Question 1

Which of the following statements represents a similarity between financial and managerial accounting?

Accepted Answer

A)   Both are useful in providing information for external users.
B)   Both are governed by GAAP.
C)   Both draw upon data from an organization's accounting system.
D)   Both rely heavily on published financial statements.
E)   Both are solely concerned with historical transactions.F) None of the above
G) A) and B)

Question 2

Which of the following involves the coordination of daily business functions within an organization?

Accepted Answer

A)   Decision making.
B)   Planning.
C)   Directing operational activities.
D)   Controlling.
E)   Motivating.F) B) and D)
G) B) and C)

Question 3

Which of the following typically does not relate to the role of a controller?

Accepted Answer

A)   A controller supervises the accounting department.
B)   A controller safeguards an organization's assets.
C)   A controller oversees the preparation of reports required by governmental authorities.
D)   A controller normally assumes a narrow role within the organization, often preventing the individual's rise to top management ranks.
E)   A controller safeguards an organization's assets and a controller normally assumes a narrow role within the organization, often preventing the individual's rise to top management ranks.F) B) and D)
G) B) and C)

Question 4

The role of managerial accounting information in assisting management is a(n) :

Accepted Answer

A)   financial-directing role.
B)   attention-directing role.
C)   planning and controlling role.
D)   organizational role.
E)   problem-solving role.F) B) and E)
G) A) and D)

Question 5

Which of the following functions is best described as choosing among available alternatives?

Accepted Answer

A)   Decision making.
B)   Planning.
C)   Directing operational activities.
D)   Controlling.
E)   Budgeting.F) C) and E)
G) C) and D)

Question 6

Which of the following business models considers financial, customer, internal operating, and other measures in the evaluation of performance?

Accepted Answer

A)   Deterministic simulation.
B)   Balanced scorecard.
C)   Payoff matrix.
D)   Decision tree.
E)   Chart of operating performance (COP) .F) A) and B)
G) A) and C)

Question 7

Measuring the performance of managers and subunits is not an objective of managerial accounting.

Accepted Answer

A) True 
 B)False

Question 8

Unused or excess capacity is a key component of contemporary management accounting. Define the term "excess capacity" and explain how it would relate to a coffee shop.

Accepted Answer

Excess capacity is the difference betwee...

Question 9

Financial accounting focuses primarily on reporting:

Accepted Answer

A)   to parties outside of an organization.
B)   to parties within an organization.
C)   to an organization's board of directors.
D)   to financial institutions.
E)   for financial institutions.F) A) and B)
G) B) and E)

Question 10

The value chain is a key component of contemporary management accounting. Define the term "value chain" and explain how it would relate to an airline.

Accepted Answer

The value chain is a set of activities t...

Question 11

Which of the following statements about managerial accountants is false?

Accepted Answer

A)   Managerial accountants more and more are considered "business partners."
B)   Managerial accountants often are part of cross-functional teams.
C)   An increasing number of organizations are segregating managerial accountants in separate managerial-accounting departments.
D)   In a number of companies, managerial accountants make significant business decisions and resolve operating problems.
E)   The role of managerial accountants has changed considerably over the past decade.F) A) and E)
G) A) and D)

Question 12

Present several examples of managerial accounting information that could help a manager make each of the following decisions:
A. A manufacturing company is currently making a part that is a production headache. The firm is deciding whether to abandon production and buy the part from an outside supplier.
B. An operator of fast-food restaurants is deciding whether to open a new store in Dallas.
Note: Many correct answers are possible.

Accepted Answer

A. The cost of each alternative (make vs...

Question 13

Taurus Company has set various goals, and management is now taking appropriate action to ensure that the firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted amounts. Which of the following functions best describes this process?

Accepted Answer

A)   Decision making.
B)   Planning.
C)   Coordinating.
D)   Controlling.
E)   Organizing.F) A) and B)
G) A) and E)

Question 14

Which of the following statements about the ethical climate of business is false?

Accepted Answer

A)   Greedy corporate executives are, in part, to blame for the rash of corporate scandals that occurred not too long ago.
B)   Unethical business behavior can have a negative impact on our economy.
C)   The Sarbanes-Oxley Act strives to improve the overall quality of corporate reporting.
D)   The Robinson-Patman Act strives to improve the overall quality of corporate reporting.
E)   Corporate scandals have served as the accounting profession's wake-up call to pay increased attention to ethical issues in the conduct of business.F) All of the above
G) A) and D)

Question 15

A controller is normally involved with:

Accepted Answer

A)   preparing financial statements.
B)   managing investments.
C)   raising capital.
D)   safeguarding assets.
E)   managing the firm's credit policy.F) A) and B)
G) B) and E)

Question 16

The day-to-day work of management teams will typically comprise all of the following activities except:

Accepted Answer

A)   decision making.
B)   planning.
C)   cost minimizing.
D)   directing operational activities.
E)   controlling.F) B) and C)
G) C) and D)

Question 17

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

Accepted Answer

A)   Providing information for decision making and planning.
B)   Assisting in directing and controlling operations.
C)   Maximizing profits and minimizing costs.
D)   Measuring the performance of managers and subunits.
E)   Motivating managers toward the organization's goals.F) A) and D)
G) C) and D)

Question 18

Which of the preceding activities would likely not be considered part of The Gap clothing company's value chain?

