management is now taking appropriate action to ensure that the firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted amounts. Which of the following functions best describes this process?

Accepted Answer

A)  Decision making. 
B)  Planning. 
C)  Coordinating. 
D)  Controlling. 
E)  Organizing. 
A)  Decision making. 
B)  Planning. 
C)  Coordinating. 
D)  Controlling. 
E)  Organizing.

Question 13

Which of the preceding activities would likely not be considered part of The Gap clothing company's value chain?

Accepted Answer

A)  Designing a new product line. 
B)  Locating and then negotiating terms with a clothing manufacturer. 
C)  Marketing an existing product line. 
D)  Distributing goods from regional warehouses to local stores. 
E)  All of these activities would be an element in the company's value chain. 
A)  Designing a new product line. 
B)  Locating and then negotiating terms with a clothing manufacturer. 
C)  Marketing an existing product line. 
D)  Distributing goods from regional warehouses to local stores. 
E)  All of these activities would be an element in the company's value chain.

Question 14

The day-to-day work of management teams will typically comprise all of the following activities except:

Accepted Answer

A)  decision making. 
B)  planning. 
C)  cost minimizing. 
D)  directing operational activities. 
E)  controlling. 
A)  decision making. 
B)  planning. 
C)  cost minimizing. 
D)  directing operational activities. 
E)  controlling.

Question 15

Strategic cost management is:

Accepted Answer

A)  the process of determining cost drivers. 
B)  the recognition of the importance of cost relationships among the activities in the value chain. 
C)  the process of managing cost relationships to the firm's advantage. 
D)  two of the other answers are correct. 
A)  the process of determining cost drivers. 
B)  the recognition of the importance of cost relationships among the activities in the value chain. 
C)  the process of managing cost relationships to the firm's advantage. 
D)  two of the other answers are correct.

Question 16

Which of the following statements about the ethical climate of business is false?

Accepted Answer

A)  Greedy corporate executives are, in part, to blame for the rash of corporate scandals that occurred not too long ago. 
B)  Unethical business behavior can have a negative impact on our economy. 
C)  The Sarbanes-Oxley Act strives to improve the overall quality of corporate reporting. 
D)  The Robinson-Patman Act strives to improve the overall quality of corporate reporting. 
E)  Corporate scandals have served as the accounting profession's wake-up call to pay increased attention to ethical issues in the conduct of business. 
A)  Greedy corporate executives are, in part, to blame for the rash of corporate scandals that occurred not too long ago. 
B)  Unethical business behavior can have a negative impact on our economy. 
C)  The Sarbanes-Oxley Act strives to improve the overall quality of corporate reporting. 
D)  The Robinson-Patman Act strives to improve the overall quality of corporate reporting. 
E)  Corporate scandals have served as the accounting profession's wake-up call to pay increased attention to ethical issues in the conduct of business.

Question 17

Financial accounting focuses primarily on reporting:

Accepted Answer

A)  to parties outside of an organization. 
B)  to parties within an organization. 
C)  to an organization's board of directors. 
D)  to financial institutions. 
E)  for financial institutions. 
A)  to parties outside of an organization. 
B)  to parties within an organization. 
C)  to an organization's board of directors. 
D)  to financial institutions. 
E)  for financial institutions.

Question 18

Measuring the performance of managers and subunits is not an objective of managerial accounting.

Accepted Answer

A) True 
 B)False

Question 19

The value chain is a key component of contemporary management accounting. Define the term "value chain" and explain how it would relate to an airline.

Accepted Answer

The value chain is a set of activities t

Question 20

Which of the following statements about managerial accountants is false?

Accepted Answer

A)  Managerial accountants more and more are considered "business partners." 
B)  Managerial accountants often are part of cross-functional teams. 
C)  An increasing number of organizations are segregating managerial accountants in separate managerial-accounting departments. 
D)  In a number of companies, managerial accountants make significant business decisions and resolve operating problems. 
E)  The role of managerial accountants has changed considerably over the past decade. 
A)  Managerial accountants more and more are considered "business partners." 
B)  Managerial accountants often are part of cross-functional teams. 
C)  An increasing number of organizations are segregating managerial accountants in separate managerial-accounting departments. 
D)  In a number of companies, managerial accountants make significant business decisions and resolve operating problems. 
E)  The role of managerial accountants has changed considerably over the past decade.

Which of the following is not an objective of managerial accounting?

Unused or excess capacity is a key component of contemporary management accounting. Define the term "excess capacity" and explain how it would relate to a coffee shop.

Which of the following typically does not relate to the role of a controller?

The role of managerial accounting information in assisting management is a(n):

Which of the following business models considers financial, customer, internal operating, and other measures in the evaluation of performance?

Which of the following functions is best described as choosing among available alternatives?

Controlling involves the coordination of daily business functions within an organization.

Which of the following involves the coordination of daily business functions within an organization?

Which of the following statements represents a similarity between financial and managerial accounting?

A controller is normally involved with:

Taurus Company has set various goals, and management is now taking appropriate action to ensure that the firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted amounts. Which of the following functions best describes this process?

Which of the preceding activities would likely not be considered part of The Gap clothing company's value chain?

The day-to-day work of management teams will typically comprise all of the following activities except:

Strategic cost management is:

Which of the following statements about the ethical climate of business is false?

Financial accounting focuses primarily on reporting:

Measuring the performance of managers and subunits is not an objective of managerial accounting.

The value chain is a key component of contemporary management accounting. Define the term "value chain" and explain how it would relate to an airline.

Which of the following statements about managerial accountants is false?

Basic Cost Management Concepts

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis, Cost Behavior, and Cost Estimation

Cost-Volume-Profit Analysis

Variable Costing and the Costs of Quality and Sustainability

Financial Planning and Analysis: the Master Budget

Standard Costing and Analysis of Direct Costs

Flexible Budgeting and Analysis of Overhead Costs

Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Compound Interest and the Concept of Present Value

Inventory Management

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

Which of the following is not an objective of managerial accounting?

Unused or excess capacity is a key component of contemporary management accounting. Define the term "excess capacity" and explain how it would relate to a coffee shop.

Which of the following typically does not relate to the role of a controller?

The role of managerial accounting information in assisting management is a(n):

Which of the following business models considers financial, customer, internal operating, and other measures in the evaluation of performance?

Which of the following functions is best described as choosing among available alternatives?

Controlling involves the coordination of daily business functions within an organization.

Which of the following involves the coordination of daily business functions within an organization?

Which of the following statements represents a similarity between financial and managerial accounting?

A controller is normally involved with:

Taurus Company has set various goals, and management is now taking appropriate action to ensure that the firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted amounts. Which of the following functions best describes this process?

Which of the preceding activities would likely not be considered part of The Gap clothing company's value chain?

The day-to-day work of management teams will typically comprise all of the following activities except:

Strategic cost management is:

Which of the following statements about the ethical climate of business is false?

Financial accounting focuses primarily on reporting:

Measuring the performance of managers and subunits is not an objective of managerial accounting.

The value chain is a key component of contemporary management accounting. Define the term "value chain" and explain how it would relate to an airline.

Which of the following statements about managerial accountants is false?

Basic Cost Management Concepts

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis, Cost Behavior, and Cost Estimation

Cost-Volume-Profit Analysis

Variable Costing and the Costs of Quality and Sustainability

Financial Planning and Analysis: the Master Budget

Standard Costing and Analysis of Direct Costs

Flexible Budgeting and Analysis of Overhead Costs

Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Compound Interest and the Concept of Present Value

Inventory Management

Filters