Role of Managerial Accounting Flashcard

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Chapter 01
The Changing Role of Managerial Accounting in a Dynamic Business Environment

True / False Questions

1. Controling involves the coordination of day-to-day concern maps within an organisation. True False

2. Measuring the public presentation of directors and fractional monetary units is non an aim of managerial accounting. True False

3. Middle-level directors would probably be considered internal users of accounting information instead than external users. True False

4. A accountant is usually involved with fixing fiscal statements. True False

5. The upper bound on the production of goods and services if everything works absolutely is known as practical capacity. True False

Multiple Choice Questions

6. Which of the undermentioned statements about managerial comptrollers is false? A. Managerial comptrollers more and more are considered “business spouses. ” B. Managerial comptrollers frequently are portion of cross-functional squads. C. An increasing figure of organisations are segregating managerial comptrollers in separate managerial-accounting sections. D. In a figure of companies. managerial comptrollers make important concern determinations and decide operating jobs. E. The function of managerial comptrollers has changed well over the past decennary.

7. The daily work of direction squads will typically consist all of the undermentioned activities except: A. determination devising.
B. planning.
C. cost minimizing.
D. directing operational activities.
E. commanding.



8. Which of the undermentioned maps is best described as choosing among available options? A. Decision devising.
B. Planning.
C. Directing operational activities.
D. Controlling.
E. Budgeting.



9. Which of the undermentioned managerial maps involves a elaborate fiscal and operational description of awaited operations? A. Decision devising.
B. Planning.
C. Directing operational activities.
D. Controlling.
E. Measuring.



10. Which of the undermentioned involves the coordination of day-to-day concern maps within an organisation? A. Decision devising.
B. Planning.
C. Directing operational activities.
D. Controlling.
E. Motivating.



11. Taurus Company has set assorted ends. and direction is now taking appropriate action to guarantee that the house achieves these ends. One such action is to cut down spendings for operating expense. which have exceeded budgeted sums. Which of the undermentioned maps best describes this procedure? A. Decision devising.

B. Planning.
C. Coordinating.
D. Controlling.
E. Organizing.


12. Which of the followers is non an aim of managerial accounting? A. Supplying information for determination devising and planning.
B. Helping in directing and commanding operations.
C. Maximizing net incomes and minimising costs.
D. Measuring the public presentation of directors and fractional monetary units.
E. Motivating directors toward the organization’s ends.



13. The function of managerial accounting information in helping direction is a ( n ) : A. financial-directing function.
B. attention-directing function.
C. planning and commanding function.
D. organisational function.
E. problem-solving function.



14. Employee empowerment involves promoting and authorising workers to take enterprises to: A. better operations.
B. cut down costs.
C. better merchandise quality.
D. better client service.
E. All of these.



15. The procedure of encouraging and authorising workers to take appropriate enterprises to better the overall house is normally known as: A. planning and control.
B. employee authorization.
C. forces aggressiveness.
D. determination devising.
E. job acknowledgment and solution.



16. Which of the undermentioned concern theoretical accounts considers fiscal. client. internal operating. and other steps in the rating of public presentation? A. Deterministic simulation.
B. Balanced scorecard.
C. Payoff matrix.
D. Decision tree.
E. Chart of operating public presentation ( COP ) .



17. Which of the undermentioned positions is usually absent in a balanced scorecard? A. Financial.
B. Customer.
C. Internal operations.
D. Learning and innovation/growth.
E. None of these.



18. Managerial accounting:
A. focuses merely on historical informations.
B. is governed by GAAP.
C. focuses chiefly on the demands of forces within the organisation. D. provides information for parties external to the organisation. E. focuses on fiscal statements and other fiscal studies.


19. Managerial accounting:
A. is unregulated.
B. produces information that is utile merely for fabricating organisations. C. is based entirely on historical informations.
D. is regulated by the Securities and Exchange Commission ( SEC ) . E. by and large focuses on describing information about the endeavor in its entireness instead than by fractional monetary units.


20. All of the undermentioned entities would hold a demand for managerial accounting information except: A. the province of Michigan.
B. Google.
C. Abercrombie & A ; Fitch.
D. H & A ; R Block.
E. None of these responses is right. as all of these entities would utilize managerial accounting information.



21. Which of the undermentioned picks right depicts whether McDonald’s. the University of Wisconsin. and Apple Inc. would hold a demand for managerial accounting?

[ movie ]
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E




22. Which of the following would probably be considered an internal user of accounting information instead than an external user? A. Stockholders.
B. Consumer groups.
C. Lenders.
D. Middle-level directors.
E. Government bureaus.



23. Fiscal accounting focal points chiefly on coverage:
A. to parties outside of an organisation.
B. to parties within an organisation.
C. to an organization’s board of managers.
D. to fiscal establishments.
E. for fiscal establishments.




24. Which of the undermentioned feature ( s ) relate ( s ) more to managerial accounting than to fiscal accounting? A. A focal point on describing to personnel within an organisation. B. A focal point on describing to external parties.

C. An country of accounting that is to a great extent regulated.
D. A focal point on supplying information that is relevant for be aftering. determination devising. directing. and control. E. Choices “A” and “D” above.

25. Which of the undermentioned statements represents a similarity between fiscal and managerial accounting? A. Both are utile in supplying information for external users. B. Both are governed by GAAP.

C. Both draw upon informations from an organization’s accounting system. D. Both rely to a great extent on published fiscal statements.
E. Both are entirely concerned with historical minutess.

26. Which of the undermentioned employees at Delta Airlines would non be considered as keeping a line place? A. Pilot.
B. Chief fiscal officer ( CFO ) .
C. Flight attender.
D. Ticket agent.
E. Baggage animal trainer.



27. Which of the undermentioned employees would be considered as keeping a line place? A. Exxon Corporation’s vice-president for authorities dealingss.
B. The accountant of General Motors.
C. A secretary employed by Verizon Communications.
D. The director of nutrient and drink services at Disney’s Magic Kingdom. E. None of these.


