Which of the following statements is true?

- True
- FA is a subset of CA - False
- MA is a subset of CA
- CA is a subset of both MA and FA Financial accounting information is reported
- MA is a subset of both CA and FA for the company as a whole
- True
Kaizen Costing is consistent with: - False
- Cost reduction
- Continuous improvement Ohio corporation……
- Poor quality - Is consistent with both JIT and
- Financial accounting and income continuous improvement
statements - Is consistent with JIT but
- Both choice A and B inconsistent with continuous
improvement
Investors, creditors and regulators are the - Is consistent with both JIT and
primary users of managerial accounting continuous improvement
information - Is an antiquated management
- True technique
- False
The control function includes comparing
A controller is normally involved with: actual….
- Preparing fin. Statements - True
- Managing investment - False
- Raising capital
- Safeguarding assets The function of management that
- Managing the firm’s credit policy compares…
- Planning
Which is a characteristic of a line function - Direct and motivating
rather than a staff function - Controlling
- It is a function that gives support, - Decision making
advice and service to line managers
- It is the authority to command action Positions that have direct responsibility for
to give orders to subordinates the basic objectives….
- It is exercised laterally or upward - True
- It is a support function by provision - False
of services to a co-department
Financial accounting information is Assume that a managerial accountant
generally used exclusively by internal regularly…
parties such as managers - Objectivity
- True - Confidentiality
- False - Integrity
- Credibility
Managers of small, private corporations use - Unified behavior
managerial accounting info whereas
managers of public corporations use fin. Which of the following can be linked...
acct. info - Greedy corporate executives
 - Managers who made over-reaching Which of the following statement(s) about
business deals just-in-time (JIT)…
- Lack of oversight by companies’ - I only
audit boards and boards of directors - II only
- Shoddy work by external auditors - III only
- All of these - II and III
- I, II, and III
Which of the following functions is best
described as choosing among available Which of the following statements
alternatives? represents a similarity financial and
- Decision making managerial accounting?
- Planning - Both are useful in providing
- Directing operational activities information for external users
- Controlling - Both are governed by GAAP
- Budgeting - Both draw upon data from an
organization’s accounting system
Financial accounting focuses primarily on - Both rely heavily on published
reporting: financial statements
- To parties outside of an organization - Both are solely concerned with
- To parties within an organization historical transactions
- To an organization’s board of
directors Which of the following would likely to be
- To financial institutions considered an…
- For financial institutions - Stockholders
- Consumer groups
Which of the following characteristic(s)… - Lenders
- A focus on reporting to personnel - Middle-level managers
within an organization - Government agencies
- A focus on reporting to external
parties The role of managerial accounting…
- An area of accounting that is heavily - Financial-directing role
regulated - Attention-directing role
- A focus on providing information - Planning and controlling role
that is relevant for planning, decision - Organizational role
making, directing, and control - Problem-solving role
- Choices A and D above
Managerial accounting is similar to financial
Which of the following employees at accounting in that
American airlines would not be considered - Both are governed by generally
as holding a line position? accepted accounting principles
- Pilot - Both classify reported information in
- Chief financial officer (CFO) the same way (PAKITRY ITO)
- Flight attendant - Both concentrate with historical
- Ticket agent costs
- Baggage handler - Both deal with economic events
Which of the following statements about Which of the following choices correctly
managerial accountants is false? depicts activities that would be included in a
- Managerial accountants more and manufacturer’s value chain?
more are considered “business - Choice A
partners” - Choice B
- Managerial accountants often are - Choice C
part of cross-functional teams - Choice D
- An increasing number of - Choice E
organizations are segregating
managerial accountants in separate Managerial accounting:
managerial- accounting departments - Focuses only on historical data
- In a number of companies, - Is governed by gaap
managerial accountants make - Focuses on the needs of personnel
significant business decisions and within the organization
resolve operating problems - Provides information for parties
- The role of managerial accountants external to the organization
has changed considerable over the - Focuses on financial statements and
past decade other financial reports

