Which of the following management responsibilities often involves BUDGETS?
a. controlling
b. directing
c. planning
d. none of the above - c.
... [Show More] planning
Managerial accounting differs from financial accounting in that managerial accounting...
a. emphasizes data relevance over data objectivity.
b. is used primarily by external decision makers.
c. is required by Generally Accepted Accounting Principles (GAAP).
d. tends to report on the company as a whole rather than segments of the company. - a. emphasizes data relevance over data objectivity.
Which of the following corporate positions is responsible for raising capital and investing funds?
a. treasurer
b. chief operating officer (COO)
c. internal audit
d. controller - a. treasurer
Of the following skills, which are needed by today's management accountants?
a. knowledge of both financial and managerial accounting
b. oral and written communication skills
c. knowledge of how a business functions
d. all of the above - d. all of the above
Managers' three primary responsibilities are planning, directing, and controlling.
a. true
b. false - a. true
Management accounting is geared toward external stakeholders, such as investors and creditors.
a. true
b. false - b. false
Management accountants often work in cross-functional teams throughout the organization.
a. true
b. false - a. true
The internal audit function reports to the audit committee of the board of directors.
a. true
b. false - a. true
Management accountants are now more often looked upon as internal business advisors, rather than "bean counters" recording historical transactions.
a. true
b. false - a. true
Management accountants should be technically proficient, but they don't need strong oral and written communication skills.
a. true
b. false - b. false
Management accountants should be proficient in Excel.
a. true
b. false - a. true
The AICPA (American Institute of Certified Public Accountants) issues the CMA (Certified Management Accountant) certification.
a. true
b. false - b. false
Identifying alternative courses of action and choosing among them
a. decision making
b. planning
c. controlling
d. directing - a. decision making
Running the company on a day-to-day basis
a. decision making
b. planning
c. controlling
d. directing - d. directing
Determining whether the company's units are operating according to plan
a. decision making
b. planning
c. controlling
d. directing - c. controlling
Setting goals and objectives for the company and determining strategies to achieve them
a. decision making
b. planning
c. controlling
d. directing - b. planning
Describes historical transactions with external parties
a. financial accounting
b. managerial accounting - a. financial accounting
Is not required by any authoritative body, such as the SEC
a. financial accounting
b. managerial accounting - b. managerial accounting
Reports on the company's subunits, such as products, geographical areas, and departments
a. financial accounting
b. managerial accounting - b. managerial accounting
Is intended to be used by creditors and investors
a. financial accounting
b. managerial accounting - a. financial accounting
Is formatted in accordance with GAAP
a. financial accounting
b. managerial accounting - a. financial accounting
Do not disclose company information unless authorized to do so.
a. competence
b. confidentiality
c. integrity
d. credibility - b. confidentiality
Continue to develop skills and knowledge.
a. competence
b. confidentiality
c. integrity
d. credibility - a. competence
Don't bias the information and reports presented to management.
a. competence
b. confidentiality
c. integrity
d. credibility - d. credibility
If you do not have the skills to complete a task correctly, do not pretend you do.
a. competence
b. confidentiality
c. integrity
d. credibility - a. competence
Avoid actual and apparent conflicts of interest.
a. competence
b. confidentiality
c. integrity
d. credibility - c. integrity
Which of the following organizations is the professional association for management accountants?
a. IFRS
b. FASB
c. AICPA
d. IMA - d. IMA
Which of the following professional standards requires management accountants to mitigate conflicts of interest?
a. confidentiality
b. credibility
c. integrity
d. competence - c. integrity
Which of the following professional standards requires management accountants to communicate information fairly and objectively?
a. confidentiality
b. credibility
c. competence
d. integrity - b. credibility
The Sarbanes-Oxley Act of 2002 (SOX) imposes stricter requirements over financial reporting and internal controls and stricter consequences for those who engage in financial statement
misconduct and other white-collar crimes.
a. true
b. false - a. true
U.S. companies that have operations overseas must use the International Financial Reporting Standards (IFRS) to issue their statements.
a. true
b. false - b. false
Extensible Business Reporting Language (XBRL) is a standardized coding system that allows financial information to be "tagged" so that it can be read by computer programs.
a. true
b. false - a. true
The triple bottom line assesses company performance on three factors: people (social impact), planet (environmental impact), and profit (economic impact).
a. true
b. false - a. true
Manufacturing makes up the largest sector of the U.S. economy.
a. true
b. false - b. false
The globalization of business has little bearing on management accounting.
a. true
b. false - b. false
Computer systems that integrate all of a company's worldwide functions into one database are known as Integrated Worldwide Systems (IWSs).
a. true
b. false - b. false
Lean thinking focuses on eliminating waste from operations in an effort to reduce costs.
a. true
b. false - a. true
The ISO 9001:2008 certification focuses on environmental management.
a. true
b. false - b. false
Which of the following requires the company's CEO and CFO to assume responsibility for the company's financial statements and disclosures?
a. Sarbanes-Oxley Act of 2002 (SOX)
b. Lean Operations
c. Extensible Business Reporting Language (XBRL)
d. International Financial Accounting Standards (IFRS) - a. Sarbanes-Oxley Act of 2002 (SOX)
Which of the following is false?
a. Lean operations is a philosophy and business strategy of operating without waste.
b. Globalization has increased the necessity for more detailed and accurate cost information.
c. TQM is a standardized coding system used to tag financial and business data so that it can be read by computer programs.
d. ERP systems integrate information from all company functions into a centralized data warehouse. - c. TQM is a standardized coding system used to tag financial and business data so that it can be read by computer programs.
The triple bottom line focuses on
a. people
b. planet
c. profit
d. all of the above - d. all of the above
Which of the following types of companies would carry raw materials, work in process, and finished goods inventory?
a. service
b. manufacturing
c. merchandising
d. all of the above - b. manufacturing
Which of the following is not an activity in the value chain?
a. customer service
b. marketing
c. administration
d. design - c. administration
Assume a grocery store manager wants to know the cost of running the Produce Department. Thus, the Produce Department is the cost object. Which of the following would be considered direct costs of the Produce Department?
Wages of checkout clerks?
a. indirect cost
b. direct cost - a. indirect
Assume a grocery store manager wants to know the cost of running the Produce Department. Thus, the Produce Department is the cost object. Which of the following would be considered direct costs of the Produce Department?
Wages for workers in the Produce Department?
a. indirect
b. direct - b. direct
Assume a grocery store manager wants to know the cost of running the Produce Department. Thus, the Produce Department is the cost object. Which of the following would be considered direct costs of the Produce Department?
Depreciation on refrigerated produce display cases?
a. indirect
b. direct - b. direct
Assume a grocery store manager wants to know the cost of running the Produce Department. Thus, the Produce Department is the cost object. Which of the following would be considered direct costs of the Produce Department?
Cost of weekly advertisements in local newspaper?
a. indirect
b. direct - a. indirect
Assume a grocery store manager wants to know the cost of running the Produce Department. Thus, the Produce Department is the cost object. Which of the following would be considered direct costs of the Produce Department?
Cost of bananas, lettuce, and other produce?
a. indirect
b. direct - b. direct
Assume a grocery store manager wants to know the cost of running the Produce Department. Thus, the Produce Department is the cost object. Which of the following would be considered direct costs of the Produce Department?
Baggies and twist ties available for shoppers in the Produce Department?
a. indirect
b. direct - b. direct
Assume a grocery store manager wants to know the cost of running th [Show Less]