28. Which of the undermentioned employees at Starbucks would probably be considered as keeping a staff place? A. The company’s head runing officer ( COO ) .
B. The director of a shop located in Kansas City. Missouri. C. The company’s lead. in-house lawyer.
D. The company’s main fiscal officer ( CFO ) .
E. Choices “C” and “D” above.


29. The main managerial and fiscal comptroller of an organisation is the: A. main executive officer ( CEO ) .
B. financial officer.
C. vice-president of accounting.
D. internal hearer.
E. main fiscal officer ( CFO ) .



30. Which of the following typically does non associate to the function of a accountant? A. A accountant supervises the accounting section.
B. A accountant precautions an organization’s assets.
C. A accountant oversees the readying of studies required by governmental governments. D. A accountant usually assumes a narrow function within the organisation. frequently forestalling the individual’s rise to exceed direction ranks. E. Choices “B” and “D” above.

31. A accountant is usually involved with:
A. fixing fiscal statements.
B. managing investings.
C. raising capital.
D. safeguarding assets.
E. pull offing the firm’s recognition policy.




32. Which of the followers is non a map of the financial officer? A. Safeguarding assets.
B. Pull offing investings.
C. Preparing fiscal statements.
D. Being responsible for an entity’s recognition policy.
E. Raising capital.



33. Managerial comptrollers:
A. frequently work on cross-functional squads.
B. are located throughout an organisation.
C. are found chiefly at lower degrees of the organisational hierarchy. D. are found chiefly at higher degrees of the organisational hierarchy. E. picks “A” and “B” above.


34. The two dimensions of managerial accounting are:
A. a decision-facilitating dimension and a decision-influencing dimension. B. a decision-facilitating dimension and a financial-influencing dimension. C. a decision-influencing dimension and a cost-minimizing dimension. D. a cost-minimizing dimension and a profit-maximising dimension. E. a decision-influencing dimension and a profit-maximising dimension.

35. Much of managerial accounting information is based on: A. a cost-benefit subject.
B. net income maximization.
C. cost minimisation.
D. the coevals of external information.
E. effectivity but non efficiency.



36. Which of the followers is non usually considered to be an component of e-business? A. E-budgeting.
B. Supply-chain direction.
C. E-commerce.
D. Balanced scorecards.
E. Choices “B” and “D” above.



37. Managerial accounting has changed in recent old ages because of: A. the growing of e-business.
B. increased planetary competition.
C. the outgrowth of new industries.
D. an increased focal point on the client.
E. All of these factors.



38. Managerial accounting has changed in recent old ages because of: A. a turning service economic system in the United States.
B. the turning popularity of cross-functional squads.
C. an addition in planetary competition.
D. time-based competition.
E. All of these factors.



39. Which of the undermentioned statement ( s ) about just-in-time ( JIT ) stock list direction is ( are ) true? I. The accent of JIT is on “pull” fabrication.
II. Raw stuffs are purchased merely in clip to be used in production. III. JIT is an stock list technique that focuses on decrease of both stock list and related stock list costs. A. I merely.
B. II merely.
C. III merely.
D. II and III.
E. I. II. and III.




40. Idaho Corporation late implemented a just-in-time ( JIT ) production system along with a series of uninterrupted betterment plans. If the house is now sing following a entire quality direction ( TQM ) plan. it would probably happen that TQM: A. is consistent with both JIT and uninterrupted betterment.

B. is consistent with JIT but inconsistent with uninterrupted betterment. C. is consistent with uninterrupted betterment but inconsistent with JIT. D. is inconsistent with both JIT and uninterrupted betterment. E. is an antediluvian direction technique.

41. Kaizen costing is consistent with:
A. cost decrease.
B. uninterrupted betterment.
C. hapless quality.
D. fiscal accounting and income statements.
E. both picks “A” and “B” above.




42. Cost direction systems tend to concentrate on an organization’s: A. machines.
B. employees.
C. activities.
D. clients.
E. regulations and ordinances.



43. The upper bound on the production of goods and services if everything works absolutely is known as: A. practical capacity.
B. theoretical capacity.
C. utilised capacity.
D. direction capacity.
E. capacity maximization.



44. The capacity construct that allows for normal happenings such as machine downtime and employee weariness is known as: A. practical capacity.
B. theoretical capacity.
C. utilised capacity.
D. direction capacity.
E. capacity maximization.



45. The cost of resources supplied but fresh is known as: A. practical capacity costs.
B. the cost of theoretical capacity.
C. the cost of fresh capacity.
D. the cost of resources supplied.
E. capacity cost.



46. Given the undermentioned information. what is the cost of fresh capacity? Cost of stuff supplied is $ 3. 200 ; Cost of stuff used is $ 3. 000 ; Cost of stuff used per bar is $ 3 ; Cost of stuff supplied per bar is $ 3. 20. A. $ 0. 20.

B. $ 200.
C. $ 2. 000.
D. $ 1. 000.
E. There is no fresh capacity.


47. Given the undermentioned information. what is the cost of fresh capacity? Cost of stuff supplied is $ 8. 600 ; Cost of stuff used is $ 8. 000 ; Cost of stuff used per shelf is $ 8 ; Cost of stuff supplied per shelf is $ 8. 60. A. $ 600.

B. $ 6. 000.
C. $ 0. 60.
D. $ 1. 000.
E. There is no fresh capacity.


48. The value concatenation of a maker would be given to include activities related to: A. fabrication.
B. research and development.
C. merchandise design.
D. selling.
E. All of these.



49. Which of the undermentioned picks right depicts activities that would be
included in a manufacturer’s value concatenation?

[ movie ]
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E




50. Which of the preceding activities would probably non be considered portion of The Gap vesture company’s value concatenation? A. Planing a new merchandise line.
B. Locating and so negociating footings with a vesture maker. C. Marketing an bing merchandise line.
D. Distributing goods from regional warehouses to local shops. E. All of these activities would be an component in the company’s value concatenation.

