Question 1

All of the following are service organizations, except:
A) a manufacturer of sporting goods
B) a dry cleaners
C) a real estate brokerage
D) a public accounting firm

Accepted Answer

A manufacturer of sporting goods is not a service organization because it produces tangible products.

Question 2

Systems that use computer- aided design and computer- aided manufacturing, together with robots and computer- controlled machines, are called:
A) computer- integrated manufacturing systems
B) manufacturing- robotic systems
C) robotic- computer systems
D) just- in- time systems

Accepted Answer

Computer-integrated manufacturing systems combine CAD, CAM, robots, and computer-controlled machines to automate and integrate manufacturing processes.

Question 3

Which of the following statements is true?
A) Management accounting information is used by organization managers at various levels.
B) Management accounting information tends to be more detailed than financial accounting.
C) Management accounting plays a vital role in the achievement of a company's goals and objectives.
D) All of these answers are correct.

Accepted Answer

All the statements are true: Management accounting information is used by managers, is more detailed than financial accounting, and plays a vital role in achieving company goals.

Question 4

The greatest impact of the Foreign Corrupt Practices Act on the accounting system is that it:
A) requires documentation of the adequacy of internal accounting controls
B) forbids bribery
C) specifies how to account for transactions with foreign countries
D) prohibits unethical practices by foreign investors

Accepted Answer

The Foreign Corrupt Practices Act (FCPA) requires companies to maintain accurate books and records and to have a system of internal accounting controls to prevent bribery and corruption.

Question 5

According to the Standards of Ethical Conduct for Management Accountants, the standard of competence includes:
A) disclosing all relevant information
B) the ongoing development of the accountant's knowledge and skills
C) avoiding actual or apparent conflicts of interest
D) All of these answers are correct.

Accepted Answer

The standard of competence specifically includes the ongoing development of the accountant's knowledge and skills.

Question 6

The Gotcha Company held a Christmas party. The company expected attendance of 200 persons and prepared the following budget: $\begin{array}{ll}
\text { Hotel room rental } & \$ 600 \
\text { Food } & 500 \
\text { Entertainment } & \$ 00 \
\text { Decorations } & 300 \
\text { Totals } & \$ 2,200 \
\end{array}$ After all bills for the party were paid, the total came to $2,315. Details are: $575 for hotel room rental; $640 for food; $750 for entertainment; and $350 for decorations. Two hundred persons attended the party. What is the main reason for the unfavorable total budget variance?
A) Hotel room rent is the main reason.
B) Entertainment is the main reason.
C) Food is the main reason.
D) Decorations are the main reason.

Accepted Answer

The answer of The Gotcha Company held a Christmas party....

Question 7

is (are) the primary consideration in choosing among accounting systems and methods.
A) Behavioral implications
B) Simplicity
C) Computerization
D) The cost- benefit balance

Accepted Answer

The primary consideration in choosing among accounting systems and methods is the cost-benefit balance, ensuring that the benefits of the system outweigh the costs involved.

Question 8

Below is a statement from the Standards of Ethical Conduct for Management Accountants. "Refrain from disclosing confidential information acquired in the course of their work except when authorized, unless legally obligated to do so."
It is an example of:
A) confidentiality
B) integrity
C) objectivity
D) competence

Accepted Answer

This statement is an example of confidentiality, as it emphasizes the importance of not disclosing confidential information unless authorized or legally required.

Question 9

At a clothing manufacturer, line authority is held by the head of which department?
A) The head of the receiving department holds line authority.
B) The head of the shipping department holds line authority.
C) The head of the assembly department holds line authority.
D) All of these answers are correct.

Accepted Answer

Line authority typically refers to the power to make decisions and direct work within an organization. In a manufacturing setting, the head of the assembly department usually holds line authority as they are directly responsible for the production process.

Question 10

Launching a new product line is an example of:
A) organization
B) decision making
C) controlling
D) planning

Accepted Answer

The answer of Launching a new product line is an...

Question 11

The largest U.S. association of professional accountants whose major interest is management accounting is the:
A) American Institute of CPAs
B) Government Accounting Institute
C) Institute of Management Accountants
D) American Accounting Association

Accepted Answer

The Institute of Management Accountants (IMA) is the largest U.S. association focused on management accounting, providing resources and support for professionals in this field.

