LearnSmart: Prologue

When comparing financial and managerial accounting, managerial accounting is more likely to: (select all that apply) a. Emphasize the business decisions affecting the future b. Follow generally accepted accounting principles c. Provide information to external users, such as stockholders and banks d. Focus on parts or segments of an organization

a. Emphasize the business decisions affecting the future d. Focus on parts or segments of an organization

A process used by company to proactively identify and manage risks is called: a. Enterprise risk management b. Local risk management c. Internal control management

a. Enterprise risk management

Answering questions with data-driven analysis utilizes a manager's: a. Measurement skills b. Ethical skills c. Leadership skills d. Corporate social responsibility skills

a. Measurement skills

Which of these managerial accounting functions are relevant to business majors, such as marketing and human resource management? (select all that apply) a. Planning b. Filing tax returns c. Controlling d. Decision making

a. Planning c. Controlling d. Decision making

When a company says "You should choose us because we offer higher quality products than our competitors," it is following a(n) ___________ strategy. a. Product leadership b. Customer intimacy c. Operational excellence

a. Product leadership

The institute of Management Accountants adopted the: a. Statement of Ethical Professional Practice b. Ethical Guidelines Statement c. Statement of Ethics and Conduct

a. Statement of Ethical Professional Practice

Companies have a corporate social responsibility to serve: (select all that apply) a. Suppliers b. Communities c. Customers d. Employees e. Competitors

a. Suppliers b. Communities c. Customers d. Employees

An exam thats on planning, controlling and decision-making skills is required to become a(n): a. CPA b. Internal auditor c. CMA

c. CMA

Determining which products and services to promote is part of the __________ process. a. Controlling b. Planning c. Decision making

c. Decision making

If consumers assumed every potential deal was a rip-off, the cost of transactions would ___________ and the threat of legal action would ___________. a. Decrease, increase b. Increase, decrease c. Increase, increase d. Decrease, decrease

c. Increase, increase

What is one of the reasons companies are paying closer attention to their corporate social responsibilities? a. Companies prefer socially responsible suppliers b. Companies prefer socially responsible investors c. Investors prefer socially responsible companies

c. Investors prefer socially responsible companies

A company's poor social performance is likely to cause: (select all that apply) a. Improvement in the company's reputation b. Improved fiscal performance c. Stakeholders to feel the company is focused on only the bottom line d. Customers to feel alienated

c. Stakeholders to feel the company is focused on only the bottom line d. Customers to feel alienated

A detailed plan for the future, normally expressed in quantitative terms, is known as a(n) _____________.

-Budget

Gathering feedback to ensure that plans are being properly followed is part of the _________ process.

-Controlling

In carrying out the _________ function, managers make sure that the corporation's plans are being followed.

-Controlling

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

-Customer -Intimacy

The essence of strategy is _________ __________ propositions.

-Customer -Value

___________ accounting is concerned with providing information to those who direct and control the organization.

-Managerial

A(n) __________ report compares actual results to targets.

-Performance

Preparing a budget is part of the __________ process.

-Planning

The _________ function specifies how the company will carry out and implement strategies.

-Planning

A(n) __________ is a component of an organization about which a manager wants cost, revenue, or profit data.

-Segment

The _________ of __________ is based on the insight that effectively managing bottlenecks is a key to success.

-Theory -Constraints

A(n) ________ ________ consists of the major business functions that add value to a company's products and services.

-Value -Chain

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

-strategy

A(n) ____________ is anything that prevents you from getting more of what you want. (select all that apply) a. Bottleneck b. Constraint c. Link d. Surplus

a. Bottleneck b. Constraint

What is another name for a bottleneck? a. Constraint b. Strategy c. Defect

a. Constraint

Which of the following statements is false? a. Managerial accounting is useful in almost any career. b. Governmental entities can use managerial accounting c. Managerial accounting is useful in helping make future plans d. Managerial accounting is not applicable to nonprofit industries

d. Managerial accounting is not applicable to nonprofit industries

Which of the following is not a required skill of an effective leader? a. Technical competence b. Communication c. Integrity d. Sense of humor

d. Sense of humor

Will the greatest benefit come from focusing improvement efforts on the strongest or weakest link in a chain? a. Neither b. Weakest c. Strongest

b. Weakest

The lean production approach: (select all that apply) a. Is sometimes called just-in-time production b. Tends to result in fewer defects c. Organizes resources about the flow of business processes d. Encourages departments to maximize output

The lean production approach: (select all that apply) a. Is sometimes called just-in-time production b. Tends to result in fewer defects c. Organizes resources about the flow of business processes

Which of the following statements are true? (select all that apply) a. The primary role of management accountants is to help improve performance. b. Very few professional accountants in the United States work in nonpublic accounting c. Management accountants help design accounting systems d. The public accounting profession has a strong managerial accounting orientation.

a. The primary role of management accountants is to help improve performance. c. Management accountants help design accounting systems

Which of the following is a process management method that can be used to manage and improve business processes? a. Theory of Constraints b. Virtual reality c. Strategy Planning

a. Theory of Constraints

True or False: If investors could not rely on a company's financial statements, they would likely reduce the amount they invest, leaving the company with less money for productive investments. a. True b. False

a. True

In terms of social responsibility, companies provide environmental and human rights advocates with: a. full disclosure of suppliers located in developing countries b. reasonable time to prepare orders c. resources that support charities d. honest information about plans such as plant closings

a. full disclosure of suppliers located in developing countries

Managerial accounting: (select all that apply) a. is not mandatory b. must follow GAAP/IFRS c. emphasizes the future d. reports to managers inside the organization e. emphasizes companywide reports f. emphasizes relevance

a. is not mandatory c. emphasizes the future d. reports to managers inside the organization f. emphasizes relevance

Which of the following statements is true? a. If you are an accounting major, you are most likely to spend your career working in a job in public accounting. b. Accounting majors who want to work as management accountants still need strong financial accounting skills. c. Managerial accounting knowledge is only required if one desires employment in public accounting

b. Accounting majors who want to work as management accountants still need strong financial accounting skills.

The series of steps followed to carry out a task in an organization is called a: a. Strategy b. Business process c. Theory of Constraints d. Value chain

b. Business process

A company cannot: a. Take steps to reduce risk b. Eliminate risk c. Accept risk d. Take steps to avoid risk

b. Eliminate risk

True or False: Good leadership skills are all it takes to be successful as a manager. a. True b. False

b. False

Which of these approaches can be used to manage and improve how business processes take place? (Select all that apply) a. Corporate Social Responsibility b. Lean Production c. Theory of Constraints

b. Lean Production c. Theory of Constraints

Which of these approaches can be used to manage and improve how business processes take place? (select all that apply) a. Corporate Social Responsibility b. Lean Production c. Theory of Constraints

b. Lean Production c. Theory of Constraints

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. a. Product leadership b. Operational excellence c. Customer intimacy

b. Operational excellence