51. The activities performed by a fabrication organisation could be categorized as pre-production ( such as research and development and merchandise design ) . production-related. and post-production ( such as selling and client service ) . Which activities should the house focal point on if direction understands the value concatenation construct and desires to run into organisational ends? A. Pre-production activities.

B. Production-related activities.
C. Post-production activities.
D. Choices “A” . “B” . and “C” above.
E. Choices “A” and “B” above.


52. In order for a company to accomplish a sustainable competitory advantage. it
must execute value concatenation activities: A. at the same quality degree as rivals. at the same cost. B. at the same quality degree as rivals. but at a lower cost. C. at a higher quality degree than rivals. at a higher cost. D. at a higher quality degree than rivals. but at no greater cost. E. Either pick “B” or “D” above.

53. The procedure of pull offing the assorted activities in the value concatenation. along with the associated costs. is normally known as: A. activity-based costing.
B. strategic cost direction.
C. entire quality direction.
D. computer-integrated costing.
E. sound direction patterns ( SMP ) .



54. A company has a constriction operation that slows production. Which of the undermentioned tools or attacks could the house usage to find the most cost-efficient ways to extinguish this job? A. Linear scheduling.

B. Theory of restraints.
C. Decision-tree diagrams.
D. Payoff matrices.
E. Strategic way analysis ( SPA ) .


55. Which of the followers can be linked to a moving ridge of corporate dirts that took topographic point non excessively long ago? A. Greedy corporate executives.
B. Directors who made over-reaching concern trades.
C. Lack of inadvertence by companies’ audit boards and boards of managers. D. Shoddy work by external hearers.
E. All of these.


56. Which of the undermentioned Acts of the Apostless strives to better corporate administration and the quality of corporate accounting/reporting? A. Robinson-Patman.
B. Taft-Hartley.
C. Sarbanes-Oxley.
D. Bush-Cheney.
E. Franks-Ashcroft.



57. Which of the undermentioned statements about the ethical clime of concern is false? A. Greedy corporate executives are. in portion. to fault for the roseola of corporate dirts that occurred non excessively long ago. B. Unethical concern behaviour can hold a negative impact on our economic system. C. The Sarbanes-Oxley Act strives to better the overall quality of corporate coverage. D. The Robinson-Patman Act strives to better the overall quality of corporate coverage. E. Corporate dirts have served as the accounting profession’s wake-up call to pay increased attending to ethical issues in the behavior of concern.

58. Which of the followers is non an ethical criterion of managerial accounting? A. Competence.
B. Confidentiality.
C. Efficiency.
D. Integrity.
E. Credibility.



59. Which of the followers is non an component of competence? A. To develop appropriate cognition about a peculiar topic. B. To execute responsibilities in conformity with relevant Torahs.
C. To execute responsibilities in conformity with relevant proficient criterions. D. To forbear from prosecuting in an activity that would discredit the accounting profession. E. To fix clear studies after an analysis of relevant and dependable information.

60. Assume that a managerial comptroller regularly communicates with concern associates to avoid struggles of involvement and advises relevant parties of possible struggles. In so making. the comptroller will hold applied the ethical criterion of: A. objectiveness.

B. confidentiality.
C. unity.
D. credibleness.
E. unified behaviour.


Essay Questions

61. Present several illustrations of managerial accounting information that could assist a director make each of the undermentioned determinations: A. A fabrication company is presently doing a portion that is a production concern. The house is make up one’s minding whether to abandon production and purchase the portion from an outside provider. B. An operator of fast-food eating houses is make up one’s minding whether to open a new shop in Dallas.

62. Boundary lines Overnight operates an nightlong bundle bringing service that competes with Federal Express and United Parcel Service ( UPS ) . Top direction is sing the usage of a balanced scorecard to measure operations. A. What is a balanced scorecard and other than customer-satisfaction steps. what are its typical key constituents? B. List four customer-satisfaction steps that Borders might utilize to measure public presentation.

63. See the forms that follow.

1. Is to a great extent involved with the recordkeeping and coverage of assets. liabilities. and stockholders’ equity. 2. Focuss on planning. determination devising. directing. and control. 3. Is to a great extent regulated.

4. A field that is going more “cross-functional” in nature. 5. Much of the field is based on costs and benefits.
6. Is involved about entirely with past minutess and events. 7. Much of the information provided is directed toward shareholders. fiscal analysts. creditors. and other external parties. 8. Tends to concentrate more on fractional monetary units within an entity instead than the organisation as a whole. 9. May go involved with steps of client satisfaction. and the sum of existent cost incurred vs. budgeted marks. Required:

Determine whether the forms are most closely associated with fiscal accounting or managerial accounting.

64. DreamWorks Pictures produces both gesture images for theatres every bit good as a assortment of telecasting series. See the seven activities that follow. 1. Hearings for histrions and actresses
2. Development of promotional stuffs for usage by local newspapers 3. Focus groups to measure thoughts for possible telecasting comedy series 4. Production of DVDs for release to Best Buy and Blockbuster Video 5. On-location shot of scenes

6. Fine-tuning and revisions of books
7. Set design and building for a new medical play
Required:
A. Measure the seven activities as upstream ( pre-production ) . production. or downstream ( post-production ) in nature. B. Generally talking. which activities ( upstream. production. or downstream ) . if any. can direction disregard if the company is to be successful in accomplishing its cardinal strategic ends?


65. Tae Franklin is the gross revenues director of Darius Enterprises. a really profitable distributer of office furniture to local concerns. A recent economic downswing has created an highly tight hard currency place. and the company has been hurt by the bankruptcy of two cardinal clients. In late October. expecting an economic recovery. Franklin began an extended remodeling of the company’s gross revenues floor. Construction costs. adorning. and equipment purchases are projected to be $ 250. 000. Darius has a policy that single outgos in surplus of $ 200. 000 must be approved by the firm’s board of managers. Franklin. unluckily. missed the deadline to hold the board see this undertaking at its regular September meeting. Not desiring to wait until the following meeting in December. he subdivided the undertaking in two parts—construction and decorating ( $ 190. 000 ) and equipment purchases ( $ 60. 000 ) —neither of which needed board blessing because of the dollar sums involved. The undertaking was late completed and gross revenues have begun to retrieve. Customers have raved about the new gross revenues country. observing that it is far superior to those of Darius’s rivals. Required:

A. Would Franklin’s attack of subdividing the undertaking in two parts have any consequence on the company’s fiscal statements? Briefly explain. B. Briefly discuss whether Franklin behaved in an ethical mode. C. Which. if any. of the undermentioned criterions of behavior would hold pertinence to Franklin’s behavior: competency. confidentiality. unity. or credibleness? Briefly explain.

