Deck 1: Introduction to Managerial Accounting

Question 1

What is the primary objective of management accounting?

A) to provide stockholders and potential investors with useful information for decision making
B) to provide banks and other creditors with information useful in making credit decisions
C) to provide management with information useful for planning and control of operations
D) to provide the Canada Revenue Agency with information about taxable income

Answer 1

C

Question 2

Which of the following is an objective of management accounting?

A) to prepare external reports for investors,creditors,government agencies,and other outside users
B) to provide information for the costing of services,products,and other objects of interest to management
C) to provide tax information for planning,controlling,evaluating,and continuous improvement
D) to provide information for investment decision making

Answer 2

B

Question 3

What is characteristic of management accounting reports?

A) The reports are prepared to meet the needs of decision makers within the firm.
B) The reports are prepared whenever stockholders request them.
C) The reports are prepared according to guidelines prepared by the Ontario Securities Commission (OSC).
D) The reports are prepared according to IFRS.

Answer 3

A

Question 4

What are the establishing objectives to include social and environmental impact called?

A) triple accounting
B) triple bottom line
C) triple cost analysis
D) triple threat

Question 5

What is customer value?

A) the difference between what a customer receives and what the customer gives up when buying a product or service
B) the establishment of a competitive advantage by creating better customer value for the same cost
C) the efficient performance of necessary activities and elimination of activities that do not create customer value
D) the improvement of costing accuracy by emphasizing the activities and tasks that must be performed

Question 6

Which of the following is an example of the management activity referred to as planning?

A) developing a strategy to dispose of hazardous waste
B) deciding to eliminate an unprofitable segment of an organization
C) outsourcing the organization's payroll processing
D) upgrading outdated equipment

Question 7

Investigating production variances and adjusting the production process is an example of which of the following?

A) planning
B) controlling
C) decision making
D) delegating

Question 8

What does the Triple Bottom Line include?

A) measures of revenues generated by the company
B) measures of activities not simply related to increasing profits
C) measures of activities related to the costs incurred by the company
D) measures of activities related to increasing profits

Question 9

Which of the following employees would normally occupy a line position in a hospital?

A) the manager of the cafeteria
B) a hospital administrator
C) the chief of surgery
D) a staff nurse

Question 10

What is the objective of process value analysis?

A) to include measures of activities not simply related to increasing profits
B) to establish competitive advantage by creating better customer value for the same cost
C) to efficiently perform necessary and eliminate activities that do not create customer value
D) to improve costing accuracy by emphasizing the activities and tasks that must be performed

Question 11

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

A) competence,performance,respect for others,and observance
B) integrity,respect for others,performance,and confidence
C) confidence,confidentiality,objectivity,and observance
D) competence,confidentiality,integrity,and objectivity

Question 12

Which of the following is a characteristic of management accounting?

A) It provides objective financial information.
B) It must adhere to mandatory rules.
C) It has no mandatory rules.
D) Its main users are outside of the organization.

Question 13

What is a primary activity in the value chain?

A) procurement
B) marketing and sales
C) human resources management
D) technology development
A pr

Question 14

What activity would not be included in the Triple Bottom Line?

A) measures of the number of volunteer hours by employees
B) measures of the litres of waste water dumping into a river
C) measures of the environmental impact of a pipeline
D) measures of revenues minus expenses generated

Question 15

Which of the following employees would normally occupy a line position?

A) the controller
B) the purchasing manager
C) the treasurer
D) the vice-president of marketing

Question 16

Which of the following employees would normally occupy a staff position?

A) the cost accounting manager
B) an assembly worker
C) the factory manager
D) the vice president of operations

Question 17

Which of the following is a characteristic of financial accounting?

A) It has no regulatory or mandatory rules.
B) It is internally focused.
C) It is concerned with the firm as a whole.
D) It has an emphasis on the future.

Question 18

Which of the following is a characteristic of activity-based costing?

A) It is a traditional costing method.
B) It encourages process-value analysis.
C) It always results in a lower cost assigned to goods or services.
D) It assigns shared costs to jobs.

Question 19

What does total quality management emphasize?

A) 1% defects
B) a lack of improvement
C) the elimination of waste
D) the status quo

Question 20

Developing a company strategy for responding to anticipated new markets is an example of which of the following?

A) delegating
B) controlling
C) decision making
D) planning

Question 21

Managerial accounting is designed primarily for external users.

Question 22

Management accounting information is used only by manufacturing organizations.

Question 23

Positions that have direct responsibility for the basic objectives of an organization are referred to as staff positions.

Question 24

Which of the following activities does the controller of an organization participate in?

A) controlling,planning,and assessing
B) decision making and assessing
C) planning,assessing,and decision making
D) planning,controlling,and decision making

Question 25

The Triple Bottom Line refers to management putting triple the focus on profits.

Question 26

With which of the following do virtually all managerial accounting practices assist managers?

A) maximizing profits
B) determining costs
C) creating annual reports
D) generating tax reports

Question 27

Which of the following involves choosing actions that are right,proper,and just?

A) balanced costing
B) activity-based costing
C) ethical behaviour
D) cross-functional perspective

Question 28

Customer value is the difference between what a customer receives and what they give up when buying a product or service.

Question 29

Another name for management accounting could be internal accounting.

Question 30

Time is NOT a crucial element in all phases of the value chain.

Question 31

Management accounting information is important for both for-profit and not-for-profit organizations.

Question 32

What is a requirement for accountants who have a CPA,(CA,CMA,or CGA)designation?

A) They are not the only people permitted to serve as external auditors.
B) They must pass a national examination and be licensed by the province or territory in which they practice.
C) They are not held responsible for providing assurance concerning the reliability of a firm's financial statements.
D) They can only work at public accounting firms.

Question 33

Only financial accounting is governed by IASB.

Question 34

The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as decision making.

Question 35

The value chain is the set of activities required to design,develop,produce,market,and deliver products and services to customers.

Question 36

Service organizations have no need for management accounting.

Question 37

Activity-based costing is a more detailed approach to determining the cost of goods and services.

Question 38

What is the name of the newly formed professional accounting body?

A) CA Canada
B) CFA Canada
C) CPA Canada
D) CMA Canada

Question 39

The process of choosing among competing alternatives is decision making.

Question 40

Financial accounting has its emphasis on the future.

Question 41

The belief that each member of a group bears some responsibility for the well-being of other members is a common principle underlying all ethical systems.

Question 42

Virtually all management accounting practices were developed to assist managers in maximizing profits.

Question 43

CMA,CGA and CA organizations have recently have been brought together under a new professional body called CPA Canada.

Question 44

The controller is the Chief Executive Officer of a company.

Question 45

A cost accountant would normally occupy a staff position within an organization.