Deck 1: Cost Accounting Has Purpose

Question 1

A _____________ helps an organization, whether for profit or nonprofit, turn its purpose into action by establishing the direction of the entity.

A) mission statement
B) strategic plan
C) SWOT analysis
D) vision

Answer 1

strategic plan

Question 2

An organization's strategic plan includes its why, where and how for its purpose represented by

A)opportunities, strengths and weaknesses.
B)opportunities, strengths, and mission.
C)mission, vision, and strategy.
D)mission, strengths, and strategy.

Answer 2

mission, vision, and strategy.

Question 3

In choosing a strategy, a business begins by undertaking a thorough examination of itself and the industry within which it operates by performing a ______________ analysis.

A)mission and vision statement
B)strategic initiative
C)target objective
D)SWOT

Answer 3

SWOT

Question 4

An organization's __________ is its purpose; its reason for existing.

A)mission
B)strategy
C)initiative
D)strategic plan

Question 5

What is a narrative that describes what the organization will look like, or a destination to achieve, by some future date called?

A)SWOT analysis
B)Strategic plan
C)Vision
D)Mission

Question 6

Which of the following statements is correct regarding a SWOT analysis?

A) The basis for evaluation using the SWOT analysis focuses on external factors only.
B)Factors to assess in a SWOT analysis included elements described in Porter's Five Forces.
C)Insignificant in setting a company's strategy is determining the organization's critical success factors.
D)A SWOT analysis is typically used in the Mission and Vision stage in creating the strategic plan for an organization.

Question 7

Which balanced scorecard perspective considers how an organization supports its people and infrastructure to drive and maintain new products and service development and growth?

A)Financial perspective
B)Customer perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 8

Which of the following represent internal factors in the SWOT analysis?

A)Opportunities and threats
B)Strengths and weaknesses
C)Strengths and opportunities
D)Weaknesses and threats

Question 9

The correct flow of the steps in the creation of an organization's strategic plan is

A)Mission and Vision?Strategies and Initatives?Goals and Objectives?Measures and Targets?Results
B)Mission and Vision?Goals and Objectives?Strategies and Initiatives?Measures and Targets?Results
C)Strategies and Initatives?Goals and Objectives?Mission and Vision?Measures and Targets?Results
D)Mission and Vision?Measures and Targets?Strategies and Initatives?Goals and Objectives?Results

Question 10

When performing a SWOT analysis, a business would ask, "What are the organization's need- improvement areas that impede goal achievement" to address its

A)strengths
B)weaknesses
C)opportunities
D)threats

Question 11

An organization's mission is the same as its

A)purpose.
B)vision.
C)objectives.
D)targets.

Question 12

A wide-reaching set of documents detailing a company's purpose, future destination, and short-term and long-term techniques for getting there is its

A)vision.
B)strategic plan.
C)balanced scorecard.
D)SWOT analysis.

Question 13

Which of the following statements is correct?

A)A strategic plan conveys the idea of a coordinated, consolidated, short-term, organization- wide plan.
B)Many strategic plans include both short-term and long-term goals to direct the organization toward arriving at its vision.
C)Once an organization determines its mission, it does not need to change it.
D)Only for-profit entities need purpose and direction normally detailed in a strategic plan.

Question 14

In evaluating a nonprofit organization's balanced scorecard, which perspective might be addressed?

A)Customer perspective
B)Learning and growth perspective
C)Financial stewardship perspective
D)Internal business process perspective

Question 15

Which of the following would not be included in an organization's strategic plan?

A)Mission (why)
B)Vision (where)
C)Timing (when)
D)Strategy (how)

Question 16

Porter's Five Forces used in the SWOT analysis would not include impacts of

A)customers.
B)the strategic plan.
C)existing competitors.
D)potential new entrants.

Question 17

The current or future external challenges that are unfavorable for an organization are referred to as

A)threats.
B)opportunities.
C)strengths.
D)weaknesses.

Question 18

At a minimum, factors to assess in a SWOT analysis include elements described in

A)an organization's critical success factors.
B)an organization's key performance indicators (KPI).
C)Porter's Five Forces.
D)The balanced scorecard.

