ACC 350 Week 2 Quiz 1 Chapter 1 – Strayer

ACC 350 Week 2 Quiz – Strayer (All Possible Questions With Answers)

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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)

It provides reasonable and timely estimates.

88)

Which of the following statements refers to management accounting information?
A)

There are no regulations governing the reports.
B)

The reports are generally delayed and historical.
C)

The audience tends to be stockholders, creditors, and tax authorities.
D)

It primarily measures and records business transactions.

89)

Which of the following groups would be LEAST likely to receive detailed management accounting reports?
A)

stockholders
B)

sales representatives
C)

production supervisors
D)

managers

90)

Management accounting information includes:
A)

tabulated results of customer satisfaction surveys
B)

the cost of producing a product
C)

the percentage of units produced that are defective
D)

All of these answers are correct.

91)

Cost accounting:
A)

provides information on the efficiency of factory labor
B)

provides information on the cost of servicing commercial customers
C)

provides information on the performance of an operating division
D)

All of these answers are correct.

92)

Which of the following types of information are used in management accounting?
A)

financial information
B)

nonfinancial information
C)

information focused on the long term
D)

All of these answers are correct.

93)

Modern cost accounting plays a role in:
A)

planning new products
B)

evaluating operational processes
C)

controlling costs
D)

All of these answers are correct.

94)

A data warehouse or infobarn:
A)

is reserved for exclusive use by the CFO
B)

is primarily used for financial reporting purposes
C)

stores information used by different managers for multiple purposes
D)

gathers only nonfinancial information

95)

Cost accounting provides all of the following EXCEPT:
A)

information for management accounting and financial accounting
B)

pricing information from marketing studies
C)

financial information regarding the cost of acquiring resources
D)

nonfinancial information regarding the cost of operational efficiencies

96)

Management accounting includes:
A)

implementing strategies
B)

developing budgets
C)

preparing special studies and forecasts
D)

All of these answers are correct.

97)

Financial accounting is concerned PRIMARILY with:
A)

external reporting to investors, creditors, and government authorities
B)

cost planning and cost controls
C)

profitability analysis
D)

providing information for strategic and tactical decisions

98)

Financial accounting provides a historical perspective, whereas management accounting emphasizes:
A)

the future
B)

past transactions
C)

a current perspective
D)

reports to shareholders

99)

An Enterprise Resource Planning System can best be described as:
A)

a collection of programs that use a variety of unconnected databases
B)

a single database that collects data and feeds it into applications that support each of the company’s business activities, such as purchases, production, distribution, and sales
C)

a database that is primarily used by a purchasing department to determine the correct amount of a particular supply item to purchase
D)

a sophisticated means of linking two or more companies to facilitate their planning processes

100)

The approaches and activities of managers in short-run and long-run planning and control decisions that increase value for customers and lower costs of products and services are known as:
A)

value chain management
B)

enterprise resource planning
C)

cost management
D)

customer value management

101)

Which of the following statements concerning an organization’s strategy is NOT true?
A)

Strategy specifies how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its objectives.
B)

Management accountants provide input to help managers formulate strategy.
C)

A good strategy will always overcome poor implementation.
D)

Businesses usually follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition.

102)

Strategy specifies:
A)

how an organization matches its own capabilities with the opportunities in the marketplace
B)

standard procedures to ensure quality products
C)

incremental changes for improved performance
D)

the demand created for products and services

103)

Which of the following is NOT one of the questions management accountants might attempt to help answer in the formulation of strategy?
A)

Who are our most important customers?
B)

What substitute products exist in the marketplace?
C)

Does the strategy comply with GAAP (Generally Accepted Accounting Principles)?
D)

Will adequate cash be available to implement the strategy?

104)

Strategy is formulated by answering all of the following EXCEPT:
A)

Who are our most important customers?
B)

Is industry demand growing or shrinking?
C)

Will our external auditors certify our strategy?
D)

How sensitive are purchasers to price, quality, and service?

105)

In designing strategy, a company must match the opportunities and threats in the marketplace with:
A)

those of the CFO (Chief Financial Officer)
B)

its resources and capabilities
C)

branding opportunities
D)

capabilities of current suppliers

106)

Which of the following statements about customer value is NOT true?
A)

Customer value is shown in a corporation’s balance sheet.
B)

Creating value for customers is an important part of planning and implementing strategy.
C)

How our product delivers customer value should be determined as part of a company’s strategy formulation.
D)

It is possible to simultaneously lower cost and increase customer value.

