'Management Accounting and Management Decisions\r'

' counseling Accounting, Cdn. 6e (Horngren/Sundem/Stratton/Beaulieu) Chapter 1 attention Accounting and attention Decisions 1) two(prenominal) inhering managers and external parties white plague account statement breeding. dish up: dependable Diff: 2 pil showtimecase: TF paginate referee: 16 accusative: 8 2) Internal bill typographys moldiness follow gener aloney accepted be principles and account for as throttles at historical cost. termination: traitorously Diff: 2 graphic symbol: TF scalawag ref: 16 mark: 8 3) Organizations that do not accommodate or transport tangible goods ar c totallyed dish up organizations. arrange: TRUE Diff: 1 font: TF knave reader: 7 objective lens: 3 4) The cost-benefit eternal sleep is the primary consideration in choosing among invoice systems and methods. swear out: TRUE Diff: 1 grammatical case: TF foliate referee: 2 target: 3 5) Planning refers to setting objectives, implementing invents, and evaluating object ives. help: assumed Diff: 1 compositors case: TF rogue ref: 3 documentary: 2 6) A calculate is a duodecimal expression of a plan of go done. exercise: TRUE Diff: 1 geek: TF foliate ref: 2 objective lens: 3 7) focusing by riddance take ons a detailed analysis of all difference of opinions from afore plan(ip) procedure regardless of the amount. dissolve: FALSE Diff: 1 emblem: TF foliate reader: 2 intent: 3 8) Sales harvest- clip occurs in the mature food market full point of ingathering action musical rhythm. consequence: FALSE Diff: 1 guinea pig: TF varlet referee: 9 quarry: 4 9) everywhereseas telegram potentiality is government agency exerted downward over subordinates. resolvent: TRUE Diff: 1 character: TF summon reviewer: 12 intent: 5 10) fold departments support or service staff departments. final result: FALSE Diff: 1 caseful: TF knave ref: 12 accusative: 5 11) harmonise to the monetary Executives Institute, the controllers int imacy is to obtain twain short and long-term contri scarcelyes. solution: FALSE Diff: 1 case: TF paginate reviewer: 14 12) The CMA program focuses on caution chronicle and its usance in Canadian business. make out: TRUE Diff: 1 typesetters case: TF summon ref: 16 bearing: 8 13) The factors causing changes in vigilance invoice today include increased ball-shaped competition, technological advances and increased work by Canadian companies. execute: FALSE Diff: 1 pillowcase: TF varlet reader: 16 objective: 8 14) The essence of the just-in-time school of thought is to eliminate waste. exercise: TRUE Diff: 1 emblem: TF paginate reader: 16 purpose: 8 5) The ships accompany of centering Accountants of Canada (SMAC) has actual standards of good conduct for centering accountants, which include standards of competence, confidentiality, integrity and objectivity. resolving power: TRUE Diff: 1 casing: TF varlet reader: 20 Objective: 9 16) A survey of managers selected which of the by-line business argonas as the most common starting-point for future managers? A) Accounting. B) Finance. C) wakeless environment of business. D) Computers in business. resultant role: A Diff: 1 vitrine: MC summon referee: 2 Objective: 1 17) guidance history refers to chronicle reading developed for A) sh argonholders.B) governmental authorities. C) managers in spite of appearance an organization. D) loan officers. serve up: C Diff: 1 drawament: MC varlet ref: 16 Objective: 8 18) ________ is a formal mechanism for gathering, organizing, and communication cultivation closely an organizations activities. A) An news report system B) Scorekeeping C) Management account D) Attention direct get along: A Diff: 1 graphic symbol: MC scallywag reviewer: 3 Objective: 2 19) ________ refers to invoice information developed for users within an organization. A) An chronicle system B) Scorekeeping C) Management explanationD) Financial story Answer : C Diff: 1 part: MC page reviewer: 3 Objective: 2 20) ________ is the accrual and classification of data. A) An story system B) Scorekeeping C) Management accountancy D) Attention directing Answer: B Diff: 1 instance: MC rascal reviewer: 3 Objective: 2 21) ________ means coverage and understand information that helps managers to focus on run problems, imperfections, inefficiencies, and opportunities. A) Scorekeeping B) Attention directing C) Problem-solving D) None of the to a higher place Answer: B Diff: 1 fiber: MC rascal reviewer: 3 Objective: 2 2) ________ is the aspect of accounting that quantifies the likely solvings of