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| 1 | |
The process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization's goals is called which of the following? (LO1) |
| | A) | Managerial accounting |
| | B) | Financial accounting |
| | C) | E-Commerce |
| | D) | Management |
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| 2 | |
Which of the following statements is false? (LO1) |
| | A) | The role of managerial accounting has changed over the past decade. |
| | B) | The role of the managerial accountant has changed from "number cruncher" to "business partner." |
| | C) | Managerial accountants play an integral role in the organization's management team in its efforts to create value or the organization. |
| | D) | Managerial accountants tend to work in a separate accounting department. |
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| 3 | |
Which of the following is included in the day-to-day work of the management team? (LO 2) |
| | A) | Decision making |
| | B) | Planning |
| | C) | Controlling |
| | D) | All of the above |
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| 4 | |
Determining how much inventory to carry or how much cash will be needed to meet short-term obligations is which of the day-to-day work of the management team? (LO 2) |
| | A) | Decision making |
| | B) | Planning |
| | C) | Controlling |
| | D) | Directing operational activities. |
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| 5 | |
Deciding which alternative courses of action best achieve the goals of the organization is which of the day-to-day work of the management team? (LO 2) |
| | A) | Decision making |
| | B) | Planning |
| | C) | Controlling |
| | D) | Directing operational activities |
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| 6 | |
Answering and resolving questions regarding which type of inventory to carry, how many employees to train, and how much yearly costs are going to be involves which of the day-to-day work of the management team? (LO 2) |
| | A) | Decision making |
| | B) | Planning |
| | C) | Controlling |
| | D) | Directing operational activities |
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| 7 | |
Determining whether organizational goals have been met, and how to best bring about adherence to planned activities, involves which of the day-to-day work of the management team? (LO 2) |
| | A) | Decision making |
| | B) | Planning |
| | C) | Controlling |
| | D) | Directing operational activities |
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| 8 | |
Managerial accounting activity adds value to an organization by pursuing five major objectives, which include which of the following? (LO3) |
| | A) | Providing information for decision making and planning |
| | B) | Assisting managers in directing and controlling operational activities |
| | C) | Measuring the performance of activities within an organization |
| | D) | All of the above |
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| 9 | |
Which of the following might be a performance measure for the financial perspective of a balanced scorecard? (LO 3) |
| | A) | Percentage of market share held by the organization |
| | B) | Return on assets |
| | C) | Percentage of on-time deliveries by the organization |
| | D) | Percentage of product defects |
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| 10 | |
Which of the following is false? (LO 4) |
| | A) | Managerial accounting need not conform to GAAP. |
| | B) | Financial accounting reports focus on subunits of the organization. |
| | C) | Managerial accounting is not required. |
| | D) | Financial accounting is required. |
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| 11 | |
Which of the following is false? (LO 4) |
| | A) | Managerial accounting requires a separate accounting system. |
| | B) | Financial accounting must conform to GAAP. |
| | C) | Financial accounting reports are drawn from the basic accounting system. |
| | D) | Managerial accounting often focuses on subunits of the organization. |
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| 12 | |
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Which line in the schedule (A, B, C, or D) is not a true reflection of the difference between managerial and financial accounting? (LO 4) |
| | A) | Line A |
| | B) | Line B |
| | C) | Line C |
| | D) | Line D |
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| 13 | |
Which of the following positions is most likely a staff position? (LO 5) |
| | A) | Production manager |
| | B) | Marketing manager |
| | C) | Inventory manager |
| | D) | Chief Financial Officer (CFO) |
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| 14 | |
Which management position is responsible for raising capital? (LO 6) |
| | A) | Internal auditor |
| | B) | Treasurer |
| | C) | Controller |
| | D) | CFO |
| | E) | External auditor |
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| 15 | |
Which of the following is false? (LO 7) |
| | A) | An understanding of human behavior is essential to management accountants. |
| | B) | The cost of gathering information should be less than the benefit derived. |
| | C) | Information can be purchased, produced, and consumed. |
| | D) | It is not possible to provide too much detail. |
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| 16 | |
Which of the following can be defined as buying and selling over digital media? (LO 7) |
| | A) | E-business |
| | B) | E-commerce |
| | C) | E-accounting |
