Test bank for cornerstones of managerial accounting 5th edition

Test Bank for Cornerstones of Managerial Accounting 5th Edition Management accounting information is only used by manufacturing organizations... False The four emphasized areas of the C

Test Bank for Cornerstones of Managerial Accounting 5th Edition

Management accounting information is only used by manufacturing organizations

1 True

2 False

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

1 True

2 False

The process of choosing among competing alternatives is decision

making

1 True

2 False

Managerial accounting information is not important for not-for-profit organizations

1 True

2 False

Managerial Accounting is designed primarily for internal users

1 True

2 False

Managerial accounting has its emphasis on the future

1 True

2 False

Financial accounting is governed by GAAP

1 True

2 False

The value chain is the set of activities required to design, develop, produce, market, and deliver products and service to customers

1 True

2 False

Time is not a crucial element in all phases of the value chain

1 True

2 False

Activity-based costing is a less detailed approach to determining the cost of goods and services than traditional cost accounting

1 True

2 False

Excellent customer service is an example of a value-added activity

1 True

2 False

A cost accountant would normally occupy a staff position within an

organization

1 True

2 False

Positions that have direct responsibility for the basic objectives of an

organization are referred to as line positions

1 True

2 False

Virtually all managerial accounting practices were developed to assist

managers in maximizing profits

1 True

2 False

The belief that each member of a group bears no responsibility for the well-being of other members is a common principle underlying all ethical

systems

1 True

2 False

The four emphasized areas of the CMA examination reflect the needs of

managerial accounting and highlights that managerial accounting has more of

an interdisciplinary flavor than other areas of accounting

1 True

2 False

The purpose of the Certificate in Public Accounting is to provide minimal professional qualification for external auditors

1 True

2 False

Which of the following is not an objective of managerial accounting?

1 a To prepare external reports for investors, creditors, government agencies, and other outside users.

2 b To provide information for costing of services, products, and other objects

of interest to management.

3 c To provide information for planning, controlling, evaluating and continuous improvement.

4 d To provide information for decision making.

Which of the following is an example of the management activity referred to

as planning?

1 a Developing a strategy for disposing of hazardous waste.

2 b The decision to eliminate an unprofitable segment of an organization.

3 c The decision to outsource an organization`s payroll processing.

4 d All of these are correct

Developing a company strategy for responding to anticipated new markets is

an example of

1 a planning.

2 b controlling.

3 c decision making.

4 d all of these are correct.

Investigating production variances and adjusting the production process is an example of

1 a planning.

2 b controlling.

3 c decision making.

4 d all of these.

The primary objective of managerial accounting is

1 a to provide stockholders and potential investors with useful information for decision making.

2 b to provide banks and other creditors with information useful in making credit decisions.

3 c to provide management with information useful for planning and control of operations.

4 d to provide the Internal Revenue Service with information about taxable income.

Managerial accounting

1 a is primarily for external users.

2 b has no mandatory rules.

3 c provides information based on historical information.

4 d must adhere to GAAP.

Managerial accounting reports are prepared

1 a according to GAAP guidelines.

2 b to meet the needs of decision makers within the firm.

3 c for external users.

4 d all of these are correct

Financial accounting

1 a is concerned with the information about the firm as a whole.

2 b has to adhere to GAAP policies.

3 c focuses on external users.

4 d all of these are correct

Which of the following would not be an example of a value-added activity?

1 a timely delivery of products

2 b offering the customer a variety of products

3 c storage of finished products

4 d excellent customer service

Total quality management emphasizes

1 a zero defects.

2 b continuous improvement.

3 c elimination of waste.

4 d all of these are correct.

Activity-based costing

• a strives to create an environment that will enable workers to manufacture zero-defect products

• b is the process of choosing among competing alternatives

• c was established in response to financial scandals

• d encourages process-value analysis

Which of the following would normally occupy a line position?

• a staff accountant

• b accounting manager

• c vice-president of marketing

• d treasurer

Which of the following would normally occupy a staff position?

• a assembly worker

• b cost accounting manager

• c factory manager

• d all of these

Which of the following would occupy a line position in a hospital?

• a manager of the cafeteria

• b hospital administrator

• c chief of surgery

• d none of these

The controller of an organization participates in

• a planning

• b controlling

• c decision making

• d all of these are correct

The objective of profit maximization

• a should be the only goal of an organization

• b is an objective of financial accounting but not managerial accounting.

