Question 1

Which of the following is not true about information in an organization's databases?

Accepted Answer

Intellectual capital may be captured in sources other than databases, such as documents, manuals, and other written materials. While databases can capture and store valuable information, they are not the only means of doing so.

Question 2

Pet Snacks Company has 500 kg of liver-flavored dog biscuits that are not selling well. The selling price of the biscuits could be reduced from $3.00 to $2.50 per kg. Or, they could be cheese-coated and sold for $4.00 per kg; the additional processing cost would be $0.50 per kg. Cheese-coated biscuits sell very well. Which alternative probably has less uncertainty concerning volume of sales?

Accepted Answer

Adding cheese coating to the dog biscuits may increase the demand as the cheese-coated variant is selling well. This might result in a higher volume of sales compared to the reduced price of liver-flavored biscuits. Additionally, the increased cost from the cheese-coating is only $0.50 per kg which is a small amount compared to the potential increase in revenue. Therefore, the cheese-coating alternative is likely to have less uncertainty concerning volume of sales.

Question 3

Which of the following is least likely to be an external report?

Accepted Answer

The answer of Which of the following is least likely...

Question 4

Uncertainties and biases can affect:
I. Organizational vision
II. Core competencies
III. Operating plans

Accepted Answer

Uncertainties and biases can affect the organizational vision as they may cause leaders to make decisions based on incorrect or incomplete information. They can also affect operating plans as biases may lead to unrealistic goals or incorrect assumptions about resources. However, core competencies may be less affected as they are generally based on the organization's strengths and capabilities, which may be more stable and less subject to biases or uncertainties.

Question 5

Uncertainties:

Accepted Answer

Uncertainties are issues about which managers have doubts. These can include market trends, economic conditions, and future events that are difficult to predict. Accounting information may be highly objective and reliable, but it is still subject to uncertainties and assumptions, such as estimates for future expenses or valuations of assets. Preconceived notions and lack of careful thought can also contribute to uncertainties, but not all uncertainties are the result of such biases. Uncertainties are often a significant factor in business decision making, and managers must learn to manage and mitigate them in order to make informed choices.

Question 6

Managers can make higher-quality decisions by relying on all of the following except:

Accepted Answer

Irrelevant information can actually hinder the decision-making process and make it more difficult for managers to arrive at a high-quality decision. Therefore, managers should instead focus on gathering more complete information, using better decision-making processes, and seeking out information with less uncertainty.

Question 7

Financial statements are:

Accepted Answer

Financial statements are external reports that are produced by an organization's information system and are used to communicate its financial information to external parties such as investors, creditors, and regulatory agencies. These reports are important for decision-making processes for external parties.

Question 8

Higher quality decision making processes are less:

Accepted Answer

Higher quality decision making processes aim to minimize biases and incorporate a variety of perspectives and information to make a well-informed decision. Therefore, being less biased is a characteristic of better decision making processes. Certain, creative, and focused decision making processes can still be of high quality, but they do not necessarily define quality decision making.

Question 9

Biases may be:

Accepted Answer

Biases can be both intentional and unintentional, depending on the awareness and intent of the individual. Intentional biases are those that are knowingly held, while unintentional biases are those that individuals may not be consciously aware of.

Question 10

Higher quality reports are more:
I. Relevant
II. Understandable
III. Available

Accepted Answer

The answer of Higher quality reports are more:
I. Relevant
II. Understandable
III....

Question 11

Biases:

Accepted Answer

Biases can limit our ability to anticipate all future conditions, as they can cause us to focus too narrowly on certain factors or possibilities, while ignoring others. This can result in a failure to consider all relevant information and potential outcomes. Therefore, biases can hinder effective decision-making by limiting our ability to consider all possible scenarios and their potential consequences. The other choices are incorrect because biases can actually interfere with the identification of relevant information, as they can cause us to overlook important details or to misinterpret data. Additionally, biases can also cause individuals to fixate on irrelevant information, rather than filtering it out. Finally, biases can have a significant impact on ethical decision-making, as they can cause individuals to make decisions that prioritize their own interests or beliefs over what is morally right or fair.

Question 12

Which of the following statement about biases is true?

Accepted Answer

Biases can introduce errors and distortions in the decision-making process, leading to suboptimal decisions. Therefore, biases reduce the quality of decisions. Option A is incorrect as biases can affect both management and financial accounting information. Option B is incorrect as managers can work towards mitigating their biases through training, awareness, and diversifying perspectives. Option D is incorrect as biased managers tend to exhibit confirmation bias, i.e., they tend to seek out information that confirms their pre-existing beliefs instead of exploring alternatives.