107)

Place the four business functions in the order they appear along the value chain:
A = Customer service
B = Design
C = Distribution
D = Production
A)

A B D C
B)

A C D B
C)

B D C A
D)

B A D C

108)

R&D, production, and customer service are business functions that are all included as part of:
A)

the value chain
B)

benchmarking
C)

marketing
D)

the supply chain

109)

The value chain is the sequence of business functions in which:
A)

value is deducted from the products or services of an organization
B)

value is proportionately added to the products or services of an organization
C)

products and services are evaluated with respect to their value to the supply chain
D)

usefulness is added to the products or services of an organization

110)

________ is the generation of, and experimentation with, ideas related to new products, services, or processes.
A)

Research and development
B)

Design of products, services, or processes
C)

Production
D)

Marketing

111)

________ is the detailed planning and engineering of products, services, or processes.
A)

Distribution
B)

Design of products, services, or processes
C)

Production
D)

Marketing

112)

________ is the acquisition, coordination, and assembly of resources to produce a product or deliver a service.
A)

Research and development
B)

Customer service
C)

Production
D)

Marketing

113)

________ is the manner by which companies promote and sell their products or services to customers or perspective customers.
A)

Distribution
B)

Customer service
C)

Research and development
D)

Marketing

114)

________ is the delivery of products or services to customers.
A)

Distribution
B)

Customer service
C)

Production
D)

Design of products, services, or processes

115)

_________ is the after-sale support provided to customers.
A)

Distribution
B)

Customer service
C)

Production
D)

Marketing

116)

________ is a strategy that integrates people and technology in all business functions to enhance relationships with customers, partners, and distributors.
A)

Supply-chain analysis
B)

Customer relationship management
C)

Value-chain analysis
D)

Continuous quality improvement

117)

Customer relationship management initiatives use technology to coordinate all:
A)

production activities
B)

research activities
C)

customer-facing activities
D)

inventory management activities

118)

________ describe(s) the flow of goods, services, and information from the purchase of materials to the delivery of products to consumers, regardless of whether those activities occur in the same organization or with other organizations.
A)

Supply chain
B)

Key success factors
C)

Continuous improvement
D)

Customer focus

119)

________ is an operational factor that directly affects the economic viability of the organization.
A)

Customer focus
B)

A key success factor
C)

Continuous improvement
D)

Supply chain

120)

________ is a philosophy in which management improves operations throughout the value chain to deliver products and services that exceed customer expectations.
A)

Cost-benefit approach
B)

Customer focus
C)

Customer relationship management
D)

Total quality management

121)

Which item is NOT an area that customers want to see improved levels of performance in?
A)

innovation
B)

quality
C)

cost and efficiency
D)

profit

122)

Which of the following statements about a company’s supply chain is true?
A)

A company’s supply chain is always internal to a firm.
B)

A company’s supply chain is always external to a firm.
C)

A company’s supply chain is the same thing as a company’s value chain.
D)

Management accountants provide information to enhance a company’s supply chain.

123)

Strategy should focus PRIMARILY on the organization’s:
A)

shareholders
B)

customers
C)

products
D)

employees

124)

Whose perceptions of the company’s products or services are the most important to the manager?
A)

board of directors’ perception
B)

customers’ perception
C)

president’s perception
D)

stockholders’ perception

125)

To be successful, a company needs to be:
A)

customer driven
B)

“driven” by the board of directors
C)

employee driven
D)

management driven

126)

Customers are demanding improved performance related to:
A)

reduced costs
B)

both reduced costs and increased quality
C)

lower costs, improved quality, and improved customer service
D)

All of these answers are correct.

127)

Customer response time involves:
A)

the speed it takes a customer to respond to an advertisement and place an order
B)

the speed at which an organization responds to customer requests
C)

the speed it takes to develop a new product
D)

the speed it takes an organization to develop a Total Quality Management (TQM) program

128)

Which of the following is NOT a way for a company to improve customer response time?
A)

Increase capacity of bottleneck operations.
B)

Purchase material in larger quantities.
C)

Use faster delivery procedures.
D)

Produce the product more quickly.

