Chapter 01
The Changing Position of Bureaucratic Accounting in a Dynamic Organization Environment
The case / Bogus Questions
1 ) Controlling entails the skill of daily business functions within an organization. True Bogus
2 . Calculating the overall performance of managers and subunits is not an objective of managerial accounting. True False
3. Middle-level managers is likely to be considered interior users of accounting data rather than external users. True False
four. A control is normally involved with preparing economical statements. Accurate False
5. The upper limit on the production of goods and services in the event that everything functions perfectly is called practical capability.
True Phony
Multiple Choice Questions
6. Which of the following statements about managerial accountants is false? A. Managerial accountants more and more are believed “business associates. N. Managerial accountancy firm often happen to be part of cross-functional teams. C. An increasing number of businesses are segregating managerial accountants in separate managerial-accounting departments. D. In a number of companies, bureaucratic accountants produce significant business decisions and resolve operating problems. Elizabeth. The function of managerial accountants has evolved considerably within the last decade.
7. The daily work of management teams will commonly comprise each of the following actions except: A. decision making.
B. preparing.
C. cost reducing.
Deb. directing detailed activities.
E. managing.
8. Which will of the pursuing functions is better described as picking among offered alternatives? A. Decision making.
B. Planning.
C. Directing functional activities.
D. Controlling.
At the. Budgeting.
on the lookout for. Which in the following managerial functions requires a detailed economic and functional description of anticipated operations? A. Decision making.
B. Planning.
C. Directing operational activities.
Deb. Controlling.
E. Calculating.
10. Which will of the following involves the coordination of daily business functions within the organization? A. Decision making.
B. Organizing.
C. Directing detailed activities.
D. Managing.
Electronic. Motivating.
eleven. Taurus Firm has arranged various goals, and administration is now choosing appropriate action to ensure that the firm defines these goals. One such action is to reduce outlays to get overhead, which may have exceeded budgeted amounts. Which usually of the subsequent functions finest describes this procedure? A. Making decisions.
B. Organizing.
C. Coordinating.
D. Controlling.
Electronic. Organizing.
12. Which with the following can be not an aim of managerial accounting? A. Providing info for decision making and preparing.
B. Assisting in directing and controlling functions.
C. Maximizing income and lessening costs.
D. Calculating the performance of managers and subunits.
Electronic. Motivating managers toward the organization’s goals.
13. The role of managerial accounting information in assisting administration is a(n): A. financial-directing role.
B. attention-directing role.
C. organizing and managing role.
D. company role.
E. problem-solving role.
16. Employee empowerment involves stimulating and authorizing workers for taking initiatives to: A. boost operations.
B. keep costs down.
C. improve product quality.
D. increase customer service.
E. Most of these.
15. The process of encouraging and authorizing workers to take suitable initiatives to further improve the overall firm is commonly called: A. preparing and control.
M. employee personal strength.
C. personnel aggressiveness.
G. decision making.
E. problem recognition and solution.
16. Which of the following business models views financial, buyer, internal working, and other procedures in the analysis of functionality? A. Deterministic simulation.
B. Well balanced scorecard.
C. Compensation matrix.
D. Decision tree.
E. Data of operating performance (COP).
17. Which in turn of the pursuing perspectives is normally absent in a balanced scorecard? A. Monetary.
N. Customer.
C. Internal operations.
D. Learning and innovation/growth.
At the. non-e of such.
18. Managerial accounting:
A. focuses only in historical data.
W. is governed by GAAP.
C. focuses primarily on the needs of personnel within the organization. Deb. provides data for parties external towards the organization. Electronic. focuses on economic statements and other financial studies.
19. Bureaucratic accounting:
A. is usually unregulated.
B. creates information that is certainly useful just for manufacturing companies. C. is located exclusively about historical info.
M. is controlled by the Investments and Exchange Commission (SEC). E. generally focuses on reporting information about the enterprise in its entirety rather than by simply subunits.
twenty. All of the following entities would have a need to get managerial accounting information besides: A. mich.
N. Google.
C. Abercrombie.
Deb. H&R Prevent.
E. non-e of the responses is proper, as many of these entities would use managerial accounting data.
21. Which of the next choices properly depicts if McDonald’s, the University of Wisconsin, and Apple Inc. might have a need to get managerial accounting?
[pic]
A. Decision A
B. Choice B
C. Choice C
D. Choice D
E. Decision E
twenty two. Which from the following would likely be considered an internal user of accounting info rather than another user? A. Stockholders.
B. Buyer groups.
C. Lenders.
Deb. Middle-level managers.
At the. Government agencies.
twenty-three. Financial accounting focuses primarily on confirming:
A. to functions outside of a company.
N. to parties within an business.
C. to an organization’s board of directors.
D. to financial institutions.
E. for financial institutions.
twenty-four. Which from the following characteristic(s) relate(s) more to managerial accounting than to monetary accounting? A. A focus on reporting to personnel inside an organization. W. A focus on reporting to external parties.
C. The of accounting that is intensely regulated.
D. A spotlight on rendering information that is certainly relevant for planning, decision making, directing, and control. Elizabeth. Choices “A and “D above.
twenty-five. Which in the following assertions represents a similarity among financial and managerial accounting? A. Both are useful in providing information to get external users. B. Both are governed simply by GAAP.
C. Both draw upon data coming from an company accounting program. D. Both equally rely intensely on released financial assertions.
E. Both are entirely concerned with historic transactions.
dua puluh enam. Which of the following personnel at Delta Airlines would not be considered as possessing a series position? A. Pilot.
B. Chief financial officer (CFO).
C. Airline flight attendant.
D. Ticket agent.
E. Luggage handler.
28. Which with the following workers would be considered as holding a line position? A. Exxon Corporation’s vice-president for government relations.
B. The controller of General Motor.
C. A secretary employed by Verizon Communications.
D. The manager of food and beverage providers at Disney’s Magic Empire. E. non-e of these.
28. Which from the following workers at Starbucks would likely be regarded as as having a staff position? A. You can actually chief operating officer (COO).
B. The director of a shop located in Kansas, Missouri. C. The company’s business lead, in-house lawyer.
G. The company’s main financial police officer (CFO).
E. Choices “C and “D above.
29. The main managerial and financial documentalist of an business is the: A. chief executive officer (CEO).
M. treasurer.
C. vice-president of accounting.
D. internal auditor.
E. chief economical officer (CFO).
30. Which in turn of the next typically will not relate to the role of any controller? A. A control mechanism supervises the accounting department.
B. A control safeguards a great organization’s possessions.
C. A control oversees the preparation of reports necessary by government authorities. Deb. A controller normally assumes a narrow role in the organization, typically preventing the individual’s climb to top management rates. E. Options “B and “D above.
31. A controller is usually involved with:
A. setting up financial claims.
M. managing assets.
C. raising capital.
G. safeguarding assets.
Electronic. managing the firm’s credit policy.
