Question 1

Having the requisite knowledge to perform certain tasks is an example of Enabling Competencies in the CPA Guidelines for Ethical Behaviour.

Accepted Answer

A) True 
 B)False

Question 2

Managerial accounting information emphasizes relevance, more than reliability and objectivity.

Accepted Answer

A) True 
 B)False

Question 3

The production system designed to eliminate waste is called a(n)

Accepted Answer

A)  traditional system. 
B)  lean production system. 
C)  activity-based system. 
D)  full costing system.

Question 4

Management accounting requires independent audits of the firm's books.

Accepted Answer

A) True 
 B)False

Question 5

The philosophy of providing superior goods and services is

Accepted Answer

A)  ERP. 
B)  JIT. 
C)  Supply-chain management. 
D)  TQM.

Question 6

In what way do managers benefit from the use of a management information system?

Accepted Answer

A)  Data can be entered at numerous input terminals within the organization. 
B)  The managers would not be completely responsible for the information that is entered into the database system. 
C)  The managers could combine or adjust data to answer the questions from particular internal and external users. 
D)  Managers can store old documents in hard copy.

Question 7

Technology has been a driving factor in the changing roles of management accountants.

Accepted Answer

A) True 
 B)False

Question 8

Is financial accounting or managerial accounting more useful to a plant (factory) manager? Explain your answer.

Accepted Answer

The answer of Is financial accounting or managerial accounting more...

Question 9

The philosophy that centres on production as needed is known as

Accepted Answer

A)  ERP. 
B)  JIT. 
C)  Supply-chain management. 
D)  TQM.

Question 10

Management accounting focuses on

Accepted Answer

A)  external reporting. 
B)  internal reporting. 
C)  tax preparation. 
D)  auditing.

Question 11

What are the four primary responsibilities of managers as described in Chapter 1? Give an example of each type of responsibility.

Accepted Answer

The answer of What are the four primary responsibilities of...

Question 12

Compilation of allowed and disallowed behaviours is evidence of ________ in the CPA Guidelines for Ethical Behaviour.

Accepted Answer

A)  Adherence to Rules of Professional Conduct 
B)  Enabling Competencies 
C)  Conclude, Advise and Communicate 
D)  Integrative Analysis

Question 13

Which of the following terms best describes costs incurred to avoid poor quality goods or services?

Accepted Answer

A)  Appraisal costs 
B)  Activity-based costing 
C)  Value engineering 
D)  Prevention costs

Question 14

Production loss caused by downtime is an example of what type of cost?

Accepted Answer

A)  External failure cost 
B)  Internal failure cost 
C)  Prevention cost 
D)  Appraisal cost

Question 15

Lean production systems typically focus on strengthening supply-chain management.

Accepted Answer

A) True 
 B)False

Question 16

The Sarbanes-Oxley Act does not allow public accounting firms to provide certain non-audit services to clients during the same period they are providing audit services.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is TRUE?

Accepted Answer

A)  Managerial accounting reports are audited by professional accountants. 
B)  Managerial accounting reports provide detailed internal information. 
C)  Managerial accounting reports aid potential investors. 
D)  Managerial accounting reports must follow GAAP.

Question 18

Describe management accounting and financial accounting.

Accepted Answer

The answer of Describe management accounting and financial accounting....

Question 19

The cost of training employees would be classified as an external failure cost.

Accepted Answer

A) True 
 B)False

Question 20

Lean production systems typically have employees cross-trained to perform more than one activity.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Managerial Accounting

Having the requisite knowledge to perform certain tasks is an example of Enabling Competencies in the CPA Guidelines for Ethical Behaviour.

Managerial accounting information emphasizes relevance, more than reliability and objectivity.

The production system designed to eliminate waste is called a(n)

Management accounting requires independent audits of the firm's books.

The philosophy of providing superior goods and services is

In what way do managers benefit from the use of a management information system?

Technology has been a driving factor in the changing roles of management accountants.

Is financial accounting or managerial accounting more useful to a plant (factory) manager? Explain your answer.

The philosophy that centres on production as needed is known as

Management accounting focuses on

What are the four primary responsibilities of managers as described in Chapter 1? Give an example of each type of responsibility.

Compilation of allowed and disallowed behaviours is evidence of ________ in the CPA Guidelines for Ethical Behaviour.

Which of the following terms best describes costs incurred to avoid poor quality goods or services?

Production loss caused by downtime is an example of what type of cost?

Lean production systems typically focus on strengthening supply-chain management.

The Sarbanes-Oxley Act does not allow public accounting firms to provide certain non-audit services to clients during the same period they are providing audit services.

Which of the following is TRUE?

Describe management accounting and financial accounting.

The cost of training employees would be classified as an external failure cost.

Lean production systems typically have employees cross-trained to perform more than one activity.