129)

Place the five steps in the decision-making process in the correct order:
A = Obtain information
B = Make decisions by choosing among alternatives
C = Identify the problem and uncertainties
D = Implement the decision
E = Make predictions about the future
A)

D B E A C
B)

E D A B C
C)

C A E B D
D)

A E B D C

130)

Planning consists of all of these areas EXCEPT:
A)

selecting organizational goals
B)

deciding how to attain the desired goals
C)

evaluating performance
D)

predicting results under various alternatives

131)

The most important planning tool is a ________.
A)

performance evaluation report
B)

balanced scorecard
C)

goal
D)

budget

132)

A report showing the actual financial results for a period compared to the budgeted financial results for that same period would most likely be called a:
A)

strategic plan
B)

management forecast
C)

performance report
D)

revised plan

133)

The process of preparing a budget:
A)

forces coordination and communication across business functions
B)

increases accounting efficiencies
C)

reduces overcapacity
D)

promotes production automation

134)

Control includes:
A)

implementing planning decisions
B)

evaluating performance
C)

providing feedback to help with future decision making
D)

All of these answers are correct.

135)

A budget:
A)

is a quantitative expression of a proposed management plan
B)

helps translate strategy into actions
C)

aids in the coordination and communication among various business functions
D)

All of these answers are correct.

136)

A budget can serve as:
A)

a planning tool
B)

a control tool
C)

a basis for preparing financial statements
D)

a planning and control tool

137)

Employees ________ how their performance is measured.
A)

pay close attention to
B)

pay no attention to
C)

rarely know
D)

Both B and C are correct.

138)

Linking rewards to performance:
A)

helps to motivate managers
B)

allows companies to charge premium prices
C)

should only be based on financial information
D)

All of these answers are correct.

139)

Control measures should:
A)

be set and not changed until the next budget cycle
B)

be flexible to allow for employees who are slackers
C)

be kept confidential from employees so that competitors don’t have an opportunity to gain a competitive advantage
D)

be linked by feedback to planning

140)

A well-conceived plan allows managers the ability to:
A)

not make decisions again until the next planning session
B)

keep lower-level managers from implementing change
C)

underestimate costs so that actual operating results will be favorable when comparisons are made
D)

take advantage of unforeseen opportunities

141)

Which of the following statements concerning performance reports is NOT correct?
A)

The performance report shows actual performance as compared to the budget.
B)

The performance report is a feedback tool.
C)

The performance report often leads to more investigations and action.
D)

The performance report contains no actual results due to confidentiality.

142)

Management accounting is considered successful when it:
A)

helps creditors evaluate the company’s performance
B)

helps managers improve their decisions
C)

is accurate
D)

is relevant and reported annually

143)

Which item is NOT a guideline used by management accountants to assist in strategic and operational decision making?
A)

cost-benefit approach
B)

behavioral and technical considerations
C)

different costs for different purposes
D)

balanced scorecard

144)

The scenario that resources should be spent if the expected benefits to the company exceed the expected costs describes:
A)

cost-benefit approach
B)

behavioral and technical considerations
C)

balanced scorecard
D)

different costs for different purposes

145)

The act of simply measuring and reporting information:
A)

focuses the attention of employees on those processes
B)

diverts employee’s attention to other activities
C)

disproves the saying “What gets measured gets managed.”
D)

has no effect on employee behavior

146)

Which statement is FALSE?
A)

“What gets measured gets managed.”
B)

People react to measurements.
C)

Employees spend more attention on those variables that are not getting measured.
D)

“If I can’t measure it, I can’t manage it.”

147)

The PRIMARY criterion when faced with a resource allocation decision is:
A)

cost minimization
B)

reduction in the amount of time required to perform a particular job
C)

achievement of organizational goals
D)

how well the alternative options help achieve organizational goals in relation to the costs incurred for these systems

148)

Which of the following statements about the cost-benefit approach is TRUE?
A)

Resources should be spent if they are expected to better attain company goals in relation to the expected costs of these resources.
B)

In a cost-benefit analysis, both costs and benefits are easy to obtain.
C)

Resources should be spent if the costs of a decision outweigh the benefits of the decision.
D)

A cost-benefit approach would not be appropriate for a decision to install a budget system or not.