32. Which with the following is definitely not a function of the treasurer? A. Safeguarding assets.
B. Controlling investments.
C. Organizing financial statements.
M. Being in charge of an entity’s credit coverage.
Electronic. Raising capital.
33. Managerial accountants:
A. often work on cross-functional teams.
B. are situated throughout a company.
C. are found primarily at decrease levels of the organizational hierarchy. Deb. are found mostly at bigger levels of the organizational hierarchy. Elizabeth. choices “A and “B above.
34. The two dimensions of managerial accounting are:
A. a decision-facilitating dimension and a decision-influencing dimension. N. a decision-facilitating dimension and a financial-influencing dimension. C. a decision-influencing dimension and a cost-minimizing dimension. Deb. a cost-minimizing dimension and a profit-maximizing dimension. E. a decision-influencing dimension and a profit-maximizing dimension.
35. Much of bureaucratic accounting info is based on: A. a cost-benefit theme.
B. income maximization.
C. cost minimization.
D. the generation of external info.
Electronic. effectiveness although not efficiency.
thirty eight. Which with the following is not normally considered to be an element of e-business? A. E-budgeting.
B. Supply-chain management.
C. Web commerce.
M. Balanced scorecards.
Elizabeth. Choices “B and “D above.
thirty seven. Managerial accounting has changed in recent times because of: A. the growth of e-business.
B. increased global competition.
C. the beginning of new sectors.
Deb. an increased focus on the customer.
E. Many of these factors.
37. Managerial accounting has changed recently because of: A. a growing support economy in america.
W. the growing popularity of cross-functional teams.
C. an increase in global competition.
M. time-based competition.
Electronic. All of these elements.
39. Which of the following statement(s) about just-in-time (JIT) inventory managing is (are) true? I. The emphasis of JIT is upon “pull manufacturing.
2. Raw materials are ordered just on time to be utilized in production. 3. JIT is an inventory technique that concentrates on reduction of both inventory and related inventory costs. A. I actually only.
B. II only.
C. III only.
D. 2 and 3.
E. I, II, and III.
40. Florida Corporation lately implemented a just-in-time (JIT) production system along with a series of continuous improvement programs. If the firm has become considering adopting a total top quality management (TQM) program, it would likely find that TQM: A. is in line with both JIT and ongoing improvement.
N. is according to JIT nevertheless inconsistent with continuous improvement. C. can be consistent with continuous improvement although inconsistent with JIT. Deb. is inconsistent with both JIT and ongoing improvement. Electronic. is an antiquated supervision technique.
forty one. Kaizen priced at is in line with:
A. cost lowering.
N. continuous improvement.
C. poor quality.
D. economical accounting and income transactions.
Elizabeth. both options “A and “B above.
42. Expense management systems tend to concentrate on an organization’s: A. equipment.
B. employees.
C. actions.
M. customers.
E. rules.
43. The top limit around the production of goods and companies if anything works perfectly is known as: A. practical capacity.
B. theoretical ability.
C. utilized capability.
G. management ability.
At the. capacity maximization.
44. The capacity concept which allows for typical occurrences such as machine down time and staff fatigue is referred to as: A. functional capacity.
B. theoretical capacity.
C. employed capacity.
D. managing capacity.
E. capacity maximization.
45. The cost of solutions supplied nevertheless unused is referred to as: A. useful capacity costs.
B. the cost of theoretical capacity.
C. the price of unused capability.
M. the cost of solutions supplied.
E. capacity cost.
46. Given the subsequent information, what is the cost of unused capacity? Cost of material supplied is $3, 200; Cost of material used can be $3, 500; Cost of material used per pastry is $3; Cost of material supplied every cake is $3. 20. A. $0. 20.
M. $200.
C. $2, 000.
D. $1, 000.
E. There is not any unused potential.
47. Presented the following data, what is the price tag on unused potential? Cost of materials supplied is definitely $8, six-hundred; Cost of material used is $8, 000; Cost of material used every shelf is $8; Expense of material provided per rack is $8. 60. A. $600.
N. $6, 1000.
C. $0. 70.
Deb. $1, 500.
Elizabeth. There is no untouched capacity.
forty-eight. The value chain of a maker would usually include activities related to: A. manufacturing.
B. r and d.
C. product design and style.
D. marketing.
E. Many of these.
49. Which will of the following choices appropriately depicts activities that would be
included in a manufacturer’s value chain?
[pic]
A. Choice A
N. Choice B
C. Choice C
Deb. Choice M
E. Choice E
50. Which usually of the previous activities would likely not be looked at part of The Difference clothing industry’s value string? A. Creating a new products.
B. Locating then negotiating terms with a garments manufacturer. C. Marketing a current product line.
D. Releasing goods by regional facilities to regional stores. E. All of these actions would be an element in the industry’s value cycle.
51. The actions performed by a manufacturing organization could be grouped as pre-production (such because research and development and product design), production-related, and post-production (such as marketing and customer service). Which activities should the firm focus on in the event that management knows the value sequence concept and desires to fulfill organizational desired goals? A. Pre-production activities.
B. Production-related actions.
C. Post-production activities.
Deb. Choices “A, “B, and “C above.
Electronic. Choices “A and “B above.
52. In order for a firm to achieve a sustainable competitive advantage, it
must perform benefit chain activities: A. exact same quality level as competitors, at the same price. B. exact same quality level as competition, but cheaper. C. in a higher top quality level than competitors, by a higher cost. D. at a higher quality level than competitors, yet at no better cost. E. Either choice “B or perhaps “D above.
53. The process of managing the different activities inside the value cycle, along with the affiliated costs, is often known as: A. activity-based priced at.
M. strategic cost management.
C. total quality managing.
G. computer-integrated being.
Elizabeth. sound managing practices (SMP).
54. A company has a logjam operation that slows development. Which in the following tools or techniques could the organization use to determine the most budget-friendly ways to eliminate this problem? A. Linear programming.
B. Theory of constraints.
C. Decision-tree layouts.
Deb. Payoff matrices.
Elizabeth. Strategic course analysis (SPA).
55. Which usually of the following can be associated with a say of company scandals that took place a little while ago? A. Money grubbing corporate executives.
N. Managers whom made over-reaching business deals.
C. Lack of oversight by companies’ audit panels and planks of administrators. D. Shoddy work by external auditors.
Electronic. All of these.
56. Which in the following works strives to further improve corporate governance and the top quality of company accounting/reporting? A. Robinson-Patman.
B. Taft-Hartley.
C. Sarbanes-Oxley.
D. Bush-Cheney.
E. Franks-Ashcroft.
57. Which in the following statements about the ethical local climate of business is phony? A. Greedy corporate professionals are, simply, to blame for the rash of corporate scandals that occurred not too long ago. N. Unethical organization behavior may have a negative effect on our economic climate. C. The Sarbanes-Oxley Take action strives to enhance the overall quality of corporate reporting. Deb. The Robinson-Patman Act aims to improve the entire quality of corporate reporting. E. Company scandals have served as the accounting profession’s wake-up call to pay increased attention to moral issues inside the conduct of business.
