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