Question 19

What a company does well that is helpful for its goal achievement is identified as

A)strengths.
B)weaknesses.
C)opportunities.
D)threats.

Question 20

"SMARTER" goals should be all of the following except

A)relevant.
B)achievable.
C)universal.
D)meaningful.

Question 21

_____________ goals complete the circle with feedback and adjustment components, which are necessary for any good goal-setting plan.

A)"BALANCED"
B)"STRONG"
C)"SMARTER"
D)"FLEXIBLE"

Question 22

A performance measurement tool used to evaluate what actually happened against an organization's stated objectives which integrates an organization's vision, mission, and strategy is a

A)balanced scorecard.
B)SWOT analysis.
C)strategic plan.
D)key performance indicator.

Question 23

Which of the following represents the correct four perspectives of the balanced scorecard?

A)Financial, organizational capacity, customer, and internal business process perspectives
B)Financial, customer, internal business process, and learning and growth perspectives
C)Financial, customer, business processes, and organization capacity perspectives
D)Customer, business processes, financial stewardship, and beneficiary/stakeholder perspectives

Question 24

Which of the following statements is true regarding the balanced scorecard?

A)The balanced scorecard focuses on financial measures alone to measure the success of an organization.
B)Governmental agencies and nonprofit organizations use the same four perspectives as for- profit organizations use in the balanced scorecard approach.
C)The balanced scorecard is a framework for measuring organizational performance using both financial and nonfinancial measures.
D)The balanced scorecard uses the five elements described in Porter's Five Forces to assess the strategies and initiatives of an organization.

Question 25

Which of the following is a balanced scorecard perspective for governmental agencies and nonprofit organizations?

A)Customer perspective
B)Organization capacity perspective
C)Internal business process perspective
D)Learning and growth perspective

Question 26

Which of the following statements about cost accounting is correct?

A)Cost accounting has an external focus.
B)Cost accounting is very narrow in scope.
C)Cost accounting helps owners and managers make decisions about their companies.
D)Cost accounting cannot be tied to all functional areas of a company.

Question 27

Who is at the heart of a multi-directional flow of financial information in the decision-making process?

A)Management
B)Accountants
C)Board of directors
D)Stockholders

Question 28

Which of the following statements is true regarding accounting in the management decision- making process?

A)The format and content of internal financial reports are determined by the framework, principles, and rules of GAAP and/or IFRS.
B)The scope of external financial reports and the level of detail within is kept private, as it is broader and more detailed than internal reports.
C)External financial reports and records are created from the same database of financial transactions that populate the internal financial reports for decision-making purposes.
D)Financial reports and records initiate the entire decision-making process for management.

Question 29

Which financial manager is responsible for the financial reporting process, which includes creation and monitoring of the internal controls that support financial processes?

A)Chief financial officer
B)Treasurer
C)Internal auditor
D)Controller

Question 30

The Chief financial officer is responsible for

A)managing cash, cash equivalents, short-term investments, issuance of debt and equities, and relationships with lenders only.
B)the financial reporting process, which includes creation and monitoring of the internal controls that support financial processes only.
C)all processes within the finance and accounting functional areas and an important player in strategic decisions for the company.
D)preparing internal and external financial reports and records.

Question 31

The financial manager who is responsible for managing cash, cash equivalents, short-term investments, issuance of debt and equities, and relationships with lenders is the

A)Controller
B)Treasurer
C)Chief financial officer
D)Auditor

Question 32

The primary difference in reporting between cost accounting and financial accounting is that

A)cost accounting reports support internal management decision-making whereas financial accounting reports present financial statement information to external users and decision- makers who do not work for the company.
B)cost accounting reports are externally focused whereas financial accounting reports are internally focused.
C)cost accounting reports are subject to GAAP and/or IFRS whereas financial accounting reports are not.
D)cost accounting reports cannot be arranged or presented in any reasonable way and cannot be modified based on manager's feedback whereas financial accounting reports can.

Question 33

The decision-making framework for an organization consists of _________ steps.