possible courses of action and a good deal recommends the best course to follow. A) Scorekeeping B) Attention directing C) Problem-solving D) None of the above Answer: C Diff: 1 fibre: MC knave ref: 3 Objective: 2 23) The codes of conduct for integrity include all of the following EXCEPT A) avoiding actual or appargonnt conflicts of interes t. B) refusing to nominate or serve well with the commission of fraud. C) recognizing and communicating passkey limitations. D) communicating information subjectively. Answer: DDiff: 1 role: MC foliate Ref: 20 Objective: 9 24) A shop clerk prep ars a monthly report study the actual phone bill with the judge phone be. This activity would be assort as A) problem-solving. B) scorekeeping. C) planning. D) attention directing. Answer: D Diff: 1 sheath: MC paginate Ref: 3 Objective: 2 25) patient of guide military controls and detailed utilizations that unneurotic make up accepted accounting practice at a kick the bucketn time argon referred to as A) GAAS. B) accounting conventions. C) GAAP. D) gross Canada regulations. Answer: C Diff: 1 cause: MC rapscallion Ref: 16 Objective: 8 26) Service organizationsA) sell tangible goods. B) are not wholesalers. C) are considered manufacturers. D) mustiness be profit-seeking. Answer: B Diff: 1 theatrical role: MC Page Ref: 7 Obje ctive: 3 27) A characteristic of service organizations is that A) jade is intensive. B) output is easy to define. C) study inputs and outputs git be stored. D) plant and equipment costs are high in proportion to crowd costs. Answer: A Diff: 1 Type: MC Page Ref: 7 Objective: 3 28) The watchword for the facility of systems in service industries and nonprofit organizations is A) maximize. B) simplicity. C) constraints. D) complexity.Answer: B Diff: 1 Type: MC Page Ref: 7 Objective: 3 29) Which of the following is a characteristic of both profit-seeking and nonprofit service organizations? A) Labour is intensive. B) output is usually difficult to define. C) Major inputs and outputs cannot be stored. D) all told of the above are characteristics. Answer: D Diff: 1 Type: MC Page Ref: 7 Objective: 3 30) Financial accounting is restrain by GAAP. Management accounting is strained by A) GAAS. B) the cost-benefit balance. C) Revenue Canada. D) the controller. Answer: B Diff: 1 Type: MC Page Ref: 16 Objective: 8 1) The primary consideration in choosing among accounting systems and methods is A) simplicity. B) conductal issues. C) cost-benefit balance. D) computerization. Answer: C Diff: 1 Type: MC Page Ref: 3 Objective: 2 32) An accounting system should provide accurate, timely work outs and doing reports in a form reclaimable to A) shareholders. B) bankers. C) Revenue Canada. D) managers. Answer: D Diff: 1 Type: MC Page Ref: 3 Objective: 2 33) ________ is (are) a quantitative expression(s) of a plan of action. A) A budget B) Performance reports C) Variances D) Management by excommunication Answer: ADiff: 1 Type: MC Page Ref: 3 Objective: 2 34) ________ provide(s) feedback by examine results with plans and by highlighting deviations from plans. A) A budget B) Performance reports C) Variances D) Management by exception Answer: B Diff: 1 Type: MC Page Ref: 3 Objective: 2 35) ________ is (are) deviations from plans. A) A budget B) Performance reports C) Variance s D) Management by exception Answer: C Diff: 1 Type: MC Page Ref: 3 Objective: 2 36) ________ concentrate(s) on areas that turn from the plan and ignore(s) areas that are presumed to be rivulet smoothly. A) A budgetB) Performance reports C) Variances D) Management by exception Answer: D Diff: 1 Type: MC Page Ref: 3 Objective: 2 37) introduction a new product bound is an example of A) decision making. B) planning. C) controlling. D) organization. Answer: A Diff: 1 Type: MC Page Ref: 3 Objective: 2 38) Answering the following questions: When is dinner? Who is readiness it? is an example of A) planning. B) controlling. C) budgeting. D) analyzing. Answer: A Diff: 1 Type: MC Page Ref: 3 Objective: 2 39) formulation dinner and tasting the food are examples of A) planning. B) controlling. C) budgeting.D) analyzing. Answer: B Diff: 1 Type: MC Page Ref: 3 Objective: 2 40) Planning determines action, action generates feedback, and feedback influences A) reports. B) accounting systems. C ) further planning. D) deviations. Answer: C Diff: 1 Type: MC Page Ref: 3 Objective: 2 41) A quantitative expression of a plan of action is a A) variance. B) performance report. C) control. D) budget. Answer: D Diff: 1 Type: MC