Question 1

Which description identifies financial statements that are prepared for external users?

Accepted Answer

A)  External reports
B)  Special-purpose
C)  User-specific
D)  General-purpose

Question 2

What is value chain management best defined as?

Accepted Answer

A)  A large chain that keeps the machines from falling on the production floor
B)  Management decisions that affect how quickly the production run occurs
C)  The incremental value of costs associated with hiring a new production floor leader
D)  All activities associated with providing a product or service

Question 3

Fundamentally, managerial accounting applies best to the manufacturing context.

Accepted Answer

A) True 
 B)False

Question 4

Employees with staff positions serve other employees, while those with line positions work directly in line with the company's revenue generating goals.

Accepted Answer

A) True 
 B)False

Question 5

Lean manufacturing is in contrast to traditional mass-production operations.

Accepted Answer

A) True 
 B)False

Question 6

Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?

Accepted Answer

A)  Theory of constraints
B)  Just-in-time inventory
C)  Activity-based costing
D)  Total-quality management

Question 7

Which one of the following characteristics would likely be associated with a Just-In-Time inventory method?

Accepted Answer

A)  Ending inventory of work in process that would allow several production runs
B)  A backlog of inventory orders not yet shipped
C)  Minimal finished goods inventory on hand
D)  An understanding with customers that they may come to the showroom and select from inventory on hand

Question 8

Generally Accepted Accounting Principles (GAAP) form the backbone of managerial accounting conventions, and local and/or regional standards and professional judgement allow for variations among practitioners.

Accepted Answer

A) True 
 B)False

Question 9

Managerial accounting is also called

Accepted Answer

A)  inside reporting.
B)  cost accounting.
C)  management accounting.
D)  strategic management.

Question 10

Organization charts are common in companies but not relevant to managerial accounting.

Accepted Answer

A) True 
 B)False

Question 11

The major reporting standard for management accounting is

Accepted Answer

A)  the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management.
B)  the Sarbanes-Oxley Act of 2002.
C)  relevance to decisions.
D)  generally accepted accounting principles.

Question 12

Directing includes

Accepted Answer

A)  providing a framework for management to have criteria to terminate employees when needed.
B)  running a department under quality control standards universally accepted.
C)  coordinating a company's diverse activities and human resources to produce a smooth-running operation.
D)  developing a performance ranking system to give certain high performers good raises.

Question 13

Choose the incorrect answer.

Accepted Answer

A)  While generally not encouraged, lapses in ethical behaviour are irrelevant to a company's operating income.
B)  Proper incentives need to be implemented to foster an ethical business environment.
C)  Manufacturing companies need to establish effective and realistic production goals for their processes.
D)  As a result of the Sarbanes-Oxley Act, companies now pay more attention to the composition of the board of directors.

Question 14

How could management information assist in motivating its employees?

Accepted Answer

A)  Keeping track of quality improvements
B)  Showing the company's percent of market share
C)  Showing statistics on plant safety
D)  All areas would benefit from providing internal management information

Question 15

What term describes all activities associated with providing a product or service?

Accepted Answer

A)  The manufacturing chain
B)  The product chain
C)  The supply chain
D)  The value chain

Question 16

Which of the following statements about internal reports is true?

Accepted Answer

A)  Most internal reports are summarized rather than detailed.
B)  Internal reports focus on general purpose needs of users.
C)  The content of internal reports extends beyond the double-entry accounting system.
D)  Internal reports are often very general.

Question 17

Lean manufacturing is being used less often by manufacturing firms.

Accepted Answer

A) True 
 B)False

Question 18

Reports prepared in managerial accounting are general-purpose reports, whereas reports prepared in financial accounting are usually special-purpose reports.

Accepted Answer

A) True 
 B)False

Question 19

Companies rely upon management accountants to collect non-financial information in order to assess how well the companies' resources are being used.

Accepted Answer

A) True 
 B)False

Question 20

Which one of the following is true concerning the managerial function of controlling?

Accepted Answer

A)  It includes performance evaluation by management.
B)  It is concerned mainly with operating a manufacturing segment.
C)  It is performed only by the controller of a company.
D)  It includes hiring and training employees.

Exam 1: Managerial Accounting

What is value chain management best defined as?

Correct AnswerverifiedShow Answer

Employees with staff positions serve other employees, while those with line positions work directly in line with the company's revenue generating goals.

Correct AnswerverifiedShow Answer

Reports prepared in managerial accounting are general-purpose reports, whereas reports prepared in financial accounting are usually special-purpose reports.

Correct AnswerverifiedShow Answer

Which of the following statements about internal reports is true?

Correct AnswerverifiedShow Answer

What term describes all activities associated with providing a product or service?

Correct AnswerverifiedShow Answer

Companies rely upon management accountants to collect non-financial information in order to assess how well the companies' resources are being used.

Correct AnswerverifiedShow Answer

The major reporting standard for management accounting is

Correct AnswerverifiedShow Answer

Managerial accounting is also called

Correct AnswerverifiedShow Answer

Fundamentally, managerial accounting applies best to the manufacturing context.

Correct AnswerverifiedShow Answer

Which one of the following is true concerning the managerial function of controlling?

Correct AnswerverifiedShow Answer

How could management information assist in motivating its employees?

Correct AnswerverifiedShow Answer

Generally Accepted Accounting Principles (GAAP) form the backbone of managerial accounting conventions, and local and/or regional standards and professional judgement allow for variations among practitioners.

Correct AnswerverifiedShow Answer

Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?

Correct AnswerverifiedShow Answer

Choose the incorrect answer.

Correct AnswerverifiedShow Answer

Organization charts are common in companies but not relevant to managerial accounting.

Correct AnswerverifiedShow Answer

Which description identifies financial statements that are prepared for external users?

Correct AnswerverifiedShow Answer

Which one of the following characteristics would likely be associated with a Just-In-Time inventory method?

Correct AnswerverifiedShow Answer

Lean manufacturing is in contrast to traditional mass-production operations.

Correct AnswerverifiedShow Answer

Directing includes

Correct AnswerverifiedShow Answer

Lean manufacturing is being used less often by manufacturing firms.

Correct AnswerverifiedShow Answer

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