A)three
B)four
C)five
D)six

Question 34

Your company has been provided with the following steps for an organization's decision- making framework. What is the appropriate order for the steps?
1) Calculate relevant costs and benefits for each option.
2) Implement your choice.
3) Clearly outline the problem and its related unknowns.
4) Select the option that maximizes the benefit to the organization and meets required qualitative criteria.
5) Identify suitable options and gather relevant qualitative and quantitative information, making informed assumptions as need be.

A)5, 3, 1, 2, 4
B)3, 5, 1, 4, 2
C)3, 1, 5, 4, 2
D)1, 3, 5, 4, 2

Question 35

In any decision-making scenario, after implementing a chosen option the next step is to

A)determine how well the decision worked and to learn from that assessment.
B)move on to additional problems that needed to be resolved.
C)set new goals and objectives that will require the use of the decision-making framework.
D)identify the stakeholders in the decision and determine the financial impact of the chosen option.

Question 36

What is the first step in the decision-making framework?

A)Identify suitable options.
B)Gather relevant quantitative and qualitative information regarding the decision.
C)Clearly outline the problem and its related unknowns.
D)Calculate relevant costs and benefits of each option.

Question 37

Which type of data analytics uses observations and patterns to detected to shape future decisions?

A)Descriptive analytics
B)Diagnostic analytics
C)Predictive analytics
D)Prescriptive analytics

Question 38

Prescriptive analytics

A)describes what has already happened or what is currently happening and helps organizations detect patterns in data.
B)involves understanding the outputs of observations and patterns and finding different ways to reach those desired outcomes.
C)attempts to make sense of the observations and/or patterns detected.
D)uses observations and patterns detected to shape future decisions.

Question 39

Diagnostic analytics

A)describes what has already happened or what is currently happening and helps organizations detect patterns in data.
B)involves understanding the outputs of observations and patterns and finding different ways to reach those desired outcomes.
C)attempts to make sense of the observations and/or patterns detected.
D)uses observations and patterns detected to shape future decisions.

Question 40

A company's value chain starts with

A)marketing.
B)supply of inputs.
C)product and/or service design.
D)research and development.

Question 41

The last step in the value chain for a company is

A)distribution to customers.
B)customer service.
C)marketing.
D)production.

Question 42

The _____________ comprises the required series of processes, and activities within them, that transform a product or service from thought to finish.

A)decision-analysis framework
B)supply chain
C)value chain
D)cost accounting system

Question 43

A company's supply chain

A)comprises the required series of processes, and activities within them, that transform a product or service from thought to finish
B)contributes to its competitive advantage and success.
C)consists of the processes starting with research and development and ending with customer service.
D)is the same regardless of the type of industry in which the company operates.

Question 44

When selecting which activities to perform in the value chain, a company

A)must consider specific rules on which processes should be handled internally.
B)will never consider processes which could be outsourced.
C)should use its SWOT analysis as an integral source of information in choosing which activities to insource or outsource.
D)should use its decision-making framework as an integral source of information in choosing which activities to insource or outsource.

Question 45

Which of the following represents the correct order of activities in the value chain for a company?

A)Design?Research and Development?Marketing?Supply
B)Design?Research and Development?Supply?Marketing
C)Research and Development?Design?Supply?Production
D)Research and Development?Supply?Design?Marketing

Question 46

What is the first activity in the value chain for a business?

A)Research and Development
B)Design
C)Production
D)Marketing

Question 47

Which of the following is not an activity in the value chain for a business?

A)Production
B)Distribution
C)Inspection
D)Marketing

Question 48

The art and science of ________ leverages raw data into important insights that help companies make decisions.

A)regression analysis
B)break-even analysis
C)variance analysis
D)data analytics

Question 49

The scope of cost accounting

A)is restricted to simply methods in costing products for businesses.
B)analyzes the activities and transactions of every aspect of an organization's value chain.
C)includes the preparation of financial information and reports primarily for external users.
D)focuses on the preparation of financial information and reports that follow GAAP rules.

Question 50

Which of the following would not be considered a value-added activity for an automobile manufacturer?

A)Installing the steering wheel.
B)Fixing defective seats after installation
C)Assembling motor parts for the engine
D)Attaching tires to the wheels of the automobile

Question 51

Value-added activities include which of the following?

