question

Management accounting ________.

answer

focuses on estimating future revenues, costs, and other measures to forecast activities and their results

question

Managers use management accounting information to ________.

answer

communicate, develop, and implement strategies

question

Financial accounting ________.

answer

must comply with GAAP (generally accepted accounting principles)

question

The primary user of financial accounting information is a ________.

answer

current shareholder

question

The primary user of management accounting information is a(n) ________.

answer

the controller

question

Financial accounting provides the primary source of information for ________.

answer

preparing the income statement for shareholders

question

Which of the following is true of management accounting information?

answer

It co-ordinates product design, production, and marketing decisions.

question

Which of the following statements refers to management accounting information?

answer

There are no regulations governing the reports.

question

Which of the following groups would be least likely to receive detailed management accounting reports?

answer

stockholders

question

Management accounting information typically includes ________

answer

All of these answers are correct.

question

Cost accounting ________.

answer

measures the costs of acquiring or using resources in an organization

question

Which of the following differentiates cost accounting and financial accounting?

answer

Cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties.

question

Which of the following is true of financial accounting information?

answer

It focuses on the past-oriented financial performance of a company.

question

A data warehouse or infobarn ________.

answer

stores information used by different managers for multiple purposes

question

Which of the following is true of cost accounting?

answer

It provides financial information regarding the cost of acquiring resources.

question

Which of the following deals with management accounting?

answer

developing budgets

question

Financial accounting is concerned primarily with ________.

answer

external reporting to investors, creditors, and government authorities

question

Financial accounting provides a historical perspective, whereas management accounting emphasizes ________.

answer

the future

question

An Enterprise Resource Planning System can best be described as ________.

answer

a single database that collects data and feeds it into applications that support each of the company's business activities, such as purchases, production, distribution, and sales

question

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as ________.

answer

cost management

question

Which of the following statements concerning an organization's strategy is true?

answer

Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.

question

Strategy specifies ________.

answer

how an organization matches its own capabilities with the opportunities in the marketplace

question

Which of the following is not a concern for management accountants in formulating a strategy?

answer

strategizing compliance with GAAP (Generally Accepted Accounting Principles)

question

Strategy is formulated ________.

answer

by identifying the most important customers

question

In designing strategy, a company must match its opportunities in the marketplace with ________.

answer

its resources and capabilities

question

Which of the following statements about customer value is true?

answer

Creating value for customers is an important part of planning and implementing strategy.

question

Place the four business functions in the order they appear along the value chain:

answer

Design, Production, Marketing, Customer Service

question

R&D, production, and customer service are business functions that are all included as part of ________.

answer

the value chain The value chain is the sequence of business functions in which ________. usefulness is added to the products or services of an organization

question

________ is the generation of, and experimentation with, ideas related to new products, services, or processes.

answer

Research and development

question

_______ is the detailed planning and engineering and testing of products, services, or processes.

answer

Design

question

Production is the ________.

answer

acquisition, coordination, and assembly of resources to produce a product or deliver a service

question

Marketing is the ________.

answer

the manner by which companies promote and sell their products or services to customers or perspective customers

question

Which of the following differentiates marketing from customer service?

answer

Marketing is the process of promoting and selling products or services to customers or prospective customers, whereas customer service is the process of providing after-sales service to customers.

question

________ is an after-sale support provided to customers.

answer

Customer service

question

________ is a strategy that integrates people and technology in all business functions to enhance relationships with customers, partners, and distributors.

answer

Customer relationship management

question

Customer relationship management initiatives use technology to coordinate all ________.

answer

customer-facing activities

question

________ describes the flow of goods, services, and information from the purchase of materials to the delivery of products to consumers, regardless of whether those activities occur in the same organization or with other organizations.

answer

Supply chain

question

Processing orders and shipping products or providing services to customers is known as ________.

answer

distribution

question

________ is a philosophy in which management improves operations throughout the value chain to deliver products and services that exceed customer expectations.

answer

Total quality management

question

Which of the following is an area that customers want to see improved levels of performance?

answer

quality of the product

question

Which of the following statements about a company's supply chain is true?

answer

Management accountants provide information to enhance a company's supply chain.

question

Management accounting information helps managers calculate a target cost for a product ________.

answer

by subtracting from the target price the operating income per unit of product that the company wants to earn

question

The ________ function supports the six functions of value-chain analysis.

answer

controlling

question

________ aims to improve operations throughout the value chain and to deliver products and services that exceed customer expectations.

answer

Total Quality Management

question

New-product development time is the time taken by companies to ________.

answer

create new products and bring them to market

question

Customer response time involves ________.

