Module 13

Question 1

Managerial accounting is primarily focused on:
A. Providing creditors information on the status of their loans
B. Providing investors with useful information for valuing securities
C. Providing the Internal Revenue Service with information to determine the amount of taxes owed
D. Providing managers with relevant information to help achieve organizational goals

Answer 1

Providing managers with relevant information to help acheive organizational goals

Question 2

In order to be useful to managers, management accounting reports:
A. Should be prepared according to the stated Institute of Management Accounting guidelines
B. Should be prepared according to Generally Accepted Accounting Principals
C. Should be prepared to meet the specific needs of decision makers
D. Should not be prepared prior to the end of a fiscal reporting period

Answer 2

should be prepared to meet specific needs of decision makers

Question 3

Financial accounting information is least useful in providing:
A. Aggregate information about an organization’s assets, obligations and performance
B. Information for stating corporate wide goals
C. Information for internal decision makers
D. Periodic reports for shareholders

Answer 3

Information for internal decision makers

Question 4

The 3 analyses that comprise strategic cost management include all except: Ratio, Cost Driver, Strategic Position, Value Chain

Answer 4

Ratio

Question 5

Strategic position analysis is best defined as:
A. The process of making the organization into a well ordered whole
B. Fundamental choices about the size and scope of operations and technologies
C. The formulation of a program for a specific goal
D. An organization’s basic way of competing to sell products and services

Answer 5

An organization’s basic way of competing to sell products and services

Question 6

Al goal is best defined as:
A. The mission of an organization
B. The implementation of specific ideas
C. The fundamental purpose of an organization
D. A definable and measurable objective

Answer 6

a definable and measurable objective

Question 7

Which of the following is not one of the 3 strategic postitions that Porter views as leading to business success: market niche, cost leadership, all things to all people, product or service differentiation

Answer 7

all things to all people

Question 8

product or service differentiation involves:
Product or service differentiation involves:
A. Any changes made to a product or service
B. The use of new technologies in manufacturing
C. Shifting sales to growing markets
D. Creating something that is perceived as unique and worth a premium price

Answer 8

creating something that is perceived as unique and worth a premium price

Question 9

The process of selecting strategies to achieve goals is often referred to as:
A. Controlling
B. Organizing
C. Motivating
D. Planning

Answer 9

Planning

Question 10

the process of making the organization into a well-ordered whole is referred to as:
A. Organizing 
B. Controlling
C. Motivating
D. Planning

Answer 10

Organizing

Question 11

the process of ensuring that results agree with plans is referred to as:
A. Controlling
B. Decision making
C. Organizing
D. Planning

Answer 11

controlling

Question 12

the act of delegating authority for implementing plans to other managers and employees can be viewed as an aspect of:

Answer 12

Organizing

Question 13

World-class companies must continuously struggle to improve performance in the dimension of: price/cost, service, quality, all

Answer 13

All of the above

Question 14

_______are fundamental choices about the size and scope of operations and about technologies employed in delivering producst or services to customers

Answer 14

Structural cost drivers

Question 15

This is an organizational cost driver for a discount department store chain:
This is an organizational cost driver for a discount department store chain:
A. The decision to price lower than a key competitor
B. The decision to rearrange merchandise within a store
C. The decision to issue a purchase order for raw materials
D. The decision to sale product globally versus only domestically

Answer 15

decision to rearrange merchandise within a store

Question 16

A decision to work closely with a limited number of suppliers for the purpose of ensuring that the proper materials are available at the optimal time is an example of:
A batch level cost driver
B. An activity cost driver 
C. An organizational cost driver
D. A structural cost driver

Answer 16

organizational cost driver

Question 17

____are specific units of work performed to serve customer needs that consume costly resources

Answer 17

activity cost drivers

Question 18

examples of activity cost drivers include all of the following except:
A. Inspecting incoming raw materials
B. Machine time spent working on a product
C. Deciding how to arrange raw materials inventory within the warehouse
D. Receiving (loading) raw materials into the warehouse

Answer 18

deciding how to arrange raw materials inventory within the warehouse

Question 19

Ethical Behavior:

Answer 19

is not guided by well-defined rules and is often subjective

Question 20

Ethics deal with: propriety of course of action, fitness of course of action, moral quality of a course of action

Answer 20

All of the above

Question 21

A primary goal of managerial accounting is to provide information to investment managers who analyze a company’s stock for external investors. T or F

Answer 21

False

Question 22

Managers who prepare and/or have responsibility for managerial accounting information rarely encounter choices that have questionable ethical dimensions or overtones. T or F

Answer 22

False

Question 23

The best criterion for determining if a given action or choice is ethical is to determine if it is legal, because all legal actions are inherently ethical. T or F

Answer 23

False