58. Which in the following is not an moral standard of managerial accounting? A. Competence.
N. Confidentiality.
C. Effectiveness.
G. Integrity.
E. Reliability.
59. Which will of the next is rather than an element of proficiency? A. To develop appropriate knowledge about a particular subject. B. To do duties in accordance with relevant laws.
C. To perform responsibilities in accordance with relevant technical specifications. D. To refrain from doing an activity that could discredit the accounting job. E. To arrange clear studies after an analysis of vital and dependable information.
60. Assume that a managerial accountant regularly convey with work associates to avoid issues of interest and advises relevant parties of potential disputes. In so doing, the accountant may have applied the ethical normal of: A. objectivity.
N. confidentiality.
C. honesty.
G. credibility.
E. single behavior.
Dissertation Questions
sixty one. Present several examples of bureaucratic accounting information that could support a supervisor make all the following decisions: A. A manufacturing company is currently producing a part that is a production pain. The organization is selecting whether to abandon development and buy the business from another supplier. W. An agent of fast-food restaurants is deciding whether to open a fresh store in Dallas.
62. Borders Immediately operates an overnight bundle delivery support that competes with Federal Express and United Package Service (UPS). Top managing is taking into consideration the use of a balanced scorecard to judge operations. A. What is a well balanced scorecard and also other than customer-satisfaction measures, precisely what are its common key components? B. List four customer-satisfaction measures that Borders may possibly use to assess performance.
63. Consider the descriptors in this article.
1 . Is heavily involved with the recordkeeping and reporting of resources, liabilities, and stockholders’ value. 2 . Focuses on planning, decision making, directing, and control. several. Is intensely regulated.
four. A field that is certainly becoming more “cross-functional in character. 5. Much of the field will be based upon costs and benefits.
6. Is definitely involved practically exclusively with past deals and situations. 7. Much of the information provided is directed toward stockholders, financial analysts, creditors, and other external functions. 8. Tends to focus more on subunits within an organization rather than the firm as a whole. 9. May become affiliated with measures of customer satisfaction, and the amount of actual cost incurred vs . budgeted goals. Required:
Decide whether the descriptors are the majority of closely connected with financial accounting or bureaucratic accounting.
sixty four. DreamWorks Photos produces the two motion pictures to get theaters in addition to a variety of series. Consider the seven actions that follow. 1 ) Auditions for actors and actresses
2 . Development of promotional materials for use by neighborhood newspapers three or more. Focus teams to evaluate delete word potential television comedy series 4. Creation of Dvd videos for discharge to A few days ago and Blockbuster Video a few. On-location taking pictures of moments
6. Fine-tuning and rewrites of intrigue
several. Set design and structure for a new medical crisis
Essential:
A. Evaluate the eight activities because upstream (pre-production), production, or perhaps downstream (post-production) in nature. B. Generally speaking, which actions (upstream, creation, or downstream), if any kind of, can managing ignore in the event the company is usually to be successful in achieving its key strategic goals?
sixty-five. Tae Franklin is the revenue manager of Darius Enterprises, a very rewarding distributor of office furniture to local businesses. A recent economic depression has created an exceptionally tight money position, and the company continues to be hurt by the bankruptcy of two crucial customers. In lateOctober, anticipating an economic restoration, Franklin started an extensive redecorating of the company’s sales floor. Construction costs, decorating, and equipment acquisitions are forecasted to expense $250, 000. Darius includes a policy that each expenditures more than $200, 000 must be given the green light by the business’s board of directors. Franklin, unfortunately, skipped the deadline to have the plank consider this project at its standard September conference. Not wanting to delay until the next conference in January, he subdivided the project in two parts”construction and decorating ($190, 000) and equipment acquisitions ($60, 000)”neither of which needed board authorization because of the dollars amounts involved. The job was lately completed and sales have got begun to recover. Customers have raved about the new revenue area, noting that it is far superior to the ones from Darius’s rivals. Required:
A. Would Franklin’s approach of subdividing the project in two parts have any effect on the company’s economical statements? In brief explain. W. Briefly discuss whether Franklin behaved within an ethical manner. C. Which will, if virtually any, of the following standards of conduct may have applicability to Franklin’s perform: competence, confidentiality, integrity, or perhaps credibility? Quickly explain.
sixty six. Many professions have implemented a series of moral standards to supply guidance for their very own memberships. The Institute of Management Accountants (IMA), for example , has published standards that focus on proficiency, confidentiality, sincerity, and believability. In light of such standards, consider the three circumstances that follow. Case A”Leston Company has experienced serious financial difficulties recently. John Small, the company’s key financial officer, has just found that a major rival was more likely to file for bankruptcy; yet , he failed to disclose thisinformation at a board conference held after that day time when a herb closure decision was being talked about.
The panel evaluated many proposals through the session that focused on increasing Leston’s financial position. Case B”QBX Company makes fertilizer via various raw materials, including a natural material know as Felstar. Paul Kelly, the business’s purchasing director, purposely attained a lower class of Felstar than usual because of a very attractive price. The lower-grade product resulted in improved usage during the manufacturing procedure but got no impact on the fertilizer’s overall top quality. An end-of-period report confirmed that QBX profited via Kelly’s actions, with the overall savings in purchase price much more than offsetting the expense of added usage. Case C”Central Distributing has a participative cash strategy process, permitting employees to experience a say in projected product sales targets to get the future period. These kinds of targets happen to be reflected in a series of functionality reports that compare genuine sales attained against targeted amounts. Hillary Baxter published very low revenue targets mainly because, as the girl confided in a colleague, “I always desire to like terms of meeting focuses on, even if predicted sales and closures no longer materialize. Required:
Measure the three instances and decide the moral issues, if any, which can be involved. Report the IMA’s standards if appropriate.
67. Briefly separate managerial accounting and economic accounting. Be sure you comment on the typical focus, users, and rules related to both the fields.
68. Cross-functional groups and time-based competition will be two styles of contemporary administration accounting. In short , explain those two concepts.
69. Unused or excess capability is a crucial component of modern day management accounting. Define the definition of “excess capacity and clarify how it would relate to a coffee shop.
70. The value chain is a important component of modern day management accounting. Define the term “value chain and make clear how it will relate to an airline.
Section 01 The Changing Position of Managerial Accounting within a Dynamic Business Environment Solution Key
Accurate / False Questions
1 . Controlling entails the coordination of daily business features within an corporation. FALSE
AACSB: Reflective Pondering
AICPA BB: Market
AICPA FN: Making decisions
Bloom’s: RC
Difficulty: Easy
Learning Objective: 01-02 Explain four fundamental management processes that help businesses attain their particular goals.
