Question 1

The value chain is a key component of contemporary management accounting. Required: Deﬁne the term "value chain" and explain how it would relate to an airline.

Accepted Answer

The answer of The value chain is a key component...

Question 2

Nikki and Bart have been tasked by top management with discussing some of the ﬁnancial measures to include in their company's balanced scorecard.Both are aware that measures that can be quantiﬁed will allow for performance measures that are more effectively captured, leading toward actionable corrective accomplishments.Nikki suggests that they include decreased ﬁnancing charges as a result of lowering of the federal interest rate by 1% (a rate at which their company borrows money).Is this a good ﬁnancial goal to include in the balanced scorecard? Explain.

Accepted Answer

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Question 3

Which of the following acts strives to improve corporate governance and the quality of corporate accounting/reporting?
A)Robinson-Patman.
B)Taft-Hartley.
C)Sarbanes-Oxley.
D)Bush-Cheney.
E)Arthur-Andersen.

Accepted Answer

Sarbanes-Oxley was passed in response to scandals such as Enron and WorldCom, and aims to improve corporate governance and the accuracy of financial reporting. Robinson-Patman deals with antitrust laws, Taft-Hartley with labor relations, Bush-Cheney with presidential politics, and Arthur-Andersen was an accounting firm involved in the Enron scandal.

Question 4

Which of the following can be linked to a wave of corporate scandals that took place in recent past?
A)Greedy corporate executives.
B)Managers who made over-reaching business deals.
C)Lack of oversight by companies' audit boards and boards of directors.
D)Shoddy work by external auditors.
E)All of these choices are correct.

Accepted Answer

All of these choices can be linked to the wave of corporate scandals that took place in recent past. Greedy corporate executives took unethical actions for financial gain, managers made over-reaching business deals that were unsustainable, lack of oversight by companies' audit boards and boards of directors allowed these unethical actions to occur, and shoddy work by external auditors failed to detect fraudulent activities.

Question 5

Award: 1.00 point

Accepted Answer

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Question 6

Criticisms leveled at the audit ﬁrm, Arthur Andersen, in its original conviction after the 2001 Enron scandal led Congress to pass:
A)The 2002 Ethical Conﬂicts Act.
B)The Sarbanes-Oxley Act of 2002.
C)The Institute of Management Accountants' Trust and Conﬁdence Act.
D)The Restitution and Penalties Act.
E)The Institute of Management Accountants' Statement of Ethical Professional Practice.

Accepted Answer

The Sarbanes-Oxley Act of 2002 was passed by Congress in response to the criticisms leveled at Arthur Andersen and other audit firms after the Enron scandal. The act aimed to improve corporate accountability and prevent fraudulent accounting practices, among other things.

Question 7

When ethical lapses such as the 2015 incident with Volkswagen happen, what is lost?
A)trust of society.
B)conﬁdence of shareholders, employees, suppliers, and customers.
C)market valuation.
D)reputation of the ethically challenged company.
E)All of these choices are correct.

Accepted Answer

When ethical lapses such as the 2015 incident with Volkswagen happen, all of the choices listed are lost. Trust of society is lost as the public becomes wary of the company and their practices. The confidence of shareholders, employees, suppliers, and customers is lost as they question the company's values and leadership. Market valuation can be negatively impacted as customers and investors may choose to avoid the company's products and stock. The reputation of the ethically challenged company is damaged, which can have long-term effects on the company's standing in the industry and its ability to attract and retain talent.

Question 8

Consider the descriptors that follow. 1.Is heavily involved with the recordkeeping and reporting of assets, liabilities, and stockholders' equity. 2.Focuses on planning, decision making, directing, and control. 3.Is heavily regulated. 4.A ﬁeld that is becoming more "cross-functional" in nature. 5.Much of the ﬁeld is based on costs and beneﬁts. 6.Is involved almost exclusively with past transactions and events. 7.Much of the information provided is directed toward stockholders, ﬁnancial analysts, creditors, and other external parties. 8.Tends to focus more on subunits within an entity rather than the organization as a whole. 9.May become involved with measures of customer satisfaction, and the amount of actual cost incurred vs.budgeted targets. Required: Determine whether the descriptors are most closely associated with ﬁnancial accounting or managerial accounting.

