Question 1

Management accounting differs from financial accounting in many ways. Indicate with an "X" in the appropriate column whether each of the following characteristics relates to financial accounting, management accounting, or neither.

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Question 2

Which of the following statements is true regarding the ethical standards of management accountants?

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The ethical standards of management accountants require them to refrain from relationships that could create conflicts of interest. This means that they should avoid personal or financial relationships with individuals that could influence their professional judgment or compromise the integrity of the organization. A, B, and C are not true. Management accountants are expected to continuously develop their knowledge and skills to fulfill their responsibilities effectively, to ensure confidentiality at all times, and to avoid any activities that could bring discredit to the profession.

Question 3

What would a company using an activity-based management approach attempt to do in regard to activities that add value to the product and those that do not?

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Question 4

A Taste of Italy is a pizza business that delivers only. A Taste of Italy's business objectives are as follows:
1. To be profitable and grow
2. To manage its food inventory carefully (especially the cheese!)
3. To provide fast and courteous service
4. To have repeat customers
The following performance measures were developed:
5. Average unsold food at the end of the business day as a percentage of the total purchased that day
6. Growth in revenues per quarter and profit margin
7. Average customer wait time between order and delivery
8. Percentage of customers who have ordered before (All customers are identified by phone number.)
Match each of the above business objectives and performance measures with the four perspectives of the balanced scorecard. (Identify by placing the number or numbers next to the perspective; each number can be used only once.)
a. Financial Perspective ________________
b. Learning and Growth Perspective ________________
c. Internal Business Processes Perspective __________________
d. Customer Perspective _______________

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Question 5

What steps would a company using TQM take to improve product or service quality?

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Question 6

Which of the following would be used to measure the performance of a segment in a profit-generating company?

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Financial performance measures, such as revenue, profit margin, return on investment, and market share, are commonly used to evaluate the efficiency and effectiveness of a segment in a profit-generating company. Nonfinancial measures, such as customer satisfaction and employee morale, may also be considered, but they are typically less important than financial measures in a profit-driven business.

Question 7

Suppose a management accountant becomes aware that a poor judgment he or she made has resulted in the loss of one of the company's clients. Is the accountant bound to share this information with the company? (The accountant doubts that the company will ever find out about it directly.)

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The management accountant is bound by ethical standards to communicate both unfavorable and favorable judgments to ensure transparency and integrity in the company's operations.

Question 8

The balance scorecard

Accepted Answer

The balanced scorecard links the organization's perspectives with stakeholders by providing a framework that translates strategic objectives into performance metrics across various perspectives, such as financial, customer, internal processes, and learning and growth.

Question 9

Integrity standards of management accountants include

Accepted Answer

Management accountants should avoid any actual or apparent conflicts of interest to maintain integrity.

Question 10

Analysis of nonfinancial data is important to the management accountant because

Accepted Answer

Managers make many decisions based solely on nonfinancial data, such as customer satisfaction, employee morale, and market trends. The management accountant must analyze and incorporate these nonfinancial data into their decision-making processes in order to provide accurate and useful information to the management team. Financial data alone may not provide a complete picture of the organization's performance, so nonfinancial data are also important to consider.

Question 11

List three characteristics of a JIT operating environment.

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Question 12

Jillian Harmon supervises 5 cashiers at Jack's Market. In the past, each cashier served an average of 25 customers per hour. Two months ago, management remodeled the store and installed a new cash register system. Customers no longer need to take their groceries out of the basket. Last month the number of customers served was 6,120 and each cashier worked an average of 170 hours for the month. Based on this information, the service rate has

Accepted Answer

The previous service rate per cashier per hour was 25 customers. Therefore, the total service rate for all 5 cashiers was 125 customers per hour (25 x 5).

Last month, the average number of customers per hour per cashier increased as the new cash register system allowed customers to keep their groceries inside the basket.

To calculate the new service rate, we need to find the total number of customers served last month:

Number of customers served = Average customers per hour per cashier x Number of cashiers x number of hours worked

= 25 x 5 x 170

= 21,250

Therefore, the new service rate per hour per cashier was:

Service rate = Number of customers served / (Number of cashiers x number of hours worked)

= 21,250 / (5 x 170)

= 25

This means that the service rate per cashier per hour remained the same (25), but the total service rate for all 5 cashiers increased to 125 customers per hour x 25 = 3,125 customers per hour.

To find the percentage increase in service rate, we can use the following formula:

Percentage increase = (New value - Old value) / Old value x 100%

= (3,125 - 1,250) / 1,250 x 100%

= 150%

Therefore, the service rate has increased by 150% or 44% (rounded to the nearest whole number). The correct choice is C.

Question 13

If a management accountant confides to a relative that his or her company has a confidential plan to merge with another company in the near future, the accountant has

Accepted Answer

The management accountant has violated ethical standards because he or she has revealed confidential information to a relative, who could potentially benefit personally from that information. It does not matter whether the relative owns stock in the company or not, the disclosure of confidential information is unethical.

Question 14

The objectivity standards of management accountants state that management accountants must communicate information fairly and objectively. This means essentially that accountants must perform each task

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The objectivity standards of management accountants require them to communicate information fairly and objectively, which means providing relevant information, both positive and negative, to the recipients of their reports. This ensures that the information conveyed is not biased and helps the stakeholders make informed decisions. A, C, and D are not relevant to this standard.

Question 15

Identify three uses of the costs of quality information.

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Question 16

The ethical standards for management accountants state that accountants are obligated to maintain professional competence at all times when dealing with

Accepted Answer

The ethical standards for management accountants require them to maintain professional competence when dealing with people and resources of their own company, outside entities, and the world marketplace. This ensures that they have the necessary knowledge, skills, and expertise to carry out their professional duties in a competent and effective manner. The obligation to maintain professional competence applies to all aspects of management accounting, including financial reporting, performance management, and strategic planning.

Question 17

Sinopole's Pharmaceutical Delivery Company is a high-volume business that features home delivery services to elderly shut-ins. Located in Bakersfield, California, the company currently uses six delivery trucks to service the area within a 100-mile radius of the city. Each delivery truck can make a maximum of 600 deliveries per month. In June, the demand for these deliveries totaled 3,200, and the company has been experiencing a 2 percent increase in demand, compounded monthly. In which month must the company add a seventh delivery truck, given these estimates?

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Question 18

What are the results of the successful implementation of a JIT operating environment?

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Question 19

Identify and explain the important questions a manager must address before preparing a managerial report. (Hint: Think "w's.")

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Question 20

Give two examples of each stage in the management process.

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Quiz 18: The Changing Business Environment-A Managers Pers