2 . Measuring the performance of managers and subunits is usually not an goal of managerial accounting. PHONY
AACSB: Discursive
AICPA BB: Critical Thinking
AICPA FN: Research
Bloom’s: REMOTE CONTROL
Problems: Easy
Learning Objective: 01-03 List and illustrate five goals of bureaucratic accounting activity.
3. Middle-level managers may likely be considered interior users of
accounting information instead of external users. TRUE
AACSB: Reflective Pondering
AICPA BB: Source Management
AICPA FN: Reporting
Bloom’s: RADIO CONTROLLED
Problems: Easy
Learning Target: 01-04 Describe the major distinctions between managerial and monetary accounting.
some. A controller is normally associated with preparing monetary statements. ACCURATE
AACSB: Inductive
AICPA BB: Source Management
AICPA FN: Reporting
Bloom’s: RC
Difficulty: Medium
Learning Target: 01-06 Explain the tasks of an company chief monetary officer (CFO) or controller Learning Aim: and interior auditor.
Learning Goal: treasurer
five. The upper limit on the development of goods and services if perhaps everything works perfectly is known as practical ability. FALSE
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Bloom’s: RADIO CONTROLLED
Difficulty: Easy
Learning Objective: 01-07 In short , describe some of the major modern themes in managerial accounting.
Multiple Choice Questions
6. Which from the following claims about managerial accountants is definitely false? A. Managerial accountants more and more are considered “business partners. M. Managerial accountants often will be part of cross-functional teams. C. An increasing number of companies are segregating managerial accountants in individual managerial-accounting departments. D. In several companies, bureaucratic accountants help to make significant business decisions and resolve operating problems. At the. The position of managerial accountants is promoting considerably in the last decade.
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Making decisions
Bloom’s: RC
Difficulty: Convenient
Learning Objective: 01-01 Define managerial accounting and describe their role inside the management procedure.
7. The day-to-day operate of managing teams will certainly typically comprise all of the subsequent activities except: A. decision making.
M. planning.
C. price minimizing.
D. leading operational activities.
At the. controlling.
AACSB: Reflective Pondering
AICPA BB: Market
AICPA FN: Decision Making
Bloom’s: RC
Difficulty: Easy
Learning Objective: 01-02 Explain four fundamental management processes that help businesses attain their very own goals.
almost eight. Which of the following capabilities is best referred to as choosing between available alternatives? A. Making decisions.
N. Planning.
C. Directing operational activities.
M. Controlling.
E. Cost management.
AACSB: Refractive Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Problems: Easy
Learning Target: 01-02 Clarify four primary management procedures that help organizations attain their goals.
9. Which of the next managerial functions involves reveal financial and operational information of awaited operations? A. Decision making.
B. Planning.
C. Directing operational activities.
D. Controlling.
E. Measuring.
AACSB: Reflective Pondering
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC
Difficulty: Easy
Learning Objective: 01-02 Explain four fundamental supervision processes that help organizations attain all their goals.
12. Which from the following entails the skill of daily business functions within an corporation? A. Decision making.
W. Planning.
C. Directing operational activities.
M. Controlling.
E. Encouraging.
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RADIO CONTROLLED
Difficulty: Easy
Learning Aim: 01-02 Clarify four primary management techniques that help organizations attain their desired goals.
11. Taurus Company has set numerous goals, and management is currently taking suitable action to ensure the firm achieves these kinds of goals. The type of action is usually to reduce items for cost to do business, which have exceeded budgeted portions. Which of the following functions best describes this process? A. Decision making.
B. Planning.
C. Coordinating.
D. Controlling.
E. Arranging.
AACSB: Inductive
AICPA BB: Crucial Thinking
AICPA FN: Measurement
Bloom’s: N
Problems: Easy
Learning Target: 01-02 Explain four primary management techniques that help organizations achieve their desired goals.
12. Which will of the following is rather than an objective of managerial accounting? A. Featuring information to get decision making and planning.
B. Assisting in leading and handling operations.
C. Increasing profits and minimizing costs.
D. Measuring the performance of managers and subunits.
E. Encouraging managers toward the organization’s goals.
AACSB: Analytic
AICPA BB: Critical Considering
AICPA FN: Analysis
Bloom’s: RC
Difficulty: Easy
Learning Objective: 01-03 List and describe five objectives of managerial accounting activity.
13. The role of managerial accounting data in assisting management can be a(n): A. financial-directing role.
B. attention-directing position.
C. planning and controlling position.
D. organizational position.
Elizabeth. problem-solving position.
AACSB: A fortiori
AICPA BB: Important Thinking
AICPA FN: Research
Bloom’s: REMOTE CONTROL
Difficulty: Medium
Learning Objective: 01-03 List and identify five goals of bureaucratic accounting activity.
14. Worker empowerment consists of encouraging and authorizing staff to take pursuits to: A. improve businesses.
M. reduce costs.
C. boost product top quality.
D. improve customer service.
At the. All of these.
AACSB: Communication
AICPA BB: Resource Managing
AICPA FN: Decision Making
Bloom’s: RC
Difficulty: Channel
Learning Objective: 01-03 List and describe five objectives of managerial accounting activity.
12-15. The process of encouraging and authorizing workers to take appropriate endeavours to improve the general firm is usually known as: A. planning and control.
B. worker empowerment.
C. employees aggressiveness.
D. decision making.
E. problem reputation and option.
AACSB: Connection
AICPA BB: Reference Management
AICPA FN: Decision Making
Bloom’s: RC
Problems: Medium
Learning Objective: 01-03 List and describe five aims of bureaucratic accounting activity.
16. Which will of the next business designs considers financial, customer, internal operating, and other measures inside the evaluation of performance? A. Deterministic ruse.
B. Balanced scorecard.
C. Payoff matrix.
M. Decision woods.
Elizabeth. Chart of operating functionality (COP).
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RADIO CONTROLLED
Difficulty: Medium
Learning Goal: 01-03 List and explain five objectives of bureaucratic accounting activity.
17. Which in turn of the next perspectives is commonly absent within a balanced scorecard? A. Monetary.
N. Customer.
C. Inside operations.
D. Learning and innovation/growth.
At the. non-e of the.
AACSB: Inductive
AICPA BB: Sector
AICPA FN: Decision Making
Bloom’s: RC
Difficulty: Method
Learning Objective: 01-03 List and describe five objectives of managerial accounting activity.
18. Managerial accounting:
A. focuses simply on historic data.
B. is definitely governed by GAAP.
C. focuses primarily on the requires of staff within the corporation. D. delivers information intended for parties exterior to the business. E. focuses on financial statements and other economic reports.
AACSB: Reflective Pondering
AICPA BB: Source Management
AICPA FN: Reporting Making
Bloom’s: RC
Difficulty: Easy
Learning Objective: 01-04 Explain the main differences between managerial and financial accounting.