66. Many professions have adopted a series of ethical criterions to supply counsel for their ranks. The Institute of Management Accountants ( IMA ) . for illustration. has published criterions that focus on competency. confidentiality. unity. and credibleness. In visible radiation of these criterions. see the three instances that follow. Case A—Leston Corporation has experienced serious fiscal troubles in recent old ages. John Young. the company’s main fiscal officer. has merely learned that a major rival was likely to register for bankruptcy ; nevertheless. he failed to unwrap this information at a board meeting held later that twenty-four hours when a works closing determination was being discussed.

The board evaluated several proposals during the session that focused on bettering Leston’s fiscal place. Case B—QBX Company manufactures fertilizer from assorted natural stuffs. including a natural stuff know as Felstar. Paul Kelly. the firm’s buying director. intentionally acquired a lower class of Felstar than normal because of a really attractive monetary value. The lower-grade merchandise resulted in increased use during the fabrication procedure but had no consequence on the fertilizer’s overall quality. An end-of-period study showed that QBX profited from Kelly’s actions. with the overall nest eggs in purchase monetary value more than countervailing the cost of added ingestion. Case C—Central Distributing has a participative budgeting procedure. leting employees to hold a say in jutting gross revenues marks for the approaching period. These marks are reflected in a series of public presentation studies that compare existent gross revenues achieved against targeted sums. Hillary Baxter submitted really low gross revenues marks because. as she confided in a co-worker. “I ever want to look good in footings of run intoing marks. even if anticipated gross revenues and closings don’t materialize. ” Required:

Measure the three instances and find the ethical issues. if any. that are involved. Mention the IMA’s criterions if appropriate.

67. Briefly distinguish between managerial accounting and fiscal accounting. Be certain to notice on the general focal point. users. and ordinance related to the two Fieldss.

68. Cross-functional squads and time-based competition are two subjects of modern-day direction accounting. Briefly explain these two constructs.

69. Unused or extra capacity is a cardinal constituent of modern-day direction accounting. Specify the term “excess capacity” and explicate how it would associate to a java store.

70. The value concatenation is a cardinal constituent of modern-day direction accounting. Specify the term “value chain” and explicate how it would associate to an air hose.

Chapter 01 The Changing Role of Managerial Accounting in a Dynamic Business Environment Answer Key

True / False Questions

1. Controling involves the coordination of day-to-day concern maps within an organisation. FALSE

AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-02 Explain four cardinal direction processes that aid organisations attain their ends.




2. Measuring the public presentation of directors and fractional monetary units is non an aim of managerial accounting. FALSE

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Research
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-03 List and depict five aims of managerial accounting activity.




3. Middle-level directors would probably be considered internal users of
accounting information instead than external users. True

AACSB: Brooding Thinking
AICPA BB: Resource Management
AICPA FN: Coverage
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-04 Explain the major differences between managerial and fiscal accounting.




4. A accountant is usually involved with fixing fiscal statements. True

AACSB: Analytic
AICPA BB: Resource Management
AICPA FN: Coverage
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-06 Describe the functions of an organization’s main fiscal officer ( CFO ) or accountant Learning Objective: and internal hearer.
Learning Objective: financial officer





5. The upper bound on the production of goods and services if everything works absolutely is known as practical capacity. FALSE

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Coverage
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-07 Briefly describe some of the major modern-day subjects in managerial accounting.




Multiple Choice Questions

6. Which of the undermentioned statements about managerial comptrollers is false? A. Managerial comptrollers more and more are considered “business spouses. ” B. Managerial comptrollers frequently are portion of cross-functional squads. C. An increasing figure of organisations are segregating managerial comptrollers in separate managerial-accounting sections. D. In a figure of companies. managerial comptrollers make important concern determinations and decide operating jobs. E. The function of managerial comptrollers has changed well over the past decennary.

AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-01 Define managerial accounting and depict its function in the direction procedure.




7. The daily work of direction squads will typically consist all of the undermentioned activities except: A. determination devising.
B. planning.
C. cost minimizing.
D. directing operational activities.
E. commanding.



AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-02 Explain four cardinal direction processes that aid organisations attain their ends.




8. Which of the undermentioned maps is best described as choosing among available options? A. Decision devising.
B. Planning.
C. Directing operational activities.
D. Controlling.
E. Budgeting.



AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-02 Explain four cardinal direction processes that aid organisations attain their ends.




9. Which of the undermentioned managerial maps involves a elaborate fiscal and operational description of awaited operations? A. Decision devising.
B. Planning.
C. Directing operational activities.
D. Controlling.
E. Measuring.



AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-02 Explain four cardinal direction processes that aid organisations attain their ends.




10. Which of the undermentioned involves the coordination of day-to-day concern maps within an organisation? A. Decision devising.
B. Planning.
C. Directing operational activities.
D. Controlling.
E. Motivating.



AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-02 Explain four cardinal direction processes that aid organisations attain their ends.




11. Taurus Company has set assorted ends. and direction is now taking appropriate action to guarantee that the house achieves these ends. One such action is to cut down spendings for operating expense. which have exceeded budgeted sums. Which of the undermentioned maps best describes this procedure? A. Decision devising.

B. Planning.
C. Coordinating.
D. Controlling.
E. Organizing.


AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Bloom’s: Nitrogen
Trouble: Easy
Learning Objective: 01-02 Explain four cardinal direction processes that aid organisations attain their ends.




