Question 1

The leading professional organization for management accountants is the
A)American Association of Management Accountants.
B)Institute of Management Accountants.
C)National Association of Accountants.
D)Society of Management Accountants.

Accepted Answer

The Institute of Management Accountants (IMA) is the leading professional organization for management accountants. The American Association of Management Accountants and the Society of Management Accountants are not actual organizations, while the National Association of Accountants has merged with the IMA to become the Association of Accountants and Financial Professionals in Business.

Question 2

Ethical behavior is knowing right from wrong and conducting yourself accordingly,so that your decisions are consistent with your own value system and the values of those affected by your decisions.

Accepted Answer

Ethical behavior involves knowing right from wrong and making decisions that align with one's values and the values of those impacted by the decisions.

Question 3

The goal of an ERP system is to integrate all data from the company's many business processes into a single information system.

Accepted Answer

The goal of an ERP system is indeed to integrate all data from the company's many business processes into a single information system. This allows for improved communication, streamlined processes, and better decision-making abilities for the business.

Question 4

A supply chain is a network of facilities that procure raw materials,transform them into intermediate goods and then into final products,and deliver the final products to customers through a distribution system.

Accepted Answer

This is the definition of a supply chain.

Question 5

The balanced scorecard uses only nonfinancial information such as customer satisfaction or employee turnover to measure performance.

Accepted Answer

The balanced scorecard uses a mix of financial and nonfinancial measures to evaluate performance.

Question 6

In the context of managerial accounting,relevant information
A)Is information that will make a difference in the decision.
B)Is information that has been provided by the controller.
C)Must be provided in quantitative terms.
D)Must be analyzed by the chief financial officer before being provided to managers.

Accepted Answer

Relevant information is information that will make a difference in the decision-making process. It includes both quantitative and qualitative information and may come from various sources, such as internal and external data, financial statements, or market trends. It is the responsibility of the manager to identify and use relevant information in their decision-making process. The controller may provide some of this information, but the ultimate decision rests with the manager. The CFO may also be involved in the analysis of this information, but it is not a requirement for it to be provided to managers.

Question 7

The purpose of financial statements contained in annual reports is to
A)Communicate information about the financial health of a company to external users.
B)Assist internal managers in making pricing decisions.
C)Both communicate information about the financial health of a company to external users and assist internal managers in making pricing decisions.
D)Neither communicate information about the financial health of a company to external users nor assist internal managers in making pricing decisions.

Accepted Answer

The purpose of financial statements is to communicate information about the financial health of a company to external users, such as investors, creditors, and analysts. While financial statements may also be used by internal managers in making pricing decisions, their primary purpose is to provide information to external users.

Question 8

A firm's code of conduct is based on a set of core values that are meant to guide employees' behavior.

Accepted Answer

A firm's code of conduct is indeed based on a set of core values meant to guide employees' behavior.

Question 9

An example of an external user is a
A)Company president.
B)Plant manager.
C)Payroll supervisor
D)Creditor.

Accepted Answer

A creditor is an external user because they are someone who extends credit to the company and is not directly involved in the operations or management of the company. The other choices listed are all internal users because they are employees or executives within the company.

Question 10

Which of the following is not a way managers use managerial accounting?
A)Provide information used in planning,evaluation and controlling functions within an organization.
B)To assure appropriate use of its resources
C)To assure accountability for its resources
D)To communicate information to stockholders

Accepted Answer

While managerial accounting can be used to communicate information within an organization, it is not typically used to communicate information specifically to stockholders. Rather, financial accounting is the area of accounting that is primarily concerned with communicating financial information to external stakeholders such as stockholders.

Question 11

Ethical business behavior is compliance with the law.

Accepted Answer

Ethical business behavior goes beyond mere compliance with the law and involves doing what is morally right and just, even in situations where the law may not explicitly require it.

Question 12

Good managerial accounting information helps
A)Creditors decide on good credit risks.
B)Managers to do their jobs.
C)Stockholders make informed investment decisions.
D)All of these ans choices are correct.

Accepted Answer

Managerial accounting information is primarily used by managers within the organization to make informed decisions and improve operational efficiency.

Question 13

Managerial accounting is used by managers to
A)Plan.
B)Evaluate.
C)Control.
D)All of these ans choices are correct.

Accepted Answer

Managerial accounting is used by managers to plan, evaluate and control the financial activities of the organization. Therefore, option D is the correct answer.

Question 14

A harvest strategy focuses on short-term profits and cash,even at the expense of market share.

Accepted Answer

A harvest strategy aims to maximize short-term profits and generate cash to meet immediate financial obligations, even if it means sacrificing long-term growth or market share.

Question 15

A tool that managerial accountants have developed to assist in monitoring organizational performance is the balanced scorecard.

Accepted Answer

The balanced scorecard is a tool developed by managerial accountants to assist in monitoring organizational performance.

Question 16

Managerial accounting is used by managers to
A)Assure appropriate use of an organization's resources.
B)Assure accountability for an organization's resources.
C)Provide information used in planning,evaluation and controlling functions within an organization.
D)All of these ans choices are correct.

Accepted Answer

Managerial accounting is used by managers to ensure the appropriate use of an organization's resources, assure accountability for an organization's resources, and provide information used in planning, evaluation, and controlling functions within an organization. Therefore, all of the answer choices are correct.

Question 17

A divest strategy is appropriate when a company desires to enter a particular market.

Accepted Answer

A divest strategy involves selling off assets or subsidiaries of a company. This strategy is typically used when a company wants to shrink or simplify its operations, not when it wants to enter a new market.

Question 18

Just-in-time inventory management is an inventory strategy that focuses on reducing waste and inefficiency by ordering inventory items so that they arrive just when they are needed.

Accepted Answer

Just-in-time inventory management aims to reduce the cost of inventory by ordering the necessary items just in time to meet the demand. This strategy helps to minimize waste and inefficiency, as excess inventory can result in higher storage and handling costs.

Question 19

The supply chain's goal is to reduce or eliminate defects.

Accepted Answer

The supply chain's goal is to get the right product to the right location in the right quantities, at the right time, and at the right cost,

Question 20

Just-in-time implementations are simple and take little or no effort to implement and will work for most companies.

Accepted Answer

Just-in-time implementations require significant planning, coordination, and communication across various departments and suppliers. It is not a simple or effortless process and may not work for all companies.

Quiz 1: Accounting As a Tool for Management

The leading professional organization for management accountants is the

Ethical behavior is knowing right from wrong and conducting yourself accordingly,so that your decisions are consistent with your own value system and the values of those affected by your decisions.

The goal of an ERP system is to integrate all data from the company's many business processes into a single information system.

A supply chain is a network of facilities that procure raw materials,transform them into intermediate goods and then into final products,and deliver the final products to customers through a distribution system.

The balanced scorecard uses only nonfinancial information such as customer satisfaction or employee turnover to measure performance.

In the context of managerial accounting,relevant information

The purpose of financial statements contained in annual reports is to

A firm's code of conduct is based on a set of core values that are meant to guide employees' behavior.

An example of an external user is a

Which of the following is not a way managers use managerial accounting?