Managerial Accounting - McGraw Hill Chapter 1 Overview

True / False Managerial accounting skills are needed in for profit, not-for-profit and governmental entities

True

True / false Personal humility towards others' contributions is an important attribute of a leader who is respectful of co-workers' value to the organization.

True

Which of the following is NOT one of the basic questions asked during the decision making process?

WHEN should we be selling?

A likely result of abandoning ethical standards is _____ .

a less efficient economy

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

anchoring / anchor

Select all that apply: Managerial accounting:

1. reports to managers inside the organization 2. emphasizes the future 3. emphasizes relevance 4. is not mandatory

Select all that apply The lean production management approach ______.

1. tends to result in fewer defects 2. organizes resources around the flow of business processes 3. is often just called just-in-time production

Which of the following statements is TRUE? 1. most accounting majors spend their careers working public accounting 2. management accountants need strong financial accounting skills 3. managerial accounting knowledge is only required in public accounting

2

True / False Giving employees an annual bonus increases their intrinsic motivation to pursue company goals

False

True/False A budget is a detailed plan for the future that is usually expressed in formal qualitative terms

False

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

big data

Management's detailed plans for the future are often expressed formally in a(n)

budget

A series of steps that are followed in order to carry out some task in an organization is a _______ .

business process

Major business functions that add value to a company's products and service comprise a company's value ______.

chain

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

cognitive bias

Companies should provide ______ with payment of fair taxes, honest information about plans such as plant closings, and reasonable access to media sources.

communities

Companies have a corporate social responsibility to serve ______ .

communities employees customers suppliers

A strategy helps a company distinguish itself from ______.

competitors

Gathering feedback needed to ensure that expectations are being met is part of:

controlling

The essence of strategy are ___________ propositions.

customer value

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

customer intimacy

When a company says "You should choose us because we understand and respond to your individual needs better than our competitors," it is following a(n)

customer intimacy

A customer chooses one company over another because of ______.

customer value propositions

Companies should provide ______ with competent, courteous, and rapid delivery of products and services and easy-to-use information systems for shopping and tracking orders.

customers

A manager selecting a course of action is performing a BLANK activity

decision making

selecting a course of action from competing alternatives is part of

decision making

Without ethical behavior, the quality of products and services would ______.

decrease

Undesirable events that have already happened are uncovered by _________ controls.

detective

Management accountants are responsible for maintaining a high level of professional competence, treating sensitive matters with confidentiality, maintaining personal integrity, and _____ .

disclosing information in a credible fashion

A company cannot _______

eliminate risk

Companies should provide _______ with nondiscriminatory treatment, the right to organize and file grievances, and fair compensation.

employees

A process used by a company to identify and manage risks is known as _______ _______ management

enterprise risk

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

enterprise risk

Planning involves:

establishing goals and specifying how to achieve them

Dysfunctional behavior in employees can occur with _________ incentives

extrinsic

Giving employees a bonus for meeting a specific goal is an example of a(n) ________ incentive

extrinsic

To highlight important goals and motivate employees to achieve them, many organizations use _________ incentives.

extrinsic

A benefit of the lean approach is ______.

fewer defects

Resources, such as people and machines, are organized around the flow of business processes and units are pulled through these processes in response to customer orders under the _________ ________ management approach.

lean production/thinking/manufacturing/resource

Lower inventories, fewer defects, less wasted effort, and quicker customer response time are all benefits of the ______.

lean production approach

A management approach that only produces in response to customer orders is one component of _______ _______ which is also referred to as just-in-time.

lean production/thinking/manufacturing

A management accountant has ethical responsibilities to ______.

maintain a high level of professional competence

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

make intelligent decisions

A report comparing actual results to budgeted amounts that is often used to reward and evaluate employees is called a(n) _________ report.

performance

The management activity of BLANK includes specifying how to achieve established goals

planning

Managerial accounting helps managers perform three vital activities: BLANK, BLANK, and decision making

planning, controlling

Three activities vital to the role of managerial accounting are:

planning, controlling, decision making

An internal control that deters the occurrence of undesirable events is a(n) ________ control

preventive

Parties more interested in managerial accounting data than in financial accounting data include:

production managers, sales managers

To meet the goal of corporate social responsibility, companies should provide communities with:

resources that support charities, school, and civic activities

Companies have a corporate social responsibility to provide ________ with competent management and easy access to complete and accurate financial information.

shareholders

A game plan that enables a company to attract customers by distinguishing itself from competitors is a(n) _______ .

strategy

Which of the following is NOT required to be viewed as a credible leader?

strong mentoring skills

Big data can be both " BLANK ", such as memos and reports, and " BLANK ", such as videos, pictures, audio, and other digital forms

structured unstructured

Companies should provide _________ with reasonable times to prepare orders and hassle free acceptance of timely and complete deliveries.

suppliers

Managerial accounting skills are _____ .

useful in a variety of careers and industries

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

value chain

The Big Data V that defines the fact users expect their data to be accurate and trustworthy is

veracity

The three Vs that refine the definition of Big Data are:

volume velocity variety

Select all that apply A performance report ______ .

1. can be used to help evaluate and reward employees 2. helps identify and eliminate sources of unsatisfactory performance

In terms of corporate social responsibility, companies should provide customers with ______.

full disclosure of product-related risks

Controlling involves _______ .

gathering feedback to ensure plans are being properly executed or modified as needed

In terms of corporate social responsibility, what should companies provide to suppliers?

hassle-free acceptance of timely and complete deliveries

In terms of corporate social responsibility, companies should provide stockholders with ______.

honest answers to knowledgeable questions

Motivation that comes from within is known as _______ motivation.

intrinsic

Motivation that comes from within is known as __________ motivation

intrinsic

A company can ______ completely eliminate risk.

never

Companies such as Southwest and Walmart succeed by following a(n) _________ strategy.

operational excellence

When a company says, "You should choose us because we can deliver products and services faster, more conveniently and at a lower price than our competitors" it is following a(n) ______ strategy.

operational excellence

The primary role of managerial accountants is to ______ .

partner with co-workers within the organization to improve performance