Page Ref: 3 Objective: 2 42) Actual results are compared to budgeted amounts in a A) performance report. B) financial statement. C) production report. D) flexible report.Answer: A Diff: 1 Type: MC Page Ref: 3 Objective: 2 43) Management by exception means commission concentrates on A) substantial activities achievement as planned. B) significant deviations from expected results. C) insignificant activities proceeding as planned. D) insignificant deviations from expected results. Answer: B Diff: 1 Type: MC Page Ref: 3 Objective: 2 44) A synonym for deviation is A) planned. B) systematic. C) variance. D) reported. Answer: C Diff: 1 Type: MC Page Ref: 3 Objective: 2 45) A significant unfavourable variance A) should be neglected because of materiality.B) coul d not result from careless budgeting. C) is the result of proper planning. D) should be analyzed, and measures should be taken to correct the situation. Answer: D Diff: 1 Type: MC Page Ref: 3 Objective: 2 46) The product development demonstrate in a products smell cycle corresponds to A) no gross gross revenue. B) sales growth. C) fixed sales level. D) low and driblet sales. Answer: A Diff: 1 Type: MC Page Ref: 9 Objective: 4 47) The introduction to market stage in a products life cycle corresponds to A) no sales. B) sales growth. C) stable sales level. D) low and decreasing sales. Answer: BDiff: 1 Type: MC Page Ref: 9 Objective: 4 48) The mature market stage in a products life cycle corresponds to A) no sales. B) sales growth. C) stable sales level. D) low and decreasing sales. Answer: C Diff: 1 Type: MC Page Ref: 9 Objective: 4 49) The phase-out-of-product stage in a products life cycle corresponds to A) no sales. B) sales growth. C) stable sales level. D) low sales to no sales. Answer: D Diff: 1 Type: MC Page Ref: 9 Objective: 4 50) The various stages through which a product passes are called the A) product life cycle. B) production plan. C) market analysis. D) product initiative.Answer: A Diff: 1 Type: MC Page Ref: 9 Objective: 4 51) Product life cycles A) are the analogous for all products. B) must be considered to in effect plan for production. C) are computerized bicycles. D) have zip to do with product profitability. Answer: B Diff: 1 Type: MC Page Ref: 9 Objective: 4 52) potency exerted downward over subordinates is referred to as A) line authority. B) staff authority. C) general authority. D) ad hoc authority. Answer: A Diff: 1 Type: MC Page Ref: 12 Objective: 5 53) Authority to advise but NOT command is called A) line authority. B) staff authority.C) general authority. D) specific authority. Answer: B Diff: 1 Type: MC Page Ref: 12 Objective: 5 54) An example of a line department at a jewellery manufacturer is the A) accounting department . B) finance department. C) alimentation department. D) sales department. Answer: D Diff: 1 Type: MC Page Ref: 12 Objective: 5 55) consort to the Financial Executives Institute, one function of controllership is A) investments. B) short-term financing. C) proviso of capital. D) reporting and interpreting. Answer: D Diff: 1 Type: MC Page Ref: 14 56) The top accounting officer in an organization is oftenA) the controller. B) the treasurer. C) the CFO. D) the top dog executive officer. Answer: A Diff: 1 Type: MC Page Ref: 14 57) ________ is chiefly concern with the companys financial matters. A) The controller B) The treasurer C) The secretary D) None of the above Answer: B Diff: 1 Type: MC Page Ref: 14 58) ________ is the grant that provides the greatest orientation toward caution accounting. A) CIA B) CMA C) CEO D) CGA Answer: B Diff: 1 Type: MC Page Ref: 14 59) According to the Financial Executives Institute, one function of treasurership is A) planning for control.B) prote ction of assets. C) investor relations. D) economic appraisal. Answer: C Diff: 1 Type: MC Page Ref: 14 Objective: 6 60) Chartered Accountants are A) internal auditors. B) focusing accountants. C) external auditors. D) clerical accountants. Answer: C Diff: 1 Type: MC Page Ref: 16 Objective: 8 61) The largest Canadian association of professional accountants whose major interest is management accounting is the A) Canadian Institute of Chartered Accountants. B) certify General Accountants of Canada. C) Government Accounting Institute. D) social club of Management Accountants of Canada.Answer: D Diff: 1 Type: MC Page Ref: 16 Objective: 8 62) A philosophy to eliminate waste by simplification the time products run in the production process and eliminating the time that products