question

46. Which of the following does NOT describe cost management system? A. evaluation of segments or products within the firm B. emphasis on the future C. externally focused D. focus on effective use of resources

answer

C. externally focused

question

114. Managers are considering outsourcing sub-components of production. Data is collected about the costs of making the sub-component. Different bids are sought about the purchase of the sub-components. Which managerial activity is applicable in this situation? A. control B. continuous improvement C. planning D. decision making

answer

D. decision making

question

65. A computerized information system that strives to input data once and make it available to people across the company for different purposes is called a(n): A. cost management information system B. enterprise resource planning system C. internal accounting system D. financial accounting system

answer

B. enterprise resource planning system

question

3. The cost management information system is primarily concerned with producing outputs for external users. True False

answer

false

question

132. Disclosing company information (when not legally obligated to do so) would be a violation of which part of the lMA Code of Conduct? A. competence B. confidentiality C. independence D. credibility

answer

B. confidentiality

question

42. In an accounting information system, which of the following is NOT a transformational process? A. collecting data B. analyzing data C. performance reporting D. summarizing data

answer

C. performance reporting

question

90. Which of the following positions would most likely be a staff manager? A. manager of a Sears store B. president C. manager of a clothing division D. controller

answer

D. controller

question

1. An accounting information system collects, records, summarizes, analyzes, and manages data to transform inputs into information that is provided to users. True False

answer

True

question

2. The two major subsystems of the accounting information system are the financial accounting information system and the cost management accounting information system. True False

answer

True

question

3. The cost management information system is primarily concerned with producing outputs for external users. True False

answer

false

question

4. The three broad objectives of financial accounting information systems are to provide information for costing out services and products, planning and control, and decision making. True False

answer

false

question

5. Preparing reports for division managers is an activity associated with the cost management information system. True False

answer

true

question

6. The cost management information system has two major subsystems: the cost accounting information system and the operational control information system. True False

answer

true

question

7. Changes in the way business is conducted worldwide have broadened the focus of cost management accounting systems. True False

answer

true

question

8. One of the major advances in information technology that affects firms is the emergence of electronic commerce. True False

answer

true

question

9. The service sector of the U. S. economy has decreased in importance as traditional industries have declined in importance. True False

answer

false

question

10. Enterprise resource planning (ERP) software has the objective of providing an integrated system capability and is able to run all the operations of a company. True False

answer

true

question

13. The focus of Lean Manufacturing is to eliminate waste, which is anything that does not add value to the end user (customer). True False

answer

true

question

14. The role of cost and management accountants is one of support and teamwork and assistance of those who are responsible for achieving a company's basic objectives. True False

answer

true

question

15. Positions that have direct responsibility for basic objectives are referred to as staff positions, and those indirectly responsible are called line positions. True False

answer

false

question

16. The Controller of a company supervises all the accounting departments and is often viewed as a member of the top management team. True False

answer

true

question

17. The Treasurer of a company is responsible for all taxation activities, including dealing with the lRS. True False

answer

false

question

18. Evaluating the performance of a segment of the company is an example of planning. True False

answer

false

question

19. The process of choosing among competing alternatives is called decision making. True False

answer

true

question

21. Employee and customer loyalty are NOT a result of strong codes of ethics. True False

answer

false

question

22. Firms subject to the Sarbanes-Oxley Act of 2002 do not have to disclose whether they have a code of ethics for senior financial officers, nor why. True False

answer

false

question

23. The lnstitute of Management accountants has established ethical standards for management accountants. True False

answer

true

question

24. ln resolving an ethical conflict, it would be appropriate to take the matter to the press where there's no legal requirement. True False

answer

false

question

26. Three of the major certifications available to management accountants are Certificates in Management Accounting, Public Accounting, and lnternal Auditing. True False

answer

true

question

27. For each certification, all an applicant has to do is meet specific educational and experience requirements. True False

answer

false

question

28. The examination for obtaining the Certificate in Management Accounting consists of two parts: (1) Financial Planning, Performance and Control, and (2) Financial Decision Making. True False

answer

true

question

29. The Certificate of Public Accounting does not include the right to serve as external auditors. True False

answer

false

question

30. The Certified lnternal Auditor must pass a comprehensive examination designed to ensure technical competence and have two years' work experience. True False

answer

true

question

31. The information system is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives.

answer

cost management

question

32. The cost management subsystem designed to assign costs to individual products and services is called the information system.