The discipline of accounting concerned with Which of the following involves the
providing information… coordination of daily business functions
- Cost accounting within an organization?
- Financial accounting - Decision making
- Government accounting - Planning
- Management accounting - Directing operational activities
- Controlling
Managerial accounting - Motivating
- Is governed by generally accepted
accounting principles (gaap) A cost accountant would normally occupy a
- Is concerned only with monetary staff position within an organization
information - True
- Is discretionary rather than - False
mandatory
- Is focused on business as a whole Managerial accountants:
rather than on segments of the - Often work on cross-functional
business teams
- Are located throughout an
Titan company… organization
- Decision making - Are found throughout an
- Planning organization and work on cross-
- Coordinating functional teams
- Controlling - Are found primarily at lower levels
- Organizing of the organizational hierarchy
- Are found primarily at higher levels
of the organizational hierarchy
Which of these information characteristics is Management accounting information is
deemed most important to management deemed successful if it
accounting? - Is accurate
- Verifiability and accuracy - Is easily understood by the user
- Comparability and full disclosure - Helps managers improve their
- Relevance, flexibility and timeliness decisions
- Conservatism and substance over - Helps creditors evaluate the
form company’s ability to pay its debts

The value chain of a manufacturer would The process of encouraging and authorizing
tend to include activities related to: workers to take appropriate initiatives to
- Manufacturing improve the overall firm is commonly
- Research and development known as:
- Product design - Planning and control
- Marketing - Employee empowerment
- All of these - Personnel aggressiveness
- Decision making
Financial accounting information is prepared - Problem recognition and solution
according to generally accepted accounting
principles Managerial accounting information includes
- True such items as budgets, performance
- False evaluations, and cost reports.
- True
In order for a company to achieve a - False
sustainable competitive advantage, it must
perform value chain activities: All of the following entities would have a
- At the same quality level as need for managerial accounting information
competitors, at the same cost except:
- At the same quality level as - The city of Manila
competitors, but at a lower cost - Google
- At a higher quality level than - Bench
competitors, at a higher cost - David’s salon
- At a higher quality level than - None of these responses is correct, as
competitors, but at no greater cost all of these entities would use
- At either the same quality level as managerial accounting information
competitors, but a lower cost, or at a
higher quality level than competitors, Which of the following employees at
but at no greater cost Starbucks would likely to be considered as
holding a staff position?
Financial accounting - The company’s chief operating
- Focuses on external users officer (COO)
- Has to adhere to GAAP policies - The manager of a store located in
- Is concerned with the information kansas city, missouri
about the firm as a whole - The company’s lead, in-house
- All of these are correct attorney
 - The company’s chief financial - Pre-production activities
officer (CFO) - Production-related activities
- Both the company’s lead, in-house - Post-production activities
attorney and the chief financial - Pre-production, production-related,
officer and post-production activities
- Pre-production and production-
Managerial accounting has changed in related activities
recent years because of:
- The growth of e-business Which of the following is not an element of
- Increased global competition competency?
- The emergence of new industries - To develop appropriate knowledge
- An increased focus on the customer about a particular subject
- All of these factors - To perform duties in accordance with
relevant laws
Properly applied, ethics provide a clear right - To perform duties in accordance with
or wrong answer to the business situations relevant technical standards
facing accountants and managers - To refrain from engaging in an
- True activity that would discredit the
- False accounting profession
The process of managing the various - To prepare clear reports after an
activities in the value chain, along with the analysis of relevant and reliable
associated cost, is commonly known as: information
- Activity-based costing
- Strategic cost management Much of managerial accounting information
- Total quality management is based on:
- Computer-integrated costing - A cost-benefit theme
- Profit maximization
A practice in which a subordinate and a - Cost minimization
supervisor agree on goals and the methods - The generation of external
of achieving them information
- Management by objectives - Effectiveness but not efficiency
- Management by subjectivity
- Management by exception
- Management by example

The day-to-day work of management teams

The activities performed by a manufacturing