19. Bureaucratic accounting:
A. is definitely unregulated.
B. makes information that is certainly useful only for manufacturing organizations. C. is based exclusively upon historical info.
M. is controlled by the Investments and Exchange Commission (SEC). E. generally focuses on confirming information about the venture in its whole rather
than by simply subunits.
AACSB: Reflective Pondering
AICPA BB: Reference Management
AICPA FN: Reporting
Bloom’s: D
Difficulty: Medium
Learning Target: 01-04 Make clear the major variations between bureaucratic and monetary accounting.
20. All of the following entities may have a need intended for managerial accounting information other than: A. mich.
N. Google.
C. Abercrombie london.
M. H&R Obstruct.
Elizabeth. Not one of such responses is correct, as all of these entities will use managerial accounting information.
AACSB: A fortiori
AICPA BB: Reflective Thinking
AICPA FN: Reporting
Bloom’s: D
Problems: Medium
Learning Aim: 01-04 Make clear the major dissimilarities between managerial and economical accounting.
21. Which in the following options correctly describes whether McDonald’s, the College or university of Wisconsin, and Apple computers. would have a purpose for bureaucratic accounting?
[pic]
A. Choice A
W. Choice B
C. Choice C
M. Choice M
At the. Choice Electronic
AACSB: Reflecting Thinking
AICPA BB: Industry
AICPA FN: Reporting
Bloom’s: And
Difficulty: Medium
Learning Objective: 01-04 Make clear the major variations between managerial and financial accounting.
22. Which from the following is likely to be considered an internal user of accounting info rather than an external user? A. Stockholders.
B. Buyer groups.
C. Loan providers.
D. Middle-level managers.
Electronic. Government agencies.
AACSB: Reflective Pondering
AICPA BB: Resource Management
AICPA FN: Reporting
Bloom’s: RC
Difficulty: Easy
Learning Objective: 01-04 Make clear the major distinctions between bureaucratic and monetary accounting.
23. Financial accounting focuses primarily on credit reporting:
A. to celebrations outside of a business.
B. to functions within an business.
C. to an organization’s board of directors.
D. to financial institutions.
E. to get financial institutions.
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Bloom’s: RADIO CONTROLLED
Difficulty: Easy
Learning Goal: 01-04 Make clear the major dissimilarities between bureaucratic and economical accounting.
twenty four. Which from the following characteristic(s) relate(s) even more to managerial accounting than to economic accounting? A. A focus on reporting to personnel within the organization. B. A focus about reporting to external celebrations.
C. A place of accounting that is seriously regulated.
D. A spotlight on featuring information that is relevant intended for planning, making decisions, directing, and control. Elizabeth. Choices “A and “D above.
AACSB: Reflective Pondering
AICPA BB: Sector
AICPA FN: Decision Making
Bloom’s: RC
Difficulty: Convenient
Learning Objective: 01-04 Explain the main differences between managerial and financial accounting.
25. Which usually of the next statements signifies a likeness between
financial and managerial accounting? A. The two are useful in offering information intended for external users. B. The two are governed simply by GAAP.
C. Both draw upon data via an company accounting system. D. The two rely seriously on released financial statements.
Elizabeth. Both are solely concerned with historic transactions.
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Bloom’s: D
Difficulty: Medium
Learning Aim: 01-04 Describe the major dissimilarities between bureaucratic and financial accounting.
twenty six. Which from the following personnel at Delta flight 1921 would not be regarded as as possessing a range position? A. Pilot.
B. Chief financial officer (CFO).
C. Airline flight attendant.
D. Admission agent.
E. Luggage handler.
AACSB: Analytic
AICPA BB: Resource Managing
AICPA FN: Study
Bloom’s: N
Difficulty: Method
Learning Objective: 01-05 Explain where managerial accountants are located within an organization Learning Objective: and physical position.
Learning Objective: application in cross-functional teams
Learning Aim: in terms of formal organization
28. Which in the following staff would be viewed as holding a line placement? A. Exxon Corporation’s vice-president for government relations. B. The control mechanism of Standard Motors.
C. A secretary utilized by Verizon Sales and marketing communications.
M. The administrator of meals and beverage services in Disney’s Magic Kingdom. Elizabeth. non-e of those.
AACSB: Analytic
AICPA BB: Source Management
AICPA FN: Research
Bloom’s: A
Difficulty: Medium
Learning Objective: 01-05 Make clear where bureaucratic accountants are situated in an firm Learning Goal: and physical location.
Learning Target: deployment in cross-functional groups
Learning Objective: with regards to formal corporation
28. Which in turn of the subsequent employees in Starbucks may likely be considered as holding a staff position? A. The company’s key operating expert (COO).
B. The manager of any store positioned in Kansas City, Missouri. C. You’re able to send lead, under one building attorney.
D. You can actually chief monetary officer (CFO).
Elizabeth. Choices “C and “D above.
AACSB: Analytic
AICPA BB: Resource Management
AICPA FN: Study
Bloom’s: N
Difficulty: Channel
Learning Objective: 01-05 Explain in which managerial accountants are located within an organization Learning Objective: and physical position.
Learning Objective: application in cross-functional teams
Learning Objective: in terms of formal organization
up to 29. The chief managerial and economical accountant of your organization is a: A. chief executive officer (CEO).
B. treasurer.
C. vice-president of accounting.
D. internal auditor.
E. chief financial officer (CFO).
AACSB: Analytic
AICPA BB: Resource Management
AICPA FN: Exploration
Bloom’s: RC
Difficulty: Moderate
Learning Objective: 01-05 Explain exactly where managerial accountants are located within an organization Learning Objective: and physical site.
Learning Objective: deployment in cross-functional teams
Learning Objective: in terms of formal organization
30. Which in the following commonly does not relate to the function of a controller? A. A controller supervises the accounting department.
B. A controller shields an company assets.
C. A controller runs the preparation of reports required simply by governmental authorities. D. A controller normally assumes a narrow role within the firm, often protecting against the individual’s rise to top management ranks. Electronic. Choices “B and “D above.
AACSB: Analytic
AICPA BB: Resource Administration
AICPA FN: Exploration
Bloom’s: RC
Difficulty: Channel
Learning Objective: 01-06 Describe the roles of an organization’s primary financial official (CFO) or perhaps controller Learning Objective: and internal auditor.
Learning Objective: treasurer
31. A controller is usually involved with:
A. setting up financial transactions.
M. managing opportunities.
C. raising capital.
G. safeguarding assets.
Elizabeth. managing the firm’s credit policy.
AACSB: Analytic
AICPA BB: Resource Administration
AICPA FN: Confirming
Bloom’s: RC
Difficulty: Moderate
Learning Objective: 01-06 Describe the roles of your organization’s main financial expert (CFO) or controller Learning Objective: and internal auditor.