answer

cost accounting

question

33. is the persistent pursuit and elimination of waste which results in the decrease of lead time.

answer

lean manufacturing

question

34. The is a method used to continuously improve manufacturing and nonmanufacturing activities.

answer

theory of constraints

question

35. The role of ______ accountants is to assist and support those responsible for carrying out an organization's basic objectives.

answer

cost and management

question

36. Positions in a company that have direct responsibility for its basic objectives are called ______positions, and the positions indirectly responsible for the company's objectives are called _________positions.

answer

line, staff

question

37. The standards of ethical conduct for management accountants include competence, confidentiality, integrity, resolution of ethical conflict, and ___________

answer

credibility

question

39. The lMA's program to recognize professional competence in the field of management accounting yields a designation as a _________Accountant.

answer

certified management

question

41. ln an accounting information system, the inputs are usually A. financial statements. B. analyzing data. C. performance reports. D. economic events.

answer

D. economic events.

question

42. In an accounting information system, which of the following is NOT a transformational process? A. collecting data B. analyzing data C. performance reporting D. summarizing data

answer

C. performance reporting

question

43. Which of the following is NOT a process associated with an accounting information system? A. auditing existing data B. collecting and recording data C. providing information to users D. analyzing and managing data

answer

A. auditing existing data

question

44. is devoted to providing information for external users. A. Management accounting B. Financial accounting C. lnternal accounting D. Cost accounting

answer

B. Financial accounting

question

45. Financial accounting information is used for A. investment decisions. B. regulatory measures. C. stewardship evaluation. D. all of the above.

answer

D. all of the above.

question

46. Which of the following does NOT describe cost management system? A. evaluation of segments or products within the firm B. emphasis on the future C. externally focused D. focus on effective use of resources

answer

C. externally focused

question

47. Which of the following is NOT part of the financial accounting information system? A. filing reports with the SEC B. reporting a large contingent liability to current and potential shareholders C. determining the future cash flows of a proposed flexible manufacturing system D. preparing GAAP financial statements

answer

C. determining the future cash flows of a proposed flexible manufacturing system

question

48. Cost management reports are prepared A. to meet the needs of decision makers within the firm. B. whenever stockholders request them. C. according to guidelines prepared by the Securities and Exchange Commission. D. according to financial accounting standards.

answer

A. to meet the needs of decision makers within the firm.

question

49. Which of the following is NOT provided by cost accountants? A. cost information in accordance with GAAP B. cost information about processes and activities C. financial information for external users D. cost information about products, customers, and services

answer

C. financial information for external users

question

50. The primary objective of the cost management information system is to provide A. stockholders and potential investors with useful information for decision making. B. banks and other creditors with information useful in making credit decisions. C. management with information useful for planning and control of operations. D. the lnternal Revenue Service with information about taxable income.

answer

C. management with information useful for planning and control of operations.

question

51. The cost management information system is concerned with A. reporting financial information according to GAAP. B. providing cost information that is used in planning, control, and decision-making. C. reporting to external users. D. providing financial information to investors.

answer

B. providing cost information that is used in planning, control, and decision-making.

question

54. broadens the focus of accounting because it is concerned with factors that drive costs, such as cycle time and process productivity. A. Cost accounting B. Cost management C. Financial management D. Financial accounting

answer

B. Cost management

question

55. Which of the following activities is NOT associated with the cost management information system? A. preparing a cost of quality report B. preparing a performance report that compares actual costs to budgeted costs C. determining the cost of a customer D. using future expected earnings to estimate the price of a share of common stock

answer

D. using future expected earnings to estimate the price of a share of common stock

question

56. Which of the following costing activities is associated with the financial accounting system? A. determining the cost of a department B. determining the cost of goods sold for financial statements C. preparing budgets D. determining the cost of a customer

answer

B. determining the cost of goods sold for financial statements

question

57. Which of the following activities is associated with the cost management information system? A. preparing reports for division managers B. preparing reports for the lRS C. preparing reports for the SEC D. preparing financial statements that conform to GAAP

answer

A. preparing reports for division managers

question

58. The operational control system is concerned with A. investment decisions. B. what activities should be performed and assessing how well they are performed. C. consumption of productive resources by individual products. D. none of these.

