Question 1

Strategy pertains to the general direction in which an organization plans to move to achieve its goals and objectives.

Accepted Answer

Strategy outlines the general direction and approach an organization will take to achieve its goals and objectives.

Question 2

The main idea underlying the lean business model is the elimination of waste.

Accepted Answer

The lean business model is focused on maximizing value to customers while minimizing waste in operations and processes. The goal is to create more efficient, effective, and streamlined systems to deliver more value to customers while reducing costs and improving overall performance.

Question 3

Merchandising and manufacturing firms generate revenue by selling products.

Accepted Answer

Merchandising and manufacturing firms produce and sell products as their main source of revenue.

Question 4

Management accounting information is primarily concerned with reports on the organization as a whole while financial accounting focuses more on the individual segments of the organization.

Accepted Answer

Management accounting information is focused on providing information for internal decision making and planning, and can be tailored to the specific needs of different segments within the organization. Financial accounting, on the other hand, is focused on providing information for external reporting purposes and follows specific accounting standards to ensure consistency and comparability across different entities.

Question 5

Managerial Accounting reports are prepared for external users while Financial Accounting reports are prepared for internal users.

Accepted Answer

The statement is incorrect. Managerial Accounting reports are prepared for internal users, while Financial Accounting reports are prepared for external users.

Question 6

Performance reports provide formal feedback to assist in determining whether operations and performance are on track..

Accepted Answer

Performance reports are designed to provide formal feedback that is used to determine whether the operations and performance of an organization are on track. They can help identify areas of strength or weakness, set benchmarks for improvement, and provide guidance for making data-driven decisions.

Question 7

Planning includes identifying alternatives and then selecting the one that does the best job of furthering the organization's objectives.

Accepted Answer

Planning involves considering different options and choosing the best course of action that will help achieve the organization's goals and objectives. Therefore, the statement is true.

Question 8

Planning involves selecting a course of action and specifying how the action will be implemented.

Accepted Answer

Planning is the process of selecting a course of action and determining how it will be carried out.

Question 9

Companies that use the just-in-time (JIT)approach purchase materials and produce units only as needed to meet actual customer demand.

Accepted Answer

Companies that use the just-in-time (JIT) approach aim to minimize inventory and reduce waste by purchasing materials and producing units only when they are needed to fulfill customer orders.

Question 10

The theory of constraint (TOC)framework focuses on effectively managing constraints as the key to success.

Accepted Answer

The theory of constraint framework is based on the idea that identifying and managing constraints in a system is critical to achieving maximum efficiency and success.

Question 11

Management accountants are not required to follow the generally accepted accounting principles that are used for external financial reporting when preparing reports for internal users.

Accepted Answer

Management accountants use a different set of standards and principles, known as management accounting principles, to prepare reports for internal users. These principles are focused on providing relevant and timely information to aid in decision-making, rather than compliance with external reporting requirements.

Question 12

Reduction in tariffs,quotas,and other barriers to free trade;improvements in global transportation system;and increasing sophistication in international trade markets,are several factors that have led to an increase in worldwide competition in many industries.

Accepted Answer

These factors have indeed led to an increase in worldwide competition.

Question 13

Managers assign tasks to employees,arbitrate disputes,answer questions,solve on the spot problems,and make many decisions that affect customers and employees,which in turn,will likely influence future financial and nonfinancial performance.

Accepted Answer

Managers have a wide range of responsibilities, including assigning tasks to employees, resolving conflicts, making decisions that affect both customers and employees, and addressing day-to-day issues that arise. These actions can have a significant impact on future financial and nonfinancial outcomes for the organization.

Question 14

One major implication of globalization for many organizations is that they must find new ways of conducting business.

Accepted Answer

As globalization expands markets and increases competition, many organizations must adapt and find new ways of conducting business in order to remain competitive and succeed in new markets.

Question 15

The Code of Ethics for Professional Accountants established by the International Federation of Accountants governs only the activities of accountants in public practice.

Accepted Answer

The Code of Ethics for Professional Accountants established by the International Federation of Accountants applies to all professional accountants, including those working in public practice, business, education, and the public sector.

Question 16

Control involves the process of instituting procedures and then obtaining feedback to ensure that all parts of the organization are functioning effectively and moving toward overall company goals.

Accepted Answer

This statement accurately describes the concept of control in organizational management.

Question 17

Among other things,companies using the just-in-time (JIT)approach,produce only in response to a customer order meaning that workers will not be idle whenever demand falls below the company's production capacity.

Accepted Answer

This question is not related to the given scenario and requires general knowledge about the just-in-time (JIT) approach, which is not provided.

Question 18

Service firms do not sell any products but generate revenues by offering one or more types of services.

Accepted Answer

Service firms offer services and not products as their main source of revenue.

Question 19

Managers everywhere carry out three major activities: planning,implementation,and control.

Accepted Answer

Planning involves setting goals, establishing strategies and plans, and developing budgets to coordinate activities. Implementation involves executing plans and strategies, coordinating people and resources, and monitoring progress. Control involves monitoring performance, comparing actual results to desired results, and taking corrective action as necessary. These are the three major activities that managers carry out.

Question 20

Merchandising firms largely refer to retail and wholesale outlets that buy goods from suppliers and resell them to customers.

Accepted Answer

This is an accurate definition of merchandising firms.

Quiz 1: An Introduction to Managerial Accounting and Cost Concepts