SCM CHAPTER 2

____________ means reporting and interpreting information that helps managers to focus on operating problems, imperfections, inefficiencies, and opportunities.

• a. Scorekeeping

• b. Attention directing

• c. Problem solving

• d. None of the above

A financial manager/management accountant discovers a problem that could mislead users of the firm's financial data and has informed his/her immediate superior. (S)he should report the circumstances to the audit committee and/or the board of directors only if

• a. the immediate superior, who reports to the chief executive officer, knows about the situation but refuses to correct it.

• b. the immediate superior assures the financial manager/management accountant that the problem will be resolved.

• c. the immediate superior reports the situation to his/her superior.

• d. the immediate superior, the firm's chief executive officer, knows about the situation but refuses to correct it.

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.

Accounting and other reports that help managers monitor performance and focus on problems and/or opportunities that might otherwise go unnoticed

• a. Feedback

• b. Financial accounting

• c. Performance report

• d. Managerial accounting

An activity that consumes resources or takes time out that does not add value for which customers are willing to pay

• a. Non-value added activity

• b. Value-added activity

• c. Process reengineering

• d. Total quality management

The elements of an ethical control system include the following EXCEPT

• a. a reward system for turning in those who violate the ethical code.

• b. a statement of the organization's values and code of ethics.

• c. an ongoing internal audit of the ethical control system.

• d. a statement of the employee's ethical responsibilities.

A study of organization that are among the best in the world at performing a particular task

• a. Business process

• b. Benchmarking

• c. Control

• d. Feedback

Certified Management Accountants are required to adhere to the following ethical standards, EXCEPT

• a. competence.

• b. ingenuity.

• c. integrity.

• d. objectivity.

Staff management includes

• a. manufacturing managers.

• b. human-resource managers.

• c. purchasing managers.

• d. distribution managers.

Line management includes

• a. manufacturing managers.

• b. information-technology managers.

• c. human-resource managers.

• d. management-accounting managers.