Chapter 1

Question 1

Measures and reports financial and non-financial information related to the cost of acquiring and using resources

Answer 1

Cost Accounting

Question 2

Identifying, reporting and analyzing costs of operations.

Answer 2

Cost Management

Question 3

Focus on reporting to external parties (investors, regulators and others) with the goal of fairly presenting the economic health of a company

Answer 3

Financial Accounting

Question 4

Based on generally accepted accounting principles (IFRS and ASPE in Canada).

Answer 4

Financial Accounting

Question 5

Measures, analyzes, and reports financial and non-financial information to internal managers.

Answer 5

Management Accounting

Question 6

______________ reorganize and analyze financial and nonfinancial data using rigorous methods.

Answer 6

Management Accounting

Question 7

Describe the business functions in the value chain

Answer 7

Research and Development, Design of Products, Services or Processes, Production, Marketing, Distribution, and Customer Services

Question 8

Describe the​ five-step decision-making process.

Answer 8

​(1) Identify the problem and​ uncertainties
(2) Obtain relevant​ information
(3) Make predictions about the​ future
(4) Decide on one of the available​ alternatives
(5) Implement the​ decision, evaluate​ performance, and learn.

Question 9

What three guidelines help management accountants provide the most value to​ managers?

Answer 9

​(1) Employ a​ cost-benefit approach
(2) Recognize behavioural and technical​ considerations
(3) Identifying relevance and that decisions require​ “different costs for different​ purposes”

Question 10

Classify the cost items as one of the business functions of the value chain.

Cost of redesigning blister packs to make drug containers more tamper-proof.

Answer 10

Design

Question 11

Classify the cost items as one of the business functions of the value chain.

Cost of videos sent to doctors to promote sales of a new drug

Answer 11

Marketing

Question 12

Classify the cost items as one of the business functions of the value chain.

Cost of a toll-free telephone line used for customer inquiries about usage, side effects of drugs, and so on.

Answer 12

Customer Service

Question 13

Classify the cost items as one of the business functions of the value chain.

Equipment purchased by a scientist to conduct experiments on drugs awaiting approval by the government.

Answer 13

Research & Development

Question 14

Classify the cost items as one of the business functions of the value chain.

Payment to actors in an infomercial to be shown on television promoting Visudyne, a new treatment for age-related progressive blindness.

Answer 14

Marketing

Question 15

Classify the cost items as one of the business functions of the value chain.

Labour costs of workers in the packaging area of a production facility.

Answer 15

Production

Question 16

Classify the cost items as one of the business functions of the value chain.

Bonus paid to a salesperson for exceeding a monthly sales quota.

Answer 16

Marketing

Question 17

Classify the cost items as one of the business functions of the value chain.

Cost of the Purolator courier services to deliver drugs to hospitals.

Answer 17

Distribution

Question 18

Classify each action below according to its step in the​ five-step decision-making process​.

Mr. Brite calls Home Depot to ask the price of paint sprayers.

Answer 18

Obtain information

Question 18

Classify each action below according to its step in the​ five-step decision-making process​.

Mr. Brite discusses with his employees the possibility of growing revenues of the firm.

Answer 18

Identify the problem and uncertainties

Question 19

Classify each action below according to its step in the​ five-step decision-making process​.

One of Mr. Brite’s project managers suggests that using paint sprayers instead of hand painting will increase productivity and thus revenues.

Answer 19

Make predictions about the future

Question 19

Classify each action below according to its step in the​ five-step decision-making process​.

Mr. Brite compares the expected cost of buying sprayers to the expected cost of hiring more workers who paint by hand, and estimates profits from both alternatives.

Answer 19

Make predictions about the future

Question 19

Classify each action below according to its step in the​ five-step decision-making process​.

The workers who are not familiar with paint sprayers take more time to finish a job than they did when painting by hand.

Answer 19

Implement the decision, evaluate performance, and learn

Question 20

Classify each action below according to its step in the​ five-step decision-making process​.

The project scheduling manager confirms that demand for house painting services has increased.

Answer 20

Obtain information

Question 21

Classify each action below according to its step in the​ five-step decision-making process​.

Mr. Brite decides to buy the paint sprayers rather than hire additional painters.

Answer 21

Choose among alternatives

Question 22

When a company works with its supplier to reduce material​-handling ​costs, this is an example of​ _______.

Answer 22

total value chain or supply chain analysis

Question 22

​________ refers to a strategy that integrates people and technology across all business functions and enhances relationships with​ customers, suppliers, and other stakeholders.

Answer 22

Customer relationship management