A)Product recalls
B)Defective product repairs
C)Product assembly
D)Inventory taking

Question 52

Providing enlightenment to many stakeholders on the details of products and services offered with the goal of making sales reflects what activity in the value chain?

A)Design
B)Production
C)Customer service
D)Marketing

Question 53

Which of the following activities in the value chain overlap with the supply chain of an organization?

A)Supply, production, marketing, and distribution
B)Research and development, production and marketing
C)Design, production, and distribution
D)Supply, marketing, distribution, and customer service.

Question 54

Which of the following statements is true with regards to an organization's value chain?

A)Value is added in all activities except selecting, curating, purchasing, receiving and displaying a variety of products for a target audience for a merchandiser.
B)A major consideration in optimizing the value chain is to include only those activities that are value-added, that is, to provide measurable benefits to the final consumer.
C)Manufacturers add value to raw materials by accounting for only direct labor and not manufacturing overhead since labor converts inputs into a final product.
D)From a manufacturing perspective, organizations reference their position in the value chain relative to the customers only since they are the end-user of the final product.

Question 55

Ethics

A)are the same as laws in a professional setting.
B)reflect expected behavior left up to the principles, conscience, and decision-making of an individual person.
C)represents the required behavior of an individual person based on laws and objectives of a profession.
D)are only required if an individual is certified in his/her profession.

Question 56

Which of the following governing bodies combines standards of ethical conduct into their expectations for members from a financial accounting perspective?

A)Financial Accounting Standards Board (FASB)
B)Institute of Management Accountants (IMA)
C)Institute of Internal Auditors (IIA)
D)Chartered Institute of Management Accountants (CGMA)

Question 57

The professional organization and governing body which has special expertise in the field of internal auditing is

A)Financial Accounting Standards Board (FASB)
B)Institute of Management Accountants (IMA)
C)Institute of Internal Auditors (IIA)
D)Chartered Institute of Management Accountants (CGMA)

Question 58

In the Sarbanes-Oxley Act of 2002 (SOX), the section which requires public companies to disclose if they have adopted a code of ethics for its senior officers is

A)Section 302.
B)Section 404.
C)Section 406.
D)Section 201.

Question 59

Section 404 of the Sarbanes-Oxley Act of 2002 (SOX) requires that

A)public companies disclose if they have adopted a code of ethics for its senior officers.
B)management of public companies recognize their responsibility for establishing internal controls and provide an assessment of the effectiveness of those internal controls.
C)CEOs and CFOs of publicly traded companies certify the accuracy of their reported financial information.
D)public and private companies disclose if they have adopted a code of ethics company-wide.

Question 60

Which section of the Sarbanes-Oxley Act of 2002 (SOX) requires CFOs and CEOs of public companies to certify the accuracy of their reported financial information?

A)Section 201
B)Section 302
C)Section 404
D)Section 406

Question 61

Section 302 of the Sarbanes-Oxley Act of 2002 (SOX) requires that

A)CFOs and CEOs of public companies certify the accuracy of their reported financial information.
B)stockholders of public companies certify the accuracy of their reported financial information.
C)CFOs and CEOs of both public and private companies certify the accuracy of their reported financial information.
D)stockholders of public and private companies certify the accuracy of their reported financial information

Question 62

The largest and most respected association focused exclusively on the advancement of the management accounting profession and provision of the highest ethical and best practices in management accounting and finance is the

A)Financial Accounting Standards Board (FASB)
B)Institute of Management Accountants (IMA)
C)Institute of Internal Auditors (IIA)
D)American Institute of Certified Public Accountants (AICPA)

Question 63

The Institute of Management Accountants (IMA) guides the management accounting and finance professions by

A)helping professionals build a professional network.
B)advocating for the profession in a challenging regulatory environment.
C)serving as a thought-leader in cutting edge research and industry best practice.
D)all of these choices are correct.

Question 64

The IMA's Statement of Ethical Professional Practice includes all of the following overarching ethical principles except

A)honesty.
B)fairness.
C)subjectivity.
D)objectivity.

