Test bank for cost accounting a managerial emphasis 5th

B sequence of business functions in which customer usefulness is added to the products or services of an organization.. C sequence of business functions in which value is deducted from t

Test Bank for Cost Accounting A Managerial Emphasis 5th

Which of the following are strategic decisions?

1 A) Match quality of goods to price customers are willing to pay

2 B) Seek sources of competitive advantage

3 C) Describe the opportunities employees should seek

4 D) Choose how to compete in the long-term

5 E) All of the above

The value chain is the

1 A) sequence of functions in which value is added at specific target areas of improvement

2 B) sequence of business functions in which customer usefulness is added to the products or services of an organization

3 C) sequence of business functions in which value is deducted from the

products or services of an organization

4 D) process by which products and services are critiqued for their value

5 E) sequence of business functions in which value is proportionately added to the products or services of an organization

What aspect of business analysis focuses on the sequence of business

1 A) Senior managers from individual parts of the value chain have a

responsibility in deciding on the organization's overall strategy

2 B) The value chain includes all activities from the idea stage through to providing support to customers

3 C) An organization can realize gains from having individual parts of the value chain work concurrently

4 D) Managers should always proceed sequentially through the value chain, since distribution for example cannot occur before production is completed.

5 E) Senior managers from individual parts of the value chain have a

responsibility in deciding on the how resources are to be obtained and used, and how rewards are to be given

When a company works with its supplier to reduce material-handling costs, this is an example of

1 A) a key success factor

2 B) total value-chain or supply chain analysis

3 C) the customer-driven approach

4 D) a conflict of interest

5 E) a strategic marketing focus

Determining the number of components to put into a computer monitor is an example of which of the following value chain functions?

1 A) distribution

2 B) production

3 C) marketing

4 D) research and development

5 E) design of products, services, and processes

Developing a new website to display and demonstrate the company's

products would be part of which value chain function?

1 A) distribution

2 B) research and development

3 C) design of products, services, and processes

4 D) production

5 E) marketing

Customer response time describes

1 A) the speed at which we respond to our customers' requests

2 B) the speed at which our competitors respond to our customers' requests

3 C) the speed at which our customers respond to our competitors' requests

4 D) the speed at which our customers respond to our requests

5 E) None of the above

To be successful a company should be

1 A) management driven

2 B) customer driven

3 C) executive driven

4 D) employee driven

5 E) "driven" by the board of directors

There is many aspects of a company that managers should focus on Which of the following is not a key success factor for managers in terms of today's customer satisfaction?

1 A) ensuring that cost and quality don't change

2 B) more reliable delivery dates

3 C) increased quality

4 D) innovative products and services.

5 E) the value chain

The value chain is the sequence of business functions in which

1 A) value is proportionately added to the products or services of an

organization

2 B) usefulness is added to the products or services of an organization

3 C) value is deducted from the products or services of an organization

4 D) rational experimentation is performed to enhance product compatibility

5 E) products and services are evaluated with respect to their value to the supply chain

Whose perceptions of the company's products or services are the most important to the manager?

1 A) customers' perception

2 B) president's perception

3 C) competitors' perception

4 D) board of directors' perception

5 E) stockholders' perception

A budget is defined as

1 A) the quantitative expression of a plan and an aid in controlling income

2 B) an aid in coordinating and implementing a plan

3 C) the qualitative expression of a plan

4 D) the quantitative expression of a plan of action by management

5 E) an aid in controlling income

Understanding the reasons for any difference between actual results and budgeted amounts is an important aspect of

1 A) extended value-chain analysis

2 B) kaizen management

3 C) management by exception

4 D) management by perception

5 E) forecasting for the next accounting period

Which of the following is a major benefit of utilizing a budgeting system?

