Question 1

To compete on the basis if price, the seller must carefully manage:

Accepted Answer

A) cost. 
B) service. 
C) quality. 
D) none of the above.

Question 2

Which of the following does NOT describe management accounting?

Accepted Answer

A) evaluation of segments or products within the firm 
B) emphasis on the future 
C) externally focused 
D) detailed information

Question 3

Which of the following statements most accurately describes an effect of employee empowerment?

Accepted Answer

A) Employee empowerment reduces the cost of implementing decisions. 
B) Employee empowerment decreases the speed in which decisions are made. 
C) Employee empowerment leads to an increased number of corporate staff positions 
D) Employee empowerment places greater emphasis on decisions made by upper management.

Question 4

Which of the following costing activities is associated with the financial accounting system?

Accepted Answer

A) determining the cost of a department 
B) determining the cost of goods sold for financial statements 
C) preparing budgets 
D) determining the cost of a customer

Question 5

Continuous improvement is NOT

Accepted Answer

A) critical in a dynamic environment. 
B) important to finding and maintaining a competitive advantage. 
C) an effort to find ways to increase overall efficiency, improve quality, and reduce costs. 
D) a responsibility of managers in world-class organizations.

Question 6

World-class companies must continuously struggle to improve performance in the dimensions of:

Accepted Answer

A) price/cost. 
B) service. 
C) quality. 
D) all of the above.

Question 7

Accounting

Accepted Answer

A) always has an external orientation. 
B) always has an internal orientation. 
C) information assists in planning and controlling. 
D) terms serve as a model of the organization.

Question 8

In resolving an ethical conflict, which of the following would never be appropriate?

Accepted Answer

A) discussing the matter with the chief executive officer 
B) discussing the matter with an external member of the board of directors 
C) taking the matter to the press where there is no legal requirement 
D) resigning from the position because of a conflict

Question 9

The standards of ethical conduct for management accountants include

Accepted Answer

A) competence and performance. 
B) integrity and respect for others. 
C) confidentiality, confidence, integrity, and observance. 
D) competence, confidentiality, integrity, and objectivity.

Question 10

Which of the following emerging themes in cost accounting deals with managers striving to create an environment that will enable workers to manufacture perfect (zero-defect) products?

Accepted Answer

A) advances in information technology 
B) time as a competitive element 
C) global competition 
D) total quality management

Question 11

Financial accounting information is least useful in providing:

Accepted Answer

A) information for stating corporate wide goals. 
B) information for internal decision makers. 
C) periodic reports for shareholders. 
D) aggregate information about an organization's assets, obligations and performance.

Question 12

Total quality management emphasizes

Accepted Answer

A) zero defects. 
B) continual improvement. 
C) elimination of waste. 
D) all of the above.

Question 13

A(n) ____ is a computerized information system that strives to input data once and make it available to people across the company for different purposes.

Accepted Answer

A) cost management information system 
B) enterprise resource planning system 
C) internal accounting system 
D) financial accounting information system

Question 14

Improvement in time performance is most likely NOT enhanced by

Accepted Answer

A) redesign of products. 
B) adding processes in production. 
C) eliminating waste. 
D) eliminating nonvalue-added activities.

Question 15

The overall objective of accounting information systems is to

Accepted Answer

A) provide information to users. 
B) manage the organization. 
C) prepare financial reports. 
D) report to the government.

Exam 1: Introduction to Management Accounting