Question 1

Budgeting can be used in an organisation to:

Accepted Answer

A)  motivate managers to achieve organisational goals 
B)  control operations 
C)  provide managers with information for making decisions and planning 
D)  All of the given answers 
A)  motivate managers to achieve organisational goals 
B)  control operations 
C)  provide managers with information for making decisions and planning 
D)  All of the given answers

Question 2

Animus Ltd is a mining company.Which of the following is an example of 'planning'?

Accepted Answer

A)  Awarding bonuses to Aimus Ltd's top performing executives 
B)  Setting production targets for the company's new mines 
C)  Developing correction actions to respond to lower-than-expected production levels in the existing mines 
D)  Pursuing legal actions against environmental activists who stole mining equipment 
A)  Awarding bonuses to Aimus Ltd's top performing executives 
B)  Setting production targets for the company's new mines 
C)  Developing correction actions to respond to lower-than-expected production levels in the existing mines 
D)  Pursuing legal actions against environmental activists who stole mining equipment

Question 3

What type of accounting system is part of an organisation's management information system for internal use only?

Accepted Answer

A)  Financial accounting 
B)  Management accounting 
C)  Governmental accounting 
D)  All of the given answers 
A)  Financial accounting 
B)  Management accounting 
C)  Governmental accounting 
D)  All of the given answers

Question 4

Animus Ltd is a mining company.Which of the following is an example of a business strategy decision?

Accepted Answer

A)  Should Animus Ltd operate in the mining industry only or to expand to heavy machinery manufacturing and distribution? 
B)  Should Animus Ltd compete based on price or product differentiation? 
C)  Should Animus Ltd hire a new financial controller? 
D)  Should Animus Ltd develop a new management accounting system? 
A)  Should Animus Ltd operate in the mining industry only or to expand to heavy machinery manufacturing and distribution? 
B)  Should Animus Ltd compete based on price or product differentiation? 
C)  Should Animus Ltd hire a new financial controller? 
D)  Should Animus Ltd develop a new management accounting system?

Question 5

When a firm adopts a strategy of being a low-cost producer and sells its products at a price lower than its competitors,the firm is said to be using a strategy of cost leadership.

Accepted Answer

A) True 
 B)False

Question 6

Accountants with a CPA qualification are only able to work as financial accountants.

Accepted Answer

A) True 
 B)False

Question 7

Strategies are:

Accepted Answer

A)  directions that a firm intend to take in the long term 
B)  describes the way the firm competes 
C)  the same as objectives and goals 
D)  independent of the firm's mission statement 
A)  directions that a firm intend to take in the long term 
B)  describes the way the firm competes 
C)  the same as objectives and goals 
D)  independent of the firm's mission statement

Question 8

Eddy Gunn is a management accountant.Which of following is most likely to be Eddy's responsibility?

Accepted Answer

A)  Providing an environmental assurance report for his company's shareholders 
B)  Compiling the company tax return 
C)  Ensuring that the internal accounting system is compliant with generally accepted accounting standards 
D)  Developing a production cost report for each of the company's three production lines 
A)  Providing an environmental assurance report for his company's shareholders 
B)  Compiling the company tax return 
C)  Ensuring that the internal accounting system is compliant with generally accepted accounting standards 
D)  Developing a production cost report for each of the company's three production lines

Question 9

Which of the following statement/s is/are false? Management accountants should:
i.help in the provision of physical data to managers
ii.be included in the management of information systems
iii.present their information in monetary terms only
iv.help to ensure effective interdepartmental communications

Accepted Answer

A)  i and ii 
B)  iii and iv 
C)  iii 
D)  iv 
A)  i and ii 
B)  iii and iv 
C)  iii 
D)  iv

Question 10

The theory that suggests that a firm's management accounting system is influenced by factors such as the external environment and technology is called contingency theory.

Accepted Answer

A) True 
 B)False

Question 11

Objectivity in management accounting
What is meant by the following statement? 'The objectivity of the management accounting process is largely a myth.'

