Deck 1: Overview of Managerial Accounting

Question 1

Managerial Accounting provides information relevant to making decisions about the future performance of a company.

Answer 1

True

Question 2

Management Accountants are required to report financial results in accordance with legally set guidelines.

Answer 2

False

Question 3

Managerial Accounting utilizes both financial and non-financial data of a company.

Answer 3

True

Question 4

In order to be considered a merchandising firm, a company must have a physical "brick-and-mortar"
store location.

Question 5

Of the various types of firms, accounting for the operations of a manufacturing firm is typically the most complex.

Question 6

A service firm is one that takes materials and converts them into a sellable product.

Question 7

Many firms have typically used a "just-in-case"
inventory system by carrying "safety stock"
as a buffer against unforeseen delays.

Question 8

Lean manufacturing is designed to minimize the amount of time it takes for a product to flow through the production process.

Question 9

Because information is now so readily accessible to everyone, companies are starting to focus more on the profit margin of each product, and less on the purchasing behavior of individual customers, regardless of how much a person might spend on other products.

Question 10

Companies use "Big Data"
to regularly track customer behavior in order to anticipate and better meet customers' needs.

Question 11

Fezzari's number of employees varies with the level of customer demand.

Question 12

In order to maximize efficiency, Fezzari builds standardized bikes with little or no customization.

Question 13

EBC is relatively new to their industry and does not have a strong customer base.

Question 14

Accountants have a very normal schedule, and typically work 40 hours/week or less.

Question 15

A managerial accountant may be involved in aspects of the business such as manufacturing planning, change implementation, strategy, customer analysis, and others.

Question 16

Every new accounting graduate must begin their career working at one of the "Big 4"
accounting firms.

Question 17

The CPA is the most widely recognized professional certification for accountants in the United States.

Question 18

The CMA does not indicate a level of true professional achievement.

Question 19

The Institute of Management Accountants (IMA) administers the CMA exam.

Question 20

Management Accountants provide information that is:

A) Timely
B) Relevant
C) Useful for making decisions
D) Easily accessible to management
E) All of the above

Question 21

Managerial Accounting provides information which is primarily useful for:

A) Helping managers plan, manage, and make strategic decisions regarding the growth and profitability of the company
B) Helping banks know whether to loan money to a company
C) Setting a company's stock price on the stock exchanges
D) Determining how much a company owes to the IRS in taxes

Question 22

Which of the following is not a source of information used by Management Accountants?

A) Upper management
B) Line employees
C) Financial results of the company's operations
D) All of these are sources of managerial accounting information

Question 23

Which of the following is an example of a manufacturing firm?

A) Walmart
B) Caleb's Carpet Cleaning Company
C) Starbucks
D) General Motors

Question 24

Which of the following types of firms normally carry inventory?

A) Service firms
B) Manufacturing firms
C) Merchandising firms
D) All of the above
E) B and C only

Question 25

All of the following are examples of a service firms except:

A) Online retailers
B) Professional taxi services
C) Public accounting firms
D) Lawn care companies

Question 26

All of the following are benefits of outsourcing except:

A) Ability to provide services from anywhere in the world
B) Companies can focus more efforts on core business activities
C) Significantly faster service and higher quality of products and services
D) Not having to worry about under-utilized, undertrained staff

Question 27

Which of the following utilizes multiple automated machines and manufacturing cells to produce a product from start to finish?

A) Robotics-controlled automated manufacturing
B) Full-production automation
C) Stand-alone automation
D) Flexible-manufacturing system automation

Question 28

Just-in-time (JIT) inventory systems are designed to reduce which of the following:

A) Costs of carrying inventory
B) Possibility of delayed shipments
C) Threat of lost sales due to unexpected demand
D) All of the above

Question 29

Which of the following is not part of Fezzari's assembly and shipping process?

A) A test ride by one of the technicians
B) Checking all of the screws and tuning
C) Checking the packaging
D) A test ride by the customer

Question 30

What type of firm is EBC?

A) Service firm
B) Merchandising firm
C) Manufacturing firm
D) Two of the above
E) None of the above

Question 31

EBC specializes in consulting all of the following organizations except:

A) County governments
B) City governments
C) Special districts
D) State governments

Question 32

How does Fezzari generally market its products to its customers?

A) Selling directly to customers through web-based orders
B) Manufacturing and selling bike components to other bike manufacturers
C) As a wholesaler supplying local bike shops
D) As a wholesaler supplying large mass merchandisers

Question 33

Of those who begin their careers in public accounting, on average, what percentage will leave to take positions in corporations or other organizations?

A) 25%
B) 90%
C) 75%
D) 50%

Question 34

Which of the following is not a role that can be filled by someone with an accounting degree?

A) Treasurer
B) Internal auditor
C) Budget analyst
D) Chief Financial Officer
E) All of the above are roles that are filled by accountants.

Question 35

Which of the following statements is true?

A) All recent college graduates are required to work for one of the "Big 4" accounting firms for at least a few years.
B) Most accountants that start their careers in public accounting stay there for many years.
C) Audit or tax experience is often required in order to be licensed as a CPA.
D) There are not many accounting jobs in fields such as academia or government.

Question 36

Which of the following organizations administers the CPA exam?

A) The Institute of Management Accountants (IMA)
B) The Internal Revenue Service (IRS)
C) The Federal Accounting Standards Board (FASB)
D) The Securities and Exchange Commission (SEC)
E) The American Institute of Certified Public Accountants (AICPA)

Question 37

Which of the following is not a proficiency indicated by the CMA designation?

A) Tax preparation
B) Financial planning
C) Professional ethics
D) Decision support

Question 38

Which of the following are professional certifications that can be earned based on specific skill sets or experience?

A) Certified Fraud Examiner
B) Certified Internal Auditor
C) Enrolled Agent
D) Certified Management Accountant
E) All of the above

Question 39

What is the primary purpose of managerial accounting?

Question 40

What is the primary purpose of financial accounting?

Question 41

What kinds of information are collected and used for managerial accounting?

Question 42

What is a manufacturing firm?

Question 43

What is a service firm?

Question 44

Which type of firm tends to be considered the most reputable?

Question 45

What is a "just-in-time" inventory system?

Question 46

How does "stand-alone" automation differ from "flexible-manufacturing-system" automation?

Question 47

What type of firm is Fezzari?

Question 48

What is the main source of Fezzari's sales?

Question 49

What type of firm is EBC?

Question 50

Who are EBC's primary customers?

Question 51

Why do accountants frequently work more than 40 hours per week?

Question 52

What are some of the industries that provide career opportunities for accountants?

Question 53

What kind of work experience is often required to be licensed as a CPA?

Question 54

What types of businesses typically require the skills of an accountant to run effectively?

Question 55

What is the AICPA?

Question 56

What are the requirements to license as a CPA?

Question 57

What types of skills are indicated by the CMA designation?

Question 58

What is are the requirements to hold the designation of CMA?