12. Which of the followers is non an aim of managerial accounting? A. Supplying information for determination devising and planning.
B. Helping in directing and commanding operations.
C. Maximizing net incomes and minimising costs.
D. Measuring the public presentation of directors and fractional monetary units.
E. Motivating directors toward the organization’s ends.



AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Research
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-03 List and depict five aims of managerial accounting activity.




13. The function of managerial accounting information in helping direction is a ( n ) : A. financial-directing function.
B. attention-directing function.
C. planning and commanding function.
D. organisational function.
E. problem-solving function.



AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Research
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-03 List and depict five aims of managerial accounting activity.




14. Employee empowerment involves promoting and authorising workers to take enterprises to: A. better operations.
B. cut down costs.
C. better merchandise quality.
D. better client service.
E. All of these.



AACSB: Communication
AICPA BB: Resource Management
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-03 List and depict five aims of managerial accounting activity.




15. The procedure of encouraging and authorising workers to take appropriate enterprises to better the overall house is normally known as: A. planning and control.
B. employee authorization.
C. forces aggressiveness.
D. determination devising.
E. job acknowledgment and solution.



AACSB: Communication
AICPA BB: Resource Management
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-03 List and depict five aims of managerial accounting activity.




16. Which of the undermentioned concern theoretical accounts considers fiscal. client. internal operating. and other steps in the rating of public presentation? A. Deterministic simulation.
B. Balanced scorecard.
C. Payoff matrix.
D. Decision tree.
E. Chart of operating public presentation ( COP ) .



AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-03 List and depict five aims of managerial accounting activity.




17. Which of the undermentioned positions is usually absent in a balanced scorecard? A. Financial.
B. Customer.
C. Internal operations.
D. Learning and innovation/growth.
E. None of these.



AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-03 List and depict five aims of managerial accounting activity.




18. Managerial accounting:
A. focuses merely on historical informations.
B. is governed by GAAP.
C. focuses chiefly on the demands of forces within the organisation. D. provides information for parties external to the organisation. E. focuses on fiscal statements and other fiscal studies.


AACSB: Brooding Thinking
AICPA BB: Resource Management
AICPA FN: Coverage Making
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-04 Explain the major differences between managerial and fiscal accounting.




19. Managerial accounting:
A. is unregulated.
B. produces information that is utile merely for fabricating organisations. C. is based entirely on historical informations.
D. is regulated by the Securities and Exchange Commission ( SEC ) . E. by and large focuses on describing information about the endeavor in its entireness instead
than by fractional monetary units.



AACSB: Brooding Thinking
AICPA BB: Resource Management
AICPA FN: Coverage
Bloom’s: Nitrogen
Trouble: Medium
Learning Objective: 01-04 Explain the major differences between managerial and fiscal accounting.




20. All of the undermentioned entities would hold a demand for managerial accounting information except: A. the province of Michigan.
B. Google.
C. Abercrombie & A ; Fitch.
D. H & A ; R Block.
E. None of these responses is right. as all of these entities would utilize managerial accounting information.



AACSB: Analytic
AICPA BB: Brooding Thinking
AICPA FN: Coverage
Bloom’s: Nitrogen
Trouble: Medium
Learning Objective: 01-04 Explain the major differences between managerial and fiscal accounting.




21. Which of the undermentioned picks right depicts whether McDonald’s. the University of Wisconsin. and Apple Inc. would hold a demand for managerial accounting?

[ movie ]
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E




AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Coverage
Bloom’s: Nitrogen
Trouble: Medium
Learning Objective: 01-04 Explain the major differences between managerial and fiscal accounting.




22. Which of the following would probably be considered an internal user of accounting information instead than an external user? A. Stockholders.
B. Consumer groups.
C. Lenders.
D. Middle-level directors.
E. Government bureaus.



AACSB: Brooding Thinking
AICPA BB: Resource Management
AICPA FN: Coverage
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-04 Explain the major differences between managerial and fiscal accounting.




23. Fiscal accounting focal points chiefly on coverage:
A. to parties outside of an organisation.
B. to parties within an organisation.
C. to an organization’s board of managers.
D. to fiscal establishments.
E. for fiscal establishments.




AACSB: Analytic
AICPA BB: Industry
AICPA FN: Coverage
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-04 Explain the major differences between managerial and fiscal accounting.




24. Which of the undermentioned feature ( s ) relate ( s ) more to managerial accounting than to fiscal accounting? A. A focal point on describing to personnel within an organisation. B. A focal point on describing to external parties.

C. An country of accounting that is to a great extent regulated.
D. A focal point on supplying information that is relevant for be aftering. determination devising. directing. and control. E. Choices “A” and “D” above.

AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-04 Explain the major differences between managerial and fiscal accounting.




25. Which of the undermentioned statements represents a similarity between
fiscal and managerial accounting? A. Both are utile in supplying information for external users. B. Both are governed by GAAP.

C. Both draw upon informations from an organization’s accounting system. D. Both rely to a great extent on published fiscal statements.
E. Both are entirely concerned with historical minutess.

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Coverage
Bloom’s: Nitrogen
Trouble: Medium
Learning Objective: 01-04 Explain the major differences between managerial and fiscal accounting.




26. Which of the undermentioned employees at Delta Airlines would non be considered as keeping a line place? A. Pilot.
B. Chief fiscal officer ( CFO ) .
C. Flight attender.
D. Ticket agent.
E. Baggage animal trainer.



AACSB: Analytic
AICPA BB: Resource Management
AICPA FN: Research
Bloom’s: Nitrogen
Trouble: Medium
Learning Objective: 01-05 Explain where managerial comptrollers are located in an organisation Learning Objective: and physical location.
Learning Objective: deployment in cross-functional squads
Learning Objective: in footings of formal organisation






27. Which of the undermentioned employees would be considered as keeping a line place? A. Exxon Corporation’s vice-president for authorities dealingss. B. The accountant of General Motors.
C. A secretary employed by Verizon Communications.
D. The director of nutrient and drink services at Disney’s Magic Kingdom. E. None of these.