Learning Objective: treasurer
32. Which of the next is not just a function in the treasurer? A. Safeguarding property.
M. Managing purchases.
C. Preparing financial statements.
D. Becoming responsible for an entity’s credit policy.
E. Elevating capital.
AACSB: Analytic
AICPA BB: Resource Supervision
AICPA FN: Confirming
Bloom’s: RC
Difficulty: Moderate
Learning Objective: 01-06 Describe the roles of an organization’s chief financial officer (CFO) or perhaps controller Learning Objective: and internal auditor.
Learning Objective: treasurer
33. Managerial accountants:
A. frequently work on cross-functional teams.
B. are located throughout a company.
C. are found generally at reduce levels of the company hierarchy. M. are found mostly at higher levels of the company hierarchy. Elizabeth. choices “A and “B above.
AACSB: Analytic
AICPA BB: Resource Managing
AICPA FN: Confirming
Bloom’s: RC
Difficulty: Convenient
Learning Objective: 01-06 Describe the roles of the organization’s primary financial official (CFO) or controller Learning Objective: and internal auditor.
Learning Objective: treasurer
34. Both the dimensions of managerial accounting are:
A. a decision-facilitating dimensions and a decision-influencing aspect. B. a decision-facilitating dimensions and a financial-influencing dimensions. C. a decision-influencing dimension and a cost-minimizing aspect. D. a cost-minimizing dimension and a profit-maximizing sizing. E. a decision-influencing aspect and a profit-maximizing aspect.
AACSB: Inductive
AICPA BB: Market
AICPA FN: Making decisions
Bloom’s: RC
Difficulty: Channel
Learning Objective: 01-07 Briefly illustrate some of the key contemporary styles in managerial accounting.
thirty five. Much of managerial accounting information is based on: A. a cost-benefit theme.
B. income maximization.
C. price minimization.
D. the generation of external data.
Electronic. effectiveness however, not efficiency.
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: N
Difficulty: Medium
Learning Aim: 01-07 In brief describe some of the major modern day
designs in bureaucratic accounting.
thirty eight. Which with the following is usually not normally considered to be an element of e-business? A. E-budgeting.
B. Supply-chain management.
C. E-commerce.
D. Balanced scorecards.
At the. Choices “B and “D above.
AACSB: Technology
AICPA BB: Leveraging Technology
AICPA FN: Levering Technology
Bloom’s: RC
Difficulty: Easy
Learning Aim: 01-07 In short , describe a few of the major modern themes in managerial accounting.
37. Managerial accounting has changed in recent years due to: A. the growth of elektronische geschäftsabwicklung.
W. increased global competition.
C. the emergence of new industries.
D. an increased focus on the customer.
E. All of these elements.
AACSB: Reflecting Thinking
AICPA BB: Legal
AICPA FN: Risk Research
Bloom’s: RC
Difficulty: Channel
Learning Objective: 01-07 Briefly identify some of the key contemporary themes in bureaucratic accounting.
32. Managerial accounting has changed recently because of: A. a growing support economy in the United States.
W. the developing popularity of cross-functional teams.
C. a rise in global competition.
G. time-based competition.
Elizabeth. All of these elements.
AACSB: Reflective Thinking
AICPA BB: Legal
AICPA FN: Risk Examination
Bloom’s: RC
Difficulty: Medium
Learning Objective: 01-07 Briefly illustrate some of the major contemporary designs in managerial accounting.
39. Which with the following statement(s) about just-in-time (JIT) products on hand management is usually (are) accurate? I. The emphasis of JIT is usually on “pull manufacturing.
II. Unprocessed trash are purchased only in time being used in creation. III. JIT is a listing technique that focuses on reduction of the two inventory and related inventory costs. A. I only.
W. II just.
C. III only.
Deb. II and III.
E. I actually, II, and III.
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: REMOTE CONTROL
Problems: Hard
Learning Target: 01-07 In brief describe a few of the major contemporary themes in managerial accounting.
40. Florida Corporation lately implemented a just-in-time (JIT) production program along with a number of continuous improvement programs. In the event the firm is currently considering using a total quality management (TQM) program, it will likely find that TQM: A. is according to both JIT and constant improvement.
M. is consistent with JIT nevertheless inconsistent with continuous improvement. C. is usually consistent with continuous improvement but inconsistent with JIT. M. is sporadic with both JIT and constant improvement. At the. is an antiquated administration technique.
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: And
Problems: Medium
Learning Objective: 01-07 In brief describe a few of the major modern day themes in managerial accounting.
41. Kaizen costing can be consistent with:
A. expense reduction.
B. continuous improvement.
C. poor quality.
D. financial accounting and cash flow statements.
E. equally choices “A and “B above.
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RADIO CONTROLLED
Problems: Medium
Learning Target: 01-07 In brief describe some of the major modern themes in managerial accounting.
42. Cost management systems tend to focus on an company: A. machines.
N. employees.
C. activities.
G. customers.
E. rules and regulations.
AACSB: A fortiori
AICPA BB: Sector
AICPA FN: Decision Making
Bloom’s: RC
Difficulty: Easy
Learning Objective: 01-07 Briefly describe some of the significant contemporary themes in managerial accounting.
43. The upper limit on the production of goods and services in the event everything functions perfectly is known as: A. practical capacity.
B. assumptive capacity.
C. used capacity.
D. supervision capacity.
E. capability maximization.
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Bloom’s: RC
Problems: Easy
Learning Target: 01-07 Briefly describe some of the major modern day themes in managerial accounting.
44. The capability concept that enables for regular occurrences just like machine downtime and employee fatigue is known as: A. functional capacity.
B. theoretical capacity.
C. applied capacity.
D. managing capacity.
E. potential maximization.
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Bloom’s: REMOTE CONTROL
Difficulty: Easy
Learning Aim: 01-07 Quickly describe a few of the major modern themes in managerial accounting.
45. The price of resources provided but abandoned is known as: A. practical capability costs.
B. the price of theoretical ability.
C. the cost of untouched capacity.
D. the expense of resources provided.
At the. capacity expense.
AACSB: Discursive
AICPA BB: Market
AICPA FN: Credit reporting
Bloom’s: RC
Difficulty: Convenient
Learning Objective: 01-07 Briefly illustrate some of the significant contemporary topics in bureaucratic accounting.
46. Given the following information, what is the cost of empty capacity? Expense of material supplied is $3, 200; Cost of material used is $3, 1000; Cost of material used per cake is $3; Cost of materials supplied per cake is definitely $3. 20. A. $0. 20.
B. $200.
C. $2, 000.
D. $1, 000.
E. There is not any unused capacity.
AACSB: A fortiori
AICPA BB: Industry
AICPA FN: Way of measuring
Bloom’s: A
Difficulty: Easy
Learning Objective: 01-07 Briefly describe some of the major contemporary designs in managerial accounting.
forty seven. Given the next information, precisely what is the cost of abandoned capacity? Expense of material delivered is $8, 600; Cost of material used can be $8, 000; Cost of materials per corner is $8; Cost of material supplied per shelf is $8. 70. A. $600.
