Chapter 1

B.

1-32. 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.

1-33. 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. This allows them to employ and benefit from enterprise management systems d. There are relatively few product variations across different countries

C.

1-34. 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

A.

1-35. The IMA ethical standard that requires the management accountant to act with integrity: a. Requires the management accountant to mitigate conflicts of interest b. Is not a part of the IMA Statement of Ethical Professional Practice c. Is necessary to ensure that the management accountant's credibility is not impaired d. Is necessary to ensure that the management accountant does not violate confidentiality

B.

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. Lean accounting d. The theory of constraints

D.

Cost management has evolved from a focus on measurement to one of identifying those measures that are critical to the organization's success. This means that cost managers are striving for this type of cost management system: a. Basic transaction reporting systems b. A system that focuses on reliable external financial reports c. A system that tracks key operating data and develops accurate cost information d. A system in which strategically relevant cost management information is an integral part of the system

B.

Management accounting, as defined by the IMA, uses the expertise of the management accountant to: a. Improve quality and reduce cost b. Implement a strategy of cost leadership or differentiation c. Implement a strategy of customer value and shareholder value d. Improve business processes and lean operations

C.

Walmart, Costco, and Dollar General are retailers that probably compete on the basis of: a. Quality and customer service b. Product differentiation c. Low prices d. Desirable locations

D.

Which of the following is the correct sequence in which cost management information is developed and used? a. Business events, data, information, analysis, decisions b. Business events, data, analysis, information, decisions c. Business events, information, analysis, knowledge, decisions d. Business events, data, information, knowledge, decisions

A.

The management accountants in an organization probably report directly to the: a. Controller b. Treasurer c. Chief executive officer (CEO) d. Chief financial officer (CFO)

B.

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 Certificate in Management Accounting (CMA) is issued by: a. CIMA b. IMA c. CPA Canada d. AICPA

C.

The IMA definition of management accounting states that: a. Management accounting is the process of gathering, reporting, and analyzing information for management decision making b. Management accounting is a profession that involves preparation and analysis of cost information, budgeting, performance measurement and analysis, to assist managers in decision making c. Management accounting is a profession that involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization's strategy. d. Management accounting is a set of practices in which accountants, working within companies, help managers to make better decisions based on accurate financial information