Question 1

1 / 1 pts
In which of the following aspects is managerial accounting similar to financial
accounting ?

  
users of reports
 

  
type of data provided to users
 
  
emphasis between the past and future
 
Correct!
  
reliance on the accounting database
 
 
Question 2
1 / 1 pts
Managerial accounting reports can be described as
Correct!
  
special-purpose.
 

  
classified financial statements.
 
  
. macro-reports.
 

  
general-purpose.
 
 
Question 3
1 / 1 pts
Which of the following is not a Controller’s function?
Correct!
  
Arranging short-term financing
 

  
In charge of planning and control
 
  
Interpreting and reporting on effects of external factors on the business
 

  
Protection of assets such as adequate insurance coverage. Etc.
 
 
Question 4
1 / 1 pts
Managerial accounting information is generally prepared for

  
regulatory agencies.
 

  
creditors.
 
Correct!
  
managers.
 

  
stockholders.
 
 
Question 5
1 / 1 pts
A technique in which management develops policies and practices to ensure that the
firm’s products and services exceed the customer’s expectations is:
Correct!
  
Total quality management
 
  
Benchmarking
 

  
Continuous improvement
 
  
Critical success factoring
 
 
Question 6
1 / 1 pts
Which of the following is not usually a controller’s function?
Correct!
  
Credit and collection.
 
  
Protection of assets.
 

  
Tax administration.
 
  
Planning for control.
 
 
Question 7
1 / 1 pts
Management accounting information includes

  
Tabulated results of customer satisfaction surveys.
 
  
The percentage of units produced that are defective
 
   
The cost of producing a product
 
Correct!
  
All of the above.
 
 
Question 8
1 / 1 pts
Which of the following characteristics does not relate to management accounting?

  
Accounting reports may include non-monetary information
 
Correct!
  
It is subject to restrictions imposed by GAAP.
 
  
Reports are often based on estimates and are seldom useful for anything other than the
purpose for which they are prepared.
 

  
It provides data for internal users within the business organization.
 
 
Question 9
1 / 1 pts
Which of the following describes management accounting information ?

  
it is reliable and verifiable.
 
Correct!
  
it provides reasonable and timely estimates .
 
  
it is prepared for shareholders.
 
  
it is prepared in accordance with GAAP.
 
 
Question 10
1 / 1 pts
The following characteristics refer to Financial Accounting except
Correct!
  
Has no externally imposed standards
 
  
Emphasizes on objective data
 

  
Generates general purpose financial statements
 
  
Provides information to external users
 
 
Question 11
1 / 1 pts
Which activity is NOT normally performed by managerial accountants?
Correct!
  
Deciding the best level of inventory to be maintained.
 
  
Gathering data from sources other than the accounting system.
 

  
Assisting managers to interpret data in managerial accounting reports.
 
  
Designing systems to provide information for internal and external reports.
 
 
Question 12
1 / 1 pts
Financial accounting focuses primarily on reporting:

  
to financial institutions.
 

  
to an organization's board of directors.
 
  
to parties within an organization.
 
Correct!
  
to parties outside of an organization.
 
 
Question 13
1 / 1 pts
The sequence of activities that creates a good or services is:

  
An organization.
 
Correct!
  
A value chain
 
  
A customer chain.
 

  
An information system
 
 
Question 14
1 / 1 pts
One of the ways managerial accounting differs from financial accounting is that
managerial accounting

  
does not use financial statements.
 
Correct!
  
classifies information in different ways.
 
  
deals only with economic events.
 

  
is bound by generally accepted accounting principles.
 
 
Question 15
1 / 1 pts
In comparing management and financial accounting, which of the following more
accurately describes  management accounting information ?
Correct!
  
budgeted, informative, adaptable
 

  
required, estimated, internal
 
  
historical, precise, useful
 

  
comparable, verifiable, monetary
 
 
Question 16
1 / 1 pts
A production system in which units are produced and materials are purchased only as
needed to meet actual customer demand is called
   
Process reengineering
 

  
Benchmarking
 
Correct!
  