• c should be achieved through legal and ethical means

• d should outweigh the goal of product quality

The standards of ethical conduct for managerial accountants include

• a competence and performance

• b integrity and respect for others

• c confidentiality, confidence, integrity, and observance

• d competence, confidentiality, integrity, and credibility

Which of the following areas is not emphasized on the CMA examination?

• a external auditing and business law

• b economics, finance, and management

• c decision analysis and information systems

• d financial accounting and reporting

Accountants that have a Certificate in Public Accounting (CPA):

• a are the only accountants permitted to serve as external auditors.

• b must pass a national examination and be licensed by the state in which they practice

• c may be held responsible to provide assurance concerning the reliability of a firm`s financial statements

• d all of these statements are true

Persons in the United States who provide assurance service are designated as

• a Certified Public Accountants

• b Certified Financial Accountants

• c Chartered Accountants

• d Certified Management Accountants

The detailed formulation of action to achieve a particular end is the management activity

called _

is the provision of accounting information for a company’s internal users

The process of choosing among competing alternatives is called .

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

The managerial accounting system produces information for users

is primarily concerned with producing information for external users

Managerial accounting strongly emphasizes providing information about _

The _ is the set of activities required to design, develop, produce, market and deliver products and services as well as provide support services to customers

organizes costs according to the value chain and collects both financial and nonfinancial information

is a management philosophy in which manufacturers strive to create an environment that will enable workers to manufacture perfect (zero-defect) products

_ is the continual search for ways to increase the overall efficiency and productivity of activities by reducing waste, increasing quality and managing costs

_ is a crucial element in all phases of the value chain.

The supervises all accounting functions and reports directly to the general manager and chief operating officer (COO)

Positions that are supportive in nature and have only indirect responsibility for an organization’s basic objectives are called

The is responsible for the finance function

In June 2002, Congress passed the in response to financial scandals such as Enron

involves choosing actions that are right, proper, and just

To promote ethical behavior by managers and employees, organizations commonly establish a

Only a _ is permitted to serve as an external auditor

A has passed a comprehensive examination designed to ensure technical competence and has two years of experience

Activity-based costing

1 a strives to create an environment that will enable workers to manufacture zero-defect products.

2 b is the process of choosing among competing alternatives.

3 c was established in response to financial scandals.

4 d encourages process-value analysis.

Which of the following would normally occupy a line position?

1 a staff accountant

2 b accounting manager

3 c vice-president of marketing

4 d treasurer

Which of the following would normally occupy a staff position?

1 a assembly worker

2 b cost accounting manager

3 c factory manager

4 d all of these

Which of the following would occupy a line position in a hospital?

1 a manager of the cafeteria

2 b hospital administrator

3 c chief of surgery

4 d none of these

The controller of an organization participates in

1 a planning.

2 b controlling.

3 c decision making.

4 d all of these are correct

The objective of profit maximization

1 a should be the only goal of an organization.

2 b is an objective of financial accounting but not managerial accounting.

3 c should be achieved through legal and ethical means.

4 d should outweigh the goal of product quality.

The standards of ethical conduct for managerial accountants include

1 a competence and performance.

2 b integrity and respect for others.

3 c confidentiality, confidence, integrity, and observance.

4 d competence, confidentiality, integrity, and credibility.

Which of the following areas is not emphasized on the CMA examination?

1 a external auditing and business law

2 b economics, finance, and management

3 c decision analysis and information systems

4 d financial accounting and reporting

Accountants that have a Certificate in Public Accounting (CPA):

1 a are the only accountants permitted to serve as external auditors.

2 b must pass a national examination and be licensed by the state in which they practice.

3 c may be held responsible to provide assurance concerning the reliability of a firm`s financial statements.

4 d all of these statements are true.

Persons in the United States who provide assurance service are designated

as

1 a Certified Public Accountants.

2 b Certified Financial Accountants.

3 c Chartered Accountants.

4 d Certified Management Accountants.

Answer Given

planning

Answer Given

Managerial accounting

Answer Given

decision making

Answer Given

controlling

Answer Given

internal

Answer Given

Financial accounting

Answer Given

future events

Answer Given

value chain

Answer Given

Lean accounting

Answer Given

Total quality management

Answer Given

Continuous improvement

Answer Given

Time

Answer Given

controller

Answer Given

staff positions

Answer Given

treasurer

Answer Given

Sarbanes-Oxley Act (SOX) SOX

Answer Given

Ethical behavior

Answer Given

code of conduct

Answer Given

Certified Public Accountant (CPA) CPA

Answer Given

Certified Internal Auditor (CIA) CIA