Managerial Accounting Exam 1 questions and answers 100% verified
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Course
Managerial Accounting
Institution
Managerial Accounting
Managerial accounting is the provision of accounting for a company's external users. - correct answer False
Providing an analysis for a company regarding adding a particular product line, retracting sales markets, or dealing with risks or opportunities are some of the responsibilities of manager...
Managerial Accounting Exam 1
Managerial accounting is the provision of accounting for a company's external users. - correct answer
False
Providing an analysis for a company regarding adding a particular product line, retracting sales markets,
or dealing with risks or opportunities are some of the responsibilities of managerial accountants. -
correct answer True
Which of the following is referred to as controlling?
A.The provision of accounting information for a company's internal users.
B.The process of choosing among competing alternatives.
C.The managerial activity of monitoring a plan's implementation and taking corrective action as needed.
D.The detailed formulation of action to achieve a particular end. - correct answer C. The managerial
activity of monitoring a plan's implementation and taking corrective action as needed.
The management activity called _____ is detailed formulation of action to achieve a particular end.
A. planning
B. controlling
C. decision making
D. none of the above - correct answer A. planning
Which of the following is a standard of ethical conduct for managerial accountants as per the Institute of
Management Accountants?
A. Competence
B. Confidence
C. Performance
D. Respect for others - correct answer A. Competence
The Statement of Ethical Professional Practice is issued by the:
A. U.S. Congress.
B. Securities and Exchange Commission.
,Managerial Accounting Exam 1
C. New York Stock Exchange.
D. Institute of Management Accountants. - correct answer D. Institute of Management Accountants.
The provision of accounting information for internal users is known as
a.accounting.
b.financial accounting.
c.managerial accounting.
d.information provision.
e.accounting for planning and control. - correct answer c. managerial accounting.
The process of choosing among competing alternatives is called
a.administering.
b.decision making.
c.controlling.
d.performance evaluation.
e.None of these choices are correct. - correct answer b. decision making.
Which of the following is a characteristic of managerial accounting?
a.There is an internal focus.
b.Subjective information may be used.
c.There is an emphasis on the future.
d.It is broad-based and multidisciplinary.
e.All of these. - correct answer e. All of these.
An effective managerial accounting system should track information about an organization's activities in
which of the following areas?
a.Development
b.Marketing
c.Production
,Managerial Accounting Exam 1
d.Design
e.All of these. - correct answer e. All of these.
An effective managerial accounting system should track information about an organization's activities in
which of the following areas?
a.HR Administration
b.Sales and Advertising
c.Purchasing
d.Manufacturing
e.All of these. - correct answer e. All of these.
In terms of strategic positioning, which two general strategies may be chosen by a company?
a.Revenue production and cost enhancement
b.Activity-based costing and value chain emphasis
c.Increasing customer value and decreasing supplier orientation
d.Cost leadership and product differentiation
e.Product differentiation and cost enhancement - correct answer d. Cost leadership and product
differentiation
Which of the following is not a common form of certification for managerial accountants?
a.Certificate in Internal Auditing
b.Certificate in External Auditing
c.Certificate in Public Accounting
d.Certificate in Management Accounting - correct answer b. Certificate in External Auditing
Which of the following is not a common form of certification for managerial accountants?
a.Certificate in Public Accounting
b.Certificate in Inventory Control
c.Certificate in Management Accounting
, Managerial Accounting Exam 1
d.Certificate in Internal Auditing - correct answer b. Certificate in Inventory Control
Laboratory Manager: An HMO approached me recently and offered us its entire range of blood tests. It
provided a price list revealing the amount it is willing to pay for each test. In many cases, the prices are
below what we normally charge. I need to know the costs of the individual tests to assess the feasibility
of accepting its offer and perhaps suggest price adjustments on some of the tests. - correct answer
Decision Making
Operating Manager: This report indicates that we have 30% more defects than originally targeted. An
investigation into the cause has revealed the problem. We were using a lower-quality material than
expected, and the waste has been higher than normal. By switching to the quality level originally
specified, we can reduce the defects to the planned level. - correct answer Controlling
Divisional Manager: Our market share has increased because of higher-quality products. Current
projections indicate that we should sell 25% more units than last year. I want a projection of the effect
that this increase in sales will have on profits. I also want to know our expected cash receipts and cash
expenditures on a month-by-month basis. I have a feeling that some short-term borrowing may be
necessary. - correct answer Planning
Plant Manager: Foreign competitors are producing goods with lower costs and delivering them more
rapidly than we can to customers in our markets. We need to decrease the cycle time and increase the
efficiency of our manufacturing process. There are two proposals that should help us accomplish these
goals, both of which involve investing in computer-aided manufacturing. I need to know the future cash
flows associated with each system and the effect each system has on unit costs and cycle time. - correct
answer Decision Making
Manager: At the last board meeting, we established an objective of earning a 25% return on sales. I need
to know how many units of our product we need to sell to meet this objective. Once I have the
estimated sales in units, we need to outline a promotional campaign that will take us where we want to
be. However, in order to compute the targeted sales in units, I need to know the expected unit price and
a lot of cost information. - correct answer Planning
Manager: Perhaps the Harrison Medical Clinic should not offer a full range of medical services. Some
services seem to be having a difficult time showing any kind of profit. I am particularly concerned about
the mental health service. It has not shown a profit since the clinic opened. I want to know what costs
can be avoided if I drop the service. I also want some assessment of the impact on the other services we
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