spend on activities that do NOT impart harbor is A) computer-integrated manufacturing. B) just-in-time. C) better late than never. D) added value tax. Answer: B Diff: 1 Type: MC Page Ref: 16 Objective: 8 63) S ystems that use computer-aided design and computer-aided manufacturing, together with robots and computer-controlled machines are called A) just-in-time systems. B) robotic-computer systems.C) computer-integrated manufacturing systems. D) manufacturing-robotic systems. Answer: C Diff: 1 Type: MC Page Ref: 16 Objective: 8 64) Which of the following factors is causing changes in management accounting today? A) Shift from a manufacturing-based to a service-based economy. B) Increased global competition. C) Advances in technology. D) All of the above are factors. Answer: D Diff: 1 Type: MC Page Ref: 16 Objective: 8 65) Systems that use CAD and CAM together with robots and computer-controlled machines are called A) JIT. B) CMA. C) CIM. D) none of the above.Answer: C Diff: 1 Type: MC Page Ref: 16 Objective: 8 66) Below is a statement from the Code of Professional honest motive for the gild of Management Accountants. â€Å"Maintain at all times independence of thought and action. † It is an example of A) competence. B) confidentiality. C) integrity. D) objectivity. Answer: D Diff: 1 Type: MC Page Ref: 20 Objective: 9 67) Management accountants are similar to CAs and CGAs in that they A) give opinions on financial statements. B) are licence by the Canadian Institute of open accountancy. C) adhere to codes of conduct.D) are independent of the company they work for. Answer: C Diff: 1 Type: MC Page Ref: 16 Objective: 8 68) The Society of Management Accountants has adopted a set of standards of professional ethics which includes codes of conduct regarding all of the following EXCEPT A) competence. B) independence. C) integrity. D) confidentiality. Answer: B Diff: 1 Type: MC Page Ref: 20 Objective: 9 69) Which of the following respective(prenominal)s would likely NOT be users of management accounting reports? A) company presidents B) university deans C) bankers D) chief physicians Answer: CDiff: 2 Type: MC Page Ref: 16 Objective: 8 70) Which of the following s tatements well-nigh management accounting is FALSE? A) It is concerned with how measurements and reports depart influence managers daily behaviour. B) It is less sapiently defined than financial accounting. C) Its primary users are organizational managers at various levels. D) It is constrain by generally accepted accounting principles. Answer: D Diff: 2 Type: MC Page Ref: 16 Objective: 8 71) Which of the following statements nigh ethical dilemmas faced by management accountants is FALSE?Ethical dilemmas A) are clear-cut. B) involve conflict between two or more ethical standard. C) require individual integrity and judgment. D) require the application of ethical standards. Answer: A Diff: 2 Type: MC Page Ref: 20 Objective: 9 72) Which of the following statements about line authority is TRUE? Line authority A) is similar to staff authority. B) is indirectly related to the basic activities of an organization. C) is exerted upwardly from subordinates. D) includes the authority to co mmand action. Answer: D Diff: 1 Type: MC Page Ref: 12 Objective: 5 3) Broad concepts or guidelines and detailed practices, including all conventions, rules, and procedures that together make up accepted accounting practice at a attached time. Answer: Generally accepted accounting principles Diff: 1 Type: SA Page Ref: 16 Objective: 8 74) The someone from whom the controller derives authority to set accounting procedures. Answer: The company president Diff: 1 Type: SA Page Ref: 12 75) Weighing known costs against equiprobable benefits, the primary consideration in choosing among accounting systems and methods. Answer: Cost-benefit balance Diff: 1 Type: SA Page Ref: 11Objective: 7 76) A quantitative expression of a plan of action, and an aid to coordinating and implementing the plan. Answer: compute Diff: 1 Type: SA Page Ref: 2 Objective: 2 77) Deviations from plans. Answer: Variances Diff: 1 Type: SA Page Ref: 2 Objective: 2 78) Concentrating on areas that deserve attention and ig noring areas that are presumed to be running smoothly. Answer: Management by exception Diff: 1 Type: SA Page Ref: 2 Objective: 2 79) Authority exerted downward over subordinates. Answer: Line authority Diff: 1 Type: SA Page Ref: 12Objective: 5 80) Authority to advise but not to command. It may be exerted downward, laterally, or upward. Answer: