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Exam 1: Managerial Accounting,the Business Organization,and Professional Ethics

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Question 41

Multiple Choice

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What type of managers is directly involved with making and selling an organization's products?

A) staff managers
B) line managers
C) management accountants
D) accounting managers

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Question 42

Multiple Choice

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According to the IMA's Statement of Ethical Professional Practice,the standard of credibility includes ________.

A) continually developing the accountant's knowledge and skills
B) mitigating actual conflicts of interest
C) disclosing all relevant information that could reasonably be expected to influence an intended user's understanding of the reports
D) refraining from engaging in any conduct that would prejudice carrying out duties ethically

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Question 43

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When developing a price for a new product,the price must cover ________.

Behavioral considerations are of primary importance in financial accounting.

John is a management accountant at DAP Inc.John has reason to believe that his immediate supervisor (the controller) ,the chief financial officer and the company president are engaged in accounting fraud that involves overstating assets and understating liabilities.The company does not have a code of ethics or a set of policies for ethical problems.According to the guidelines offered by the IMA,what should John do?

The maintenance department provides line support to the welding department in a factory.

How is accounting information prepared by management accountants used within an organization?

Paul Satorius is the controller at ANEW Corporation.The company is not publicly traded.ANEW Corporation just received a patent on a new product that is supposed to revolutionize the music industry.As the moment,however,ANEW Corporation is experiencing financial difficulties and is on the verge of defaulting on a note held by the bank. At the end of the most recent fiscal year,the company's president instructed Paul to ignore recording some invoices.Paul objected because the invoices represented true liabilities at fiscal year end.However,the president insisted that the invoices should be recorded next year so that current liabilities reported on the balance sheet at the end of the current year are lower.The bank is closely following the amount of current liabilities reported by ANEW Corporation as an indicator of solvency. Required: What should Paul do? Follow the guidelines offered by the IMA.

The Sarbanes-Oxley Act requires companies to disclose whether the company has adopted a code of ethics for senior financial officers.

In some countries outside the United States,independent auditors are called chartered accountants.

A company is unsure whether it is more cost efficient to make or buy a component used in a manufactured product that is mass produced.What type of information is needed to make this decision?

The largest U.S.association of professional accountants whose major interest is management accounting is the ________.

The IMA's ethical standard for integrity includes all of the following EXCEPT ________.

Examples of business process reengineering do NOT include ________.

Which of the following is a major factor causing changes in management accounting today?

Advertising is an example of the ________ function of the value chain.

Product life cycles may range from a few months to many years.

The primary users of management accounting information are ________.

________ information helps managers focus on operating problems,imperfections,inefficiencies and opportunities.

The corporate culture is a larger influence on the ethical climate of an organization than a code of ethics.