Just-in-time
 

  
Total quality management
 
 
Question 17
1 / 1 pts
Which of the following is NOT one of the Institute of Management Accountants' five
Standards of Ethical Conduct?

  
Integrity
 

  
Competence
 
Correct!
  
Independence
 

  
Confidentiality
 
 
Question 18
1 / 1 pts
Which of the following statements is false ?
Correct!
  
Financial accounting provides information to individuals within the business
organization, while management accounting provides information to parties outside the
business entity.
 
  
Cost accounting is a tool for both financial and managerial accounting.
 

  
In management accounting, emphasis is given to identifying or matching costs with
functions, projects, or responsibilities rather than with time periods.
 
  
Managerial accounting draws heavily on economics, statistics, operations research, and
other disciplines as necessary in providing accounting and financial information.
 
 
Question 19
1 / 1 pts
Management accounting
Correct!
  
Draws from disciplines other than accounting
 
  
Places more emphasis on precision of data compared with financial accounting which
does not.
 

  
Is geared primarily to the past rather than the future
 
  
Is governed by generally accepted accounting principles
 
 
Question 20
1 / 1 pts
Management accounting

  
Reports information that has occurred in the past that is verifiable and reliable.
 
  
Provides information about the company as a whole.
 
Correct!
  
focuses on estimating future revenues, costs, and other measures to forecast activities
and their results.
 
  
Provides information that is generally available only on a quarterly or annual basis.
 
 
Question 21
1 / 1 pts
A firm that is competing using a _______________________ strategy is attempting to
create a perception of uniqueness that will permit a higher selling price.
Correct!
  
differentiation
 
  
lowest cost
 

  
lead time
 
  
value chain
 
 
Question 22
1 / 1 pts
The controller of a company or other organization is

  
an accountant, not a manager.
 
   
a natural manager.
 
Correct!
  
a staff manager.
 
  
an operating manager.
 
 
Question 23
1 / 1 pts
A staff position:
Correct!
  
is supportive in nature, providing service and assistance to other parts of the
organization.
 
  
is superior in authority to a line position.
 

  
none of these.
 
  
relates directly to the carrying out of the basic objectives of the organization.
 
 
Question 24
1 / 1 pts
A just-in-time manufacturer is more likely than a conventional manufacturer to
Correct!
  
receive more frequent deliveries of materials.
 
  
all of the above.
 
  
need workers with fewer skills.
 

  
spend less money on advertising.
 
 
Question 25
0 / 1 pts
Which of the following is not a characteristic of a “Staff” authority?
Correct Answer
  
It has the authority to command action or give orders to subordinates.
 

  
It is exercised laterally or upward.
 
You Answered
  
None of the above
 

  
It gives support, advise, and service to line managers.
 
 
Question 26
1 / 1 pts
The person MOST likely to use management accounting information is an

  
Shareholder evaluating a stock investment.
 
Correct!
  
Assembly department supervisor.
 
  
Banker evaluating a credit application.
 
  
Governmental taxing authority.
 
 
Question 27
1 / 1 pts
The chief management accountant called “controller” traditionally performs these
functions except:

  
Protection of company resources and economic evaluation.
 
  
Financial and management reporting and interpretation.
 

  
The establishment and implementation of the financial planning process.
 
Correct!
  
Preparation of proposals for product promotions.
 
 
Question 28
1 / 1 pts
To distinguish between management accounting and financial accounting, the following
statements are correct, except 

  
Financial accounting can be regarded as the process while management accounting
can be regarded as the product of the process.
 
  
Financial accounting is bound by GAAP, and management accounting need not be in
conformity with GAAP.
 
Correct!
  
Management accounting, in view of its various integrated recipients should have a
separate data recording and retrieval system from financial accounting.
 
  
Management accounting output must be released on time so as not to erode its
usefulness; Financial accounting output can still be useful even when delayed.
 
