Deck 1: Introduction to Managerial Accounting

Question 1

A cost accountant would normally occupy a staff position within an organization.

Answer 1

True

Question 2

The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as decision making.

Answer 2

False

Question 3

The detailed formulation of action to achieve a particular end is the management activity called_____________.

Answer 3

planning.

Question 4

Managerial accounting has its emphasis on the future.

Question 5

Financial accounting is governed by GAAP.

Question 6

The four emphasized areas of the CMA examination reflect the needs of managerial accounting and highlights that managerial accounting has more of an interdisciplinary flavor than other areas of accounting.

Question 7

Managerial Accounting is designed primarily for internal users.

Question 8

Excellent customer service is an example of a value-added activity.

Question 9

The process of choosing among competing alternatives is decision making.

Question 10

______________________________ is the provision of accounting information for a company's internal users.

Question 11

The process of choosing among competing alternatives is called ________________________.

Question 12

Virtually all managerial accounting practices were developed to assist managers in maximizing profits.

Question 13

Management accounting information is only used by manufacturing organizations.

Question 14

Activity-based costing is a less detailed approach to determining the cost of goods and services than traditional cost accounting.

Question 15

Time is not a crucial element in all phases of the value chain.

Question 16

The belief that each member of a group bears no responsibility for the well-being of other members is a common principle underlying all ethical systems.

Question 17

The value chain is the set of activities required to design, develop, produce, market, and deliver products and service to customers.

Question 18

Positions that have direct responsibility for the basic objectives of an organization are referred to as line positions.

Question 19

Managerial accounting information is not important for not-for-profit organizations.

Question 20

The purpose of the Certificate in Public Accounting is to provide minimal professional qualification for external auditors.

Question 21

The detailed formulation of action to achieve a particular end is the management activity called:

A) planning.
B) controlling.
C) decision making.
D) all of these are correct.

Question 22

To promote ethical behavior by managers and employees, organizations commonly establish a__________________________.

Question 23

__________________________ organizes costs according to the value chain and collects both financial and nonfinancial information.

Question 24

The _____________________ is the set of activities required to design, develop, produce, market and deliver products and services as well as provide support services to customers.

Question 25

Managerial accounting strongly emphasizes providing information about _________________.

Question 26

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

A) To produce information for external users, including investors, creditors, customers, suppliers, and government agencies
B) To provide information for planning an organization's action
C) To provide information for evaluating and continuously improving an organization's actions
D) To provide information for effective decision making by the management of a company

Question 27

The ____________________ is responsible for the finance function.

Question 28

Positions that are supportive in nature and have only indirect responsibility for an organization's basic objectives are called ________________________.

Question 29

A __________________________ has passed a comprehensive examination designed to ensure technical competence and has two years of experience.

Question 30

The________________supervises all accounting functions and reports directly to the general manager and chief operating officer (COO).

Question 31

Only a _________________________ is permitted to serve as an external auditor.

Question 32

____________________ is primarily concerned with producing information for external users.

Question 33

_________ is a crucial element in all phases of the value chain.

Question 34

The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as ______________.

Question 35

Which of the following is an example of the management activity referred to as planning?

A) Developing a strategy for disposing of hazardous waste
B) Tracking the cost of employee absence
C) Ensuring that the most competent candidates are recruited by a company
D) All of these are correct.

Question 36

__________________________________________ is a management philosophy in which manufacturers strive to create an environment that will enable workers to manufacture perfect (zero-defect) products.

Question 37

________________________ involves choosing actions that are right, proper, and just.

Question 38

In June 2002, Congress passed the________________________ in response to financial scandals such as Enron.

Question 39

_____________________________ is the continual search for ways to increase the overall efficiency and productivity of activities by reducing waste, increasing quality and managing costs.

Question 40

The managerial accounting system produces information for __________ users.

Question 41

Which of the following members of an organization would normally hold a staff position?

A) An assembly worker
B) An accounting manager
C) A customer service executive
D) All of these

Question 42

Which of the following areas is not emphasized by the Certified Management Accountant (CMA) examination?

A) External auditing and business law
B) Management reporting, analysis, and behavioral issues
C) Decision analysis and information systems
D) Economics, finance, and management
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Question 43

Which of the following members of an organization would normally hold a line position?

A) A staff accountant
B) A purchasing manager
C) A general manager
D) A cost accountant

Question 44

Investigating production variances and adjusting the production process is an example of

A) planning.
B) controlling.
C) decision making.
D) all of these.

Question 45

Which of the following is true of profit maximization?

A) Profit maximization is achieved by considering the financial measures focused on only efficiency.
B) Profit maximization is an objective of financial accounting but not managerial accounting.
C) Profit maximization should be achieved through legal and ethical means.
D) Profit maximization results in maximum cost to and maximum production by a company.

Question 46

The controller of an organization participates in

A) planning.
B) controlling.
C) decision making.
D) all of these are correct

Question 47

Which of the following would occupy a line position in a hospital?

A) manager of the cafeteria
B) hospital administrator
C) chief of surgery
D) none of these

Question 48

Persons in the United States who provide assurance service are designated as

A) Certified Public Accountants.
B) Certified Financial Accountants.
C) Chartered Accountants.
D) Certified Management Accountants.

Question 49

Managerial accounting reports are prepared:

A) to provide creditors with information useful in making credit decisions.
B) to meet the needs of decision makers within the firm.
C) to present historical information.
D) all of these are correct.

Question 50

Which of the following would not be an example of a value-added activity?

A) timely delivery of products
B) offering the customer a variety of products
C) storage of finished products
D) excellent customer service

Question 51

Accountants that have a Certificate in Public Accounting (CPA):

A) are the only accountants permitted to serve as external auditors.
B) must pass a national examination and be licensed by the state in which they practice.
C) may be held responsible to provide assurance concerning the reliability of a firm's financial statements.
D) all of these statements are true.

Question 52

Which of the following is true of managerial accounting?

A) Managerial accounting is the provision of accounting information for a company's external users.
B) Managerial accounting aims at providing information for controlling the organization's actions.
C) Managerial accounting provides historical information.
D) Managerial accounting is subject to rules for external financial reporting.

Question 53

The standards of ethical conduct for managerial accountants include:

A) ​caring for others, intuition, and respect for others.
B) pursuit of excellence, credibility, and immediacy.
C) confidentiality, confidence, integrity, and observance.
D) competence, confidentiality, integrity, and credibility.

Question 54

The primary objective of managerial accounting is:

A) to produce information for external users, including investors, creditors, customers, suppliers, and government agencies.
B) to produce financial information that must comply with various accounting standards.
C) to provide management with financial and nonfinancial information useful in planning, controlling, and decision making.
D) to provide the Internal Revenue Service with financial and nonfinancial information about the taxable income of an organization.

Question 55

Which of the following statements is true of financial accounting?

A) Financial accounting is directed toward external users.
B) Financial accounting is subject to externally imposed rules.
C) Financial accounting is able to provide audited, objective financial information.
D) All of these are correct.

Question 56

Which of the following is true of total quality management?

A) It is a management philosophy in which manufacturers strive to create an environment that will enable workers to manufacture zero-defect products.
B) It has replaced the acceptable quality attitudes of the past.
C) It emphasizes the elimination of waste.
D) All of these are correct.

Question 57

Activity-based costing

A) strives to create an environment that will enable workers to manufacture zero-defect products.
B) is the process of choosing among competing alternatives.
C) was established in response to financial scandals.
D) encourages process-value analysis.