149)

The person(s) directly responsible for attaining of organizational objectives is/are:
A)

the treasurer
B)

line management
C)

the controller
D)

the chief financial officer

150)

The person(s) responsible for providing advice and assistance to line managers is/are:
A)

the controller
B)

the chief financial officer
C)

staff management
D)

the treasurer

151)

As teamwork has become more prominent in the last few years, differences between staff and line management:
A)

have increased
B)

have become more important relative to promotions
C)

have diminished
D)

have only been evident in the employee reward system

152)

The Institute of Management Accountants (IMA):
A)

is a professional organization of management accountants
B)

is a professional organization of financial accountants
C)

is a professional subsidiary of the Financial Accounting Standards Board (FASB)
D)

issues standards for financial accounting

153)

Line management includes:
A)

manufacturing managers
B)

human-resource managers
C)

information-technology managers
D)

management-accounting managers

154)

Staff management includes:
A)

manufacturing managers
B)

human-resource managers
C)

purchasing managers
D)

distribution managers

155)

Responsibilities of a CFO include all of the following EXCEPT:
A)

providing financial reports to shareholders
B)

managing short-term and long-term financing
C)

investing in new equipment
D)

preparing federal, state, and international tax returns

156)

The ________ is primarily responsible for management accounting and financial accounting.
A)

COO (Chief Operating Officer)
B)

CIO (Chief Information Officer)
C)

treasurer
D)

controller

157)

All of the following report to the CFO EXCEPT the:
A)

controller
B)

tax department manager
C)

production manager
D)

treasurer

158)

Examples of the controller’s functions include all EXCEPT:
A)

operations administration
B)

budgeting
C)

investor relations
D)

general ledger

159)

Management accounting is an integral part of the ________ function in an organization.
A)

treasurer’s
B)

controller’s
C)

internal audit
D)

president’s

160)

Which of the following issues is NOT addressed by the Sarbanes-Oxley legislation?
A)

improving internal control
B)

corporate governance
C)

disclosure practices of public corporations
D)

disclosure practices of private companies

161)

The Standards of Ethical Conduct for management accountants include concepts related to:
A)

competence, performance, integrity, and reporting
B)

competence, confidentiality, integrity, and credibility
C)

experience, integrity, reporting, and objectivity
D)

None of these answers are correct.

162)

Which item is NOT an indication of competence under the Standards of Ethical Conduct?
A)

Maintain an appropriate level of professional expertise by continually developing knowledge and skills.
B)

Keep information confidential except when disclosure is authorized or legally required.
C)

Perform professional duties in accordance with relevant laws, regulations, and technical standards.
D)

Provide decision support information and recommendations that are accurate, clear, concise, and timely.

163)

Which item is NOT an indication of confidentiality under the Standards of Ethical Conduct?
A)

Keep information confidential except when disclosure is authorized or legally required.
B)

Inform all relevant parties regarding appropriate use of confidential information.
C)

Refrain from using confidential information for unethical or illegal advantage.
D)

All of the above indicate confidentiality.

164)

Which item is an indication of integrity under the Standards of Ethical Conduct?
A)

Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
B)

Communicate information fairly and objectively.
C)

Keep information confidential except when disclosure is authorized or legally required.
D)

Recognize and communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity.

165)

Which item is an indication of credibility under the Standards of Ethical Conduct?
A)

Maintain an appropriate level of professional expertise by continually developing knowledge and skills.
B)

Refrain from using confidential information for unethical or illegal advantage.
C)

Abstain from engaging in or supporting any activity that might discredit the profession.
D)

Disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.

166)

Ethical challenges for management accountants include:
A)

whether to accept gifts from suppliers, knowing it is an effort to indirectly influence decisions
B)

whether to report unfavorable department information that may result in unfavorable consequences for a friend
C)

whether to file a tax return this year
D)

Both A and B are correct.

167)

Which of the following actions should a management accountant take first in confronting a potential ethical conflict concerning your direct supervisor?
A)

Inform the Board of Directors of the existence of a potential conflict.
B)

Confront the supervisor directly.
C)

Discuss the situation with your supervisor’s direct supervisor.
D)

Review your organization’s procedures concerning resolution of such a conflict.

