Test bank for cost accounting a managerial emphasis 6th

A sequence of business functions in which value is deducted from the products or services of an organization.. B sequence of business functions in which value is proportionately added to

Test Bank for Cost Accounting A Managerial Emphasis 6th

Preparation of a monthly report comparing the actual phone bill with the expected phone costs would be classified as

A report showing the actual financial results for a period compared to the budgeted financial results for that same period would most likely be called

5 E) comparative income statement

The process of preparing a budget

1 A) enhances coordination and communication across business functions

2 B) increases accounting efficiencies

3 C) reduces overcapacity

4 D) promotes production automation

5 E) enhances coordination and communication external to the value chain

Control measures should

1 A) be set and not changed until the next budget cycle

2 B) be flexible to allow for employees who are slackers

3 C) be kept confidential from employees so that competitors don't have an opportunity to gain a competitive advantage

4 D) be linked by feedback to planning

5 E) provide continuous feedback

As users of the information produced by management accounting systems, managers are forced to understand the design and operation of these systems

A cost concept used for external reporting purposes may not be appropriate for internal, routine reporting to managers

2 B) total value chain analysis

3 C) analysis based on feedback

4 D) the variance analysis approach

5 E) the cost-benefit approach

The primary criterion when faced with a resource allocation decision is

1 A) cost minimization

2 B) reduction in the amount of time required to perform a particular job

3 C) achievement of organizational goals

4 D) how well the alternative options help achieve organizational goals in relation to the costs incurred

5 E) improving information flow

Which of the following statements about the cost-benefit approach is

true?

1 A) Resources should be spent if they are expected to better attain company goals in relation to the expected costs of these resources

2 B) In a cost-benefit analysis, both costs and benefits are easy to obtain.

3 C) Resources should be spent if the costs of a decision outweigh the benefits

An example of a staff management function would be

1 A) determining that new equipment is required

2 B) preparing operating cost estimates for proposed new equipment

3 C) developing quality standards for production

4 D) ensuring that environmental standards are met

5 E) being responsible for attaining a set level of plant income

The person(s) directly responsible for the attainment of organizational

objectives is/are

1 A) staff management

2 B) line management

3 C) both staff and line management

4 D) the chief financial officer

5 E) the internal auditor

As teamwork has become more prominent in the last few years, the

traditional distinctions between staff and line management

1 A) has increased

2 B) has become more important relative to promotions.

3 C) has diminished

4 D) has only been evident in the employee reward system

5 E) has become less clear cut in the employee reward system

The is also called the chief financial officer

The is primarily responsible for the quality of the information supplied

in both internal and external reports

1 A) COO (Chief Operating Officer)

2 B) CIO (Chief Information Officer)

3 C) treasurer

If a managerial accountant were not keeping up with current developments in managerial accounting, that behaviour might violate a competence standard

of professional ethical behaviour

1 True

2 False

Corporate social responsibility is

1 A) legislated by government and enforced by the courts

2 B) the same as code of ethics passed by the board of governors of a

5 E) codified in international trade agreements

What is the professional designation for management accountants?

1 A) Chartered Accountant

2 B) Certified Management Accountant

3 C) Certified General Accountant

4 D) Certified Financial Executive

5 E) Chartered Management Accountant

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

Non-compliance with a code of professional ethics for management

accountants includes which of the following penalties?

1 A) imprisonment of up to two years

2 B) imprisonment of up to 20 years

3 C) fines up to $100,000 and imprisonment of up to two years

4 D) public censure and imprisonment up to 2 years

5 E) fines, public censure, and loss of license to practice

Which of the following would likely constitute a breach of ethics for a

5 E) to be disruptive in a meeting

Corporate governance

1 A) relates to the role of the corporate governor

2 B) comprises activities undertaken to ensure legal compliance with laws

3 C) is legislated by the federal government

4 D) relates only to the regulations provided by the Canadian Securities

Administrators

5 E) is a voluntary system of compliance approved by each company's board of directors

An accountant that agrees with the company president to defer the

recognition of a revenue is in a breach of which of the following dimensions of professional conduct?

1 A) conduct that is detrimental to the best interests of the public or harms the integrity of the accounting profession

2 B) conduct that contravenes an act, the regulations, or the bylaws

3 C) conduct that displays a lack of competence

4 D) failure or refusal to co-operate in a practice review

5 E) participating in a conflict of interest

Professional codes of conduct relating to the accounting profession

1 A) supercede the provincial laws but not federal laws

2 B) are enforced by the solicitor general of the relevant province

3 C) specify penalties up to and including incarceration

4 D) are not enforceable as they are not actually laws

5 E) specify how professional accountants must behave.

he value chain is the

1 A) sequence of business functions in which value is deducted from the

products or services of an organization

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

3 C) process by which products and services are critiqued for their value

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

5 E) sequence of functions in which value is added at specific target areas of improvement

What aspect of business analysis focuses on the sequence of business

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

4 D) The value chain refers to the value added to the customer from marketing

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

responsibility in deciding 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) the customer-driven approach

2 B) a conflict of interest

3 C) a key success factor

4 D) a strategic marketing focus

5 E) total value chain or supply chain analysis

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

1 A) research and development

2 B) design of products, services, and processes

3 C) production

4 D) marketing

5 E) distribution

Developing a new web site to display and demonstrate the company's

products would be part of which value chain function?