B. $6, 000.
C. $0. 60.
D. $1, 000.
E. There is not any unused capacity.
AACSB: Inductive
AICPA BB: Sector
AICPA FN: Way of measuring
Bloom’s: A
Difficulty: Easy
Learning Objective: 01-07 Briefly illustrate some of the key contemporary designs in bureaucratic accounting.
forty-eight. The value string of a company would often include activities related to: A. manufacturing.
B. research and development.
C. product style.
G. marketing.
E. Many of these.
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Measurement
Bloom’s: RC
Problems: Easy
Learning Goal: 01-08 Understand and describe the principles of ideal cost management and the worth chain.
49. Which with the following alternatives correctly describes activities that might be included in a manufacturer’s value chain?
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A. Choice A
W. Choice N
C. Choice C
Deb. Choice M
Elizabeth. Choice E
AACSB: Reflecting Thinking
AICPA BB: Industry
AICPA FN: Measurement
Bloom’s: RADIO CONTROLLED
Problems: Medium
Learning Objective: 01-08 Appreciate and clarify the ideas of strategic cost management and the worth chain.
55. Which from the preceding activities would likely certainly not be considered area of the Gap apparel company’s worth chain? A. Designing a new product line.
B. Discovering and then discussing terms having a clothing producer. C. Promoting an existing production.
M. Distributing goods from local warehouses to local retailers. E. Many of these activities will be an element inside the company’s benefit chain.
AACSB: Reflective Considering
AICPA BB: Industry
AICPA FN: Way of measuring
Bloom’s: RC
Difficulty: Channel
Learning Objective: 01-08 Understand and explain the concepts of strategic cost management and the value string.
51. Those activities performed with a manufacturing organization could be categorized as pre-production (such since research and development and product design), production-related, and post-production (such as advertising customer service). Which actions should the organization focus on in the event that management understands the value chain concept and desires to meet organizational goals? A. Pre-production activities.
W. Production-related actions.
C. Post-production activities.
D. Choices “A, “B, and “C above.
Electronic. Choices “A and “B above.
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Making decisions
Bloom’s: N
Difficulty: Hard
Learning Objective: 01-08 Understand and explain the concepts of strategic price management and the value chain.
52. To ensure a company to accomplish a eco friendly competitive advantage, it must conduct value chain activities: A. at the same quality level while competitors, perfectly cost. N. at the same top quality level as competitors, but at a lower cost. C. at a better quality level than competitors, at a higher cost. Deb. at a higher quality level than competition, but without greater cost. E. Either choice “B or “D above.
AACSB: Reflective Considering
AICPA BB: Sector
AICPA FN: Risk Analysis
Bloom’s: RADIO CONTROLLED
Difficulty: Hard
Learning Aim: 01-08 Understand and clarify the ideas of ideal cost managing and the value chain.
53. The process of managing the various activities in the benefit chain, along with the associated costs, is commonly called: A. activity-based costing.
B. tactical cost management.
C. total top quality management.
D. computer-integrated costing.
E. appear management techniques (SMP).
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Risk Analysis
Bloom’s: REMOTE CONTROL
Difficulty: Medium
Learning Goal: 01-08 Understand and explain the ideas of proper cost management and the benefit chain.
fifty four. A company has a bottleneck procedure that slows down production. Which usually of the following tools or approaches is the firm use for determine one of the most cost-effective ways to eliminate this challenge? A. Linear programming.
M. Theory of constraints.
C. Decision-tree diagrams.
D. Payoff matrices.
E. Tactical path evaluation (SPA).
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Risk Analysis
Bloom’s: RC
Difficulty: Method
Learning Objective: 01-08 Understand and explain the concepts of strategic cost management and the value chain.
55. Which in turn of the following can be related to a trend of business scandals that took place a little while ago? A. Greedy corporate management.
M. Managers whom made over-reaching business bargains.
C. Lack of oversight by companies’ audit panels and boards of company directors. D. Substandard work by simply external auditors.
E. All of these.
AACSB: Ethics
AICPA BB: Legal
AICPA FN: Reporting
Bloom’s: RC
Difficulty: Medium
Learning Goal: 01-09 Understand the ethical responsibilities of a bureaucratic accountant.
56. Which in the following works strives to further improve corporate governance and the top quality of company accounting/reporting? A. Robinson-Patman.
B. Taft-Hartley.
C. Sarbanes-Oxley.
D. Bush-Cheney.
At the. Franks-Ashcroft.
AACSB: Ethics
AICPA BB: Legal
AICPA FN: Reporting
Bloom’s: RC
Problems: Medium
Learning Aim: 01-09 Understand the ethical responsibilities of a managerial accountant.
57. Which of the following assertions about the ethical weather of organization is bogus? A. Carried away corporate executives are, in part, to blame for the rash of corporate scams that occurred not too long ago. W. Unethical organization behavior can have a negative impact on our economy. C. TheSarbanes-Oxley Act aims to improve the entire quality of corporate credit reporting. D. The Robinson-Patman Take action strives to improve the overall quality of corporate and business reporting. E. Corporate scams have offered as the accounting profession’s wake-up call to pay out increased awareness of ethical issues in the conduct of business.
AACSB: Integrity
AICPA BB: Legal
AICPA FN: Credit reporting
Bloom’s: RC
Difficulty: Hard
Learning Objective: 01-09 Understand the ethical responsibilities of a managerial documentalist.
58. Which will of the next is rather than an ethical regular of bureaucratic accounting? A. Competence.
B. Confidentiality.
C. Efficiency.
D. Sincerity.
At the. Credibility.
AACSB: Ethics
AICPA BB: Legal
AICPA FN: Reporting
Bloom’s: RC
Difficulty: Medium
Learning Objective: 01-09 Be familiar with ethical responsibilities of a bureaucratic accountant.
59. Which with the following can be not an element of competency? A. To develop ideal knowledge about a specific subject. N. To perform tasks inaccordance with relevant regulations.
C. To perform duties in accordance with relevant technical specifications. D. To refrain from participating in an activity that would discredit the accounting occupation. E. To get ready clear studies after a great analysis of peaked and dependable information.
AACSB: Ethics
AICPA BB: Legal
AICPA FN: Reporting
Bloom’s: REMOTE CONTROL
Problems: Hard
Learning Goal: 01-09 Understand the ethical responsibilities of a bureaucratic accountant.
60. Assume that a managerial scrivener regularly communicates with work associates to avoid issues of interest and advises relevant parties of potential clashes. In so doing, the accountant could have applied the ethical regular of: A. objectivity.
N. confidentiality.
C. ethics.
G. credibility.
E. unified behavior.
AACSB: Ethics
AICPA BB: Legal
AICPA FN: Risk Examination
Bloom’s: RC
Difficulty: Hard
Learning Objective: 01-09 Understand the moral responsibilities of a managerial scrivener.
