Question 1

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

Accepted Answer

The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as control. Decision making involves the process of selecting a course of action from several alternatives based on analysis and evaluation of available information.

Question 2

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

Accepted Answer

Activity-based costing is actually a more detailed approach to determining the cost of goods and services than traditional cost accounting. It involves identifying and analyzing the specific activities involved in producing a product or service, and assigning costs based on the amount of resources each activity consumes. This allows for a more accurate understanding of how costs are incurred and where improvements or cost reductions can be made.

Question 3

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.

Accepted Answer

The statement is true. The four emphasized areas (planning, control, analysis, and decision-making) reflect the broad scope of managerial accounting, which involves integrating financial and non-financial information from different functional areas of the organization to support decision-making. This makes it more interdisciplinary than other areas of accounting.

Question 4

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

Accepted Answer

Managerial accounting information is important for not-for-profit organizations to help them make informed decisions about resource allocation, budgeting, and program evaluation. It can also assist in measuring and communicating the organization's impact to its stakeholders.

Question 5

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

Accepted Answer

Line positions have direct responsibility for the main objectives of the organization, while staff positions provide support and advice to the line positions.

Question 6

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.

Accepted Answer

The statement is false. Many ethical systems do emphasize individuals' responsibility towards the well-being of others, such as utilitarianism and care ethics.

Question 7

Managerial Accounting is designed primarily for internal users.

Accepted Answer

Managerial Accounting is focused on providing information to managers and decision-makers within the organization, rather than for external users such as investors or creditors.

Question 8

Managerial accounting has its emphasis on the future.

Accepted Answer

Managerial accounting is focused on providing information to help decision-making for future planning and strategy. It involves analyzing trends, forecasting future outcomes, and developing budgets to achieve desired results.

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

The answer of The detailed formulation of action to achieve...

Question 11

The process of choosing among competing alternatives is called ________________________.

Accepted Answer

The answer of The process of choosing among competing alternatives...

Question 12

Management accounting information is only used by manufacturing organizations.

Accepted Answer

Management accounting information is used by all types of organizations, including service and nonprofit organizations, in addition to manufacturing organizations.

Question 13

Financial accounting is governed by GAAP.

Accepted Answer

Financial accounting is governed by Generally Accepted Accounting Principles (GAAP) which provide a framework of accounting standards, principles and procedures that companies should follow when preparing financial statements.

Question 14

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

Accepted Answer

The statement is true. The value chain is a series of activities that a company performs to deliver a valuable product or service to its customers, from the initial design to the final delivery. It is a crucial concept in business strategy and operations management.

Question 15

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

Accepted Answer

The primary goal of managerial accounting is to provide information to help managers make informed business decisions that will ultimately lead to maximizing profits.

Question 16

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

Accepted Answer

A cost accountant is a staff position within an organization, responsible for analyzing and controlling costs associated with production, distribution, and sales of products or services.

Question 17

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

Accepted Answer

The answer of ______________________________ is the provision of accounting information...

Question 18

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

Accepted Answer

Value-added activities are activities that enhance the product or service being offered to the customer. Excellent customer service improves the overall experience and satisfaction of the customer, making it an example of a value-added activity.

Question 19

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

Accepted Answer

Time is a crucial element in all phases of the value chain as it affects efficiency, customer satisfaction, and competitive advantage, influencing each activity from inbound logistics to after-sales services.

Question 20

The process of choosing among competing alternatives is decision making.

Accepted Answer

This statement is true, as decision making involves weighing and considering different options before selecting the best course of action.

Quiz 1: Introduction to Managerial Accounting

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

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

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.

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

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

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.

Managerial Accounting is designed primarily for internal users.

Managerial accounting has its emphasis on the future.

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

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

The process of choosing among competing alternatives is called ________________________.

Management accounting information is only used by manufacturing organizations.

Financial accounting is governed by GAAP.

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

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

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

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

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

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

The process of choosing among competing alternatives is decision making.