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| 1 | |
Which of the following organizations would be least likely to have a company objective involving the maximization of shareholder value? |
| | A) | The Walt Disney Company |
| | B) | Marriot Hotels |
| | C) | Southwest Airlines |
| | D) | The American Red Cross |
| | E) | All of the above organizations would be equally likely to establish the objective described. |
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| 2 | |
Which of the following statements is true? |
| | A) | Managerial Accountants are "number crunchers" who provide critical information to decision makers but do not themselves contribute to the decision making process. |
| | B) | The role of the managerial accountant has not changed in the last twenty years. |
| | C) | Managerial accountants play an integral leadership role on an organization's management team. |
| | D) | The activities performed by the management accountant are administrative in nature and typically do not add value to the company. |
| | E) | A and D are both true. |
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| 3 | |
Which of the following end user(s) would be most likely to include information provided by the managerial accounting system in their decision making process? |
| | A) | stockholders |
| | B) | lenders |
| | C) | consumer groups |
| | D) | product managers |
| | E) | all of the above would likely consider managerial accounting information in their decision making process. |
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| 4 | |
In your assigned readings the authors described four fundamental management processes that help organizations to attain their goals. Which of the below choices correctly depicts these four day-to-day management activities? - Decision making
- Planning
- Innovation & Feedback
- Directing operational activities
- Controlling
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| | A) | i, ii, iii & iv |
| | B) | ii, iii, iv & v |
| | C) | i, iii, iv & v |
| | D) | i, ii, iv & v |
| | E) | i, ii, iii & v |
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| 5 | |
The managerial accounting activity adds value to an organization by pursuing five major objectives. Which of the following is an objective of managerial accounting? |
| | 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) | Assessing the organization's competitive position |
| | E) | All of the above |
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| 6 | |
Which of the following statements is false? |
| | A) | Managerial accounting need not conform to GAAP. |
| | B) | Managerial accounting reports typically focus on the enterprise in its entirety. |
| | C) | Managerial accounting is not required. |
| | D) | Financial accounting is required. |
| | E) | Managerial accounting does not require a separate accounting system |
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| 7 | |
Which of the following positions is most likely a staff position? |
| | A) | Production manager |
| | B) | Marketing manager |
| | C) | Inventory manager |
| | D) | Sales manager |
| | E) | None of the above |
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| 8 | |
Which of the following is false? |
| | 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. |
| | E) | The need for information is the driving force behind managerial accounting. |
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| 9 | |
Which of the following is false? |
| | 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. |
| | E) | Eliminating waste is one of the efforts sustained in continuous improvement. |
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| 10 | |
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? |
| | A) | Theory of constraints |
| | B) | Value chain |
| | C) | Activity-based management of activities |
| | D) | Strategic cost management |
| | E) | Cost drivers |
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| 11 | |
The approach that examines an organization's chain of linked activities, and seeks to find optimal cost-effective ways to alleviate the most constraining activities is called which of the following? |
| | A) | Theory of constraints |
| | B) | Value chain |
| | C) | Activity-based management of activities |
| | D) | Strategic costs management |
| | E) | Bottleneck operations |
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| 12 | |
The overall recognition of the importance of cost relationships among the activities in the value chain, and the process of managing those cost relationships to the firm's advantage is called which of the following? |
| | A) | The theory of constraints |
| | B) | The value chain |
| | C) | Activity-based management of activities |
| | D) | Strategic cost management |
| | E) | Downstream and upstream contributions |
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| 13 | |
Which of the following limits the type of nonaudit work that auditing firms can do for their clients? |
| | 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 |
| | E) | Strategic cost management |
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| 14 | |
Which of the below acronyms describes the professional certification unique to managerial accounts in the United States? |
| | A) | IMA |
| | B) | CPA |
| | C) | RIA |
| | D) | CMA |
| | E) | CFO |
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| 15 | |
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? |
| | A) | Competence |
| | B) | Confidentiality |
| | C) | Integrity |
| | D) | Credibility |
| | E) | None of the above |
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