Accepted Answer

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Question 9

State Hospital was once the premier health facility in the Yesville community.Unfortunately, budget cuts and the loss of strategic personnel due to non-competitive salaries have taken a toll on the hospital.The hospital decided to align current strategic goals using the Balanced Scorecard approach.These goals are: Financial: Balance revenue and Cost to break-even, leading to proﬁt. Customer: Create new value for customer. Internal process: Ensure service quality and expand service networks. Learning and growth: Work toward more employees becoming leaders. Based on these goals, the hospital developed Objectives for the new balanced scorecard as follows: Financial Perspectives: Enhance operational excellence and cost management. Customer Perspectives: Investigate customer needs. Internal Process Perspectives: Enhance the combined professional service quality. Learning and Growth Perspectives: (1) Enhance employee satisfaction; and (2) Slow down the expansion of operating activity. Required: Given these objectives, list at least (5) measurements for each perspective.

Accepted Answer

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Question 10

Many professions have adopted a series of ethical standards to provide guidance for their memberships.The Institute of Management Accountants (IMA), for example, has published standards that focus on competence, conﬁdentiality, integrity, and credibility.In light of these standards, consider the three cases that follow. Case A-Leston Corporation has experienced serious ﬁnancial diﬃculties in recent years.John Young, the company's chief ﬁnancial oﬃcer, has just learned that a major competitor was likely to ﬁle for bankruptcy; however, he failed to disclose this information at a board meeting held later that day when a plant closure decision was being discussed.The board evaluated several proposals during the session that focused on improving Leston's ﬁnancial position. Case B-QBX Company manufactures fertilizer from various raw materials, including a raw material know as Felstar.Paul Kelly, the ﬁrm's purchasing manager, purposely acquired a lower grade of Felstar than normal because of a very attractive price.The lower-grade product resulted in increased usage during the manufacturing process but had no effect on the fertilizer's overall quality.An end-of-period report showed that QBX proﬁted from Kelly's actions, with the overall savings in purchase price more than offsetting the cost of added consumption. Case C-Central Distributing has a participative budgeting process, allowing employees to have a say in projected sales targets for the upcoming period.These targets are reﬂected in a series of performance reports that compare actual sales achieved against targeted amounts.Hillary Baxter submitted very low sales targets because, as she conﬁded in a colleague, "I always want to look good in terms of meeting targets, even if anticipated sales and closures don't materialize." Required: Evaluate the three cases and determine the ethical issues, if any, which are involved.Cite the IMA's standards if appropriate.

Accepted Answer

The answer of Many professions have adopted a series of...

Question 11

Unused or excess capacity is a key component of contemporary management accounting. Required: Deﬁne the term "excess capacity" and explain how it would relate to a coffee shop.

Accepted Answer

The answer of Unused or excess capacity is a key...

Question 12

Assume that a managerial accountant regularly communicates with business associates to avoid conﬂicts of interest and advises relevant parties of potential conﬂicts.In so doing, the accountant will have applied the ethical standard of:
A)objectivity.
B)conﬁdentiality.
C)integrity.
D)credibility.
E)uniﬁed behavior.

Accepted Answer

The ethical standard of integrity involves avoiding conflicts of interest and advising relevant parties of potential conflicts, which aligns with the actions described.

Question 13

The largest professional association for management accountants in the U.S.is:
A)The American Institute of Certiﬁed Public Accountants.
B)The Institute of Management Accountants (IMA).
C)The Chartered Institute of Management Accountants.
D)The Financial Executives International (FEI).
E)The Association for Chartered Global Management Accountants.

Accepted Answer

The Institute of Management Accountants (IMA) is the largest professional association for management accountants in the U.S. The American Institute of Certified Public Accountants focuses on public accounting services, while the Chartered Institute of Management Accountants and Association for Chartered Global Management Accountants are primarily based in the United Kingdom. Financial Executives International is a professional association for finance executives, but not specifically for management accountants.