1 A) Once a successful budget is developed, it can be re-used year after year

2 B) It forces coordination and communication

3 C) It always results in more profitable decisions

4 D) It is easier for managers than traditional decision-making models

5 E) It saves costs by utilizing historical data to make projections

Once a plan is implemented, the control process

1 A) ensures that managers follow the pre-existing plan

2 B) should allow the originating manager(s) to keep lower-level managers frommaking changes

3 C) requires top management permission to change

4 D) should be followed rigidly

5 E) should be flexible

A well-conceived plan allows managers to have the ability to

1 A) underestimate the costs so that actual operating results will be favourable when comparisons are made

2 B) take advantage of unforeseen opportunities

3 C) stay with the pre-existing plan when things start to change for the better

4 D) leave the system and let the plan continue on its own

5 E) stay the course regardless of the outcome

A variance is considered to be

1 A) the difference allowed in the current production costs

2 B) the difference between the original budget and the final adjusted budget

3 C) the difference between the historical cost and the current cost

4 D) the difference between budgeted amounts and actual results

5 E) the difference between current operating costs and last year's operating costs

Which of the following is not a use of feedback, from a manager's

perspective?

1 A) to improve past performances

2 B) to predict future events

3 C) to search for alternative ways of reaching goals

4 D) changes the reward system

5 E) to change goals

Changes in the way managers run their departments often force them to evaluate the design and operation of the

re-1 A) financial accounting system

2 B) management accounting system

3 C) current decision-making process

4 D) performance appraisal system

5 E) security system

Management accountants' responsibilities concentrate on

1 A) comparing the financial advantages of alternatives

2 B) financing the purchase of fixed assets

3 C) external reporting

4 D) internal auditing of multi-divisional units

5 E) scorekeeping, attention-directing or the problem-solving function

is responsible for accumulating and reporting reliable results to all levels of management

Which of the following lists a scorekeeping activity first, followed by an

attention-directing activity, followed by a problem-solving activity?

1 A) recording sales, comparing the financial advantages of leasing a fleet of vehicles, and highlighting rapidly growing markets where the company may

be under funding its investment

2 B) recording purchases from vendors, purchase returns and accounts payable

3 C) recording sales, highlighting rapidly growing markets where the company may be under-funding its investment, and comparing the financial

advantages of leasing a fleet of vehicles

4 D) recording sales to customers, explaining ways to avoid cost overruns, and recording purchases from vendors

5 E) recording sales to customers, customer returns, and accounts receivable

means reporting and interpreting information that helps managers to focus on operating problems, imperfections, inefficiencies, and

opportunities

1 A) Problem-solving

2 B) Scorekeeping

3 C) Budgeting

4 D) total value chain analysis.

5 E) variance analysis approach

The primary criterion for choosing among alternative accounting systems

is

1 A) cost minimization

2 B) improving information flow

3 C) achievement of organizational goals

4 D) reduction in the amount of time required to perform a particular job

5 E) how well they help achieve organizational goals in relation to the costs incurred for these systems

The primary reason for implementing a new budgeting system for an organization is

1 A) the historical costs will be recaptured

2 B) the relative expected benefits of the new system exceed its costs

3 C) managers' need for more information for variance analysis

4 D) the expected benefits exceed the costs of the old system

5 E) managers' need for more information in making better purchasing decisions

An example of a Staff management function would be

1 A) determining that new equipment is required

2 B) ensuring that environmental standards are met

3 C) developing quality standards for production

4 D) being responsible for attaining a set level of plant income.

5 E) preparing operating cost estimates for proposed new equipment

The person(s) directly responsible for the attainment of organizational objectives is/are

1 A) the chief financial officer

2 B) the internal auditor

3 C) both staff and line management

2 B) has become less clear cut in the employee reward system

3 C) has become more important relative to promotions

4 D) has increased

5 E) has only been evident in the employee reward system

The is also called the chief financial officer

1 A) controller

2 B) treasurer

3 C) finance director

4 D) chief executive

Corporate social responsibility is

1 A) the mandatory integration by companies of social and environmental concerns into their business operation

2 B) codified in international trade agreements

3 C) the voluntary integration by companies of social and environmental

concerns into their business operation

4 D) legislated by government and enforced by the courts

5 E) the same as code of ethics passed by the board of governors of a

company

What is the professional designation for management accountants?