 
Question 29
1 / 1 pts
The Institute of Management Accountants' Standards of Ethical Conduct contains a
policy regarding confidentiality that requires that management accountants:
Correct!
  
refrain from disclosing confidential information acquired in the course of their work
except when authorized by management, unless legally obligated to do so.
 
  
refrain from disclosing confidential information acquired in the course of their work in all
situations.
 

  
refrain from disclosing confidential information acquired in the course of their work
except when authorized by management.
 
  
refrain from disclosing confidential information acquired in the course of their work in all
cases since the law requires them to do so.
 
 
Question 30
1 / 1 pts
A characteristic of TQM is

  
management by objectives.
 
Correct!
  
education and self improvement.
 
  
quality by final inspection.
 

  
on the job training by other workers.
 
 
Question 31
1 / 1 pts
Management accounting is an integral part of the management process.  As such, it
provides essential information for the following objectives except

  
Measuring and evaluating performance.
 

  
Planning strategies and controlling current activities of the organization.
 
Correct!
  
Maintaining the current level of resource utilization as well as internal and external
communication.
 

  
Enhancing objectivity in decision-making.
 
 
Question 32
1 / 1 pts
Staff management includes
Correct!
  
human resource managers.
 

  
manufacturing managers.
 
  
purchasing managers.
 
  
distribution managers.
 
 
Question 33
1 / 1 pts
The plans of management are often expressed formally in:

  
performance reports.
 
  
ledgers.
 
Correct!
  
budgets.
 
  
financial statements.
 
 
Question 34
1 / 1 pts
In financial accounting, certain rules and regulations must be followed on how financial
statements must be presented to the reader.  In managerial accounting, no such
restrictions generally apply because it is:

  
A discipline that does not require preparation of other financial statements.
 
  
Designed to provide management with non-financial information for decision-making.
 

  
An entirely different field that need not observe the broad guidelines in financial
accounting.
 
Correct!
  
Designed to provide accounting and other financial data to assist management in
making business decisions.
 
 
Question 35
1 / 1 pts
Controllers are generally concerned with

  
Investors relations.
 
  
credit extension and collection of bad debts.
 
Correct!
  
preparation of tax returns.
 
  
short term financing.
 
 
Question 36
1 / 1 pts

1. Benchmarking is a management technique in which marketing and production

processes are designed to handle the increased variety that results from
delivering customized products and services to customers.
2. The supply chain is an analysis tool that firms use to identify the specific
steps required to provide a product or service to the customer

  
Both Statements are True
 
Correct!
  
None of the Statements is True
 
   
Only Statement 1 is True
 

  
Only Statement 2 is True
 
 
Question 37
1 / 1 pts

1. A controller’s authority is always staff in nature since he/she gives advice and
service to other departments.
2. The controller provides reports for planning and evaluating company
activities, and provides the information needed to make management
decisions.

  
Both Statements are True
 

  
None of the Statements is True
 
Correct!
  
Only Statement 2 is True
 

  
Only Statement 1 is True
 
 
Question 38
1 / 1 pts

1. The balanced scorecard approach attempts to maintain as little inventory on

hand as possible.
2. The focus of a TQM system is to reduce defects in finished products.

  
Both Statements are True
 
   
Only Statement 1 is True
 
Correct!
  
Only Statement 2 is True
 
  
None of the Statements is True
 
 
Question 39
1 / 1 pts
Controllership has attained special recognition in corporate management as business
expands in complexity and reach, and as the controller exerts influence for
management to take organization’s goals.  Controllership and treasurership constitute
corporate finance.  These are among the controller’s traditional functions:

1. Tax management.
2. Financial reporting and interpretation.
3. Credit management.
4. Sourcing and investing of funds.
5. Reporting to government regulatory agencies.
6. Risk management.
7. Economic appraisal.
8. Planning for control.

  
Items 2, 3, 5, and 7, and 8 only
 
  
Items 1, 2, 3, 4, 5, 7, and 8 only.
 
Correct!
  
Items 1, 2, 5, 7, and 8 only.
 
  
All eight items.
 