Accepted Answer

Accountants have wide areas of discretio

Question 12

The costs of providing information to management should be less than the benefits.Which of the following are costs of management accounting information?
i.Salary cost of management accounting personnel
ii.Computer operating costs
iii.Managers' time in reading and acting on the information

Accepted Answer

A)  i,ii and iii 
B)  ii and iii only 
C)  i and iii only 
D)  None of the given answers 
A)  i,ii and iii 
B)  ii and iii only 
C)  i and iii only 
D)  None of the given answers

Question 13

The benefits of management accounting information include:

Accepted Answer

A)  improved decisions 
B)  more effective planning 
C)  greater efficiency of operations 
D)  All of the given answers 
A)  improved decisions 
B)  more effective planning 
C)  greater efficiency of operations 
D)  All of the given answers

Question 14

The focus of management accounting over time has changed.Which is the correct historical order for the following foci?
i.Cost
ii.Profitability
iii.Resource management
iv.Waste reduction

Accepted Answer

A)  i,ii,iii and iv 
B)  ii,iii,i and iv 
C)  i,ii,iv and iii 
D)  i,iii,iv and ii 
A)  i,ii,iii and iv 
B)  ii,iii,i and iv 
C)  i,ii,iv and iii 
D)  i,iii,iv and ii

Question 15

Animus Ltd is a mining company operating in Australia.The company has recently developed a new environmental management accounting system.According to institutional theory:

Accepted Answer

A)  The new system is likely to be the result of the Australian culture of being environmentally conscious and the fact that negative environmental impacts can result in significant fines to the company. 
B)  The new system is likely to be the result of gaining legitimacy and to imitate other mining companies who are 'doing the right thing'. 
C)  The new system is likely to be the result of stringent government regulations. 
D)  The new system is likely to be the result of careful,rational,cost-benefit analysis. 
A)  The new system is likely to be the result of the Australian culture of being environmentally conscious and the fact that negative environmental impacts can result in significant fines to the company. 
B)  The new system is likely to be the result of gaining legitimacy and to imitate other mining companies who are 'doing the right thing'. 
C)  The new system is likely to be the result of stringent government regulations. 
D)  The new system is likely to be the result of careful,rational,cost-benefit analysis.

Question 16

Which of the following statements is correct?

Accepted Answer

A)  The primary objective of a firm's management is to increase firm value. 
B)  The management accounting system needs to accumulate information from both internal and external sources. 
C)  Managers may be faced with a conflict between increasing customer value and increasing shareholder value. 
D)  All the given statements are correct. 
A)  The primary objective of a firm's management is to increase firm value. 
B)  The management accounting system needs to accumulate information from both internal and external sources. 
C)  Managers may be faced with a conflict between increasing customer value and increasing shareholder value. 
D)  All the given statements are correct.

Question 17

Which of the following statements is correct?

Accepted Answer

A)  Management accounting is a subset of cost accounting. 
B)  Cost accounting is a subset of management accounting. 
C)  Cost accounting is no longer required in today's competitive environment. 
D)  Management accounting in today's environment is the same as it was many years ago. 
A)  Management accounting is a subset of cost accounting. 
B)  Cost accounting is a subset of management accounting. 
C)  Cost accounting is no longer required in today's competitive environment. 
D)  Management accounting in today's environment is the same as it was many years ago.

Question 18

Which of the following is the most logical sequence for a commencing organisation?

