Question 1

Which of the following currently exists as a professional accounting body in Canada?

Accepted Answer

A)  CA Canada 
B)  CPA Canada 
C)  CGA Canada 
D)  CMA Canada

Question 2

Select the appropriate definition for each of the items listed below.
-A management philosophy in which manufacturers strive to create an environment that will enable workers to manufacture perfect (zero-defect) products

Accepted Answer

A) Financial accounting 
B) Managerial accounting 
C) Planning 
D) Controlling 
E) Decision making
F)Value chain
G)Continuous improvement
H)Line positions
I)Time
J)Total quality management
K)Lean accounting
L)Staff positions
M)Controller
N)Treasurer
O)Ethical behaviour

Question 3

Virtually all managerial accounting practices were developed to assist managers in maximizing profits.

Accepted Answer

A) True 
 B)False

Question 4

In Canada, both financial and managerial accounting are governed by the Accounting Standards Board (AcSB) of CPA Canada.

Accepted Answer

A) True 
 B)False

Question 5

Which employee would normally occupy a line position in a hospital?

Accepted Answer

A)  a staff nurse 
B)  the chief of surgery 
C)  a hospital administrator 
D)  the manager of the cafeteria

Question 6

Which statement best describes the controller of an organization?

Accepted Answer

A)  They generally have no influence in policies and decisions. 
B)  They can have significant input into policies and decisions. 
C)  They typically set operating policy within the organization. 
D)  They typically have authority over managers in the production area.

Question 7

Select the appropriate definition for each of the items listed below.
-Searching for ways to increase the overall efficiency and productivity of activities by reducing waste, increasing quality, and reducing costs

Accepted Answer

A) Financial accounting 
B) Managerial accounting 
C) Planning 
D) Controlling 
E) Decision making
F)Value chain
G)Continuous improvement
H)Line positions
I)Time
J)Total quality management
K)Lean accounting
L)Staff positions
M)Controller
N)Treasurer
O)Ethical behaviour

Question 8

Which term refers to establishing objectives within an organization to include social and environmental impact?

Accepted Answer

A)  triple impact 
B)  triple accounting 
C)  triple bottom line 
D)  triple cost analysis

Question 9

Which of the following is a characteristic of managerial accounting?

Accepted Answer

A)  It has no mandatory rules. 
B)  It must adhere to mandatory rules. 
C)  Its main users are outside of the organization. 
D)  It provides only objective financial information.

Question 10

According to M. E. Porter, which of the following reflects primary activities in the value chain?

Accepted Answer

A)  inbound logistics, operations, outbound logistics, marketing and sales, service 
B)  procurement, inbound logistics, operations, outbound logistics, marketing and sales, service 
C)  procurement, technology development, human resources management, developing infrastructure 
D)  technology development, human resources management, operations, developing infrastructure

Question 11

Virtually all managerial accounting practices were developed to assist managers with which of the following?

Accepted Answer

A)  determining costs 
B)  maximizing profits 
C)  generating tax reports 
D)  creating annual reports

Question 12

Which statement best describes managerial accounting reports?

Accepted Answer

A)  The reports are prepared to meet the needs of decision makers within the firm. 
B)  The reports are prepared for external shareholders, lenders, and tax authorities. 
C)  The reports are prepared according to International Financial Reporting Standards (IFRS). 
D)  The reports are prepared according to guidelines prepared by the Ontario Securities Commission (OS
C) .

Question 13

What is an objective of managerial accounting?

Accepted Answer

A)  to comply with international reporting standards 
B)  to prepare external reports for investors, creditors, government agencies, and other outside users 
C)  to provide tax information for planning, controlling, evaluating, and continuous improvement 
D)  to provide information for the costing of services, products, and other objects of interest to management

Question 14

According to M. E. Porter, which of the following reflects support activities in the value chain?

Accepted Answer

A)  inbound logistics, operations, outbound logistics, marketing and sales, service 
B)  procurement, inbound logistics, operations, outbound logistics, marketing and sales, service 
C)  procurement, technology development, human resources management, developing infrastructure 
D)  technology development, human resources management, operations, developing infrastructure

Question 15

The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as controlling.

Accepted Answer

A) True 
 B)False

Question 16

What is investigating production variances and adjusting the production process an example of?

Accepted Answer

A)  planning 
B)  delegating 
C)  controlling 
D)  decision making

Question 17

Which employee would normally occupy a line position?

Accepted Answer

A)  the treasurer 
B)  the controller 
C)  the purchasing manager 
D)  the vice-president of marketing

Question 18

Explain the term objectivity.

Accepted Answer

The answer of Explain the term objectivity....

Question 19

Customer value is the difference between what a customer receives and what they give up when buying a product or service.

Accepted Answer

A) True 
 B)False

Question 20

Select the appropriate definition for each of the items listed below.
-The set of activities required to design, develop, produce, market, and deliver products and services to customers

Accepted Answer

A) Financial accounting 
B) Managerial accounting 
C) Planning 
D) Controlling 
E) Decision making
F)Value chain
G)Continuous improvement
H)Line positions
I)Time
J)Total quality management
K)Lean accounting
L)Staff positions
M)Controller
N)Treasurer
O)Ethical behaviour

Exam 1: Introduction to Managerial Accounting

Which of the following currently exists as a professional accounting body in Canada?

Select the appropriate definition for each of the items listed below. -A management philosophy in which manufacturers strive to create an environment that will enable workers to manufacture perfect (zero-defect) products

Virtually all managerial accounting practices were developed to assist managers in maximizing profits.

In Canada, both financial and managerial accounting are governed by the Accounting Standards Board (AcSB) of CPA Canada.

Which employee would normally occupy a line position in a hospital?

Which statement best describes the controller of an organization?

Select the appropriate definition for each of the items listed below. -Searching for ways to increase the overall efficiency and productivity of activities by reducing waste, increasing quality, and reducing costs

Which term refers to establishing objectives within an organization to include social and environmental impact?

Which of the following is a characteristic of managerial accounting?

According to M. E. Porter, which of the following reflects primary activities in the value chain?

Virtually all managerial accounting practices were developed to assist managers with which of the following?

Which statement best describes managerial accounting reports?

What is an objective of managerial accounting?

According to M. E. Porter, which of the following reflects support activities in the value chain?

The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as controlling.

What is investigating production variances and adjusting the production process an example of?

Which employee would normally occupy a line position?

Explain the term objectivity.

Customer value is the difference between what a customer receives and what they give up when buying a product or service.

Select the appropriate definition for each of the items listed below. -The set of activities required to design, develop, produce, market, and deliver products and services to customers