AACSB: Analytic
AICPA BB: Resource Management
AICPA FN: Research
Bloom’s: A
Trouble: Medium
Learning Objective: 01-05 Explain where managerial comptrollers are located in an organisation Learning Objective: and physical location.
Learning Objective: deployment in cross-functional squads
Learning Objective: in footings of formal organisation






28. Which of the undermentioned employees at Starbucks would probably be considered as keeping a staff place? A. The company’s head runing officer ( COO ) .
B. The director of a shop located in Kansas City. Missouri. C. The company’s lead. in-house lawyer.
D. The company’s main fiscal officer ( CFO ) .
E. Choices “C” and “D” above.


AACSB: Analytic
AICPA BB: Resource Management
AICPA FN: Research
Bloom’s: Nitrogen
Trouble: Medium
Learning Objective: 01-05 Explain where managerial comptrollers are located in an organisation Learning Objective: and physical location.
Learning Objective: deployment in cross-functional squads
Learning Objective: in footings of formal organisation






29. The main managerial and fiscal comptroller of an organisation is the: A. main executive officer ( CEO ) .
B. financial officer.
C. vice-president of accounting.
D. internal hearer.
E. main fiscal officer ( CFO ) .



AACSB: Analytic
AICPA BB: Resource Management
AICPA FN: Research
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-05 Explain where managerial comptrollers are located in an organisation Learning Objective: and physical location.
Learning Objective: deployment in cross-functional squads
Learning Objective: in footings of formal organisation






30. Which of the following typically does non associate to the function of a accountant? A. A accountant supervises the accounting section.
B. A accountant precautions an organization’s assets.
C. A accountant oversees the readying of studies required by governmental governments. D. A accountant usually assumes a narrow function within the organisation. frequently forestalling the individual’s rise to exceed direction ranks. E. Choices “B” and “D” above.

AACSB: Analytic
AICPA BB: Resource Management
AICPA FN: Research
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-06 Describe the functions of an organization’s main fiscal officer ( CFO ) or accountant Learning Objective: and internal hearer.
Learning Objective: financial officer





31. A accountant is usually involved with:
A. fixing fiscal statements.
B. managing investings.
C. raising capital.
D. safeguarding assets.
E. pull offing the firm’s recognition policy.




AACSB: Analytic
AICPA BB: Resource Management
AICPA FN: Coverage
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-06 Describe the functions of an organization’s main fiscal officer ( CFO ) or accountant Learning Objective: and internal hearer.
Learning Objective: financial officer





32. Which of the followers is non a map of the financial officer? A. Safeguarding assets.
B. Pull offing investings.
C. Preparing fiscal statements.
D. Being responsible for an entity’s recognition policy.
E. Raising capital.



AACSB: Analytic
AICPA BB: Resource Management
AICPA FN: Coverage
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-06 Describe the functions of an organization’s main fiscal officer ( CFO ) or accountant Learning Objective: and internal hearer.
Learning Objective: financial officer





33. Managerial comptrollers:
A. frequently work on cross-functional squads.
B. are located throughout an organisation.
C. are found chiefly at lower degrees of the organisational hierarchy. D. are found chiefly at higher degrees of the organisational hierarchy. E. picks “A” and “B” above.


AACSB: Analytic
AICPA BB: Resource Management
AICPA FN: Coverage
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-06 Describe the functions of an organization’s main fiscal officer ( CFO ) or accountant Learning Objective: and internal hearer.
Learning Objective: financial officer





34. The two dimensions of managerial accounting are:
A. a decision-facilitating dimension and a decision-influencing dimension. B. a decision-facilitating dimension and a financial-influencing dimension. C. a decision-influencing dimension and a cost-minimizing dimension. D. a cost-minimizing dimension and a profit-maximising dimension. E. a decision-influencing dimension and a profit-maximising dimension.

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-07 Briefly describe some of the major modern-day subjects in managerial accounting.




35. Much of managerial accounting information is based on: A. a cost-benefit subject.
B. net income maximization.
C. cost minimisation.
D. the coevals of external information.
E. effectivity but non efficiency.



AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: Nitrogen
Trouble: Medium
Learning Objective: 01-07 Briefly describe some of the major coeval
subjects in managerial accounting.





36. Which of the followers is non usually considered to be an component of e-business? A. E-budgeting.
B. Supply-chain direction.
C. E-commerce.
D. Balanced scorecards.
E. Choices “B” and “D” above.



AACSB: Technology
AICPA BB: Leveraging Technology
AICPA FN: Levering Technology
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-07 Briefly describe some of the major modern-day subjects in managerial accounting.




37. Managerial accounting has changed in recent old ages because of: A. the growing of e-business.
B. increased planetary competition.
C. the outgrowth of new industries.
D. an increased focal point on the client.
E. All of these factors.



AACSB: Brooding Thinking
AICPA BB: Legal
AICPA FN: Hazard Analysis
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-07 Briefly describe some of the major modern-day subjects in managerial accounting.




38. Managerial accounting has changed in recent old ages because of: A. a turning service economic system in the United States.
B. the turning popularity of cross-functional squads.
C. an addition in planetary competition.
D. time-based competition.
E. All of these factors.



AACSB: Brooding Thinking
AICPA BB: Legal
AICPA FN: Hazard Analysis
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-07 Briefly describe some of the major modern-day subjects in managerial accounting.




39. Which of the undermentioned statement ( s ) about just-in-time ( JIT ) stock list direction is ( are ) true? I. The accent of JIT is on “pull” fabrication.
II. Raw stuffs are purchased merely in clip to be used in production. III. JIT is an stock list technique that focuses on decrease of both stock list and related stock list costs. A. I merely.
B. II merely.
C. III merely.
D. II and III.
E. I. II. and III.




AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Difficult
Learning Objective: 01-07 Briefly describe some of the major modern-day subjects in managerial accounting.




40. Idaho Corporation late implemented a just-in-time ( JIT ) production system along with a series of uninterrupted betterment plans. If the house is now sing following a entire quality direction ( TQM ) plan. it would probably happen that TQM: A. is consistent with both JIT and uninterrupted betterment.