Question 12

Department performance reports can be used to help department heads determine:
A) how efficiently the department is operating
B) how effectively the department is operating
C) how effectively and efficiently the department is operating
D) who is primarily responsible for any deviations from plans

Accepted Answer

Department performance reports provide insights into both the efficiency and effectiveness of operations, helping department heads assess overall performance.

Question 13

According to the Standards of Ethical Conduct for Management Accountants, the standard of confidentiality includes:
A) disclosing all relevant information
B) avoiding actual or apparent conflicts of interest
C) the ongoing development of the accountant's knowledge and skills
D) All of these answers are correct.

Accepted Answer

The standard of confidentiality requires management accountants to refrain from disclosing confidential information unless legally obligated to do so, not to disclose all relevant information.

Question 14

According to the Financial Executives Institute, one function of the treasurer is:
A) government reporting
B) reporting and interpreting financial information
C) tax administration
D) short- term financing

Accepted Answer

The treasurer is typically responsible for managing the company's finances, including short-term financing, while other roles like government reporting and tax administration are usually handled by other departments.

Question 15

One advantage of the management- by- exception approach is that it:
A) takes advantage of computerization
B) allows managers to ignore day- to- day concerns so they can focus on crises
C) frees managers from needless concern over operations that are running smoothly
D) allows managers to ignore aspects of the business outside their area of expertise

Accepted Answer

Management-by-exception allows managers to focus on significant deviations from the norm, freeing them from unnecessary attention to operations that are functioning well.

Question 16

Buying manufacturing or operating inputs electronically is a type of:
A) B2B transaction
B) C2B transaction
C) A2B transaction
D) B2C transaction

Accepted Answer

Buying manufacturing or operating inputs electronically is a type of Business-to-Business (B2B) transaction, where businesses purchase goods or services from other businesses.

Question 17

According to the Standards of Ethical Conduct for Management Accountants, the standard of objectivity includes:
A) disclosing all relevant information
B) avoiding actual or apparent conflicts of interest
C) the ongoing development of the accountant's knowledge and skills
D) All of these answers are correct.

Accepted Answer

The answer of According to the Standards of Ethical Conduct...

Question 18

Ethical accountants are important to society because:
A) the information produced is reliable
B) they pay their taxes
C) they will not go to prison and waste taxpayers' money
D) None of these answers is correct.

Accepted Answer

Ethical accountants ensure that financial information is accurate and reliable, which is crucial for decision-making by stakeholders.

Question 19

is a formal mechanism for gathering, organizing, and communicating information about an organization's activities.
A) Scorekeeping
B) Management accounting
C) Attention directing
D) An accounting system

Accepted Answer

An accounting system is a formal mechanism for gathering, organizing, and communicating information about an organization's activities.

Question 20

is mainly concerned with the company's operating matters.
A) The controller
B) The chairman of the board
C) The treasurer
D) The CEO

Accepted Answer

The controller is responsible for the day-to-day financial operations of the company, including accounting, budgeting, and financial reporting.

Quiz 1: Managerial Accounting and the Business Organization

All of the following are service organizations, except:

Systems that use computer- aided design and computer- aided manufacturing, together with robots and computer- controlled machines, are called:

Which of the following statements is true?

The greatest impact of the Foreign Corrupt Practices Act on the accounting system is that it:

According to the Standards of Ethical Conduct for Management Accountants, the standard of competence includes:

is (are) the primary consideration in choosing among accounting systems and methods.

Below is a statement from the Standards of Ethical Conduct for Management Accountants. "Refrain from disclosing confidential information acquired in the course of their work except when authorized, unless legally obligated to do so." It is an example of:

At a clothing manufacturer, line authority is held by the head of which department?

Launching a new product line is an example of:

The largest U.S. association of professional accountants whose major interest is management accounting is the:

Department performance reports can be used to help department heads determine:

According to the Standards of Ethical Conduct for Management Accountants, the standard of confidentiality includes:

According to the Financial Executives Institute, one function of the treasurer is:

One advantage of the management- by- exception approach is that it:

Buying manufacturing or operating inputs electronically is a type of:

According to the Standards of Ethical Conduct for Management Accountants, the standard of objectivity includes:

Ethical accountants are important to society because:

is a formal mechanism for gathering, organizing, and communicating information about an organization's activities.

is mainly concerned with the company's operating matters.