ACC 350 Week 5 Mid-Term Exam Quiz – Strayer
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Chapters 1 Through 4
Chapter 1
The Accountant's Role in the
Organization
1)
Management accounting information focuses on external reporting.
2) Cost
management is narrowly focused on a continuous reduction of costs.
3)
Managers always require the information in an accounting system to be presented
in the same format.
4)
Modern cost accounting plays a significant role in management decision
making.
5) The
balance sheet, income statement, and statement of cash flows are used for
financial accounting, but not for management accounting.
6)
Financial accounting is broader in scope than management accounting.
7) Cost
accounting measures and reports short-term, long-term, financial, and
nonfinancial information.
8) Cost
management provides information that helps increase value for customers.
9)
Management accounting has to strictly follow the rules of generally accepted
accounting principles for the purposes
of measurement and reporting.
10) An
ideal database should consist of data that could be used for a single purpose
only.
11) An Enterprise
Resource Planning (ERP) System is a single database that collects data and
feeds into applications that support each of the company's business activities,
such as purchases, production, distribution, and sales.
12) Cost
accounting provides information only for management accounting purposes.
13) Cost
management involves long-term and short-term decisions that attempt to increase
value for customers and lower costs of products or services.
14)
Strategy does NOT specify how an organization matches its capabilities with the
opportunities in the marketplace.
15) All
strategies should be evaluated regarding the resources and capabilities of the
company.
16) The
best-designed strategies are valuable whether or not they are effectively implemented.
17) The
key to a company's success is creating value for customers while
differentiating itself from its competitors.
18) The
key to a company's success is always to be the low cost producer in a
particular industry.
19)
Companies generally follow one of two basic strategies: 1) providing a quality
product or service at low prices, or 2) offering a unique product or service
often priced higher than competing products.
20)
Management accountants should have little or no role in deciding on a company's
strategy.
21)
Companies can decide on an appropriate strategy based strictly on internally
available information.
22)
Strategic cost management describes cost management that specifically focuses
on strategic issues.
23)
Identifying a company's most important customers does not help formulate
strategy.
24) The
best-designed strategies and the best-developed capabilities are useless unless
they are effectively executed.
25) The
supply chain refers to the sequence of business functions in which customer
usefulness is added to products or services.
26) An
effective way to cut costs is to eliminate activities that do not improve the
product attributes that customers value.
27) For
optimal planning success it is best if each business function within the value
chain is performed one at a time in sequence.
28) For
best results, cost management emphasizes independently coordinating supply
chain activities within your company and not interfering with other companies.
29)
Technological innovation has led to shorter product-life cycles and a need to
bring new products to market more rapidly.
30) Key
success factors include cost, quality, timeliness, and innovation.
31)
Customers are demanding increased levels of performance in all aspects of the
value chain and the supply chain.
32) The
value chain describes the flow of goods, services, and information from the
initial sources of materials and services to the delivery of products to
consumers.
33) The
supply chain always occurs within a single organization.
34)
Distribution refers to promoting and selling products or services to customers
or prospective customers.
35) The
production component of the value chain refers to acquiring, coordinating, and
assembling resources to produce a product or deliver a service.
36)
Management accountants might provide information on decisions on whether to buy
a product from outside or manufacture it in-house.
37) Key
success factors are geared to improving customer satisfaction.
38)
Value chain refers to its value to the employee.
39)
Companies have to follow strict guidelines when designing a management
accounting system.
40)
Tracking what is happening in other companies is illegal.
41)
Increased global competition is placing pressure on companies to reduce
costs.
42) The
increasing pace of technological innovation has resulted in longer product life
cycles.
43) A
bottleneck occurs when the work to be performed exceeds the available
capacity.
44) The
first step in the decision-making process is to obtain information.
45) One
of the steps in planning is making predictions about the future.
46) It
is difficult to control activities without a budget.
47) To
take advantage of changing market opportunities, the annual budget should be
strictly enforced.
48) A
budget is a tool used to plan and express strategy.
49) The
process of preparing a budget forces coordination and communication throughout
the company.