168)

If there is an ethical conflict concerning your direct supervisor, you may contact all of the following groups EXCEPT:
A)

local media
B)

audit committee
C)

executive committee
D)

board of directors

169)

If there is an ethical conflict concerning your direct supervisor, when is it appropriate to contact authorities or individuals not employed by the organization?
A)

when there is a personal conflict
B)

when your supervisor is about to receive a bonus
C)

when there is a clear violation of the law
D)

when you are about to be terminated

170)

For each report listed below, identify whether the major purpose of the report is for (1) routine internal reporting, (2) nonroutine internal reporting, or for (3) external reporting to investors and other outside parties.

Item:
a. study detailing sale information of the top-ten selling products
b. weekly report of total sales generated by each store in the metropolitan area
c. annual Report sent to shareholders
d. monthly report comparing budgeted sales by store to actual sales

171)

Which questions do management accountants help answer in the strategy formulation process?

172)

Classify each cost item into one of the business functions of the value chain, either (1) R&D, (2) design, (3) production, (4) marketing, (5) distribution, or (6) customer service.

Item:
a. cost of samples mailed to promote sales of a new product
b. labor cost of workers in the manufacturing plant
c. bonus paid to a person with a 90% satisfaction rating in handling customers with complaints
d. transportation costs for shipping products to retail outlets

173)

Classify each cost item of Ripon Printers into one of the business functions of the value chain, either (1) R&D, (2) design, (3) production, (4) marketing, (5) distribution, or (6) customer service.

Item:
a. cost of customer order forms
b. cost of paper used in manufacture of books
c. cost of paper used in packing cartons to ship books
d. cost of paper used in display at national trade show
e. depreciation of trucks used to transport books to college bookstores
f. cost of the wood used to manufacture paper
g. salary of the scientists attempting to find another source of printing ink
h. cost of defining the book size so that a standard-sized box is filled to capacity

174)

In order, list the five steps in the decision-making process.

175)

For each type of report listed below, identify one planning decision and one controlling decision for which the information would be helpful. Assume you are a Walgreen Company store.

Item:
a. annual financial statements for the past three years
b. report detailing sales by department by each hour of the day for the past week
c. special study regarding increased road traffic due to the construction of a new shopping mall at a near-by intersection

176)

List the four standards of ethical conduct for management accountants. For each standard, give an example that demonstrates compliance with that standard.

177)

Describe management accounting and financial accounting.

178)

Is financial accounting or management accounting more useful to an operations manager? Why?

179)

Is it possible to have an active cost management program without an Enterprise Resource Planning (ERP) System?

180)

What competitive advantage could a company obtain from a successful cost management program?

181)

What is strategy? Briefly describe the two broad types of strategies that companies may choose to pursue.

182)

Briefly describe how managers make use of management accounting information.

183)

Generally, companies follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition. Assume you are opening a small food outlet across the street from your campus. How might that business be operated under each of the two broad strategies? Consider the following specific operational areas:

a. target customers
b. products offered
c. product pricing
d. location choice
e. advertising content
f. advertising media

184)

Generally, companies follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition. Is it possible to follow a strategy that is “in the middle”?

185)

Describe the value chain and how it can help organizations become more effective.

186)

In most organizations, customer satisfaction is one of the top priorities. As such, attention to customers is necessary for success. Briefly describe the four types of demands customers are currently placing on organizational performance.

187)

Briefly explain the planning and control activities in management accounting. How are these two activities linked to each other?

188)

Explain how a budget can help management implement strategy.

189)

Explain how a customer focus can result in increased profits for a company.

190)

Complete a performance report for the month of May, 2007, for the Daily Bulletin, a regional newspaper showing four columns: 1) Actual Result; 2) Budgeted Amount; 3) Difference: Actual Result minus Budgeted Amount; 4) Difference as a Percentage of Budgeted Amount, given the following data:

Advertising pages sold 900
Budgeted advertising pages 910
Advertising revenue $4,368,000
Budget advertising revenue $4,410,000

Does the report indicate any cause for managerial investigation?

191)

Discuss the cost-benefit approach guideline management accountants use to provide value in strategic decision making.

192)

Discuss the potential behavior implications of performance evaluation.

193)

What areas of responsibility does a chief financial officer have in a typical organization?

194)

How does a controller help “control” a company?

195)

You have been employed as an entry-level management accountant for a little under a year. You suspect that your immediate supervisor is involved in a significant fraud involving diverting of company assets to personal use. Briefly describe the steps you might take to resolve this dilemma.