Smart Book Prologue

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

Hassle-free acceptance of timely and complete deliveries

Motivation that comes from within is known as ____________ motivation

Intrinsic

Which of the following statements is true?

Managerial accounting provides financial data for internal use and financial accounting provides data to external users.

The Institute of Management Accountants adopted the ________

Statement of Ethical Professional Practice

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

Strong mentoring skills

The three Vs that refine the definition of Big Data are ____ _____ _____

Variety Volume Velocity

A likely result of abandoning ethical standards is ______.

a less efficient economy

To derive value from big data, managers use data _______ to draw conclusions about information.

analytics

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

anchor

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

Big Data

An exam that focuses on planning, controlling and decision-making skills is required to become a(n) ______.

CMA Exam

The _________ exam focuses on rule-based compliance and includes auditing.

CPA

True or false: A budget is a detailed plan for the future that is usually expressed in formal qualitative terms.

False

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

budget

A series of steps followed to carry out a task that can span departmental boundaries is a ______.

business process

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

business process

Effective preventive and detective controls ______ guarantee a company will achieve its objectives.

cannot

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 biases

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

communites

Companies have a corporate social responsibility to serve ______ ____ _____ ____

communities employees customers suppliers

A strategy helps a company distinguish itself from ______.

competitors

This is something that keeps you from getting more of what you want.

constraint

Ensuring that operations are on track is part of the ____________

control function.

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

controlling

3 value propositions are...

customer intamcy operational excellence product leadership

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) _____ strategy

customer intimacy

The essence of strategy are __________ _________ propositions.

customer value

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 ______ activity.

decision making

Selecting a course of action from competing alternatives is part of

decison making

what hapened is ________

descriptive analystics

Undesirable events that have already happened are uncovered by ______ controls

detective

why did it happen ____

diagnostic analytics

A company cannot ______

elimanate 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 ______.

enterprise risk management

Companies should provide __________ with greenhouse gas emissions data, child labor transparency, and recycling and resource conservation data.

environmental human rights advocates

Planning involves ______.

establishing goals and specifying how to achieve the

The economy would operate much less efficiently without _________ behavior. Less would be available to consumers, and quality would be lower.

ethical

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

Many organizations use _____ incentives to highlight important goals and motivate employees to achieve them.

extrinsic

While these rewards can have a powerful influence on employee behavior, ______ incentives can also lead to dysfunctional behavi

extrinsic

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

fair compensation

True or false: An effective preventive and detective controls system guarantees a company will achieve its objectives.

false

True or false: Giving employees an annual bonus increases their intrinsic motivation to pursue company goals.

false

A benefit of the lean approach is ______.

fewer detects

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

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

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

lean production approach

This is a management approach to organize resources.

lean thinking model

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

make intelligent decisons

The Statement of Ethical Professional Practice describes the ethical responsibilities of _________accountants.

management

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 ___________________ includes specifying how to achieve established goals.

planning

Three activities vital to the role of managerial accounting are ______.

planning, controlling and decision making

What will happen is _________

predictive analytics

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

preventive

Having strict guidelines for check authorizations is an example of a ______ control.

preventive

Apple is an example of a company that succeeds by following a(n) _______ _______ strategy

product leadership

When a company says, "You should choose us because we offer higher quality products than our competitors", it is following a(n) ______ strategy

product leadership

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

resources that support charities, schools, and civic activities

Product lines, customer groups, geographic territories are all examples of a(n) __________

segments

Customers, employees, suppliers, communities, and environmental and human rights advocates are all stakeholders which a company might have a corporate ________ ___________ to serve

social responsability

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

stockholders

Honest answers are for _______

stockholders.

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

strategy

Management accountants need __________ ________ __________ ________

strong financial accounting skills.

Big Data can be both "___________", such as memos and reports, and " ___________", such as videos 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

True or false: Managerial accounting skills are needed in for profit, not-for-profit and governmental entities.

true

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

true

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

This consists of the major business functions that add value to a company's product or service.

value chain

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

veracity

A performance report ______.

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

A management accountant has ethical responsibilities to ______ _______ _______ _______

- maintain a high level of professional competence - treating sensitive matters with confidentiality - maintaining personal integrity - disclosing information in a credible fashion

Requirements to become a CMA include ______.

- membership in the IMA - two years of relevant experience

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

- production managers - sales managers

Managerial accounting ______

- reports to managers inside the organization - emphasizes the future - Is not mandatory - emphasizes relevance

Preventive controls include _____

- segregation of duties - authorizations

The lean production management approach ______.

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

Which basic questions are asked during the decision making process?

1. Who should we be serving? 2. What should we be selling? 3. How should we execute?

What should I do is ________

Prescriptive analytics

A part or activity of an organization that managers want to gather cost, revenue or profit data about is a(n) ______.

Segment

A budget is usually expressed in _____________ _____________ ________________

formal quantitative terms.

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

full disclosure of product-related risks

In terms of corporate social responsibility, companies provide environmental and human rights advocates with ______.

full disclosure of suppliers located in developing countries

Controlling involves ______.

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

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

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