Chapter 1 Actt 202 study guide

3. Which of the following functions is best described as choosing among available alternatives?

A. Decision making.

29. Much of managerial accounting information is based on:

A. a cost-benefit theme.

28. The two dimensions of managerial accounting are:

A. a decision-facilitating dimension and a decision-influencing dimension.

34. Ohio Corporation recently implemented a just-in-time (JIT) production system along with a series of continuous improvement programs. If the firm is now considering adopting a total quality management (TQM) program, it would likely find that TQM:

A. is consistent with both JIT and continuous improvement.

14. Managerial accounting:

A. is unregulated.

25. A controller is normally involved with:

A. preparing financial statements.

18. Financial accounting focuses primarily on reporting:

A. to parties outside of an organization.

11. Which of the following business models considers financial, customer, internal operating, and other measures in the evaluation of performance?

B. Balanced scorecard.

20. Which of the following employees at American Airlines would not be considered as holding a line position?

B. Chief financial officer (CFO).

4. Which of the following managerial functions involves a detailed financial and operational description of anticipated operations?

B. Planning.

42. A company has a bottleneck operation that slows production. Which of the following tools or approaches could the firm use to determine the most cost-effective ways to eliminate this problem?

B. Theory of constraints.

8. The role of managerial accounting information in assisting management is a(n):

B. attention-directing role.

10. The process of encouraging and authorizing workers to take appropriate initiatives to improve the overall firm is commonly known as:

B. employee empowerment.

41. The process of managing the various activities in the value chain, along with the associated costs, is commonly known as:

B. strategic cost management.

Which of the following statements about managerial accountants is false?

C. An increasing number of organizations are segregating managerial accountants in separate managerial-accounting departments.

19. Which of the following statements represents a similarity between financial and managerial accounting?

C. Both draw upon data from an organization's accounting system.

5. Which of the following involves the coordination of daily business functions within an organization?

C. Directing operational activities.

46. Which of the following is not an ethical standard of managerial accounting?

C. Efficiency.

7. Which of the following is not an objective of managerial accounting?

C. Maximizing profits and minimizing costs.

26. Which of the following is not a function of the treasurer?

C. Preparing financial statements.

44. Which of the following acts strives to improve corporate governance and the quality of corporate accounting/reporting?

C. Sarbanes-Oxley.

21. Which of the following employees would be considered as holding a line position?

C. The manager of food and beverage services at Disney's Magic Kingdom.

17. Which of the following choices correctly depicts whether Bank of America, Microsoft, and Florida State University would have a need for managerial accounting?

C. Yes Yes Yes

37. Which of the following choices correctly depicts activities that would be included in a manufacturer's value chain?

C. Yes Yes Yes

35. Cost management systems tend to focus on an organization's:

C. activities.

27. Managerial accountants:

C. are found throughout an organization and work on cross-functional teams.

The day-to-day work of management teams will typically comprise all of the following activities except:

C. cost minimizing

13. Managerial accounting:

C. focuses primarily on the needs of personnel within the organization.

48. Assume that a managerial accountant regularly communicates with business associates to avoid conflicts of interest and advises relevant parties of potential conflicts. In so doing, the accountant will have applied the ethical standard of:

C. integrity.

30. Which of the following is not normally considered to be an element of e-business?

D. Balanced scorecards.

6. Titan Company has set various goals, and management is now taking appropriate action to ensure that the firm achieves these goals. One such action is to reduce outlays for overhead, which have exceeded budgeted amounts. Which of the following functions best describes this process?

D. Controlling.

15. Which of the following would likely be considered an internal user of accounting information rather than an external user?

D. Middle-level managers.

39. The activities performed by a manufacturing organization could be categorized as pre-production (such as research and development and product design), production-related, and post-production (such as marketing and customer service). Which activities should the firm focus on if management understands the value chain concept and desires to meet organizational goals?

D. Pre-production, production-related, and post-production activities.

45. Which of the following statements about the ethical climate of business is false?

D. The Robinson-Patman Act strives to improve the overall quality of corporate reporting.

47. Which of the following is not an element of competency?

D. To refrain from engaging in an activity that would discredit the accounting profession.

38. Which of the preceding activities would likely not be considered part of The Gap clothing company's value chain?

E. All of the above activities would be an element in the company's value chain.

43. Which of the following can be linked to the relatively recent wave of corporate scandals?

E. All of the above.

22. Which of the following employees at Starbucks would likely be considered as holding a staff position?

E. Both the company's lead, in-house attorney and the chief financial officer.

24. Which of the following typically does not relate to the role of a controller?

E. Choices "B" and "D" above.

33. Which of the following statement(s) about just-in-time (JIT) inventory management is (are) true? I. The emphasis of JIT is on "pull" manufacturing. II. Raw materials are purchased just in time to be used in production. III. JIT is an inventory technique that focuses on reduction of both inventory and related inventory costs.

E. I, II, and III.

16. All of the following entities would have a need for managerial accounting information except:

E. None of the above responses is correct, as all of these entities would use managerial accounting information.

12. Which of the following perspectives is normally absent in a balanced scorecard?

E. None of the above.

31. Managerial accounting has changed in recent years because of:

E. all of the above factors.

32. Managerial accounting has changed in recent years because of:

E. all of the above factors.

36. The value chain of a manufacturer would tend to include activities related to:

E. all of the above.

9. Employee empowerment involves encouraging and authorizing workers to take initiatives to:

E. all of the above.

40. In order for a company to achieve a sustainable competitive advantage, it must perform value chain activities:

E. at either the same quality level as competitors, but at a lower cost, or at a higher quality level than competitors, but at no greater cost.

23. The chief managerial and financial accountant of an organization is the:

E. chief financial officer (CFO).