Question 1

The Statement of Ethical Professional Practice promulgated by the Institute of Management Accountants specifically states,among other things,that management accountants have a responsibility to inform responsible journalists of any wrongdoing they uncover in the organization.

Accepted Answer

The Statement of Ethical Professional Practice does not specifically mention responsible journalists as the audience to whom management accountants should report any wrongdoing. Instead, it states that management accountants have a responsibility to report any material violations of laws or regulations to those within the organization who can take appropriate action to address the violation. They may also disclose such information to external parties as permitted by law or when authorized by their organization's policies.

Question 2

A strategy is a game plan that enables a company to attract customers by mimicking what successful competitors do.

Accepted Answer

A strategy involves identifying unique strengths and opportunities for a company, rather than simply copying competitors. It should be tailored to the specific needs and goals of the company, rather than being a generic imitation of what others are doing.

Question 3

The controller occupies a staff position in an organization.

Accepted Answer

The controller is a staff position in an organization, meaning they provide support and advice to the line positions (those directly involved in producing and delivering the organization's products or services).

Question 4

Which of the following statements is TRUE concerning the CMA?

Accepted Answer

The statement that is true concerning the CMA is that to earn the CMA, an examination must be passed. The CMA certification requires passing a two-part examination that covers topics in financial planning, analysis, control, and decision support, as well as professional ethics and corporate governance. Experience in the accounting field and compliance with ethical standards are also important factors, but passing the examination is a necessary requirement. Therefore, choices B and C are incorrect.

Question 5

Six Sigma is a process improvement method that targets a system's constraint for process improvement.

Accepted Answer

The answer of Six Sigma is a process improvement method...

Question 6

Corporate social responsibility refers to the moral obligation of all corporations to make substantial monetary contributions to charitable causes.

Accepted Answer

Corporate social responsibility (CSR) does not necessarily refer only to monetary contributions, but also encompasses various other actions such as sustainable and ethical business practices, environmental protection, community involvement, and philanthropic efforts in terms of volunteerism, donation of goods and services, etc.

Question 7

Decentralization refers to:

Accepted Answer

Decentralization refers to the delegation of decision-making authority throughout an organization, allowing for more autonomy and flexibility in different departments or divisions. Option A and B are not accurate because they only discuss reporting, while decentralization encompasses decision-making as well. Option D is too vague and does not provide any specific information about the concept of decentralization.

Question 8

Customer value propositions tend to fall into three broad categories--theory of constraints,six sigma,and enterprise risk management.

Accepted Answer

The statement is false as customer value propositions do not necessarily fall into these three specific categories. There are many different frameworks for creating customer value propositions.

Question 9

A value chain consists of the major subassemblies that add value to a product.

Accepted Answer

The answer of A value chain consists of the major...

Question 10

Which of the following is NOT one of the three major customer value propositions discussed in the text?

Accepted Answer

The three major customer value propositions discussed in the text are customer intimacy, operational excellence, and product leadership. "Zero defects" is not mentioned as one of the major value propositions.

Question 11

The Sarbanes-Oxley Act of 2002 was intended to protect the interests of those who invest in publicly traded companies by ensuring that their original investments could be recovered in case of fraud.

Accepted Answer

The Sarbanes-Oxley Act of 2002 was intended to improve the accuracy and reliability of corporate disclosures, financial reporting, and auditing. Its primary goal was to enhance the transparency and accountability of publicly traded companies, not to ensure recovery of original investments in case of fraud.

Question 12

Efforts designed to increase the rate of output should generally be applied to non-constraint work stations.

Accepted Answer

The answer of Efforts designed to increase the rate of...

Question 13

_________________ is an example of a staff position.

Accepted Answer

A staff position is one that provides support and expertise to line positions. Human resource manager is an example of a staff position as they provide support to line managers and employees in matters related to employment, benefits, and organizational policies.

Question 14

Enterprise risk management involves replacing risky investments with investments in low-risk government securities.

Accepted Answer

Enterprise risk management involves identifying and managing the potential risks facing an organization, not just replacing risky investments with low-risk ones. It is a comprehensive approach to managing all types of risks, including financial, operational, and strategic risks. While investing in low-risk government securities may be a part of a company's risk management strategy, it is not the only solution and may not be appropriate for every situation.

Question 15

Which of the following persons would occupy a line position in a department store? I.Sales manager
II)Manager,furniture department
III)Manager,advertising department
IV)Manager,personnel department

Accepted Answer

A line position is a position directly involved in the day-to-day operations of a business, such as selling merchandise. Therefore, the sales manager and manager of the furniture department would both occupy line positions. The managers of the advertising and personnel departments would occupy staff positions, which are positions that support the line positions but are not directly involved in the day-to-day operations. Therefore, choices III and IV would not occupy a line position.

Question 16

Companies that choose an operational excellence strategy are in essence saying to their customers,"Choose us because we can deliver products and services faster,more conveniently,and at a lower price than our competitors."

Accepted Answer

An operational excellence strategy is focused on efficiency and cost-effectiveness, with the goal of providing products and services quickly and at a lower cost than competitors. This can be achieved through streamlining processes, optimizing technology, and minimizing waste. Ultimately, the aim is to provide customers with a superior experience by delivering products and services that meet their needs in a timely and cost-effective manner.

Question 17

Which of the following is NOT one of the five steps in the lean thinking model discussed in the text?

Accepted Answer

The lean thinking model includes the following five steps: identify the value desired by the customer, map the value stream and eliminate waste, create a pull system that responds to customer orders, organize work arrangements around the flow of the business process, and continuously improve. The step "automate the business process" is not mentioned in the model.

Question 18

The controller occupies:

Accepted Answer

The answer of The controller occupies:
...

Question 19

The Institute of Management Accountants' Statement of Ethical Professional Practice specifically states,among other things,that management accountants have a responsibility to keep information confidential except when disclosure is authorized or legally required.

Accepted Answer

The statement does indeed state that management accountants have a responsibility to keep information confidential except when disclosure is authorized or legally required.

Question 20

The lean thinking model focuses on reducing defects to as close to zero as possible.

Accepted Answer

The answer of The lean thinking model focuses on reducing...

Quiz 1: Managerial Accounting and the Business Environment