1 A) research and development

2 B) design of products, services, and processes

1 A) a strategy that integrates people and technology in all business functions

to enhance relationships with customers

2 B) a strategy that integrates people and technology in all business functions

to enhance relationships with customers and partners

3 C) a strategy that integrates people and technology in all business functions

to enhance relationships with customers, partners, and distributors

4 D) a strategy that integrates people and technology in a few business

functions to enhance relationships with customers, partners, and distributors

5 E) a strategy that integrates people and technology in a few business

functions to enhance relationships with customers and partners

To be successful a company should be

There is many aspects of a company that managers should focus on Which of the following sets describes key success factors for managers in terms of delivering performance to customers?

1 A) cost and efficiency, time, quality, innovation

2 B) cost and efficiency, quality, innovation

3 C) cost and efficiency, shareholder value, quality, innovation

4 D) cost and efficiency, management by exception, quality, innovation

5 E) cost and efficiency, budgeting, quality, innovation

R&D, production, and customer service are business functions that are all included as part of

1 A) the value chain

2 B) benchmarking

3 C) marketing

4 D) the supply chain

5 E) the company strategy

The value chain is the sequence of business functions in which

1 A) value is deducted from the products or services of an organization

2 B) value is proportionately added to the products or services of an

organization

3 C) rational experimentation is performed to enhance product compatibility

4 D) products and services are evaluated with respect to their value to the supply chain

5 E) usefulness is added to the products or services of an organization

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

1 A) board of directors' perception

1 A) Research and development

2 B) Design of products, services, or processes

3 C) Production

4 D) Marketing

5 E) Quality control

is a strategy that integrates people and technology in all business functions to enhance relationships with customers, partners, and

4 D) inventory management activities

5 E) aspects of strategy implementation

describe(s) the flow of goods, services, and information from the purchase of materials to the delivery of products to consumers, regardless of whether those activities occur in the same organization or with other

is an operational activity that is essential to corporate

3 C) Customer relationship management

4 D) Total quality management

5 E) Management by objectives

Planning is choosing goals, predicting results under various alternative ways

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

goals

1 True

2 False

A bonus paid to high performing sales persons is an example of an intrinsic reward

The process of preparing a budget enhances coordination and communication throughout the company

1 A) the qualitative expression of a plan

2 B) an aid in controlling income

3 C) the quantitative expression of a plan of action by management

4 D) the quantitative expression of a plan and an aid in controlling income

5 E) an aid in coordinating and implementing a plan

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) forecasting for the next accounting period.

3 C) kaizen management

4 D) control

5 E) management by perception

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

1 A) It always results in more profitable decisions

2 B) It is easier for managers than traditional decision-making models

3 C) It saves costs by utilizing historical data to make projections

4 D) It facilitates coordination and communication

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

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) should be flexible

4 D) should be followed rigidly

5 E) requires top management permission to change

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

1 A) stay with the pre-existing plan when things start to change for the better

2 B) leave the system and let the plan continue on its own

3 C) underestimate the costs so that actual operating results will be favourable when comparisons are made.

4 D) take advantage of unforeseen opportunities

5 E) stay the course regardless of the outcome

The control function may include evaluating

1 A) the difference between current operating costs and last year's operating costs

2 B) the difference between budgeted amounts and actual results

3 C) the difference between the original budget and the final adjusted budget

4 D) the difference allowed in the current production costs

5 E) the difference between the historical cost and the current cost

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

perspective?

1 A) to improve past performances

2 B) to search for alternative ways of reaching goals

3 C) to change goals

4 D) to predict future events

5 E) to change the reward system

Which of the following is an example of an intrinsic reward?

1 A) participation in a stock option plan

2 B) receiving a cash performance bonus

3 C) being acknowledged for a job well done

4 D) receiving an all-expenses paid vacation as a bonus

5 E) receiving a salary increase to keep up with inflation

Place the five steps in the decision-making process in the correct order: A = Obtain information B = Decide on and implement one of the alternatives C = Identify the problem and uncertainties D = Implement the decision, evaluate performance, and learn E = Make predictions about the future

Collecting information to follow through on how actual performance compares

to planned or budgeted performance is referred to as

Which of the following elements is contained within the Implement the

Decision, Evaluate Performance, and Learn category in the Five-Step

Decision-Making Process?

1 A) Identify the problem and uncertainties

2 B) Obtain information

3 C) Make predictions about the future.

4 D) Provide feedback

5 E) Make decisions by choosing among alternatives

includes reporting and interpreting information that helps managers

to focus on operating problems, imperfections, inefficiencies, and

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

Management accountants are required to follow the generally accepted

accounting principles that are used for external financial reporting when preparing reports for internal users

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

competition

1 True

2 False

Cost management involves long-term and short-term decisions that attempt

to increase value for customers and lower costs of products or services