Question 1

Which of the following have been found to be TRUE?
A)Firms that emphasize ethics outperform firms that don't emphasize ethics.
B)Those corporations that mention ethics in their management reports have lower than average performance.
C)Companies with a strong code of ethics and sense of integrity and honor will have trouble competing over the long run.
D)All of these.

Accepted Answer

Various studies have shown that firms that emphasize ethics generally have better financial performance than those that do not prioritize ethics.

Question 2

Accounting reports that provide feedback by comparing planned (budgeted) data with actual data are called:
A)performance reports.
B)favorable reports.
C)auditing reports.
D)improvement reports.

Accepted Answer

Performance reports provide feedback by comparing planned (budgeted) data with actual data in order to evaluate an organization's performance.

Question 3

The formulation of a program for the accomplishment of a specific purpose is referred to as
A)controlling.
B)motivating.
C)organizing.
D)planning.

Accepted Answer

The formulation of a program for the accomplishment of a specific purpose is referred to as planning. Planning involves setting goals, defining tasks and resources needed, and determining timelines for achieving the intended outcomes. It is a crucial step in effective management and helps to ensure that resources are optimally allocated and utilized to achieve the desired results.

Question 4

In a performance report, the
A)differences between actual costs and allowed costs are always undesirable.
B)expenditures of less than allowed amounts are undesirable.
C)expenditures of more than allowed amounts are not permitted to occur.
D)expenditures of less than allowed amounts are desirable.

Accepted Answer

In a performance report, it is desirable to have expenditures that are less than allowed amounts because it indicates cost savings and efficient use of resources. However, differences between actual costs and allowed costs are not always undesirable as they could be due to factors such as unforeseen circumstances or changes in project scope.

Question 5

The setting of objectives and the identification of methods to achieve those objectives is called
A)planning.
B)controlling.
C)performance evaluation.
D)decision making.

Accepted Answer

The setting of objectives and identifying methods to achieve those objectives is known as planning. Planning involves setting specific goals and objectives that an organization hopes to achieve and identifying the actions or steps necessary to reach those goals. The other options (controlling, performance evaluation, decision making) are important aspects of management but are not specifically related to the setting of objectives and identification of methods.

Question 6

When a management accountant attends training seminars on new FASB rules, which part of the IMA Code of Conduct is being observed?
A)competence
B)confidentiality
C)integrity
D)credibility

Accepted Answer

Attending training seminars on new FASB rules demonstrates the management accountant's commitment to maintaining professional knowledge and competence, which is a requirement under the IMA Code of Conduct's competence principle.

Question 7

Which of the following describes the managerial activity of comparing actual results with budgeted results?
A)control
B)continuous improvement
C)planning
D)decision making

Accepted Answer

Comparing actual results with budgeted results is a part of the control function of management. Control involves setting standards, measuring performance, and taking corrective actions to ensure that goals are achieved.

Question 8

Which of the following are standards of ethical conduct for management accountants?
A)Perseverance and creativity
B)Determination and respect for others
C)Discipline, confidence, competitive, and observance
D)Competence, confidentiality, integrity, and resolution and credibility

Accepted Answer

Competence, confidentiality, integrity, and resolution and credibility are the four standards of ethical conduct for management accountants, as stated by the Institute of Management Accountants (IMA). Perseverance and creativity, determination and respect for others, and discipline, confidence, competitive and observance are not listed as standards of ethical conduct by IMA.

Question 9

Determining the bid your company should submit on a construction contract is an example of
A)planning.
B)control.
C)decision making.
D)none of the above

Accepted Answer

Determining the bid involves analyzing the costs and potential profits associated with the contract, and making a decision on the amount to submit. This is a clear example of decision making.

Question 10

The manager has to decide what tasks are needed and how they should be accomplished. This statement describes
A)the organization chart.
B)planning.
C)organizing.
D)none of these.

Accepted Answer

Planning is the process of determining what needs to be done and how it should be accomplished. The manager has to make decisions about the tasks that are needed and how they should be carried out, which is a part of the planning process. The organization chart is a visual representation of the hierarchy of authority and reporting relationships within the organization, and organizing is the process of arranging resources to carry out the plan. However, neither of these options fully capture the statement provided.

Question 11

Setting the company's profit targets for the upcoming year is an example of the management function of
A)planning.
B)control.
C)variance analysis.
D)internal auditing.

Accepted Answer

Setting profit targets for the upcoming year is an example of the planning function of management, which involves setting goals and determining the actions necessary to achieve those goals. Control involves monitoring performance against those goals, variance analysis involves comparing actual results to expected results, and internal auditing involves reviewing and evaluating the company's financial and operational controls.

