Chapter 1

Question 1

What do cost accountants do?

Answer 1

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

Question 2

What do cost accountants provide information on?

Answer 2

Accumulation of cost of resources used to produce and sell and recovering costs through sale to customers

Question 3

What do financial accountants do?

Answer 3

Fairly report the financial position to external users

Question 4

What are the rules for measuring and reporting for financial accounting

Answer 4

GAAP: IFRS and ASPE, certified by an auditor

Question 5

What are the types of reports financial accountants use?

Answer 5

Statement of Financial Position, Statement of Comprehensive Income, Statement of Cash Flow

Question 6

What does a managerial accountant do?

Answer 6

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

Question 7

What are the rules of measuring and reporting for management accountants?

Answer 7

Cost-Benefit Analysis - they don’t have to follow IFRS/ASPE

Question 8

What is a value-chain analysis?

Answer 8

Sequence of business functions that add usefulness to goods and customers

Question 9

What is a supply-chain analysis?

Answer 9

Flow of goods and information from initial source to delivery to customers

Question 10

What strategic factors require close attention and control to assure survival and thriving?

Answer 10

Cost, efficiency, quality, time, innovation

Question 11

Business operations are

Answer 11

Activities that convert resources into a product ready for sale

Question 12

What is the need for high quality information?

Answer 12

Making strategic decisions and short-term operating decisions when they arise

Question 13

What is step 1 of the decision-making process?

Answer 13

Identify the problem and uncertainties

Question 14

What is step 2 of the decision-making process?

Answer 14

Obtain informatuon

Question 15

What is step 3 of the decision-making process?

Answer 15

Make predictions about the future

Question 16

What is step 4 of the decision-making process?

Answer 16

Decide on one of the available alternatives

Question 17

What is step 5 of the decision-making process?

Answer 17

Implement the decision, evaluate performance, and learn

Question 18

Who do management and financial accountants report to?

Answer 18

Controller

Question 19

Why is the cost-benefit approach used?

Answer 19

Make resource allocations so the expected benefit > expected costs

Question 20

Behavioural considerations

Answer 20

Motivate managers and others to try and achieve the goals

Question 21

Budget

Answer 21

Proposed plan of action

Question 22

Board of Directors

Answer 22

Hold the external auditors, CEO, CFO, COO accountable for quality of financial information

Question 23

Who does the CFO oversee and what are they responsible for?

Answer 23

Financial operations and the quality of information reported

Question 24

Control

Answer 24

Implementing planning decisions, evaluating actual against expected performance, and providing feedback on results

Question 25

Enterprise Resource Planning

Answer 25

Improves internal process flows of information for effective inventory costs

Question 26

Risk management

Answer 26

Minimizing external risks they can’t control and internal risks they can

Question 27

Sustainability accounting

Answer 27

Reporting financial and non-financial information on activities that impact society, environment, financial performance to stakeholders

Question 28

Triple bottom line

Answer 28

Formal response to the global reporting initiative: environmental sustainability, economic prosperity, and social equity