B. is consistent with JIT but inconsistent with uninterrupted betterment. C. is consistent with uninterrupted betterment but inconsistent with JIT. D. is inconsistent with both JIT and uninterrupted betterment. E. is an antediluvian direction technique.

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: Nitrogen
Trouble: Medium
Learning Objective: 01-07 Briefly describe some of the major modern-day subjects in managerial accounting.




41. Kaizen costing is consistent with:
A. cost decrease.
B. uninterrupted betterment.
C. hapless quality.
D. fiscal accounting and income statements.
E. both picks “A” and “B” above.




AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-07 Briefly describe some of the major modern-day subjects in managerial accounting.




42. Cost direction systems tend to concentrate on an organization’s: A. machines.
B. employees.
C. activities.
D. clients.
E. regulations and ordinances.



AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-07 Briefly describe some of the major modern-day subjects in managerial accounting.




43. The upper bound on the production of goods and services if everything works absolutely is known as: A. practical capacity.
B. theoretical capacity.
C. utilised capacity.
D. direction capacity.
E. capacity maximization.



AACSB: Analytic
AICPA BB: Industry
AICPA FN: Coverage
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-07 Briefly describe some of the major modern-day subjects in managerial accounting.




44. The capacity construct that allows for normal happenings such as machine downtime and employee weariness is known as: A. practical capacity.
B. theoretical capacity.
C. utilised capacity.
D. direction capacity.
E. capacity maximization.



AACSB: Analytic
AICPA BB: Industry
AICPA FN: Coverage
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-07 Briefly describe some of the major modern-day subjects in managerial accounting.




45. The cost of resources supplied but fresh is known as: A. practical capacity costs.
B. the cost of theoretical capacity.
C. the cost of fresh capacity.
D. the cost of resources supplied.
E. capacity cost.



AACSB: Analytic
AICPA BB: Industry
AICPA FN: Coverage
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-07 Briefly describe some of the major modern-day subjects in managerial accounting.




46. Given the undermentioned information. what is the cost of fresh capacity? Cost of stuff supplied is $ 3. 200 ; Cost of stuff used is $ 3. 000 ; Cost of stuff used per bar is $ 3 ; Cost of stuff supplied per bar is $ 3. 20. A. $ 0. 20.

B. $ 200.
C. $ 2. 000.
D. $ 1. 000.
E. There is no fresh capacity.


AACSB: Analytic
AICPA BB: Industry
AICPA FN: Measurement
Bloom’s: A
Trouble: Easy
Learning Objective: 01-07 Briefly describe some of the major modern-day subjects in managerial accounting.




47. Given the undermentioned information. what is the cost of fresh capacity? Cost of stuff supplied is $ 8. 600 ; Cost of stuff used is $ 8. 000 ; Cost of stuff used per shelf is $ 8 ; Cost of stuff supplied per shelf is $ 8. 60. A. $ 600.

B. $ 6. 000.
C. $ 0. 60.
D. $ 1. 000.
E. There is no fresh capacity.


AACSB: Analytic
AICPA BB: Industry
AICPA FN: Measurement
Bloom’s: A
Trouble: Easy
Learning Objective: 01-07 Briefly describe some of the major modern-day subjects in managerial accounting.




48. The value concatenation of a maker would be given to include activities related to: A. fabrication.
B. research and development.
C. merchandise design.
D. selling.
E. All of these.



AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Measurement
Bloom’s: RC
Trouble: Easy
Learning Objective: 01-08 Understand and explicate the constructs of strategic cost direction and the value concatenation.




49. Which of the undermentioned picks right depicts activities that would be included in a manufacturer’s value concatenation?

[ movie ]
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E




AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Measurement
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-08 Understand and explicate the constructs of strategic cost direction and the value concatenation.




50. Which of the preceding activities would probably non be considered portion of The Gap vesture company’s value concatenation? A. Planing a new merchandise line.
B. Locating and so negociating footings with a vesture maker. C. Marketing an bing merchandise line.
D. Distributing goods from regional warehouses to local shops. E. All of these activities would be an component in the company’s value concatenation.

AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Measurement
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-08 Understand and explicate the constructs of strategic cost direction and the value concatenation.




51. The activities performed by a fabrication organisation could be categorized as pre-production ( such as research and development and merchandise design ) . production-related. and post-production ( such as selling and client service ) . Which activities should the house focal point on if direction understands the value concatenation construct and desires to run into organisational ends? A. Pre-production activities.

B. Production-related activities.
C. Post-production activities.
D. Choices “A” . “B” . and “C” above.
E. Choices “A” and “B” above.


AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: Nitrogen
Trouble: Difficult
Learning Objective: 01-08 Understand and explicate the constructs of strategic cost direction and the value concatenation.




52. In order for a company to accomplish a sustainable competitory advantage. it must execute value concatenation activities: A. at the same quality degree as rivals. at the same cost. B. at the same quality degree as rivals. but at a lower cost. C. at a higher quality degree than rivals. at a higher cost. D. at a higher quality degree than rivals. but at no greater cost. E. Either pick “B” or “D” above.

AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Hazard Analysis
Bloom’s: RC
Trouble: Difficult
Learning Objective: 01-08 Understand and explicate the constructs of strategic cost direction and the value concatenation.




53. The procedure of pull offing the assorted activities in the value concatenation. along with the associated costs. is normally known as: A. activity-based costing.
B. strategic cost direction.
C. entire quality direction.
D. computer-integrated costing.
E. sound direction patterns ( SMP ) .



AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Hazard Analysis
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-08 Understand and explicate the constructs of strategic cost direction and the value concatenation.




54. A company has a constriction operation that slows production. Which of the undermentioned tools or attacks could the house usage to find the most cost-efficient ways to extinguish this job? A. Linear scheduling.

B. Theory of restraints.
C. Decision-tree diagrams.
D. Payoff matrices.
E. Strategic way analysis ( SPA ) .


AACSB: Analytic
AICPA BB: Industry
AICPA FN: Hazard Analysis
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-08 Understand and explicate the constructs of strategic cost direction and the value concatenation.