answer

the speed at which an organization responds to customer requests

question

Which of the following is true of sustainability?

answer

It helps the development and implementation of strategies to achieve long-term financial, social, and environmental goals.

question

1) Place the five steps in the decision-making process in the correct order:A = Obtain information B = Make decisions by choosing among alternatives C = Identify the problem and uncertainties D = Implement the decision, evaluate performance, and learn E = Make predictions about the future

answer

C A E B D

question

Which of the following is true of planning in decision making?

answer

It helps an organization to select goals and strategies.

question

The most important planning tool is a ________.

answer

budget

question

A report showing the actual financial results for a period compared to the budgeted financial results for that same period would most likely be called a ________.

answer

performance report

question

A budget ________.

answer

is an aid to coordinating what needs to be done to execute a plan

question

Which of the following is true of planning?

answer

It makes predictions about the future.

question

A budget serves as much as a control tool as a planning tool because ________

answer

it is a benchmark against which actual performance can be compared

question

Which of the following is an example of an extrinsic reward?

answer

promotions based on performance

question

Which of the following is an example of an intrinsic reward?

answer

recognition of job well done

question

Linking rewards to performance ________.

answer

helps to motivate managers

question

Control measures should ________.

answer

be linked by feedback to help future planning

question

A well-conceived plan allows managers the ability to ________.

answer

take advantage of unforeseen opportunities

question

Which of the following statements is true of performance reports?

answer

The performance report shows actual performance as compared to the budget.

question

Management accounting is considered most likely to be successful when it ________.

answer

is timely

question

Which of the following is a guideline used by management accountants to assist in strategic and operational decision making?

answer

employing a cost-benefit approach

question

The scenario that resources should be spent if the expected benefits to the company exceed the expected costs describes ________.

answer

cost-benefit approach

question

Which of the following is true of a budgeting system?

answer

It compels managers to plan ahead.

question

In a cost-benefit approach, managers should spend resources if the ________.

answer

expected benefits to the company exceed the expected costs

question

Technical consideration ________.

answer

help managers make wise economic decisions by providing them with the desired information

question

Which of the following statements about the cost-benefit approach is true?

answer

In a cost-benefit analysis, both costs and benefits are not easy to measure.

question

Which of the following is true of line management?

answer

It is directly responsible for achieving the goals of the organization.

question

Which of the following is true of staff management?

answer

It provides advice, support, and assistance to line management.

question

________ includes providing financial information for reports to managers and shareholders, and overseeing the overall operations of the accounting system.

answer

Controllership

question

________ includes banking and short- and long-term financing, investments, and cash management.

answer

Treasury management

question

Line management includes ________

answer

distribution managers

question

Staff management includes ________.

answer

management accountants

question

Which of the following is a responsibility of the CFO?

answer

managing short-term and long-term financing

question

The ________ is primarily responsible for management accounting and financial accounting.

answer

controller

question

Which of the following reports to the CFO?

answer

treasurer

question

Which of the following is a function of a controller?

answer

operations administration

question

Long-term financing is an integral part of the ________ function in an organization.

answer

CFO's

question

Which of the following issues is addressed by the Sarbanes-Oxley legislation?

answer

disclosure practices of public corporations

question

The Standards of Ethical Conduct for management accountants include concepts related to ________.

answer

competence, confidentiality, integrity, and credibility

question

Which item is an indication of competence under the Standards of Ethical Conduct?

answer

Maintain an appropriate level of professional expertise by continually developing knowledge and skills.

question

Which of the following differentiates confidentiality and credibility under the Standards of Ethical Conduct?

answer

Confidentiality deals with refraining from the usage of critical information for unethical or illegal advantage, while credibility ensures disclosing the relevant information that would help the intended user's understanding.

question

Which item is an indication of integrity under the Standards of Ethical Conduct?

answer

Refrain from engaging in any conduct that would prejudice carrying out duties ethically.

question

Which item is an indication of credibility under the Standards of Ethical Conduct?

answer

Disclose delays or deficiencies in information, timeliness, processing, or internal controls in

question

Ethical challenges for management accountants include ________.

answer

whether to accept gifts from suppliers, knowing it is an effort to indirectly influence decisions

question

Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning your direct supervisor?

answer

Follow the organization's procedures concerning resolution of such a conflict.

question

If there is an ethical conflict concerning your direct supervisor, you may contact ________.

answer

board of directors

question

If there is an ethical conflict concerning your direct supervisor, when is it appropriate to contact authorities or individuals not employed by the organization?

answer

when there is a clear violation of the law

Examen 1 de Cost Accounting – Flashcards

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