Question 1

Investigating production variances and adjusting the production process is an example of

Accepted Answer

Investigating production variances and adjusting the production process falls under the category of control. Control involves monitoring the actual performance and comparing it with the planned performance and making necessary adjustments to ensure that the goals are achieved. Internal auditing, on the other hand, is a separate function that involves reviewing and evaluating internal control systems and processes to ensure they are operating effectively. Planning involves setting goals and objectives and determining the actions needed to achieve them.

Question 2

The standards of ethical conduct for management accountants include

Accepted Answer

The standards for ethical conduct for management accountants involve competence, confidentiality, integrity, and credibility. Choice A is incorrect because while competence is a factor, performance is not explicitly stated as a standard. Choice B is partially correct as integrity is a standard, but respect for others is not explicitly stated. Choice C includes factors such as confidence and observance which are not a part of the recognized standard ethical conduct for management accountants.

Question 3

Extending the close of the fiscal year beyond December 31 so that some sales of next year are included in the current year would be a violation of which standard of ethical conduct for management accountants?

Accepted Answer

The answer of Extending the close of the fiscal year...

Question 4

Which of the following describes the managerial activity of comparing actual results with budgeted results?

Accepted Answer

Comparing actual results with budgeted results is a control activity. Control is a managerial activity that focuses on ensuring that actual results are consistent with planned results and taking corrective action if necessary.

Question 5

Setting the selling price of a company's product is an example of

Accepted Answer

Setting the selling price of a company's product involves making a decision regarding pricing strategy based on market factors, costs, and desired profit margins. It is a key decision-making function of the company's management team. While planning and control are also important functions in managing a company, they do not specifically relate to the decision-making process involved in setting a product's selling price.

Question 6

Principles of personal ethical behavior include

Accepted Answer

All three principles (integrity, respect for others, and fairness) are important components of personal ethical behavior. Integrity involves being honest and consistent in one's actions and values. Respect for others entails treating others with dignity and empathy, recognizing and valuing their differences, and avoiding harm or exploitation. Fairness involves acting in a just and impartial manner, avoiding favoritism or discrimination, and striving for equality and justice. All of these principles are essential for promoting ethical behavior in both personal and professional contexts.

Question 7

Determining the bid your company should submit on a construction contract is an example of

Accepted Answer

Determining the bid your company should submit on a construction contract involves decision making as it requires evaluating the costs, resources, and potential profits associated with the project. It is not specifically related to planning or control.

Question 8

Which of the following have been found to be TRUE?

Accepted Answer

Numerous studies have found that firms that prioritize ethics and integrity outperform their peers in the long run. This is likely due to factors such as enhanced reputation, increased trust from stakeholders, and reduced risk of legal or regulatory actions. B and C are not true as there is no evidence to support them.

Question 9

Continuous improvement is

Accepted Answer

Continuous improvement is critical in a dynamic environment to stay up-to-date, important to finding and maintaining a competitive advantage to stay ahead of the competition, and an effort to find ways to increase overall efficiency, improve quality, and reduce costs to meet customer needs and expectations. Therefore, all of these choices are correct.

Question 10

Managers are considering outsourcing subcomponents of production.Data is collected about the costs of making the subcomponent.Different bids are sought about the purchase of the subcomponents.Which managerial activity is applicable in this situation?

Accepted Answer

The act of collecting data about costs and seeking bids for outsourcing involves decision making. The managers need to analyze the data and make a decision about whether outsourcing will save costs and increase efficiency.

Question 11

The manager has to decide what tasks are needed and how they should be accomplished.This statement describes

Accepted Answer

The statement is describing the process of planning, which involves determining the necessary tasks and how they should be achieved. The organization chart (A) is a visual representation of the hierarchy and relationships within an organization, but it does not necessarily involve decision-making around specific tasks. Organizing (C) involves arranging resources and people to carry out the planned tasks, but does not address the decision-making process of determining those tasks in the first place. Therefore, the best answer is B.

Question 12

Setting the company's profit targets for the upcoming year is an example of the management function of

Accepted Answer

Setting profit targets involves making a plan for achieving a specific goal, which is a key aspect of the management function of planning. Control, variance analysis, and internal auditing are related to monitoring and evaluating performance, but not specifically related to setting targets.

Question 13

Evaluating the performance of a segment of the company is an example of

Accepted Answer

Evaluating the performance of a segment of the company falls under the category of control, which involves monitoring and evaluating actual performance against desired outcomes and taking corrective action if necessary. Internal auditing, on the other hand, is a separate function that provides independent and objective assurance of the effectiveness of internal controls and risk management processes within the organization. Planning, although important, is not directly related to evaluating performance. Therefore, the best choice is B, control.

Question 14

Developing a company strategy for responding to anticipated new markets is an example of

Accepted Answer

Developing a company strategy for responding to anticipated new markets involves planning for future growth and may require decision making to determine the best approach. Control, while important, is not the primary focus of this activity.

Question 15

In a company, engineers have redesigned production process lowering production costs, shorting production cycle time, reducing waste and improving quality.Which type of managerial activity applies to this situation?

Accepted Answer

The situation describes a continuous improvement activity where engineers have redesigned the production process to achieve various benefits. This activity is focused on making ongoing improvements to processes, products, or services to improve quality, reduce costs, increase efficiency, etc. The other options are not applicable as planning involves setting goals and objectives for future activities, decision making involves making choices among alternative courses of action, and controlling involves measuring and monitoring performance against goals and taking corrective action if necessary.

Question 16

The monitoring of a plan's implementation is called

Accepted Answer

The monitoring of a plan's implementation is the process of measuring progress towards the goals and objectives, comparing actual results to the planned ones, and taking corrective actions if necessary. This process is called controlling.

Question 17

In a performance report,

Accepted Answer

Expenditures of less than allowed amounts are desirable as it indicates efficient use of resources and cost savings. Differences between actual costs and allowed costs may not always be undesirable as they could be due to unforeseen circumstances or changes in scope of work. Expenditures of more than allowed amounts are generally not desirable as they indicate overspending and may require additional approvals or justification.

Question 18

The formulation of a program for the accomplishment of a specific purpose is referred to as

Accepted Answer

Planning involves the formulation of a program or a set of actions that will be taken to accomplish a specific purpose. Controlling involves monitoring and adjusting ongoing activities, motivating involves inspiring and encouraging individuals, and organizing involves structuring resources and tasks. Therefore, planning is the best fit for this question.

Question 19

The planning process includes

Accepted Answer

The planning process includes setting objectives, identifying means of achieving the objectives, and making decisions. Therefore, all of these choices are correct.

Question 20

Inspecting units produced to determine if they meet specifications is an example of

Accepted Answer

Inspecting units produced to determine if they meet specifications is a control activity. Control involves monitoring and evaluating the performance of a process or system against established standards or specifications, and taking corrective action if necessary.

Quiz 1: Introduction to Cost Management