55. Which of the followers can be linked to a moving ridge of corporate dirts that took topographic point non excessively long ago? A. Greedy corporate executives.
B. Directors who made over-reaching concern trades.
C. Lack of inadvertence by companies’ audit boards and boards of managers. D. Shoddy work by external hearers.
E. All of these.


AACSB: Ethical motives
AICPA BB: Legal
AICPA FN: Coverage
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-09 Understand the ethical duties of a managerial comptroller.




56. Which of the undermentioned Acts of the Apostless strives to better corporate administration and the quality of corporate accounting/reporting? A. Robinson-Patman.
B. Taft-Hartley.
C. Sarbanes-Oxley.
D. Bush-Cheney.
E. Franks-Ashcroft.



AACSB: Ethical motives
AICPA BB: Legal
AICPA FN: Coverage
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-09 Understand the ethical duties of a managerial comptroller.




57. Which of the undermentioned statements about the ethical clime of concern is false? A. Greedy corporate executives are. in portion. to fault for the roseola of corporate dirts that occurred non excessively long ago. B. Unethical concern behaviour can hold a negative impact on our economic system. C. The Sarbanes-Oxley Act strives to better the overall quality of corporate coverage. D. The Robinson-Patman Act strives to better the overall quality of corporate coverage. E. Corporate dirts have served as the accounting profession’s wake-up call to pay increased attending to ethical issues in the behavior of concern.

AACSB: Ethical motives
AICPA BB: Legal
AICPA FN: Coverage
Bloom’s: RC
Trouble: Difficult
Learning Objective: 01-09 Understand the ethical duties of a managerial comptroller.




58. Which of the followers is non an ethical criterion of managerial accounting? A. Competence.
B. Confidentiality.
C. Efficiency.
D. Integrity.
E. Credibility.



AACSB: Ethical motives
AICPA BB: Legal
AICPA FN: Coverage
Bloom’s: RC
Trouble: Medium
Learning Objective: 01-09 Understand the ethical duties of a managerial comptroller.




59. Which of the followers is non an component of competence? A. To develop appropriate cognition about a peculiar topic. B. To execute responsibilities in conformity with relevant Torahs.
C. To execute responsibilities in conformity with relevant proficient criterions. D. To forbear from prosecuting in an activity that would discredit the accounting profession. E. To fix clear studies after an analysis of relevant and dependable information.

AACSB: Ethical motives
AICPA BB: Legal
AICPA FN: Coverage
Bloom’s: RC
Trouble: Difficult
Learning Objective: 01-09 Understand the ethical duties of a managerial comptroller.




60. Assume that a managerial comptroller regularly communicates with concern associates to avoid struggles of involvement and advises relevant parties of possible struggles. In so making. the comptroller will hold applied the ethical criterion of: A. objectiveness.

B. confidentiality.
C. unity.
D. credibleness.
E. unified behaviour.


AACSB: Ethical motives
AICPA BB: Legal
AICPA FN: Hazard Analysis
Bloom’s: RC
Trouble: Difficult
Learning Objective: 01-09 Understand the ethical duties of a managerial comptroller.




Essay Questions

61. Present several illustrations of managerial accounting information that could assist a director make each of the undermentioned determinations: A. A fabrication company is presently doing a portion that is a production concern. The house is make up one’s minding whether to abandon production and purchase the portion from an outside provider. B. An operator of fast-food eating houses is make up one’s minding whether to open a new shop in Dallas.

Note: Many correct replies are possible.
A. The cost of each option ( do vs. bargain ) would be needed along with information about providers that pertains to dependability and merchandise quality ( e. g. . testimonies from a supplier’s current clients that cite any jobs with on-time bringings. merchandise stockouts. or abnormally high spoilage rates of purchased goods ) . Given the company is presently doing the portion. what would go on to the installations if the house begins to buy from outside providers?

Could the installations be subleased. used for other profitable merchandises. or downsized ( with equipment being sold ) ? What would go on to bing employees—would at that place be any layoffs and how much would the company salvage? B. The director needs information about building or leasing costs along with figures that focus on subsequent operating costs. Besides. projected gross revenues. market portion figures. and informations about rivals would be helpful.

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Hazard Analysis
Bloom’s: Nitrogen
Trouble: Medium
Learning Objective: 01-01 Define managerial accounting and depict its function
in the direction procedure.





62. Boundary lines Overnight operates an nightlong bundle bringing service that competes with Federal Express and United Parcel Service ( UPS ) . Top direction is sing the usage of a balanced scorecard to measure operations. A. What is a balanced scorecard and other than customer-satisfaction steps. what are its typical key constituents? B. List four customer-satisfaction steps that Borders might utilize to measure public presentation.

A. The balanced scorecard is a concern theoretical account that helps to measure a firm’s competitory place and ensures that the house is come oning toward long-run endurance. Balanced scorecards differ from organisation to organisation ; nevertheless. in add-on to customer-satisfaction steps. most have a combination of fiscal steps. internal operating steps. and steps of innovation/growth and acquisition. B. Customer-satisfaction steps could include figure of bundles delivered. market portion. figure of bundles lost or damaged. figure of client ailments. mean wait clip when naming and scheduling a bundle pickup. and response clip to client jobs.

AACSB: Brooding Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC. N
Trouble: Medium
Learning Objective: 01-03 List and depict five aims of managerial accounting activity.




63. See the forms that follow.

1. Is to a great extent involved with the recordkeeping and coverage of assets. liabilities. and stockholders’ equity. 2. Focuss on planning. determination
doing. directing. and control. 3. Is to a great extent regulated.

4. A field that is going more “cross-functional” in nature. 5. Much of the field is based on costs and benefits.
6. Is involved about entirely with past minutess and events. 7. Much of the information provided is directed toward shareholders. fiscal analysts. creditors. and other external parties. 8. Tends to concentrate more on fractional monetary units within an entity instead than the organisation as

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