50)
Linking rewards to performance is a major deterrent to good management
performance.
51)
Employees pay little attention to how their performance is measured.
52) A
budget may be used as a planning tool, but not as a control tool.
53)
Financial accounting reports financial and nonfinancial information that helps
managers implement company strategies.
54)
Feedback and learning helps in the future decision-making process.
55)
Control includes deciding what feedback to provide that will help with future
decision making.
56) When
a particular aspect of employee performance is measured, employees pay more
attention to it.
57) A
performance report compares actual performance to the amount budgeted.
58)
Management accounting is playing an increasingly important role by helping
managers develop and implement strategy.
59) It
is generally easy to quantify expected benefits and costs when applying the
cost-benefit approach.
60) The
purpose of a budget is strictly technical. It does NOT influence behavior.
61) A
cost concept used for external reporting purposes may not be appropriate for
internal, routine reporting to managers.
62)
Generally accepted accounting principles (GAAP) require that the same
accounting methods be used for both internal and external reporting.
63) Line
management is directly responsible for attaining the goals of the
organization.
64)
Staff management should NOT provide advice and assistance to line
management.
65) The
use of teams to achieve corporate objectives is increasing.
66) The
controller is usually responsible for banking, short- and long-term financing,
investments, and cash management.
67) The
controller (also called the chief accounting officer) is the financial
executive primarily responsible for both management accounting and financial
accounting.
68) By
reporting and interpreting relevant data, the controller exerts an influence that
impels management toward making informed decisions.
69) The
controller is generally a staff position.
70)
Management accountants must have behavioral and interpersonal skills.
71) The
Sarbanes-Oxley legislation was passed in response to a series of corporate
scandals.
72) The
Sarbanes-Oxley legislation does NOT provide a process for employees to report
violations of illegal and unethical acts.
73)
Management accountants have important ethical responsibilities that are related
to competence, confidentiality, integrity, and credibility.
74) A
managerial accountant should not disclose confidential information to an
outside party (such as a newspaper) unless legally obligated to do so.
75) If a
managerial accountant were not keeping up with current developments in
managerial accounting, that behavior might violate a competence standard of
professional ethical behavior.
76) If a
managerial accountant suspected his or her immediate superior of wrongdoing,
the managerial accountant should request an immediate meeting with the Board of
Directors.
77) The
Institute of Management Accountants provides a hotline to discuss ethical
issues.
78) When
faced with a potential ethical conflict, the managerial accountant should first
consult any internal procedures of that organization.
79) When
confronted with a potential ethical conflict, a managerial accountant should
not contact his or her personal attorney concerning rights and
obligations.
80) Most
professional accounting organizations around the globe do NOT issue statements
about professional ethics.
81)
Management accounting:
A)
focuses on estimating future revenues, costs, and other measures to forecast
activities and their results
B)
provides information about the company as a whole
C)
reports information that has occurred in the past that is verifiable and
reliable
D)
provides information that is generally available only on a quarterly or annual
basis
82)
Managers use management accounting information to ________ strategy.
A)
choose
B)
communicate
C)
implement
D) All
of these answers are correct.
83)
Financial accounting:
A)
focuses on the future and includes activities such as preparing next year's
operating budget
B) must
comply with GAAP (generally accepted accounting principles)
C)
reports include detailed information on the various operating segments of the
business such as product lines or departments
D) is
prepared for the use of department heads and other employees
84) The
person MOST likely to use ONLY financial accounting information is a:
A)
factory shift supervisor
B) vice
president of operations
C)
current shareholder
D)
department manager
85) The
person MOST likely to use management accounting information is a(n):
A)
banker evaluating a credit application
B)
shareholder evaluating a stock investment
C)
governmental taxing authority
D)
assembly department supervisor
86)
Financial
accounting provides the PRIMARY source of information for:
A)
decision
making in the finishing department
B)
improving
customer service
C)
preparing
the income statement for shareholders
D)
planning
next year's operating budget
87)
Which of
the following descriptors refers to management accounting information?
A)
It is
verifiable and reliable.
B)
It is
driven by rules.
C)
It is
prepared for shareholders.
D)
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