Accepted Answer

A)  Control,feedback,planning 
B)  Planning,control,feedback 
C)  Feedback (feedforward),planning,control,feedback 
D)  Control,planning,feedback 
A)  Control,feedback,planning 
B)  Planning,control,feedback 
C)  Feedback (feedforward),planning,control,feedback 
D)  Control,planning,feedback

Question 19

The largest professional organisation for management accountants in Australia is the:

Accepted Answer

A)  CPA Australia 
B)  Australian Accounting Association 
C)  Institute of Chartered Accountants in Australia 
D)  Certified Institute of Management Accountants 
A)  CPA Australia 
B)  Australian Accounting Association 
C)  Institute of Chartered Accountants in Australia 
D)  Certified Institute of Management Accountants

Question 20

A strategy is:
i.another name for a long-term objective
ii.the same as an objective
iii.a means by which an organisation plans to meet its mission and achieve its objectives

Accepted Answer

A)  i 
B)  ii 
C)  iii 
D)  i and ii 
A)  i 
B)  ii 
C)  iii 
D)  i and ii

Budgeting can be used in an organisation to:

Animus Ltd is a mining company.Which of the following is an example of 'planning'?

What type of accounting system is part of an organisation's management information system for internal use only?

Animus Ltd is a mining company.Which of the following is an example of a business strategy decision?

When a firm adopts a strategy of being a low-cost producer and sells its products at a price lower than its competitors,the firm is said to be using a strategy of cost leadership.

Accountants with a CPA qualification are only able to work as financial accountants.

Strategies are:

Eddy Gunn is a management accountant.Which of following is most likely to be Eddy's responsibility?

The theory that suggests that a firm's management accounting system is influenced by factors such as the external environment and technology is called contingency theory.

Objectivity in management accounting What is meant by the following statement? 'The objectivity of the management accounting process is largely a myth.'

The costs of providing information to management should be less than the benefits.Which of the following are costs of management accounting information? i.Salary cost of management accounting personnel ii.Computer operating costs iii.Managers' time in reading and acting on the information

The benefits of management accounting information include:

The focus of management accounting over time has changed.Which is the correct historical order for the following foci? i.Cost ii.Profitability iii.Resource management iv.Waste reduction

Animus Ltd is a mining company operating in Australia.The company has recently developed a new environmental management accounting system.According to institutional theory:

Which of the following statements is correct?

Which of the following statements is correct?

Which of the following is the most logical sequence for a commencing organisation?

The largest professional organisation for management accountants in Australia is the:

A strategy is: i.another name for a long-term objective ii.the same as an objective iii.a means by which an organisation plans to meet its mission and achieve its objectives

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Suppliers and Customers

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters

Exam 1: Management Accounting: Information for Creating Value and Managing Resources

Budgeting can be used in an organisation to:

Animus Ltd is a mining company.Which of the following is an example of 'planning'?

What type of accounting system is part of an organisation's management information system for internal use only?

Animus Ltd is a mining company.Which of the following is an example of a business strategy decision?

When a firm adopts a strategy of being a low-cost producer and sells its products at a price lower than its competitors,the firm is said to be using a strategy of cost leadership.

Accountants with a CPA qualification are only able to work as financial accountants.

Strategies are:

Eddy Gunn is a management accountant.Which of following is most likely to be Eddy's responsibility?

The theory that suggests that a firm's management accounting system is influenced by factors such as the external environment and technology is called contingency theory.

Objectivity in management accounting What is meant by the following statement? 'The objectivity of the management accounting process is largely a myth.'

The costs of providing information to management should be less than the benefits.Which of the following are costs of management accounting information? i.Salary cost of management accounting personnel ii.Computer operating costs iii.Managers' time in reading and acting on the information

The benefits of management accounting information include:

The focus of management accounting over time has changed.Which is the correct historical order for the following foci? i.Cost ii.Profitability iii.Resource management iv.Waste reduction

Animus Ltd is a mining company operating in Australia.The company has recently developed a new environmental management accounting system.According to institutional theory:

Which of the following statements is correct?

Which of the following statements is correct?

Which of the following is the most logical sequence for a commencing organisation?

The largest professional organisation for management accountants in Australia is the:

A strategy is: i.another name for a long-term objective ii.the same as an objective iii.a means by which an organisation plans to meet its mission and achieve its objectives

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Product Costing Systems

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Suppliers and Customers

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters