ACC 211 Final Ch 1

Identify a true statement about the controlling function in managerial accounting.
a.It is achieved by choosing among competing alternatives available at a point of time.
b.It is achieved by comparing actual performance with expected performance.
c.It is followed by the planning activity.
d.It is preceded by the decision making activity.
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Identify a true statement about the controlling function in managerial accounting.
a.It is achieved by choosing among competing alternatives available at a point of time.
b.It is achieved by comparing actual performance with expected performance.
c.It is followed by the planning activity.
d.It is preceded by the decision making activity.
b.It is achieved by comparing actual performance with expected performance.
Managerial accounting is the provision of accounting information for a company's:
a.internal users.
b.external users.
c.trade creditors.
d.trade debtors.
a.internal users.
Identify a difference between managerial accounting and financial accounting.
a.Managerial accounting is self-contained in nature; financial accounting is multidisciplinary in nature.
b.Managerial accounting provides internal evaluation of a firm; financial accounting provides information about a firm as a whole.
c.Managerial accounting focuses on external users; financial accounting focuses on internal users.
d.Managerial accounting has a historical orientation; financial accounting emphasizes the future.
b.Managerial accounting provides internal evaluation of a firm; financial accounting provides information about a firm as a whole.
Which of the following groups of terms describes the essential characteristics of managerial accounting?
a.Externally focused, oriented towards the future, and following externally imposed rules
b.Internally focused, historically oriented, and functioning without mandatory rules
c.Internally focused, oriented towards the future, and functioning without mandatory rules
d.Externally focused, historically based, and following externally imposed rules
c.Internally focused, oriented towards the future, and functioning without mandatory rules
Identify a true statement about cost leadership.
a.It is a differentiation strategy that strives to increase customer value by providing something to customers that was earlier provided by competitors.
b.It is a differentiation strategy that strives to increase customer value by providing something to customers that is not provided by competitors.
c.The objective of the cost leadership strategy is to provide the same or better value to customers at a lower cost than competitors.
d.The objective of the cost leadership strategy is to provide the same or better value to customers at a higher cost than competitors.
c.The objective of the cost leadership strategy is to provide the same or better value to customers at a lower cost than competitors.
Continuous improvement includes efforts to:
a.increase an organization's overall level of activity with little attention to the impact on quality.
b.reduce quality by decreasing the cost of raw materials.
c.reduce costs while improving overall quality.
d.improve profitability without considering quality implications.
c.reduce costs while improving overall quality.
The treasurer of an organization is responsible for the:
a.research function.
b.production function.
c.finance function.
d.marketing function.
c.finance function.
Which of the following statements is true of the controller of a large company having a separate treasury department?
a.The controller is responsible for the finance function.
b.The controller is responsible for SEC reports.
c.The controller manages cash and investments.
d.The controller is responsible for raising capital.
b.The controller is responsible for SEC reports.
Which of the following is the global association of professional accounting groups whose principles of the code are incorporated in the Statement of Ethical Professional Practice?
a.International Accounting Standards Board (IASB)
b.International Federation of Accountants (IFA)
c.Institute of Management Accountants (IMA)
d.American Institute of Certified Public Accountants (AICPA)
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c.Institute of Management Accountants (IMA)
Which of the following is true of ethical behavior?
a.It is practiced only in large organizations with a separate treasury department.
b.It is followed by the top management group of an organization only.
c.It focuses only on the accounting aspects of an organization.
d.It involves choosing actions that are right, proper, and just.
d.It involves choosing actions that are right, proper, and just.
