WorksheetsManagement Accounting Overview
Total questions: 30
Worksheet time: 23mins
In comparing financial and management accounting, which of the following more accurately describes management accounting information?
historical, precise, useful
required, estimated, internal
budgeted, informative, adaptable
comparable, verifiable, monetary
Management accounting
is more concerned with the future than is financial accounting.
is less concerned with segments of a company than is financial accounting.
is more constrained by rules and regulations than is financial accounting.
all of the above are true.
To meet decision-making needs, the process of gathering and analyzing information about a company and its competitive environment is known as
business process reengineering
process elimination
business intelligence
planning
Broadly speaking, cost accounting can be defined as a(n)
external reporting system that is based on activity-based costs.
system used for providing the government and creditors with information about a company’s internal operations.
internal reporting system that provides product costing and other information used by managers in performing their functions.
internal reporting system needed by manufacturers to be in compliance with Cost Accounting Standards Board pronouncements.
Financial accounting
is primarily concerned with internal reporting.
is more concerned with verifiable, historical information than is cost accounting.
focuses on the parts of the organization rather than the whole.
is specifically directed at management decision-making needs.
The Institute of Management Accountants’ Code of Ethics
is a legally enforceable contract with all management accountants.
should be viewed as a goal for professional behavior.
is a legally enforceable contract with all CPAs.
provides ways to measure departures from ethical behavior.
The ethical standards established for management accountants are in the areas of
competence, licensing, reporting, and education.
budgeting, cost allocation, product costing, and insider trading.
competence, confidentiality, integrity, and objectivity.
disclosure, communication, decision making, and planning.
The primary objective of just-in-time processing is to
accumulate overhead in activity cost pools
eliminate or reduce all manufacturing inventories
identify relevant activity cost drivers
none of them
A repetitive action fulfilling a business function and increasing the worth of the product and the price that the customer is willing to pay for the product is referred to as a:
non-value added activity
value-added activity
business value-added activity
activity analysis
JIT manufacturing emphasizes
large amounts of inventory on hand so that the company does not run out of it
small amounts of inventory on hand resulting in lower quality goods because production is rushed
reducing investment in inventory and increasing the emphasis on quality
both b and c
Characteristics of total quality management include:
focusing on customer satisfaction
striving on continuous improvement
involvement of the entire work force
All of the above are characteristics of TQM
Continuous improvement is synonymous with:
process benchmarking
total quality management
management by objectives
management by exception
Which of the following is the correct sequence of the value chain?
design, research and development, production, supply, marketing, customer service, distribution
research and development, design, supply, production, marketing, distribution, customer service
research and development, design, supply, production, marketing, customer service, distribution
supply, research and development, design, production, marketing, distribution, customer service
Planning and control are
different names for the same thing.
the basic functions of management.
described equally well by the terms "decision making" and "performance evaluation."
exemplified by, respectively, financial statements and budgeting.
It is an offer of service. When accepted or approved, it becomes a contractual agreement.
Proposal letter
Confirmation letter
Engagement letter
Contract
Organizations may exist within organizations.
TRUE
FALSE
Objectives will vary depending on whether the organization is profit-seeking, like general motors, or non-profit and service-oriented, like the city government.
TRUE
FALSE
The treasurer’s major duties include: providing operating capital for long-term financing; maintaining shareholder relations; short-term financing.
TRUE
FALSE
Controlling is the process of ensuring that management plan is successfully implemented.
TRUE
FALSE
Organizing is the delegating of responsibility for the use of the organization’s resources, whether human, financial, or physical.
TRUE
FALSE
Managerial accounting is the branch of accounting concerned with reporting to internal parties for decision making purposes.
TRUE
FALSE
Objectives, tend to be narrow, specific statements.
TRUE
FALSE
Staff positions are those which do not support line positions.
TRUE
FALSE
Managerial accounting may be thought of as the reporting of past financial performance and financial accounting as the estimation of future financial outcomes.
TRUE
FALSE
Whereas financial accounting reports tend to cover the financial activities of a company as a whole, managerial accounting reports tend to be specific to product lines, divisions, sales territories, or customers grouped by peso volume of sales orders.
TRUE
FALSE
Generally, the emergence and growth of management consultancy may be attributed to the following factors, except
Growth in size and complexity of business firms
Complexity in managing and conducting a business.
The development of techniques for the solution of management problems and businessmen’s awareness of how to solve such problems
Need for adequate and timely information in management decision-making
The concept of “management by exception” requires management’s
Consideration of only those items which vary materially from plans
Consideration of rare events
Consideration of items selected random
None of the above
Integrity is an ethical requirement for all management accountants. One aspect of integrity requires
Performance of professional duties in accordance with applicable laws
Avoidance of conflict of interest
Refraining from improper use inside information
Maintenance of an appropriate level of professional competence
Which of the following will not impair the independence of a CPA in the rendition of Management Services?
The CPA performs decision-making services for his client
The CPA performs services wherein he is in effect, acting as an employee of the client
The CPA losses his objectivity and acts in a manner as if he is advocating for the interest of his client
The CPA does not extend his services beyond the presentation of recommendation or giving advice
Planning is a function that involves
Hiring the right people for a particular job
Coordinating the accounting information system
Setting goals and objectives for an entity
Analyzing financial statements
