Question 1

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 correct definition of a supply chain.

Question 2

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 employee behavior.

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 purpose of an ERP system is to integrate information from all different business processes into a single system to provide a unified view of the organization's data.

Question 4

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

Accepted Answer

A divest strategy involves selling off assets or business units that are no longer profitable or strategic for the company. It is not typically used as a means to enter a new market. Instead, companies may use strategies such as mergers and acquisitions, partnerships, or organic growth to enter a new market.

Question 5

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 may be used to provide information to stakeholders such as stockholders, this is not a primary way that managers use it. The primary ways that managers use managerial accounting are to plan, evaluate, and control the organization's activities, as well as to ensure appropriate use and accountability for its resources.

Question 6

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 for monitoring organizational performance.

Question 7

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

Accepted Answer

A harvest strategy involves maximizing profit and cash flow in the short term by cutting costs and reducing investment, even if it means sacrificing market share. This is typically done when a company is facing declining market demand or competition, and wants to extract as much value as possible before eventually exiting the market.

Question 8

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 investment in infrastructure and training. It may not be suitable for all companies, especially those with complex supply chains or those that require large inventories to operate efficiently.

Question 9

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 10

An example of an external user is a
A)company president.
B)plant manager.
C)payroll supervisor
D)creditor.

Accepted Answer

A creditor is someone outside of the company who has provided goods or services on credit and has a financial stake in the company's success. The company president, plant manager, and payroll supervisor are internal users who work directly for the company.

Question 11

Ethical business behavior is compliance with the law.

Accepted Answer

Ethical business behavior goes beyond just following the law. It involves making decisions based on moral principles, fairness, and honesty. While compliance with the law is important, it is not the only factor in determining ethical behavior.

Question 12

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 is indeed an inventory strategy that aims to reduce waste and inefficiency by ordering inventory items only when they are needed, thus minimizing the costs of holding excess inventory.

Question 13

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)creditors assess liquidity.

Accepted Answer

Managerial accounting information is specifically designed to help managers make decisions related to the organization's operations and finances, such as setting budgets, analyzing costs, and monitoring performance. While creditors and stockholders may benefit from some of this information, it is primarily intended to assist managers in carrying out their roles effectively. Therefore, option B is the best choice.

Question 14

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

Accepted Answer

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

Question 15

Managerial accounting is used by managers to
A)plan
B)evaluate
C)control
D)plan,evaluate,and control

Accepted Answer

Managerial accounting is used by managers to plan, evaluate, and control their organization's financial resources. Planning involves setting objectives and identifying the actions necessary to achieve those objectives. Evaluation involves comparing actual results to planned results and determining the reasons for any differences. Control involves taking corrective action as necessary to ensure that objectives are met. Therefore, all three options (plan, evaluate, and control) are important uses of managerial accounting for managers.

Question 16

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 makes a difference in a decision. It may or may not be quantitative, and it does not necessarily have to come from the controller or be analyzed by the CFO. Its relevance is determined by its impact on the decision being made.

Question 17

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 primary purpose of financial statements contained in annual reports is to communicate information about the financial health of a company to external users such as investors, lenders, and analysts. While internal managers may also use these statements for decision-making purposes, this is a secondary function.

Question 18

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 Society of Management Accountants do not exist. The National Association of Accountants changed its name to the Institute of Management Accountants in 1991, so while it was once a leading organization, it no longer exists under that name.

Question 19

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 aligning your actions with your personal values and considering how your decisions will impact others' values. It's about making decisions that are both morally and socially responsible.

Question 20

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)assure appropriate use of an organization's resources,accountability for an organization's resources,and provides information used in planning,evaluation and controlling functions within an organization.

Accepted Answer

Managerial accounting serves multiple purposes including ensuring appropriate use of an organization's resources, accountability for those resources, and providing information for planning, evaluation, and controlling functions. Therefore, the best choice is D.

Quiz 1: Accounting As a Tool for Management

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.

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

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

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

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

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

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

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

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

An example of an external user is a

Ethical business behavior is compliance with the law.

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.

Good managerial accounting information helps

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

Managerial accounting is used by managers to

In the context of managerial accounting,relevant information

The purpose of financial statements contained in annual reports is to

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.

Managerial accounting is used by managers to