answer

B. what activities should be performed and assessing how well they are performed.

question

59. Which of the following activities is NOT associated with the financial accounting information system? A. reporting on the cost of quality B. reporting to the SEC C. preparing reports for the lRS D. preparing a statement of cash flows

answer

A. reporting on the cost of quality

question

60. Which of the following is a cost management subsystem designed to assign costs to individual products and services and other objects, as specified by management A. financial accounting information system B. operational control system C. cost accounting information system D. all of the above

answer

C. cost accounting information system

question

61. Which of the following statements is TRUE? A. The service sector comprises approximately three quarters of the United States' economy and employment. B. The service sector comprises approximately 20 percent of the United States' economy and employment. C. Traditional smokestack industries have increased in importance in recent years. D. The service sector has decreased in importance in recent years.

answer

A. The service sector comprises approximately three quarters of the United States' economy and employment.

question

62. Any form of commerce that is executed using information and communications technology is called: A. ERP B. OLAP C. electronic commerce D. DSS

answer

C. electronic commerce

question

63. Factors that have led to a global market for manufacturing and service firms are A. improved transportation and communications systems. B. improved telemarketing and communications. C. improved telemarketing and transportation systems. D. None of these factors have contributed.

answer

A. improved transportation and communications systems.

question

64. Which of the following cost management tools supports the firm's concentration on the delivery of value to the customer? A. service industry growth B. global competition C. preparing an earnings report for the SEC D. value-chain analysis

answer

D. value-chain analysis

question

65. A computerized information system that strives to input data once and make it available to people across the company for different purposes is called a(n): A. cost management information system B. enterprise resource planning system C. internal accounting system D. financial accounting system

answer

B. enterprise resource planning system

question

66. Which of the following is NOT an advance in information technology that affects firms? A. computer integrated applications B. GAAP reporting C. emergence of electronic commerce D. availability of tools such as OLAP and DSS

answer

B. GAAP reporting

question

67. Software that has integrated system capability using real time data is A. enterprise resource planning software. B. on-line analytic programs. C. computer-assisted engineering software. D. none of these.

answer

A. enterprise resource planning software.

question

68. The increased importance of costing activities in the value chain and determining the cost of different suppliers and customers has led to the emergence of A. OLAP. B. EDl and supply chain management. C. CAM. D. theory of constraints.

answer

B. EDl and supply chain management.

question

69. Which of the following activities is NOT significant to the advancement of information technology? A. enterprise resource planning software B. emergence of electronic commerce C. theory of constraints D. decision support systems

answer

C. theory of constraints

question

70. Manufacturing environment automation is associated with increases in A. inventory. B. productive capacity. C. processing time. D. none of these.

answer

B. productive capacity.

question

71. Which of the following approaches have led to advancements in the manufacturing environment? A. theory of constraints B. computer-integrated manufacturing C. JlT manufacturing D. all of these

answer

D. all of these

question

74. Which of the following are results of Lean Manufacturing? A. elimination of waste B. decreased lead time C. costs decrease D. all of the above

answer

D. all of the above

question

75. Which of the following emerging trends in cost accounting deals with managers striving to create an environment that will enable workers to manufacture perfect (zero-defect) products? A. advances in information technology B. time as a competitive element C. global competition D. total quality management

answer

D. total quality management

question

76. Competitive advantage is established by providing A. more customer products than competitors. B. better quality than competitors. C. greater customer value for less cost than competitors. D. greater efficiencies than competitors.

answer

C. greater customer value for less cost than competitors.

question

77. Which of the following activities is NOT associated with new product development? A. life-cycle costing B. target costing C. activity-based management D. performance reports

answer

D. performance reports

question

78. Total quality management emphasizes A. zero defects. B. continual improvement. C. elimination of waste. D. all of these.