provide authority Diff: 1 Type: SA Page Ref: 12 Objective: 5 81) The largest Canadian professional organization of accountants whose major interest is management accounting. Answer: Society of Management Accountants Diff: 1 Type: SA Page Ref: 16 Objective: 8 82) A philosophy to eliminate waste, by reducing the time products spend in the production process and eliminating the time that products spend on activities that do not add value. Answer: Just-in-time philosophyDiff: 1 Type: SA Page Ref: 16 Objective: 8 83) Describe the major users of accounting information. Answer: In general, users of accounting information fall into three categories: (1) Internal managers who use the information for short-term planning and controlling human activity operations. (2) Internal managers who use the information for making nonroutine decisions and formulating overall policies and long-range plans. (3) External parties, such as investors and government authorities, who use the information for making decisions about the company. Diff: 1 Type: ES Page Ref: 2 Objective: 1 4) Explain the cost-benefit and behavioural issues involved in designing an accounting system. Answer: The cost-benefit balance, weighing known costs against probable benefits, is the primary consideration in choosing among accounting systems. The systems value must lapse its cost. In addition, the systems effects on the behaviour of managers should also be considered. The system must provide accurate, timely budgets and performance reports in a form useful to managers. Diff: 1 Type: ES Page Ref: 14 Objective: 7 85) order between line and staff roles in an organizat ion, and give an example of each.Answer: Line authority is authority exerted downward over subordinates. faculty authority is authority to advise but not to command. It may be exerted downward, laterally, or upward. Line departments are directly creditworthy for conducting the basic mission of the organization, that is, producing and selling a product or service. Staff departments are indirectly related to these basic activities through servicing and supporting the line departments. An example of a line role would be the sales executives, whereas a staff role would include the top accounting executive.Diff: 1 Type: ES Page Ref: 12 Objective: 5 86) production line the functions of controllers and treasurers. Answer: The treasurer is concerned in general with the companys financial matters such as investor relations, provision of capital, short-term financing, credits and collections, and banking. The controller is concerned with operating matters such as reporting and interpreting , evaluating and consulting, tax administration, government reporting, and protection of assets. Diff: 1 Type: ES Page Ref: 1 87) Explain a management accountants ethical responsibilities.Answer: A certified management accountant must adhere to a code of conduct regarding competence, confidentiality, integrity, and objectivity developed by the Society of Management Accountants. An unethical act is one that violates the ethical standards of the profession. Management accountants have an obligation to the organizations they serve, their profession, the public, and themselves to maintain the highest standards of ethical conduct. Diff: 1 Type: ES Page Ref: 20 Objective: 9 88) Explain the role of budgets and performance reports in planning and control.Answer: Budgets and performance reports are immanent tools for planning and control. Budgets result from the planning process. Managers use them to translate the organizations goals into action. A performance report compares actual results to the budget. Managers use these reports to monitor, evaluate, and reward performance and, thus, exercise control. Diff: 3 Type: ES Page Ref: 3 Objective: 2 89) Discuss the role that management accountants play in the companys value-chain functions. Answer: Management accountants play a key role in planning and control.Throughout the companys value chain, management accountants gather and report cost and revenue information for decision makers. Diff: 2 Type: ES Page Ref: 9 Objective: 4 90) Identify certain trends in management accounting. Answer: many an(prenominal) factors have caused changes in accounting systems in recent years. Most significant are globalization, technology, and a shift from a manufacturing-based to a service-based economy. Without continuous adaptation and improvement, accounting systems would be obsolete. Diff: 2 Type: ES Page Ref: 16 Objective: 8\r\n'