ch1 guidlines

Question 1

managerial accounting (MA)

Answer 1

provides information that helps managers plan, direct, and control operations an make better decisions; it has a future orientation and focus on relevant business decisions

Question 2

MA system not regulated by GAAP

Answer 2

designed so the benefits (from helping managers make better decisions) outweigh the costs of the system

Question 3

where management accountants are placed in the organization

Answer 3

Past: worked in isolated departments
Now: over 50% are employed throughout the company and work on cross-functional teams

Question 4

skills management accountants need

Answer 4

financial and managerial accounting knowledge, analytical skills, knowledge of how a business functions, ability to work on teams, and written and oral communication skills

Question 5

ethical principles and standards MA’s abide

Answer 5

ethical principels: 
      Honesty
      Objectivity
      Fairness
      Responsibility
ethical standards:
      Competence
      Integrity
      Confidenctiality
      Credibility

Question 6

companies that comply with SOX

Answer 6

publicly traded companies.

Question 7

benefits of IFRIS

Answer 7

companies that operate in more than one country will no longer be required to prepare multiple financial statements using different standards for each country in which they operate. Rather, they will prepare one set of financial statement in accordance with IFRIS

Question 8

XBRL helps managers

Answer 8

allows managers to more easily obtain and analyze publicly available financial data from their competitors, companies they may wish to purchase, or companies they may want to invest in

Question 9

global economy company’s compete

Answer 9

they advocate sustainable and socially responsible business practices, use advanced information systems, lean operations, and TQM

Question 10

how companies decided to undertake new initiatives (international expansion, ERP, lean operations, and TQM)

Answer 10

they use cost-benefit analysis, they consider the impact of the decision not only on profits, but also on people and the planet