CM Chapter 1 HW

A management method in which managers and employees commit to a process of continuous improvement is best described as: a. Total quality management b. Business process improvement c. The theory of constraints d. Lean accounting

b. Business process improvement

Firms that want to grow quickly in the global marketplace often employ the cost leadership strategy because: a. This produces favorable customs rates and import duties. b. Manufacturers around the world adopt lean manufacturing methods to bring their costs down. c. There are relatively few product variations across different countries. d. This allows them to employ and benefit from enterprise management systems.

b. Manufacturers around the world adopt lean manufacturing methods to bring their costs down.

To determine whether a particular action is professionally ethical or not, using the Institute of Management Accountants Statement of Ethical Professional Practice, it is necessary to know: a. Whether the act is legal in your jurisdiction b. The intent and the business context of the act c. The amount of the fraud or theft that is involved d. Whether the management accountant is certified or not

b. The intent and the business context of the act

The strategy map can be compared to the balanced scorecard (BSC) in that: a. The strategy map is a subset of the BSC. b. The strategy map deals with the strategy component of the BSC. c. The strategy map provides a guide to implementing the BSC by linking the critical success factors. d. The strategy map and the BSC are unrelated.

c. The strategy map provides a guide to implementing the BSC by linking the critical success factors.

Professional certifications are issued by the American Institute of Certified Public Accountants (AICPA), the Institute of Management Accountants (IMA), The Chartered Institute of Management Accountants (CIMA), and the Society of Management Accountants in Canada (CMA-Canada), among other professional accounting organizations. The Certified Management Accounting (CMA) certification is issued by: a. CIMA b. AICPA c. CMA-Canada d. IMA

d. IMA

Cost management uses the expertise of the management accountant to a. Implement a strategy of customer value and shareholder value b. Improve quality and reduce cost c. Improve business processes and lean operations d. Implement a strategy of cost leadership or differentiation

d. Implement a strategy of cost leadership or differentiation