BUS1B Managerial Accounting Chapter 1

Management accountants help the management of an organization in their planning function through ________. monitoring anti-theft systems strategic planning evaluating costs analyzing profits

strategic planning

What year was the Sarbanes-Oxley Act enacted? 2007 1992 1997 2002

2002

Which of the following is false regarding strategic planning? A. It is the sole responsibility of supervisors. B. It will span many years. C. It should include both short-term and long-term goals. D. Strategic objectives will be diverse and vary from company to company.

A. It is the sole responsibility of supervisors.

Management accounting: A. emphasizes special-purpose information B. relates to the company as a whole C. is limited to strictly cost figures D. is controlled by GAAP

A. emphasizes special-purpose information

The stockholders of a company are: A. the owners B. policy setters C. responsible and liable for the financial well-being of the company D. operating within the company as independent shareholders

A. the owners

When a representative of an organization gives money to another business official in order to gain favor and/or manipulate a business decision, this is known as ________. A. whistleblowing B. bribery C. buyer debits D. face value

B. bribery

A quality control program that depends on multiple team members for removing waste and diminishing defects within products is ________. A. kaizen B. total quality management C. Lean Six Sigma D. a balanced scorecard

C. Lean Six Sigma

What is the law that protects investors from fraudulent financial accounting activity? A. FASB B. SACS C. SOX D. CPAS

C. SOX

Which of the following terms means the ability to work in cross-functional teams in order to complete a task? A. supervisory skills B. conceptualization C. collaboration D. resource planning

C. collaboration

The Chartered Financial Analyst (CFA) certification: A. only requires a high school diploma B. is administered by the AICPA C. consists of three separate exams that must be taken in succession D. is the most popular certification among accountants in the United States

C. consists of three separate exams that must be taken in succession

External users of accounting information would include ________. A. employees B. managers C. investors D. supervisors

C. investors

Which of the following is not a step in the outline for examining ethical issues? A. Establish the facts of the situation. B. Evaluate each course of action. C. Make a decision. D. Confirm decision with FASB.

D. Confirm decision with FASB.

Which of the following is not true regarding continuous improvement? A. It applies to both service and manufacturing companies. B. It is used to reduce performance costs. C. It rejects the idea of "good enough." D. It can be applied only to improve processes and products but not services and practices.

D. It can be applied only to improve processes and products but not services and practices.

A process that is often linked to Six Sigma and is designed toward continuous improvement by eliminating waste is ________. A. kamikaze B. value chain C. total quality management D. kaizen

D. kaizen

The managers of an organization are responsible for performing several broad functions. They are ________. A. planning, controlling, and selling B. directing, controlling, and evaluating C. planning, evaluating, and manufacturing D. planning, controlling, and evaluating

D. planning, controlling, and evaluating

The law that specifically prohibits payments to foreign officials in order to attain business is known as ________. FCPA AICPA SOX IFRS

FCPA

Which of the following statements is incorrect? The practice of management accounting is fairly flexible. The information gathered from management accounting is not required by law. Management accounting focuses mainly on the internal user. Reports produced using management accounting must follow GAAP.

Reports produced using management accounting must follow GAAP.

Which of the following is not an objective used in the balanced scorecard approach? Customer Financial Vendor Learning and growth

Vendor

Which of the following terms means knowing how a business is run and how it is influenced by external forces, and knowing and understanding the overall industry? commercial awareness conceptualization collaboration imagination

commercial awareness

A company's attempts to utilize sustainable business practices with regard to its employees, the environment, and society are known as ________. a balanced scorecard corporate social responsibility total quality management value chain

corporate social responsibility

Internal users of accounting information would not include ________. managers employees creditors officers

creditors

During the control function, the measurements taken of the performance must be accurate enough to see ________. only positive results deviations and variances the primary focus only the negative results

deviations and variances

The Certified Management Accountant (CMA) certification: signifies someone specializing in tax accounting requires an associate's degree and four years of work experience includes a two-part exam, education requirements, and a work experience requirement is offered to managers who take special courses in accounting

includes a two-part exam, education requirements, and a work experience requirement

An inventory system that organizations use to increase efficiency and decrease waste is ________. corporate social responsibility just-in-time manufacturing total quality management Lean Six Sigma

just-in-time manufacturing

The controller of a corporation: reports to the CFO and is in charge of the finance side of the business reports to the CFO and is in charge of the accounting side of the business reports to the CEO and implements all cash policies reports to the board of directors

reports to the CFO and is in charge of the accounting side of the business

Managerial accounting produces information: to meet the needs of external users that is often focused on the future to meet the needs of investors that follows the rules of GAAP

that is often focused on the future

Which of the following is a primary aspect of the evaluating function within an organization? A. comparing actual results against expected results for products, departments, divisions, or the company as a whole B. reviewing only the quantitative or financial results of the company C. setting goals D. putting controls in place for the upcoming year

A. comparing actual results against expected results for products, departments, divisions, or the company as a whole