Exam 1: Managerial Accounting and the Business Environment

Six Sigma is a process improvement method that targets a system's constraint for process improvement.

Decentralization refers to:

The controller occupies:

Inventories consisting of units of product that are only partially complete are called _______________.

Dorra Corporation manufactures lawnmowers in five work stations. Dorra's weekly demand is 5,000 mowers but Dorra can only produce 4,200. According to the theory of constraints, to increase production output Dorra would benefit the most by concentrating improvement efforts on the:

A value chain consists of the major subassemblies that add value to a product.

The Institute of Management Accountants' Statement of Ethical Professional Practice specifically states, among other things, that management accountants have a responsibility to keep information confidential except when disclosure is authorized or legally required.

A strategy is a game plan that enables a company to attract customers by mimicking what successful competitors do.

Which of the following persons would occupy a line position in a department store? I. Sales manager II. Manager, furniture department III. Manager, advertising department IV. Manager, personnel department

The Institute of Management Accountants' Statement of Ethical Professional Practice states that when faced with significant ethical issues, management accountants should first:

_________________ is an example of a staff position.

Which of the following is NOT one of the five steps in the lean thinking model discussed in the text?

The Sarbanes-Oxley Act of 2002 contains all of the following provisions EXCEPT:

The controller occupies a staff position in an organization.

The Statement of Ethical Professional Practice promulgated by the Institute of Management Accountants specifically states, among other things, that management accountants have a responsibility to inform responsible journalists of any wrongdoing they uncover in the organization.

The lean thinking model focuses on reducing defects to as close to zero as possible.

The Sarbanes-Oxley Act of 2002 was intended to protect the interests of those who invest in publicly traded companies by ensuring that their original investments could be recovered in case of fraud.

Efforts designed to increase the rate of output should generally be applied to non-constraint work stations.

Customer value propositions tend to fall into three broad categories-theory of constraints, six sigma, and enterprise risk management.

Companies that choose an operational excellence strategy are in essence saying to their customers, "Choose us because we can deliver products and services faster, more conveniently, and at a lower price than our competitors."