Question 1

A budget ________.

Accepted Answer

A)  is a quantitative expression of a plan of action
B)  provides feedback by comparing actual results with planned results
C)  includes deviations from planned results
D)  ignores areas that are presumed to be running smoothly

Question 2

During the product development stage of the product life cycle,companies typically experience ________.

Accepted Answer

A)  revenues and no costs
B)  costs and no revenues
C)  both costs and revenues
D)  neither costs nor revenues

Question 3

Which of the following is NOT a government regulation that influences accounting systems?

Accepted Answer

A)  Sarbanes-Oxley Act
B)  Foreign Corrupt Practices Act
C)  tax rules promulgated by the Internal Revenue Service
D)  International Financial Reporting Standards

Question 4

Explain a Certified Management Accountant's ethical responsibilities.

Accepted Answer

A CMA must follow the code of conduct pr...

Question 5

The Institute of Management Accountants has adopted a set of standards for ethical conduct which includes ________.

Accepted Answer

A)  competence,integrity,confidentiality and objectivity
B)  competence,confidentiality,credibility and objectivity
C)  competence,confidentiality,credibility and integrity
D)  competence,integrity,morality and confidentiality

Question 6

Which of the following items should be considered by managers when designing accounting systems?

Accepted Answer

A)  cost-benefit balances
B)  behavioral implications
C)  cost-benefit balances and behavioral implications
D)  none of the above

Question 7

The cost-benefit balance is the primary consideration in choosing among accounting systems and methods.

Accepted Answer

A) True 
 B)False

Question 8

The Certified Management Accountant (CMA)designation refers to independent auditors.

Accepted Answer

A) True 
 B)False

Question 9

When comparing management accounting and financial accounting,which of the following statements is FALSE?

Accepted Answer

A)  Management accounting has a future orientation whereas financial accounting has a past orientation.
B)  Management accounting prepares detailed reports whereas financial accounting prepares summary reports.
C)  Management accountants are constrained by the principles of reporting promulgated by the Institute of Management Accountants whereas financial accountants are constrained by Generally Accepted Accounting Principles.
D)  Behavioral considerations are of primary importance in management accounting,but not in financial accounting.

Question 10

The controller is primarily concerned with a company's financial matters and the treasurer is concerned with a company's operating matters.

Accepted Answer

A) True 
 B)False

Question 11

The majority of accountants work for government entities and nonprofit firms.

Accepted Answer

A) True 
 B)False

Question 12

The detailed design and engineering of products,services or processes is called the ________ function in the value chain.

Accepted Answer

A)  research and development
B)  design of products,services or processes
C)  engineering of products,services or processes
D)  production

Question 13

Performance reports ________.

Accepted Answer

A)  are quantitative expressions of plans for action
B)  provide feedback by comparing actual results with planned results
C)  ignore areas that are presumed to be running smoothly
D)  provide information to enable managers to select a value chain function to emphasize

Question 14

Key Bank held a party.Key Bank expected attendance of 100 people and prepared the following budget:  One hundred people attended the party.The following costs were incurred:
 What is the variance for the cost of food?

Accepted Answer

A)  $215 Unfavorable
B)  $240 Favorable
C)  $215 Favorable
D)  $240 Unfavorable

Question 15

The IMA's ethical standard for integrity includes all of the following EXCEPT ________.

Accepted Answer

A)  each member has a responsibility to mitigate actual conflicts of interest
B)  each member has a responsibility to refrain from engaging in any conduct that would prejudice carrying out duties ethically
C)  each member has a responsibility to abstain from engaging in or supporting any activity that would discredit the profession
D)  each member has a responsibility to monitor subordinates' activities to ensure compliance with the ethical standard

Question 16

Financial accounting reports are usually prepared for a period of one year or less.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a major factor causing changes in management accounting today?

Accepted Answer

A)  decreased global competition
B)  advances in technology
C)  shift to manufacturing-based economy
D)  expansion of the value chain

Question 18

A fraternity held a party.The fraternity prepared the following budget for 25 expected attendees:  Twenty-five people attended the party.The following costs were incurred:
 What is the primary reason for the unfavorable variance for total costs?

Accepted Answer

A)  room rental
B)  food
C)  entertainment
D)  decorations

Question 19

List three types of accounting information that managers need to achieve their goals and objectives.

Accepted Answer

Scorekeeping informa...

Question 20

The Foreign Corrupt Practices Act requires ________.

Accepted Answer

A)  companies to accept bribes from officials in foreign countries
B)  all publicly held companies to follow the act only if they conduct business outside the United States
C)  companies to maintain their accounting records in reasonable detail and accuracy
D)  companies to prepare a separate report on their system of internal control

Exam 1: Managerial Accounting, the Business Organization

Performance reports ________.

Correct AnswerverifiedShow Answer

The Institute of Management Accountants has adopted a set of standards for ethical conduct which includes ________.

Correct AnswerverifiedShow Answer

A fraternity held a party.The fraternity prepared the following budget for 25 expected attendees: Twenty-five people attended the party.The following costs were incurred: What is the primary reason for the unfavorable variance for total costs?

Correct AnswerverifiedShow Answer

The majority of accountants work for government entities and nonprofit firms.

Correct AnswerverifiedShow Answer

A budget ________.

Correct AnswerverifiedShow Answer

List three types of accounting information that managers need to achieve their goals and objectives.

Correct AnswerverifiedScorekeeping informa...View AnswerShow Answer

Which of the following items should be considered by managers when designing accounting systems?

Correct AnswerverifiedShow Answer

The IMA's ethical standard for integrity includes all of the following EXCEPT ________.

Correct AnswerverifiedShow Answer

The controller is primarily concerned with a company's financial matters and the treasurer is concerned with a company's operating matters.

Correct AnswerverifiedShow Answer

The Foreign Corrupt Practices Act requires ________.

Correct AnswerverifiedShow Answer

Financial accounting reports are usually prepared for a period of one year or less.

Correct AnswerverifiedShow Answer

Which of the following is a major factor causing changes in management accounting today?

Correct AnswerverifiedShow Answer

Explain a Certified Management Accountant's ethical responsibilities.

Correct AnswerverifiedA CMA must follow the code of conduct pr...View AnswerShow Answer

The Certified Management Accountant (CMA)designation refers to independent auditors.

Correct AnswerverifiedShow Answer

The detailed design and engineering of products,services or processes is called the ________ function in the value chain.

Correct AnswerverifiedShow Answer

When comparing management accounting and financial accounting,which of the following statements is FALSE?

Correct AnswerverifiedShow Answer

Key Bank held a party.Key Bank expected attendance of 100 people and prepared the following budget: One hundred people attended the party.The following costs were incurred: What is the variance for the cost of food?

Correct AnswerverifiedShow Answer

Which of the following is NOT a government regulation that influences accounting systems?

Correct AnswerverifiedShow Answer

The cost-benefit balance is the primary consideration in choosing among accounting systems and methods.

Correct AnswerverifiedShow Answer

During the product development stage of the product life cycle,companies typically experience ________.

Correct AnswerverifiedShow Answer

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Scorekeeping informa...
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A CMA must follow the code of conduct pr...
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