Question 1

In a performance report,

Accepted Answer

A)  differences between actual costs and allowed costs are always undesirable. 
B)  expenditures of less than allowed amounts are undesirable. 
C)  expenditures of more than allowed amounts are not permitted to occur. 
D)  expenditures of less than allowed amounts are desirable.

Question 2

Describe the connection between planning, controlling, and feedback.

Accepted Answer

The answer of Describe the connection between planning, controlling, and...

Question 3

Briefly discuss the differences between financial and management accounting.

Accepted Answer

The answer of Briefly discuss the differences between financial and...

Question 4

Management accounting:

Accepted Answer

A)  provides a framework to evaluate information in light of an organization's goals. 
B)  provides relevant information to managers. 
C)  provides relevant information to meet specific needs of persons inside the organization. 
D)  all of the above

Question 5

Financial accounting is primarily concerned with providing financial reports to all of the following EXCEPT

Accepted Answer

A)  creditors such as banks and other financial institutions. 
B)  creditors such as suppliers. 
C)  shareholders of the company. 
D)  management of the firm.

Question 6

Describe a cost management information system, its objectives, and major subsystems.

Accepted Answer

The answer of Describe a cost management information system, its...

Question 7

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 8

Monitoring the number of defects produced is an example of the management function of

Accepted Answer

A)  planning. 
B)  control. 
C)  decision making. 
D)  both a and c

Question 9

The monitoring of a plan's implementation is called

Accepted Answer

A)  planning. 
B)  controlling. 
C)  decision making. 
D)  budgeting.

Question 10

Management accounting and financial accounting differ in that management accounting information is prepared

Accepted Answer

A)  following prescribed rules. 
B)  using whatever methods the company finds beneficial. 
C)  for shareholders. 
D)  to summarize the whole company with little detail.

Question 11

What can a company do to increase the likelihood of its employees being ethical in all their undertakings?

Accepted Answer

The answer of What can a company do to increase...

Question 12

Which one of the following statements about ethical behaviour is true?

Accepted Answer

A)  Ethical behaviour is not guided by well-defined rules and is often subjective. 
B)  Ethical behaviour is best described as doing actions that are permitted by law. 
C)  Ethical behaviour always involves choosing between actions that are clearly right or wrong. 
D)  Ethical behaviour is best guided by a policy of placing corporate performance above individual ends.

Question 13

Relationships among activities that are performed within a firm's portion of the industrial value chain are

Accepted Answer

A)  internal linkages 
B)  external linkages 
C)  customer linkages 
D)  none of the above

Question 14

The formulation of a scheme or program for the accomplishment of a specific purpose or goal is referred to as

Accepted Answer

A)  controlling. 
B)  motivating. 
C)  organizing. 
D)  planning.

Question 15

Setting the company's profit targets for the upcoming year is an example of the management function of

Accepted Answer

A)  planning. 
B)  control. 
C)  variance analysis. 
D)  internal auditing.

Question 16

Evaluating the performance of a segment of the company is an example of

Accepted Answer

A)  planning. 
B)  control. 
C)  internal auditing. 
D)  both a and c

Question 17

The setting of objectives and the identification of methods to achieve those objectives is called

Accepted Answer

A)  planning. 
B)  controlling. 
C)  performance evaluation. 
D)  decision making.

Question 18

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 19

Which of the following cost management tools supports the firm's concentration on the delivery of value to the customer?

Accepted Answer

A)  service industry growth 
B)  global competition 
C)  preparing an earnings report for external reporting 
D)  value-chain analysis

Question 20

Classify the activity of handling raw materials according to its value-chain category.

Accepted Answer

A)  developing 
B)  designing 
C)  producing 
D)  distributing

Exam 1: Introduction to Management Accounting