Question 12

Managers are considering outsourcing sub-components of production. Data is collected about the costs of making the sub-component. Different bids are sought about the purchase of the sub-components. Which managerial activity is applicable in this situation?
A)control
B)continuous improvement
C)planning
D)decision making

Accepted Answer

The act of collecting data about costs and seeking bids for outsourcing involves decision making. The managers need to analyze the data and make a decision about whether outsourcing will save costs and increase efficiency.

Question 13

Developing a company strategy for responding to anticipated new markets is an example of
A)planning.
B)control.
C)performance evaluation.
D)all of these.

Accepted Answer

Developing a company strategy for responding to anticipated new markets is a type of planning, which involves setting goals and objectives and determining the actions needed to achieve them. Control and performance evaluation are separate functions that come after planning has been implemented.

Question 14

Setting the selling price of a company's product is an example of
A)planning.
B)control.
C)decision making.
D)all of these.

Accepted Answer

Setting the selling price of a company's product involves decision making, as it requires analyzing various factors such as production costs, competition, target market, and profit margins. While planning and control may also be involved in the overall pricing strategy, decision making is the primary function in this scenario. Therefore, option C is the best choice.

Question 15

In a company, engineers have redesigned production processes lowering production costs, shortening production cycle time, reducing waste and improving quality. Which type of managerial activity applies to this situation?
A)controlling
B)continuous improvement
C)planning
D)decision making

Accepted Answer

The engineers have redesigned the production processes to improve efficiency and quality, which falls under the category of continuous improvement. This activity involves making ongoing changes and adjustments to processes to increase productivity, efficiency, and effectiveness.

Question 16

The planning process includes
A)setting objectives.
B)identifying means of achieving the objectives.
C)making decisions.
D)all of these.

Accepted Answer

The planning process includes setting objectives, identifying means of achieving the objectives, and making decisions, so the correct answer is D, "all of these."

Question 17

The monitoring of a plan's implementation is called
A)planning.
B)controlling.
C)decision making.
D)budgeting.

Accepted Answer

The monitoring of a plan's implementation is referred to as controlling. This includes tracking progress, identifying any deviations from the plan, and taking corrective actions to ensure that the plan stays on track.

Question 18

Extending the close of the fiscal year beyond December 31 so that some sales of next year are included in the current year would be a violation of which standard of ethical conduct for management accountants?
A)competence
B)confidentiality
C)conformance
D)all of these

Accepted Answer

This action would violate the competence standard, as it involves manipulating financial information to misrepresent the company's financial position, which is unethical and unprofessional.

Question 19

Principles of personal ethical behavior include
A)integrity.
B)respect for others.
C)fairness.
D)all of these.

Accepted Answer

The principles of personal ethical behavior include integrity, respect for others, and fairness. All three of these principles are important for individuals to demonstrate ethical behavior in their personal and professional lives. Integrity involves honesty and consistency in one's actions and values. Respect for others involves treating others with dignity and recognizing their rights and needs. Fairness involves treating others justly and impartially, without favoritism or prejudice. Together, these principles form the foundation for ethical behavior that is based on the values of integrity, respect, and fairness.

Question 20

Continuous improvement is
A)critical in a dynamic environment.
B)important to finding and maintaining a competitive advantage.
C)an effort to find ways to increase overall efficiency, improve quality, and reduce costs.
D)all of these.

Accepted Answer

Continuous improvement is critical in a dynamic environment, important to finding and maintaining a competitive advantage, and an effort to find ways to increase overall efficiency, improve quality, and reduce costs. Therefore, all of these options are correct.

Quiz 1: Introduction to Cost Management

Which of the following have been found to be TRUE?

Accounting reports that provide feedback by comparing planned (budgeted) data with actual data are called:

The formulation of a program for the accomplishment of a specific purpose is referred to as

In a performance report, the

The setting of objectives and the identification of methods to achieve those objectives is called

When a management accountant attends training seminars on new FASB rules, which part of the IMA Code of Conduct is being observed?

Which of the following describes the managerial activity of comparing actual results with budgeted results?

Which of the following are standards of ethical conduct for management accountants?

Determining the bid your company should submit on a construction contract is an example of

The manager has to decide what tasks are needed and how they should be accomplished. This statement describes

Setting the company's profit targets for the upcoming year is an example of the management function of

Managers are considering outsourcing sub-components of production. Data is collected about the costs of making the sub-component. Different bids are sought about the purchase of the sub-components. Which managerial activity is applicable in this situation?

Developing a company strategy for responding to anticipated new markets is an example of

Setting the selling price of a company's product is an example of

In a company, engineers have redesigned production processes lowering production costs, shortening production cycle time, reducing waste and improving quality. Which type of managerial activity applies to this situation?

The planning process includes

The monitoring of a plan's implementation is called

Extending the close of the fiscal year beyond December 31 so that some sales of next year are included in the current year would be a violation of which standard of ethical conduct for management accountants?

Principles of personal ethical behavior include

Continuous improvement is