Which of the following principles requires each member of the Institute of Management Accountants (IMA) to maintain an appropriate level of professional expertise by continually developing knowledge and skills? a.Confidentiality b.Integrity c.Competence d.Credibilityc.CompetenceOne of the main purposes of a Certified Management Accountant (CMA) certification is: a.to provide assurance concerning the reliability of the firm's financial statements. b.to establish managerial accounting as a recognized, professional discipline. c.to license management accountants in the state that they work. d.to provide minimal professional qualifications for external auditors.b.to establish managerial accounting as a recognized, professional discipline.All of the following are areas emphasized by the Certified Management Accountant Exam (CMA) EXCEPT: a.financial accounting and reporting. b.management reporting, analysis, and behavioral issues. c.economics, finance, and management. d.All of these areas are emphasized by the CMA exam.d.All of these areas are emphasized by the CMA exam._____ must pass a national examination and be licensed by the state in which they practice. a.Certified Fraud Examiners b.Certified Internal Auditors c.Certified Management Accountants d.Certified Public Accountantsd.Certified Public AccountantsWhich of the following is true of managerial accounting? a.It provides only nonfinancial information to its users. b.It is the provision of accounting information for a company's external users only. c.It is bound by formal criteria such as generally accepted accounting principles (GAAP). d.It represents a company's internal accounting system.d.It represents a company's internal accounting system.Which of the following is true of decision making in managerial accounting? a.It is the process of monitoring a plan's implementation. b.It is followed by the planning activity. c.It is followed by the controlling activity. d.It is the process of choosing among competing alternatives.d.It is the process of choosing among competing alternatives.The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as: a.scheduling. b.controlling. c.planning. d.decision making.b.controlling.Managerial accounting is focused: a.on providing information to internal management only. b.on following externally imposed rules. c.on providing only the externally focused financial information about a firm. d.on providing objective financial information about the firm as a whole.a.on providing information to internal management only.Which of the following groups of terms describes the essential characteristics of managerial accounting? a.Internally focused, oriented towards the future, and functioning without mandatory rules b.Externally focused, historically based, and following externally imposed rules c.Externally focused, oriented towards the future, and following externally imposed rules d.Internally focused, historically oriented, and functioning without mandatory rulesa.Internally focused, oriented towards the future, and functioning without mandatory rulesThe managerial accounting system tracks a wide variety of activities that span the value chain. Which of the following best describes the steps (in order) in a firm's value chain? a.Develop, design, produce, market, and deliver b.Develop, design, market, produce, and deliver c.Design, develop, produce, market, and deliver d.Design, market, develop, produce, and deliverc.Design, develop, produce, market, and deliverA detailed approach to determine the cost of goods and services that improves costing accuracy is called: a.process-value analysis. b.activity-based costing. c.cost differentiation strategy. d.total quality management.b.activity-based costing.Positions that have direct responsibility for the basic objectives of an organization are referred to as: a.line positions. b.staff positions. c.employee positions. d.control positions.a.line positions.An organizational chart: a.shows whether an organization is centralized or decentralized. b.shows line and staff positions within an organization. c.shows the most efficient manufacturing process within an organization. d.shows informal channels of communication within an organization.b.shows line and staff positions within an organization.Positions that are supportive in nature and have only indirect responsibility for an organization's basic objectives are called: a.staff positions. b.control positions. c.line positions. d.employer positions.a.staff positions.Identify a true statement about the controller of an organization. a.The controller has only indirect responsibility for an organization's basic objectives. b.The controller participates in the decision-making activity of managerial accounting. c.The controller is a member of the middle-level management. d.The controller has full authority over the managers in the production areas of an organization.b.The controller participates in the decision-making activity of managerial accounting.Organizations establish standards of conduct referred to as Company Codes of Conduct to promote ethical behavior by: a.managers and employees. b.suppliers and distributors. c.trade debtors. d.trade creditors.a.managers and employees.Which of the following principles requires each member of the Institute of Management Accountants (IMA) to maintain an appropriate level of professional expertise by continually developing knowledge and skills? a.Integrity b.Confidentiality c.Competence d.Credibilityc.CompetenceOne of the main purposes of a Certified Management Accountant (CMA) certification is: a.to license management accountants in the state that they work. b.to provide minimal professional qualifications for external auditors. c.to provide assurance concerning the reliability of the firm's financial statements. d.to establish managerial accounting as a recognized, professional discipline.d.to establish managerial accounting as a recognized, professional discipline.Which of the following is a certification designed to meet the specific needs of managerial accountants? a.The Certificate in Managerial Auditing b.The Certificate in Public Accounting c.The Certificate in Public Auditing d.The Certificate in Management Accountingd.The Certificate in Management AccountingAccountants who hold a certificate that allows them to conduct expert work to determine intentional errors and mistakes made in the financial statements are called: a.Certified Management Accountants. b.Certified Public Accountants. c.Certified Fraud Examiners. d.Certified Internal Auditors.c.Certified Fraud Examiners.