Question 14

The primary design of the CPA designation is to:
A)focus on practices in accounting and ﬁnance within the company.
B)to ensure competence of managerial accountants throughout Europe.
C)to ensure higher wages for accountants within companies.
D)to increase membership by academics and senior ﬁnancial executives.
E)assure the competence of those working outside companies and the reliability of public

Accepted Answer

The CPA designation is primarily designed to ensure the competence of those working outside companies, such as public accountants, and to assure the reliability of public financial statements. This helps to maintain the integrity of the profession and protect the public interest. Options A, B, C, and D are incorrect as they do not accurately reflect the primary purpose of the CPA designation.

Question 15

The following are activities for State Hospital. Required: Classify each as a value-added (V) or nonvalue-added (N) and give an explanation why you answered the way you did.

Accepted Answer

The answer of The following are activities for State Hospital....

Question 16

Which of the following is not an ethical standard of managerial accounting?
A)Competence.
B)Conﬁdentiality.
C)Eﬃciency.
D)Integrity.
E)Credibility.

Accepted Answer

Efficiency is not an ethical standard of managerial accounting. The five ethical standards of managerial accounting are competence, confidentiality, integrity, credibility, and objectivity. Efficiency is a goal that is important for managerial accounting but it is not an ethical standard.

Question 17

Brieﬂy distinguish between managerial accounting and ﬁnancial accounting.Be sure to comment on the general focus, users, and regulation related to the two ﬁelds.

Accepted Answer

The answer of Brieﬂy distinguish between managerial accounting and ﬁnancial...

Question 18

Give examples of each of the four primary management activities in the context of a national pizza franchise.

Accepted Answer

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Question 19

Which of the following is not an element of competency?
A)To develop appropriate knowledge about a particular subject.
B)To perform duties in accordance with relevant laws.
C)To perform duties in accordance with relevant technical standards.
D)To refrain from engaging in an activity that would discredit the accounting profession.
E)To prepare clear reports after an analysis of relevant and reliable information.

Accepted Answer

Refraining from engaging in an activity that would discredit the accounting profession is more of a professional obligation rather than a competency. Competencies refer to specific skills, knowledge, and abilities that enable one to perform a job effectively.

Question 20

Nikki and Bart have been tasked by top management with assembling measures to include in their company's balanced scorecard.The two compiled more than 100 metrics during a brainstorming session.As they now begin to discuss the list and eliminate some, their question is: What is the ideal number of goals for each of the four balanced scorecard perspectives? Discuss.

Accepted Answer

The answer of Nikki and Bart have been tasked by...

Quiz 1: The Changing Role of Managerial Accounting in a Dynamic Business Environment

The value chain is a key component of contemporary management accounting. Required: Deﬁne the term "value chain" and explain how it would relate to an airline.

Which of the following acts strives to improve corporate governance and the quality of corporate accounting/reporting?

Which of the following can be linked to a wave of corporate scandals that took place in recent past?

Award: 1.00 point

Criticisms leveled at the audit ﬁrm, Arthur Andersen, in its original conviction after the 2001 Enron scandal led Congress to pass:

When ethical lapses such as the 2015 incident with Volkswagen happen, what is lost?

Unused or excess capacity is a key component of contemporary management accounting. Required: Deﬁne the term "excess capacity" and explain how it would relate to a coffee shop.

Assume that a managerial accountant regularly communicates with business associates to avoid conﬂicts of interest and advises relevant parties of potential conﬂicts.In so doing, the accountant will have applied the ethical standard of:

The largest professional association for management accountants in the U.S.is:

The primary design of the CPA designation is to:

The following are activities for State Hospital. Required: Classify each as a value-added (V) or nonvalue-added (N) and give an explanation why you answered the way you did.

Which of the following is not an ethical standard of managerial accounting?

Brieﬂy distinguish between managerial accounting and ﬁnancial accounting.Be sure to comment on the general focus, users, and regulation related to the two ﬁelds.

Give examples of each of the four primary management activities in the context of a national pizza franchise.

Which of the following is not an element of competency?