 
Question 40
1 / 1 pts
The competitive strategy of “differentiation” requires that a product or service must be:

  
Produced at the lowest possible cost.
 

  
Always readily available
 
Correct!
  
Unique in some important way usually of being of higher quality.
 

  
Price competitive
 
 
Question 41
1 / 1 pts

1. Some managerial accounting reports contain costs not incorporated in the

basic accounting system.
2. Managerial accountants should, but have no obligation to, maintain their
professional skills.

  
None of the Statements is True
 

  
Both Statements are True
 
  
Only Statement 2 is True
 
Correct!
  
Only Statement 1 is True
 
 
Question 42
1 / 1 pts

1. Corporate governance is the legal framework that allows managers to control

and direct lower-level workers on the job.
2. The Standards of Ethical Conduct promulgated by the Institute of
Management Accountants specifically states, among other things, that
management accountants have a responsibility to disclose fully all relevant
information that could be reasonably be expected to influence an intended
user's understanding of the reports, comments and recommendations
presented.

  
Both Statements are True
 

  
Only Statement 1 is True
 
Correct!
  
Only Statement 2 is True
 

  
None of the Statements is True
 
 
Question 43
1 / 1 pts

1. Management-by-objectives and management-by-exception are two names for

the same general management principle.
2. Economic events are the raw data for both financial and managerial
accounting.

  
Both Statements are True
 
Correct!
  
Only Statement 2 is True
 
   
None of the Statements is True
 

  
Only Statement 1 is True
 
 
Question 44
0 / 1 pts

1. Management accountants must establish systems which facilitate planning

and control of the organization’s resources to ensure that their use is
consistent with established policies.
2. Management accountants interpret all forms of internal and external
information pertinent to the various segments of the organization and
communicate the implications of the information being reviewed, including its
relevance and reliability.

Correct Answer
  
Both Statements are True
 

  
Only Statement 2 is True
 
You Answered
  
Only Statement 1 is True
 

  
None of the Statements is True
 
 
Question 45
1 / 1 pts

1. Decision-making is an integral part of the planning, directing, and controlling

functions.
2. The supply chain is all the activities associated with providing a product or
service.
   
Both Statements are True
 
Correct!
  
Only Statement 1 is True
 
  
Only Statement 2 is True
 

  
None of the Statements is True
 
 
Question 46
1 / 1 pts

1. Life cycle costing is a management technique to identify and monitor the

costs of a product throughout its life cycle.
2. Internal value chain is the set of activities required to design, develop,
produce, market, and deliver products or services to customers.

Correct!
  
Both Statements are True
 

  
Only Statement 1 is True
 
  
Only Statement 2 is True
 

  
None of the Statements is True
 
 
Question 47
1 / 1 pts
The competitive strategy of  “cost of leadership” allows a firm to out perform competitors
by producing products or services:

  
With attractive added features.
 

  
With lowered quality standards
 
  
In smaller operational units.
 
Correct!
  
At lower cost achieved by increased productivity
 
 
Question 48
1 / 1 pts

1. Internal financial statements must be prepared using generally accepted

accounting principles.
2. The form and content of reports can influence decisions made by managers.

  
None of the Statements is True
 

  
Only Statement 1 is True
 
Correct!
  
Only Statement 2 is True
 

  
Both Statements are True
 
 
Question 49
0 / 1 pts
 1. The Chief Financial Officer of an organization should present facts and refrain
from offering advice and personal opinion.
2. Efforts designed to increase the rate of output should generally be applied to
the workstation that is the constraint.

  
Only Statement 1 is True
 
Correct Answer
  
Both Statements are True
 
  
None of the Statements is True
 
You Answered
  
Only Statement 2 is True
 
 
Question 50
1 / 1 pts

1. Managerial accounting is primarily concerned with managers and external

users.
2. Managerial accounting applies to all forms of business organizations.

  
None of the Statements is True
 

  
Both Statements are True
 
Correct!
  
Only Statement 2 is True
 

  
Only Statement 1 is True