Question 65

In the event a member of the Institute of Management Accountants (IMA) encounters unethical conduct, the member should

A)first discuss the issue with the CEO or President of the company.
B)immediately contact an attorney to obtain legal representation in the matter.
C)contact the IMA's anonymous hotline to determine how elements of the IMA Statement of Ethical Professional Practice could be applied to the ethical issue.
D)do nothing, since the job of the management accountant requires confidentiality with regards to company matters.

Question 66

The governing body that has a vision to be the world leader in driving vitality, relevance and quality across the accounting profession, furthering its trust and influence is the

A)Securities Exchange Commission (SEC).
B)Institute of Management Accountants (IMA).
C)Institute of Internal Auditors (IIA).
D)American Institute of Certified Public Accountants (AICPA).

Question 67

Which governing body establishes professional standards for the accounting industry?

A)Securities Exchange Commission (SEC)
B)Institute of Management Accountants (IMA)
C)Institute of Internal Auditors (IIA)
D)American Institute of Certified Public Accountants (AICPA).

Question 68

Ethical considerations

A)are only important in the financial accounting profession since financial reporting is primarily for external users.
B)are a constant in the accounting profession, and serve to keep accounting professionals in check.
C)should only be monitored for executive positions since they are in a position of authority.
D)enforced by state laws and vary state by state.

Question 69

Which two governing bodies partnered to establish the CGMA designation, which further enhances the recognition of management accounting?

A)AICPA and IMA
B)AICPA and U.K's Chartered Institute of Management Accountants
C)IMA and U.K's Chartered Institute of Management Accountants
D)FASB and U.K's Chartered Institute of Management Accountants

Question 70

Which of the statements regarding the AICPA's Code of Professional Conduct is correct?

A)The principles of the code call for an unwavering commitment to honorable behavior, even at the sacrifice of personal advantage.
B)The principles of the code express the profession's recognition of its responsibilities only to clients of CPAs.
C)The AICPA's Code of Professional Conduct enforces the expectations of ethical and professional conduct for all accountants in the industry, whether certified or not.
D)The AICPA's Code of Professional Conduct stipulates disciplinary action for ethical violations.

Question 71

The importance of providing accurate and reliable information to decision-makers and other users of accounting information is consistent with organizations having

A)financially literate executive officers.
B)weak internal controls but an effective ethics policy.
C)a strong ethical culture.
D)required certification of the financial reporting.

Question 72

Recruiters for accounting jobs typically look for students who are

A)technically strong.
B)competent.
C)analytic.
D)all of these answers are correct.

Question 73

Which of the following mindsets is best adapted to learning accounting?

A)Fixed mindset
B)Static mindset
C)Growth mindset
D)Short-term learning mindset

Question 74

The way of thinking in which intelligence can be developed and leads to a desire to learn, with a person willing to embrace challenges is referred to as a

A)growth mindset.
B)static mindset.
C)fixed mindset.
D)short-term learning mindset.

Question 75

A person who avoids challenges, ignores constructive feedback, and feels threatened by the success of other is most likely to have a(n) ____________ mindset.

A)growth
B)adaptable mindset
C)fixed mindset
D)long-term learning mindset

Question 76

In order to reach higher learning, understanding is superior to ____________.

A)ascending.
B)remembering.
C)creating.
D)developing.

Question 77

Bloom's Taxonomy is a useful reference for every lifelong learner since the hierarchy of learning helps to recognize that

A)there is value only in certain types of learning.
B)all types of learning are foundational to each other.
C)ascending to the highest level implies mastery of the levels that precede it.
D)creating means building on already existing ideas.

Question 78

Which of the following is at the top of the Bloom's Taxonomy hierarchy of learning pyramid?

A)Remember
B)Evaluate
C)Understand
D)Create

Question 79

Which of the following is at the bottom of the Bloom's Taxonomy hierarchy of learning pyramid?

A)Remember
B)Evaluate
C)Understand
D)Create

Question 80

Justifying a stand or decision defines which objective in the Bloom's Taxonomy hierarchy of learning pyramid?

A)Remember
B)Evaluate
C)Understand
D)Create