answer

D. all of these.

question

79. Cost management information systems further competitive advantage by supporting three fundamental organizational goals. Which of the following is NOT one of these fundamental organizational goals that further competitive advantage? A. improved time-based performance B. improved quality of products and services C. maximizing shareholder value D. improved efficiency

answer

C. maximizing shareholder value

question

80. Which of the following statements is NOT true about world-class firms? A. World-class firms are firms that are poor in customer support. B. World-class firms know their market and their products. C. World-class firms strive continually to improve product design, manufacture, and delivery. D. World-class firms can compete with the best of the best in a global environment.

answer

A. World-class firms are firms that are poor in customer support.

question

81. Improvement in time performance is most likely NOT enhanced by A. redesign of products. B. adding processes in production. C. eliminating waste. D. eliminating non-value-added activities.

answer

B. adding processes in production.

question

82. A critical measure of efficiency is A. the cost of activity. B. a T-test. C. customer satisfaction. D. employee job satisfaction.

answer

A. the cost of activity.

question

83. Today's cost managers must assemble cost information and determine how to value things. Which methods would NOT be critical to achieving this? A. foreign currency translation B. costing and quality analysis C. differentiating between value-added and non-value-added activities D. measuring productivity

answer

A. foreign currency translation

question

84. A person in a staff position A. is directly involved in production. B. provides support for the line function. C. is not actually an employee of the company. D. all of these.

answer

B. provides support for the line function.

question

85. The internal auditor performs a A. line function. B. staff function. C. production function. D. marketing function.

answer

B. staff function.

question

86. Which of the following is a staff position? A. vice president of production B. vice president of finance C. vice president of marketing D. plant foreman

answer

B. vice president of finance

question

87. Which of the following positions would most likely be a line manager? A. personnel department manager B. production supervisor C. treasurer D. purchasing department manager

answer

B. production supervisor

question

88. Which of the following job positions is a line function? A. financial vice president B. controller C. production supervisor D. treasurer

answer

C. production supervisor

question

89. All of the following would be considered staff functions EXCEPT the A. vice president of finance. B. vice president of corporate planning. C. vice president of marketing. D. vice president of research and development.

answer

C. vice president of marketing.

question

90. Which of the following positions would most likely be a staff manager? A. manager of a Sears store B. president C. manager of a clothing division D. controller

answer

D. controller

question

91. Which of the following would be considered a line function? A. production B. maintenance C. public relations D. administrative services

answer

A. production

question

92. Which of the following job positions is a staff position? A. controller B. production vice president C. production supervisor D. assembly foreman

answer

A. controller

question

93. Accounting activities within an organization are usually under the overall supervision of the A. Certified Public Accountant. B. controller. C. Chartered Accountant. D. treasurer.

answer

B. controller.

question

94. The chief accounting officer of an organization is the A. vice president of finance. B. internal auditor. C. treasurer. D. controller.

answer

D. controller.

question

95. Which of the following is the officer responsible for money management and serves chiefly as the custodian of the organization's funds? A. Certified Public Accountant B. controller C. Chartered Accountant D. treasurer

answer

D. treasurer

question

96. Which of the following duties is usually assigned to the controller? A. receiving, maintaining custody of, and disbursing monies and securities B. directing the granting of credit to clients C. investing the organization's funds D. tax planning

answer

D. tax planning

question

97. Currently, the activity found LEAST often within the controller's department is A. updating the general ledger. B. budget preparation. C. maintaining accounts receivable records. D. establishing and maintaining a market for the organization's debt and equity securities.

answer

D. establishing and maintaining a market for the organization's debt and equity securities.

question

98. The setting of objectives and the identification of methods to achieve those objectives is called A. planning. B. controlling. C. performance evaluation. D. decision making.

answer

A. planning.

question

99. Analyzing cost overruns to determine their cause is an example of A. planning. B. control. C. decision making. D. both a and c.

answer

B. control.

question

100. Monitoring the number of defects produced is an example of the management function of A. planning. B. control. C. decision making. D. both a and c.

answer

B. control.

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