Accepted Answer

A)   Designing a new product line.
B)   Locating and then negotiating terms with a clothing manufacturer.
C)   Marketing an existing product line.
D)   Distributing goods from regional warehouses to local stores.
E)   All of these activities would be an element in the company's value chain.F) C) and D)
G) B) and E)

Question 19

Controlling involves the coordination of daily business functions within an organization.

Accepted Answer

A) True 
 B)False

Question 20

Strategic cost management is:

Accepted Answer

A)   the process of determining cost drivers.
B)   the recognition of the importance of cost relationships among the activities in the value chain.
C)   the process of managing cost relationships to the firm's advantage.
D)   two of the other answers are correct.E) C) and D)
F) B) and C)

Exam 1: The Changing Role of Managerial Accounting in a Dynamic Business Environment

Strategic cost management is:

Correct Answer
verified

Taurus Company has set various goals, and management is now taking appropriate action to ensure that the firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted amounts. Which of the following functions best describes this process?

Correct Answer
verified

Which of the following business models considers financial, customer, internal operating, and other measures in the evaluation of performance?

Correct Answer
verified

Which of the following statements about managerial accountants is false?

Correct Answer
verified

Which of the following statements represents a similarity between financial and managerial accounting?

Correct Answer
verified

Which of the following statements about the ethical climate of business is false?

Correct Answer
verified

Which of the preceding activities would likely not be considered part of The Gap clothing company's value chain?

Correct Answer
verified

Which of the following typically does not relate to the role of a controller?

Correct Answer
verified

Financial accounting focuses primarily on reporting:

Correct Answer
verified

The day-to-day work of management teams will typically comprise all of the following activities except:

Correct Answer
verified

Unused or excess capacity is a key component of contemporary management accounting. Define the term "excess capacity" and explain how it would relate to a coffee shop.

Correct Answer
verified
Excess capacity is the difference betwee...
View Answer

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

Correct Answer
verified

Which of the following functions is best described as choosing among available alternatives?

Correct Answer
verified

A controller is normally involved with:

Correct Answer
verified

Controlling involves the coordination of daily business functions within an organization.

Correct Answer
verified

The value chain is a key component of contemporary management accounting. Define the term "value chain" and explain how it would relate to an airline.

Correct Answer
verified
The value chain is a set of activities t...
View Answer

The role of managerial accounting information in assisting management is a(n) :

Correct Answer
verified

Which of the following involves the coordination of daily business functions within an organization?

Correct Answer
verified

Measuring the performance of managers and subunits is not an objective of managerial accounting.

Correct Answer
verified

Correct Answer
verified
A. The cost of each alternative (make vs...
View Answer

Exam 1: The Changing Role of Managerial Accounting in a Dynamic Business Environment

Strategic cost management is:

Correct AnswerverifiedShow Answer

Taurus Company has set various goals, and management is now taking appropriate action to ensure that the firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted amounts. Which of the following functions best describes this process?

Correct AnswerverifiedShow Answer

Which of the following business models considers financial, customer, internal operating, and other measures in the evaluation of performance?

Correct AnswerverifiedShow Answer

Which of the following statements about managerial accountants is false?

Correct AnswerverifiedShow Answer

Which of the following statements represents a similarity between financial and managerial accounting?

Correct AnswerverifiedShow Answer

Which of the following statements about the ethical climate of business is false?

Correct AnswerverifiedShow Answer

Which of the preceding activities would likely not be considered part of The Gap clothing company's value chain?

Correct AnswerverifiedShow Answer

Which of the following typically does not relate to the role of a controller?

Correct AnswerverifiedShow Answer

Financial accounting focuses primarily on reporting:

Correct AnswerverifiedShow Answer

The day-to-day work of management teams will typically comprise all of the following activities except:

Correct AnswerverifiedShow Answer

Unused or excess capacity is a key component of contemporary management accounting. Define the term "excess capacity" and explain how it would relate to a coffee shop.

Correct AnswerverifiedExcess capacity is the difference betwee...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following functions is best described as choosing among available alternatives?

Correct AnswerverifiedShow Answer

A controller is normally involved with:

Correct AnswerverifiedShow Answer

Controlling involves the coordination of daily business functions within an organization.

Correct AnswerverifiedShow Answer

The value chain is a key component of contemporary management accounting. Define the term "value chain" and explain how it would relate to an airline.

Correct AnswerverifiedThe value chain is a set of activities t...View AnswerShow Answer

The role of managerial accounting information in assisting management is a(n) :

Correct AnswerverifiedShow Answer

Which of the following involves the coordination of daily business functions within an organization?

Correct AnswerverifiedShow Answer

Measuring the performance of managers and subunits is not an objective of managerial accounting.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA. The cost of each alternative (make vs...View AnswerShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified
Excess capacity is the difference betwee...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The value chain is a set of activities t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A. The cost of each alternative (make vs...
View Answer