Prologue and Chapter 1

Large collections of information that are gathered from inside or outside a company to provide opportunities for ongoing reporting and analysis is referred to as

Big data

An exam that focuses on planning, controlling and decision-making skills is required to become a(n) ______.

CMA

The CGMA designation is co-sponsored by the ______.

Chartered Institute of Management Accountants (CIMA) American Institute of Certified Public Accountants (AICPA)

Represent organizational investments with a multiyear planning horizon that cant be significantly reduced even for short periods of time without making fundamental changes

Commited fixed costs

Fixed costs that represent organizational investments with a multiyear planning horizon that cant be significantly reduced even for short periods of time without making fundamental changes

Committed fixed costs

the amount remaining from sales revenues after all variable expenses have been deducted.

Contribution margain

The strategy that focuses on knowing the customer very well is called:

Customer Intimacy Strategy

Which of the following are examples of ESG social responsibilities stakeholders use to gauge the sustainability and ethical impacts of a company?

Customer data privacy Employee training Fair pricing

Fixed costs arise from annual decisions by management to spend on certain fixed-cost items.

Discretionary fixed costs

What does the acronym ESG stand for?

Environmental, social, and governance

There are key differences between Financial Accounting and Managerial Accounting. Which one of the following is not correct.

Financial does not have to comply with GAAP, while Managerial does.

Consist of completed units of periodic that have not yet been sold to customers.

Finished goods

A cost that remains constant in total, regardless of changes in the level of the activity.

Fixed Cost

Remains constant, in total, regardless of changes in the level of activity.

Fixed Cost

Perhaps the most basic managerial skill is the ability to ______.

Make intelligent decisions

The potential benefit that is given up when one alternative is selected over another.

Opportunity Cost

the potential benefit given up when on alternative is selected over another.

Opportunity cost

include direct materials, direct labor, and manufacturing overhead

PRODUCT COST

The management activity of _____________ includes specifying how to achieve established goals. (Enter only one word per blank.)

Planning

A part or activity of an organization that managers want to gather cost, revenue or profit data about is a(n) ______.

Segment

Cost behavior patterns that can be adjusted quickly as conditions change such as salaried employees are often called

Step variable costs

A cost that varies, in total, in direct proportion to changes in level of activity.

Variable Cost

For accounting professionals, ______ may be the most important of the "five Vs" because their analysis and opinions, which are relied on by numerous stakeholders, must be supported by verifiable data.

Veracity

a measure of whatever causes the incurrence of a variable cost, sometimes referred to as a cost driver.

activity base

All executive, organizational, and clerical costs. Administrative costs can be either direct or indirect.

administrative costs

Receiving an award at a company dinner is an example of:

an Extrinsic Award

When individuals give credibility to a false assertion, a type of cognitive bias known as _________ bias has occurred.

anchor

Distorted thought processes, that can adversely affect planning, controlling, and decision making are referred to as

cognitive bias

separates costs into fixed and variable costs

contribution approach

Premium brands such as Ritz-Carlton and Nordstrom tend to rely on a(n) ______ strategy.

customer intimacy

Undesirable events that have already happened are uncovered by __________ controls

detective

a future cost that differs between any two alternatives; they are always relevant costs; also known as incremental cost

differential cost

Future revenue that differs between any two alternatives is an example of a relevant benefit

differential revenue

When comparing financial and managerial accounting, managerial accounting is more likely to ______.

emphasize business decisions affecting the future focus on parts or segments of an organization

A process used by a company to identify risks and develop responses to them is known as _________ _______ management.

enterprise risk

A process used by a company to proactively identify and respond to risks is called ______ management.

enterprise risk

Lower quality goods and services, less from which to choose and higher prices are all possible effects of abandoning ______.

ethical behavior

In order to become a CGMA, the AICPA requires passage of either the CPA exam or the CGMA exam.

false

In the equation Y = a + bX, a = total ______ cost.

fixed

A performance report ______.

helps identify and eliminate sources of unsatisfactory performance can be used to help evaluate and reward employees

Managerial accounting ______.

is not mandatory reports to managers inside the organization emphasizes the future emphasizes relevance

A management accountant has ethical responsibilities to ______.

maintain a high level of professional compentence

includes all manufacturing costs except direct material and direct labor. These costs cannot be readily traced to finished products.

manufacturing overhead

Contains both variable and fixed cost elements

mixed costs

The lean production management approach ______.

organizes resources around the flow of business processes tends to result in fewer defects is often called just-in-time production

include all selling costs and administrative costs

period costs

The three activities of management that managerial account help mangers perform are:

planning, controlling and decision making

Three activities vital to the role of managerial accounting are ______.

planning, controlling and decision making

include all costs involved in acquiring or making a product.

product costs

include any material that goes into the final product.

raw material

The range of activity within which the assumption that cost behavior is strictly linear is reasonably valid

relevant range

Parties more interested in managerial accounting data than in financial accounting data include ______.

sales managers production managers

A part or activity of an organization that managers want to gather cost, revenue or profit data about is a(n) ______.

segment

Costs necessary to secure the order and deliver the product. Selling costs can be either direct or indirect.

selling costs

A cost that has already been incurred and cannot be changed by any decision made now or in the future.

sunk costs

marginal cost

the cost of producing one more unit of a good

In the equation Y = a + bX, Y is the ______.

total mixed cost

The term often used to describe how an organization's functional departments interact with one another to form business processes is

value chain

vary in total remain constant per unit in direct proportions to changes in activity level

variable

Which of the five Vs refine the definition of Big Data?

variety velocity and volume

Which of the five Vs define users' expectations with respect to Big Data?

veracity value

consists of units of product that are only partially complete and will require further work before they are ready for sale to the customer.

work in process