Question 13

Information gathered outside the organization includes:

Accepted Answer

Information about customer preferences is gathered from outside sources such as surveys, feedback, and market research. This helps the organization tailor their products and services to meet the needs and wants of their target audience. Product design specifications, taxable income, and number of employees hired are typically internal information.

Question 14

Uncertainty may hinder a manager's ability to:
I. Adequately define a problem
II. Identify all potential solution options
III. Predict the outcome of various solution options

Accepted Answer

Uncertainty can make it difficult for a manager to adequately define a problem, as they may not know all the relevant information. It can also hinder their ability to identify all potential solution options, as they may not have a complete understanding of the situation. Finally, uncertainty can make it difficult to predict the outcome of various solution options, as there may be unknown factors that could affect the outcome. Therefore, all three options are possible consequences of uncertainty for a manager.

Question 15

Delta Hotels operates hotels throughout Canada. Which of the following is the best example of a potential bias associated with its operations?

Accepted Answer

Assuming that most travelers are interested in conducting business rather than vacationing is a potential bias because it may lead to a limited understanding of the needs of leisure travelers and a focus on business amenities and services. This could result in missed opportunities to attract vacationers and a lack of attention to their needs. The other choices do not demonstrate bias in this context.

Question 16

Which of the following adjectives describes higher quality information?
I. Complete
II. Costly to develop
III. Relevant

Accepted Answer

Complete and relevant information are both indicators of higher quality. However, costly to develop does not necessarily equate to higher quality, as some sources may be expensive but still provide low-quality information. Therefore, the correct answer is I and III only (complete and relevant).

Question 17

How does the use of sophisticated information systems affect managerial decision-making?

Accepted Answer

Sophisticated information systems can provide more accurate and comprehensive information, but it's up to the managers to use this information effectively. In some cases, managers may rely too heavily on the reports generated by these systems rather than using their own expertise and judgment to make decisions. This can lead to a lack of critical thinking and creativity in managerial decision-making processes.

Question 18

Air Canada has several non-stop flights daily between Toronto and Vancouver. Which of the following is an uncertainty associated with this operation?

Accepted Answer

The average number of empty seats for flights next month is an uncertainty as it is not certain how many seats will be sold and how many will be left empty. A, B and D are not uncertainties associated with this specific operation.

Question 19

Biases:

Accepted Answer

Biases are preconceived notions that can be developed without careful thought, often leading to subjective decision making. They can impact business decision making, including accounting information that may be influenced by biased judgments or estimates. It is important for managers to be aware of their biases and take steps to mitigate them in their decision making.

Question 20

Which of the following is the best example of an internal report that might come from an organization's information system?

Accepted Answer

An operating budget is an internal report that would typically be generated by an organization's information system. It provides information on the organization's planned expenses and revenue for a given period, and is used for internal planning and decision-making. The other options listed (Environmental Protection Agency regulatory report, income tax returns, and Medicare cost report) are all external reports that would be submitted to regulatory agencies or government entities, rather than for internal use by the organization.

Quiz 1: The Role of Ethical Accounting Information in Management Decision Making

Which of the following is not true about information in an organization's databases?

Which of the following is least likely to be an external report?

Uncertainties and biases can affect: I. Organizational vision II. Core competencies III. Operating plans

Uncertainties:

Managers can make higher-quality decisions by relying on all of the following except:

Financial statements are:

Higher quality decision making processes are less:

Biases may be:

Higher quality reports are more: I. Relevant II. Understandable III. Available

Biases:

Which of the following statement about biases is true?

Information gathered outside the organization includes:

Uncertainty may hinder a manager's ability to: I. Adequately define a problem II. Identify all potential solution options III. Predict the outcome of various solution options

Delta Hotels operates hotels throughout Canada. Which of the following is the best example of a potential bias associated with its operations?

Which of the following adjectives describes higher quality information? I. Complete II. Costly to develop III. Relevant

How does the use of sophisticated information systems affect managerial decision-making?

Air Canada has several non-stop flights daily between Toronto and Vancouver. Which of the following is an uncertainty associated with this operation?

Biases:

Which of the following is the best example of an internal report that might come from an organization's information system?