Question 1

The largest managerial accounting professional association in the U.S.is the Chartered Institute of Management Accountants.

Accepted Answer

The largest managerial accounting professional association in the U.S. is actually the Institute of Management Accountants (IMA). The Chartered Institute of Management Accountants (CIMA) is based in the UK.

Question 2

The upper limit on the production of goods and services if everything works perfectly is known as practical capacity.

Accepted Answer

False

Question 3

Decision making requires managers to choose among the available alternatives.

Accepted Answer

Decision making involves analyzing and evaluating a range of options and selecting the best course of action. Therefore, it requires managers to choose among the available alternatives.

Question 4

Line positions are indirectly involved in operational activities.

Accepted Answer

The answer of Line positions are indirectly involved in operational...

Question 5

A controller is normally involved with preparing ﬁnancial statements.

Accepted Answer

The controller is responsible for overseeing the financial accounting process and ensuring the accuracy of financial statements.

Question 6

Two things that all organizations have in common are a set of goals and information needed by managers.

Accepted Answer

All organizations have a set of goals they want to achieve, whether they are for-profit businesses, non-profit organizations or governmental agencies. Additionally, managers in all organizations require some form of information to make decisions and guide the organization towards achieving its goals.

Question 7

Non-value-added costs are the costs of activities that can be eliminated with no deterioration of product quality, performance, or perceived value.

Accepted Answer

Non-value-added costs refer to activities that do not contribute to the end product or perceived value and can be eliminated without affecting the quality or performance of the product. This can include activities such as overproduction, excess inventory, unnecessary processing, waiting, defects, and over-processing. Eliminating these activities can lead to cost savings and increased efficiency without affecting the final product.

Question 8

If a company has poor data governance practices, managers would have to worry that the managerial accounting data they receive is not what they need for their decisions, or that it would arrive too late or be inaccurate.

Accepted Answer

Poor data governance practices can lead to inadequate, delayed, or incorrect financial data, which can hinder effective managerial decision-making.

Question 9

The treasurer typically is responsible for raising capital and safeguarding the organization's assets.

Accepted Answer

The treasurer is responsible for managing the organization's finances, including raising capital (such as through fundraising, investments, or borrowing) and ensuring that the organization's assets are protected and used effectively.

Question 10

Middle-level managers would likely be considered internal users of accounting information rather than external users.

Accepted Answer

Middle-level managers are individuals within an organization who use accounting information to make decisions regarding the business operations. Therefore, they fall under the category of internal users. External users, on the other hand, are individuals or entities outside the organization who rely on accounting information to make decisions such as investors, creditors, government agencies, etc.

Question 11

The role of managerial accounting in organizations is the same as it has been over many years.

Accepted Answer

Managerial accounting has evolved significantly over the years, adapting to changes in business practices, technology, and the global economy, thus its role in organizations has changed and expanded.

Question 12

The value chain is a managerial accounting tool that primarily assists in the valuation of assets.

Accepted Answer

The value chain is a strategic management tool that analyzes activities within a company to identify opportunities to create value and reduce costs, not specifically for the valuation of assets.

Question 13

All companies deﬁne the value chain in the same way.

Accepted Answer

While most companies generally have similar components in their value chain, there can be variations depending on the industry, business model, and specific company operations. Therefore, it cannot be said that all companies define the value chain in exactly the same way.

Question 14

In most situations, managerial accounting reports solve decision problems.

Accepted Answer

Managerial accounting reports are designed to provide information to assist in decision-making processes, but they do not solve decision problems directly. Decision-making involves analyzing this information and considering various factors before reaching a conclusion.

Question 15

The balanced scorecard is an important managerial accounting tool for short-run competitiveness.

Accepted Answer

The balanced scorecard is actually a strategic management tool that helps companies align their vision and strategy with their actions and measures their performance from different perspectives, including financial, customer, internal business processes, and learning and growth. While it can certainly aid in short-run competitiveness, its primary focus is on long-term success and sustainability.

Question 16

The nature of managerial accounting reports is to focus on the enterprise in its entirety.

Accepted Answer

Managerial accounting reports are designed to provide information and support for internal management decision-making, and therefore, they tend to focus on specific parts of the enterprise rather than considering the enterprise as a whole. Reports may target particular departments, divisions, projects, or products, and the information included in the report will vary depending on the needs of management. Managerial accounting reports often include budget vs. actual performance comparisons, variance analyses, and projections for future performance.

Question 17

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

Accepted Answer

Controlling is the management function focused on measuring performance, comparing it with goals, and taking corrective action as needed, rather than coordinating daily business functions.

Question 18

The process of making sense of big data is known as data practice.

Accepted Answer

The process of making sense of big data is known as data analytics or data analysis.

Question 19

The position of chief ﬁnancial oﬃcer (CFO) is typically a staff position.

Accepted Answer

The CFO position is typically a staff position, as it is responsible for overseeing the financial operations and strategy of an organization, rather than being involved in the day-to-day operations of the business.

Question 20

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

Accepted Answer

Measuring the performance of managers and subunits is one of the primary objectives of managerial accounting.

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