1 A) Certified Financial Executive

2 B) Certified General Accountant

3 C) Certified Management Accountant

4 D) Chartered Accountant

5 E) Chartered Management Accountant

Professional ethics for a Certified Management Accountant in Canada were established by

2 B) responsibilities to disseminate accounting knowledge to the general public

3 C) the overriding requirement of loyalty to your employer/client

4 D) protecting the image of the association by never divulging apparently unethical conducts by another member

5 E) responsibility, fairness, confidentiality, and independence.

Which of the following would likely not constitute a breach of ethics for a management accountant?

1 A) to consider disclosing confidential information in order to further your own career

2 B) to omit pertinent information from a report because it is unfavourable to you

3 C) to report the unethical actions of another party, with the expectation that this will further your own career

4 D) to profit personally from confidential information obtained from your client / employer (eg sell shares based on confidential information that the share value will decline soon)

5 E) to consider disclosing confidential information (ie gained from a third party) in order to assist your employer / client

Ethical issues would include all of the following EXCEPT

1 A) dealing with a supervisor's instructions to carry out an unethical act

2 B) being aggressive in arguing for increased compensation for yourself

3 C) conflicts of interest

4 D) manipulation of financial statement results in order to help your employer and save co-workers jobs

5 E) not admitting past mistakes

Management accounting is guided by generally accepted accounting

principles

1 True

2 False

Managerial accounting and cost accounting both measure and report financial and non-financial information relating to the cost of acquiring or utilizing resources

1 True

2 False

Managers typically receive reports on cost planning and controls that should

be considered for internal use only

Companies with a strategy of low prices compete on their ability to offer unique new products or services that are priced higher than their

Value chain and supply chain are two (2) terms describing the same set of business functions

Planning is choosing goals, predicting results under various alternative ways

of achieving those goals, and then deciding how to attain the desired

Variance refers to the difference between planned and budgeted

The cost-benefit approach is the primary consideration for choosing amongst alternatives

CMA's are required to follow the formal codes of ethical conduct provided by the Accounting Standards Board

1 A) Data can be entered at numerous input terminals within the organization

2 B) Managers can store old documents in hard copy

3 C) The managers could combine or adjust these data to answer the questionsfrom particular internal and external users

4 D) The managers would not be completely responsible for the information that is entered into the database system

5 E) Managers could generate their own reports

/T

Financial accounting is concerned primarily with

1 A) providing analysis to facilitate long term decision making

2 B) providing information for strategic and tactical decisions.

3 C) external reporting to investors, government authorities, etc

4 D) cost planning and cost controls

5 E) profitability analysis

/T

The text identifies six ways to classify the major differences between

Management and Financial Accounting The "managers of the organization" is

an example of which of the following classes of differences?

1 A) Focus and emphasis

2 B) Rules of measurement and reporting

3 C) Time span and type of reports

4 D) Primary users

5 E) Purpose of information

/T

The text identifies six ways to classify the major differences between

Management and Financial Accounting The statement "Varies from hourly to

15 to 20 years" is an example of which of the following classes of

differences?

1 A) Purpose of information

2 B) Primary users

3 C) Rules of measurement and reporting

4 D) Time span and type of reports

5 E) Focus and emphasis

/T

The text identifies six ways to classify the major differences between

Management and Financial Accounting The statement "Past oriented (reports

on 2010 performance prepared in 2011)" is an example of which of the

following classes?

1 A) Focus and emphasis

2 B) Purpose of information

3 C) Rules of measurement and reporting

4 D) Time span and type of reports

5 E) Primary users

/T

The text identifies six ways to classify the major differences between

Management and Financial Accounting The statement "Communicate

organization's financial position to external users" is an example of which of the following classes?

1 A) Primary users

2 B) Purpose of information

3 C) Focus and emphasis

4 D) Rules of measurement and reporting

5 E) Time span and type of reports

/T

Which of the following is not something management accountants should do

to satisfy their users?

1 A) consider financial as well as non-financial measures