| | D) | E-budgeting |
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| 17 | |
Which of the following is false? (LO 7) |
| | A) | Managerial accounting is a relatively young discipline. |
| | B) | E-commerce may be defined as buying and selling over digital media. |
| | C) | E-budgeting is now used by hundreds of companies. |
| | D) | E-business is a narrower concept than e-commerce. |
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| 18 | |
Which of the following is true? (LO 7) |
| | A) | Most services are inventoried as they are produced. |
| | B) | Service industries tend not to be labor intensive. |
| | C) | Managerial accounting techniques apply to service industries. |
| | D) | A multinational firm has subunits in only one country. |
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| 19 | |
Which of the following is false? (LO 7) |
| | A) | Managerial accounting systems can measure various attributes of customer value. |
| | B) | CIM is an acronym for computer-integrated manufacturing. |
| | C) | A cross-functional approach to management is crucial in managing time to market. |
| | D) | The life cycles of most products are becoming longer. |
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| 20 | |
Which of the following is false? (LO 7) |
| | A) | Just-in-time systems rely on a "pull" approach to controlling manufacturing. |
| | B) | TQM is an acronym for total quality management. |
| | C) | One objective of a cost management system is to identify and eliminate non-value added activities. |
| | D) | ABM is an acronym for activity-based manufacturing. |
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| 21 | |
The initiative to reduce a non-value added activity is meeting which balanced scorecard objective? (LO 7, 3) |
| | A) | Financial perspective |
| | B) | Customer perspective |
| | C) | Internal operations perspective |
| | D) | Learning and growth perspective |
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| 22 | |
An organization's set of linked activities, from securing basic raw materials to the ultimate delivery of the product or service is called the organization's, is known as with of the following? (LO 8) |
| | A) | Theory of constraints |
| | B) | Value chain |
| | C) | Activity-based management of activities |
| | D) | Strategic cost management |
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| 23 | |
The approach that identifies activities that prevent the organization from attaining a higher level of achievement within its value chain is called which of the following? (LO 8 |
| | A) | Theory of constraints |
| | B) | Value chain |
| | C) | Activity-based management of activities |
| | D) | Strategic costs management |
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| 24 | |
The overall recognition of the importance of cost relationships among the activities in the value chain and the process of managing those cost relationships among the activities in the value chain is called which of the following? (LO 8) |
| | A) | The theory of constraints |
| | B) | The value chain |
| | C) | Activity-based management of activities |
| | D) | Strategic cost management |
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| 25 | |
Which of the following limits the type of nonaudit work that auditing firms can do for their clients? (LO 9) |
| | A) | Security and Exchange Commission (SEC) |
| | B) | Sarbanes-Oxely Act |
| | C) | Public Company Accounting Oversight Board (PCAOB) |
| | D) | Institute of Management Accountant's Statement of Ethical Professional Practice |
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| 26 | |
Which of the following organizations administers the Certified Management Accountant program? (LO 10 |
| | A) | AICPA |
| | B) | IMA |
| | C) | CMA |
| | D) | TQM |
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| 27 | |
Which of the following is an ethical standard of conduct for managerial accountants? (LO 9) |
| | A) | Competence |
| | B) | Confidentiality |
| | C) | Integrity |
| | D) | All of the above |
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| 28 | |
Under which ethical standard of conduct does the managerial accountant have the responsibility to prepare complete and clear reports and recommendations after appropriate analyses of relevant and reliable information? (LO 10 |
| | A) | Competence |
| | B) | Confidentiality |
| | C) | Integrity |
| | D) | Credibility |
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| 29 | |
Under which ethical standard of conduct does the managerial accountant have the responsibility to communicate information fairly and objectively? (LO 10) |
| | A) | Competence |
| | B) | Confidentiality |
| | C) | Integrity |
| | D) | Credibility |
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| 30 | |
Under which ethical standard of conduct does the managerial accountant have the responsibility to abstain from engaging in or supporting any activity that might discredit the profession? (LO 10 |
| | A) | Competence |
| | B) | Confidentiality |
| | C) | Integrity |
| | D) | Credibility |
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| 31 | |
Under which ethical standard of conduct does the managerial accountant have the responsibility to disclose fully all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, comments, and recommendations presented? (LO 10) |
| | A) | Competence |
| | B) | Confidentiality |
| | C) | Integrity |
| | D) | Credibility |
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