Question 1

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

The activity of comparing actual results with budgeted results is known as controlling. This is where managers evaluate performance against the set goals and make necessary adjustments to ensure that goals are achieved.

Question 2

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 involves setting objectives, identifying means of achieving those objectives, and making decisions on how to implement those means. All of the choices are therefore essential parts of the planning process.

Question 3

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

The answer of Extending the close of the fiscal year...

Question 4

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 falls under the category of planning, which is the process of setting goals and defining the actions required to achieve those goals. Control and performance evaluation come into play after the plan has been executed to evaluate results and make adjustments as necessary.

Question 5

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

Expenditures of less than allowed amounts are desirable because they indicate cost savings and efficiency in the use of resources. Differences between actual costs and allowed costs may not always be undesirable, as there may be valid reasons for the difference, such as unforeseen circumstances that required additional expenses. Expenditures of more than allowed amounts are not desirable, but they may still occur in certain situations.

Question 6

In resolving an ethical conflict, it is inappropriate to discuss the problem with the immediate supervisor because of a violation of which standard of ethical conduct for management accountants?
A) competence
B) confidentiality
C) credibility
D) This action is not in violation of the code of conduct.

Accepted Answer

Discussing an ethical conflict with an immediate supervisor does not violate any standard of ethical conduct for management accountants. It is often encouraged as a first step in resolving ethical issues.

Question 7

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

Studies have shown that firms that prioritize ethics tend to have better financial performance in the long run. B and C have been found to be false.

Question 8

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

Accepted Answer

All of these principles - integrity, respect for others, and fairness - are important in personal ethical behavior. Integrity involves honesty and consistency in one's actions and values. Respect for others involves treating others with dignity and recognizing their rights and feelings. Fairness involves treating others equitably and avoiding discrimination or favoritism. Adhering to all of these principles is essential for maintaining personal ethical behavior.

Question 9

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 as it allows for adaptation and growth. It is important to finding and maintaining a competitive advantage as it allows an organization to stay ahead of its competitors. It is an effort to find ways to increase overall efficiency, improve quality, and reduce costs, which ultimately leads to better profitability and customer satisfaction. Therefore, all options are correct.

Question 10

The acceptance of a savings bond from a supplier would be a violation of which standard of ethical conduct for management accountants?
A) confidentiality
B) integrity
C) reliability
D) none of these

Accepted Answer

Accepting a savings bond from a supplier could be seen as a conflict of interest and a violation of the integrity standard, which requires management accountants to avoid actual or apparent conflicts of interest and refrain from using their positions for personal gain.

Question 11

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. Controlling involves monitoring progress and making necessary changes, motivating involves inspiring and encouraging individuals to work towards a goal, and organizing involves arranging resources and tasks in a structured manner.

Question 12

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 your company should submit on a construction contract involves making a decision based on factors such as estimated costs, potential profits, and competition. It is a prime example of decision making.

Question 13

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

This situation involves decision making as managers are considering outsourcing sub-components and seeking different bids, indicating a need to make a decision on whether or not to outsource and which bid to accept. The other managerial activities of control, continuous improvement, and planning may come into play at later stages, but the primary activity in this situation is decision making.

Question 14

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

The statement describes the process of planning, which involves determining the tasks that need to be done and deciding how to accomplish them. Organizing is the next step, which involves assigning these tasks to specific individuals or departments and creating a structure for how the work will be carried out. The organization chart is a tool used during the organizing process to visually display the structure of the organization. Therefore, the correct answer is B, planning.

Question 15

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 making a decision, as it requires analyzing factors such as the cost of production, competition, and consumer demand to determine the appropriate price point. While planning and control may be involved in the process of setting the selling price, the primary activity being performed is decision making. Therefore, choice C is the most accurate answer.

Question 16

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 production processes to improve them which falls under continuous improvement. This involves making incremental changes to processes and systems to improve efficiency, reduce waste, and improve quality. It is an ongoing activity that ensures that the organization remains competitive and relevant in the market.

Question 17

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

The observation of competence is being observed because attending training seminars on new FASB rules demonstrates the management accountant's commitment to maintaining and developing technical knowledge and skills related to their profession.

Question 18

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. It encompasses activities that ensure that the actual outcomes are in line with the planned outcomes. Controlling aids in the identification of deviations from plans and the initiation of corrective measures to bring the outcomes back on track.

Question 19

Altering dates of shipping documents of next January's sales to record them as sales in the current year would be a violation of which standard of ethical conduct for management accountants?
A) competence
B) integrity
C) credibility
D) all of these

Accepted Answer

Altering dates of shipping documents to falsely record future sales in the current year violates the standards of competence (by misrepresenting financial data), integrity (by engaging in dishonest practices), and credibility (by undermining the reliability of financial reports).

Question 20

The standards of ethical conduct for management accountants include
A) competence and performance.
B) integrity and respect for others.
C) confidentiality, confidence, integrity, and observance.
D) competence, confidentiality, integrity, and credibility.

Accepted Answer

The four standards of ethical conduct for management accountants are competence, confidentiality, integrity, and credibility. Choice A includes only two of the four standards, while choice B includes only two of the four but also includes an additional standard of respect for others. Choice C includes four standards, but "confidence" appears to be a duplicate of "confidentiality," and there is no standard of "observance." Therefore, D is the best choice as it includes all four of the correct ethical standards.

Quiz 1: Introduction to Cost Management

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

The planning process includes

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?

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

In a performance report, the

In resolving an ethical conflict, it is inappropriate to discuss the problem with the immediate supervisor because of a violation of which standard of ethical conduct for management accountants?

Which of the following have been found to be TRUE?

Principles of personal ethical behavior include

Continuous improvement is

The acceptance of a savings bond from a supplier would be a violation of which standard of ethical conduct for management accountants?

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

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

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

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?

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

The monitoring of a plan's implementation is called

Altering dates of shipping documents of next January's sales to record them as sales in the current year would be a violation of which standard of ethical conduct for management accountants?

The standards of ethical conduct for management accountants include