Chapter 1

Question 1

Strategy

Answer 1

is a “game plan” that enables a company to attract customers by distinguishing itself from competitors

Question 2

Customer Intimacy Strategy

Answer 2

Understand and respond to individual customer needs

Question 3

Operational Excellence Strategy

Answer 3

Deliver products and services faster, more conveniently, and at lower prices.

Question 4

Product Leadership Strategy

Answer 4

Offer higher quality products

Question 5

3 Types- Work of Mangement

Answer 5

Planning, Directing and Motivating, Controlling

Question 6

Planning - Work of Mangement

Answer 6

Identify alternatives - Select alternative that does the best job - Develop budgets

Question 7

Directing and Motivating - Work of Management

Answer 7

involves managing day‐to‐day activities to keep the organization running smoothly.

Question 8

Controlling - Work of Management

Answer 8

ensures that plans are being followed - Feedback is the form of performance report is vital

Question 9

Business Plans

Answer 9

consists of information about the company’s basic product or service and about the steps to be taken to reach its potential market

Question 10

The business plan is a key document for:

Answer 10

The organization’s internal management AND external use in attracting creditors and investors

Question 11

Decentralization

Answer 11

is the delegation of decision- making authority throughout an organization

Question 12

Line Positions

Answer 12

Are directly related to achievement of the basic objectives of an organization.

Question 13

Staff positions

Answer 13

support and assist line positions.

Question 14

The Controller

Answer 14

A member of the top management team

Question 15

What is the Controller responsible for?

Answer 15

Providing timely and relevant data to support planning and control activities AND Preparing financial statements for external users

Question 16

Certified Management Accountant (CMA)

Answer 16

A management accountant

who has the necessary qualifications and who passes a rigorous professional exam

Question 17

4 Professional Ethics for Management Accountants

Answer 17

Competence, Confidentiality, Integrity, Objectivity

Question 18

Why Have Ethical Standards?

Answer 18

Abandoning ethical standards in business would lead to a lower quality of life with less desirable goods and services at higher prices

Question 19

Corporate Governance

Answer 19

The system by which a company is directed and controlled.

Question 20

Corporate Social Responsibility (CSR)

Answer 20

is a concept whereby organizations consider the needs of all stakeholders when making decisions

Question 21

6 Processes of Business?

Answer 21

R&D, Product Design, Manufacturing, Marketing, Distribution, Customer Service

Question 22

4 Ways to Improve Business processes?

Answer 22

Lean Production, Six Sigma, Enterprise Systems, Risk Management

Question 23

Lean Production:

Answer 23

Lean thinking may be used to improve business processes that link companies together

Question 24

5 steps of Lean Production:

Answer 24

1. Identify value in specific products/services
2. Identify the business process that delivers value
3. Organize work arrangements around the flow of the business process
4. Create a pull system that responds to customer orders
5. Continuously pursue perfection in the business process

Question 25

Another word for Lean Production?

Answer 25

Just-In-Time production (JIT) and it reduces inventories, decreases defects, reduces wasted effort, and shortens customer response times.

Question 26

Six Sigma

Answer 26

A process improvement method relying on customer feedback and fact-based data gathering and analysis techniques to drive process improvement

Question 27

Another word for Six Sigma?

Answer 27

Zero Defects

Question 28

The Six Sigma DMAIC Framework

Answer 28

Define, Measure, Analyze, Improve, Control

Question 29

Enterprise Systems

Answer 29

A single software system that integrates data across an organization, enabling all employees to have simultaneous access to a common set of data

Question 30

Enterprise Risk Management

Answer 30

A process used by a company to proactively identify and manage risk

Question 31

How to avert risk ?

Answer 31

Once a company identifies its risks, perhaps the most common risk management tactic is to reduce risks by implementing specific controls.

Question 32

Measurement Skills

Answer 32

The key to effective analysis is to understand that the question you are addressing defines what you measure and how you analyze the data

Question 33

7 Differences between Financial and Managerial Accounting

Answer 33

Users, Time Focus, Verifiable vs Relevance, Precision vs Timeliness, Subject, Rules, Requirement