Question 1

A manager at Best Buy had a television advertising expense in 2013.The company is required to report the expense to external shareholders.According to GAAP,when is the manager at Best Buy required to show the expense?

Accepted Answer

B)Generally Accepted Accounting Principles (GAAP)require this immediate expensing for external reporting purposes.

Question 2

A cost concept is typically used for the external reporting purpose of accounting and may not be an appropriate concept for the internal or routine reporting to managers.

Accepted Answer

The cost concept focuses on the historical cost of assets rather than their current market values. This is necessary for external reporting purposes as it provides stakeholders with accurate and reliable financial statements. However, for internal reporting to managers, other concepts such as the management/cost accounting concept may be more appropriate.

Question 3

________ have a behavioral affect by motivating and rewarding employees for achieving organizational goals.

Accepted Answer

Budgets have a behavioral impact by motivating and rewarding employees for achieving organizational goals through financial incentives and performance benchmarks.

Question 4

________ can lead to changes in goals,strategies,and the ways decision alternatives are identified,and the range of information collected when making predictions,and can lead to changes in managers.

Accepted Answer

Learning can lead to changes in various aspects of decision making, such as goals, strategies, decision alternatives, and the range of information collected. Additionally, learning can also result in changes in the mindset and capabilities of managers.

Question 5

In reference to behavioral and technical considerations,it is fair to say that technical considerations do not help managers make wise economic decisions.

Accepted Answer

The technical considerations help managers make wise economic decisions by providing them with the desired information in an appropriate format and at the preferred frequency.

Question 6

Briefly explain the planning and control activity function in management accounting.How are these two activities linked to each other?

Accepted Answer

The answer of Briefly explain the planning and control activity...

Question 7

One of the five steps in the decision-making process is to obtain information.

Accepted Answer

Obtaining information is one of the crucial steps in the decision-making process. It allows individuals or organizations to gather relevant data, facts, and opinions that can help in weighing the pros and cons of different choices.

Question 8

________ is primarily a human activity that should focus on encouraging individuals to do their jobs better.

Accepted Answer

Management is the primary human activity that involves directing and overseeing the work of others towards achieving organizational goals. As such, it should aim to encourage individuals to do their jobs better through providing motivation, guidance, and support. Reporting, functioning, doing, and learning are all important components of management, but they are not its primary focus.

Question 9

A manager can install a budgeting system to replace the old accounting system and to develop formal planning methods.Which of the following is not a correct statement or benefit of implementing the new budgeting system to trace costs?

Accepted Answer

The statement that "time spent on implementing budgeting process is always easy to quantify" is not correct. While the benefits of implementing a budgeting system are clear, the costs and time required to implement it can be difficult to quantify accurately.

Question 10

In order,list the five steps in the decision-making process.

Accepted Answer

The answer of In order,list the five steps in the...

Question 11

Which of the following is not a true statement about a manager that utilizes the cost-benefit approach?

Accepted Answer

This statement is not a true statement about a manager that utilizes the cost-benefit approach. Senior managers are able to compare the expected benefits to the expected costs associated with a project in order to make informed decisions about resource allocation.

Question 12

The cost-benefit approach helps managers make certain economic decisions about purchasing new software,or the decision to keep an old software package.In making such decisions,senior managers keep ________ and ________ considerations in mind.

Accepted Answer

The cost-benefit approach involves evaluating the technical aspects (such as features, capabilities, and compatibility) and behavioral considerations (such as user acceptance, learning curve, and impact on productivity) to make informed decisions about software investments.

Question 13

Explain how a budget can help management implement an effective strategy.

Accepted Answer

The answer of Explain how a budget can help management...

Question 14

Management accounting information helps managers calculate a target cost for the product's selling price by subtracting the operating income per unit of product that the company desires to earn from the sale of the product [target price].

Accepted Answer

This statement is true. Management accounting information can be used to help managers calculate a target cost for a product's selling price. This is done by subtracting the desired operating income per unit from the expected selling price (target price).

Question 15

The only guideline that helps management accountants provide the most value to their company in strategic and operational decision making is the cost-benefit approach.

Accepted Answer

Three guidelines help management accountants provide the most value to their companies in strategic and operational decision making: (1)employ a cost-benefit approach, (2)give full recognition to behavioral and technical considerations,and (3)use different costs for different purposes.

Question 16

An organization that provides external reporting to shareholders is not required to show a television advertising cost as an expense for the product in the income statement in the year that those costs are incurred.

Accepted Answer

For external reporting to shareholders,television advertising costs for this product are fully expensed in the income statement in the year they are incurred.However,for internal purposes of evaluating management performance,the television advertising costs could be capitalized and then amortized or written off as expenses over several years.

Question 17

When workers underperform,behavioral considerations suggest:

Accepted Answer

Behavioral considerations suggest that managers should discuss with workers ways to improve their performance rather than immediately resorting to punitive measures such as writing them up or termination. This approach is more likely to result in positive outcomes, such as increased motivation and improved job satisfaction, as workers are more likely to respond positively to feedback and guidance than to punishment. Ignoring the underperformance or simply sending written reports without engaging in a discussion is not likely to be effective in addressing the issue.

Question 18

________ comprises the actions that implement the planning decisions,deciding how to evaluate performance,and providing feedback and learning to help future decision making.

Accepted Answer

Control comprises the actions that implement the planning decisions, deciding how to evaluate performance, and providing feedback and learning to help future decision making. It is responsible for ensuring that the processes are performed effectively and efficiently and that goals are achieved. It is an essential part of good management practice.

Question 19

The number one planning tool when implementing strategy is a budget.

Accepted Answer

A budget is considered the primary planning tool when implementing strategy because it translates strategic plans into actionable, quantified objectives, allocating resources effectively to achieve these goals.

Question 20

The planning and control activities are never flexible enough so managers cannot seize sudden opportunities unforeseen at the time the plan is formulated.

Accepted Answer

The planning and control activities MUST be flexible enough so that managers can seize sudden opportunities unforeseen at the time the plan is formulated.

Quiz 1: The Manager and Management Accounting