Essay Inquiries
61. Present several types of managerial accounting information that may help a manager produce each of the subsequent decisions: A. A manufacturing company is currently making a part that is a development headache. The firm is definitely deciding if to abandon production and get the part by an outside supplier. B. An operator of fast-food restaurants is selecting whether to open a new shop in Dallas.
Note: Many correct email address details are possible.
A. The expense of each option (make or buy) would be needed along with information regarding suppliers that pertains to stability and merchandise quality (e. g., testimonials from a supplier’s current customers that cite any problems with on-time deliveries, product stockouts, or perhaps abnormally substantial spoilage rates of acquired goods). Offered the company happens to be making the part, what would happen to the facilities if the company begins to obtain outside suppliers?
Could the facilities be subleased, used for different profitable products, or downsized (with tools being sold)? What happens to existing employees”would generally there be any kind of layoffs and exactly how much might the company save? B. The manager requirements information about structure or leasing costs along with characters that focus on subsequent working costs. As well, projected revenue, market share characters, and data about competition would be useful.
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Risk Analysis
Bloom’s: In
Difficulty: Medium
Learning Goal: 01-01 Specify managerial accounting and describe its position
inside the management procedure.
62. Boundaries Overnight works an right away package delivery service that competes with Federal Exhibit and Usa Parcel Services (UPS). Top rated management is considering the make use of a balanced scorecard to evaluate functions. A. What is a balanced scorecard and other than customer-satisfaction actions, what are its typical essential components? N. List four customer-satisfaction steps that Boundaries might value to evaluate functionality.
A. The balanced scorecard is a business design that helps to evaluate a firm’s competitive location and makes certain that the firm is moving on toward long-term survival. Well-balanced scorecards differ from organization to organization; nevertheless , in addition to customer-satisfaction actions, most have a combination of economic measures, internal operating steps, and steps of innovation/growth and learning. B. Customer-satisfaction measures can include quantity of packages delivered, market share, range of packages misplaced or destroyed, number of consumer complaints, common wait period when contacting and organizing a package deal pickup, and response time to customer concerns.
AACSB: Reflecting Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: RC, N
Difficulty: Moderate
Learning Objective: 01-03 List and describe five objectives of managerial accounting activity.
63. Consider the descriptors that follow.
1 . Can be heavily involved with the recordkeeping and confirming of property, liabilities, and stockholders’ collateral. 2 . Targets planning, decision
making, directing, and control. a few. Is intensely regulated.
5. A field that is certainly becoming more “cross-functional in characteristics. 5. Most of the field is based on costs and benefits.
6. Can be involved practically exclusively with past ventures and situations. 7. Much of the information provided is directed toward stockholders, financial experts, creditors, and other external functions. 8. Tends to focus even more on subunits within an organization rather than the corporation as a whole. 9. May become associated with measures of customer satisfaction, plus the amount of actual cost incurred or budgeted objectives. Required:
Decide whether the descriptors are the majority of closely associated with financial accounting or bureaucratic accounting.
[pic]
AACSB: Reflective Thinking
AICPA BB: Industry
AICPA FN: Reporting
Bloom’s: REMOTE CONTROL
Problems: Hard
Learning Target: 01-02 Make clear four important management techniques that help organizations attain their desired goals. Learning Objective: 01-03 List and illustrate five targets of managerial accounting activity. Learning Goal: 01-04 Explain the major differences between managerial and financial accounting. Learning Objective: 01-06 Describe the roles of the organization’s main financial officer (CFO) or perhaps controller Learning Objective: and internal auditor.
Learning Target: treasurer
64. DreamWorks Images produces equally motion pictures for theaters along with
many different television series. Consider the eight activities in this article. 1 . Auditions for stars and performers
2 . Development of advertisements for use by simply local papers 3. Target groups to judge ideas for potential television funny series 5. Production of DVDs pertaining to release to Best Buy and Blockbuster Video 5. On-location shooting of scenes
6. Fine-tuning and rewrites of scripts
7. Established design and construction to get a new medical drama
Required:
A. Assess the seven actions as upstream (pre-production), creation, or downstream (post-production) in nature. B. Generally speaking, which will activities (upstream, production, or downstream), if perhaps any, can easily management disregard if the company is to be effective in achieving its crucial strategic desired goals?
A.
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W. Not one. Each one is important and must be regarded.
AACSB: Refractive Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Bloom’s: In
Difficulty: Medium
Learning Objective: 01-08 Figure out and clarify the ideas of strategic cost administration and the benefit chain.
sixty-five. Tae Franklin is the product sales manager of Darius Businesses, a very lucrative distributor of office furniture to local businesses. A recent economic downturn has created an extremely tight funds position, plus the company have been hurt by bankruptcy of two essential customers. In lateOctober, anticipating an economic recovery, Franklin started an extensive redesigning of the provider’s sales floor. Construction costs, decorating, and equipment buys are forecasted to price $250, 1000.
Darius contains a policy that individual expenditures around $200, 500 must be approved by the business’s board of directors. Franklin, unfortunately, overlooked the deadline to have the table consider this task at its frequent September meeting. Not wanting to delay until the next meeting in 12 , he subdivided the job in two parts”construction and decorating ($190, 000) and equipment buys ($60, 000)”neither of which necessary board approval because of the money amounts engaged. The task was just lately completed and sales include begun to recoup. Customers have got raved about the new revenue area, noting that it is much superior to those of Darius’s rivals. Required:
A. Would Franklin’s approach of subdividing the project in two parts have any effect on the company’s monetary statements? In brief explain. W. Briefly discuss whether Franklin behaved in an ethical method. C. Which will, if any kind of, of the subsequent standards of conduct could have applicability to Franklin’s execute: competence, privacy, integrity, or credibility? In short , explain.
A. Although some extra processing is usually involved due to “separate tasks, the same total costs will be incurred for the same assets. Hence, there is no influence on the monetary statements, which in turn serve to sum it up financial activity. B. Franklin behaved in an unethical way. Even though organization is recovering and customers seem more than satisfied with the newest sales location, Franklin knowingly bypassed explained company policy. The project is being done in a single period, and is comprised of construction, decorating, and equipment acquisition. This really is really 1 project; but his accounting treatment signifies otherwise. C. Two standards are relevant here. Sincerity holds that managers refrain from engaging in any kind of conduct that will prejudice the ethical functionality of obligations. Additionally , reliability recognizes that managers possess a responsibility to communicate information pretty and objectively, and divulge all relevant information that could reasonably be anticipated to affect a wearer’s understanding of the reports and data provided.
AACSB: Values
AICPA BB: Market
AICPA FN: Reporting
Bloom’s: N
Difficulty: Hard
Learning Objective: 01-09 Understand the ethical responsibilities of a managerial curator.
66. Various professions have got adopted several ethical specifications to provide insight into their subscriptions. The Company of Supervision Accountants (IMA), for example , has published criteria that focus on competence, privacy, integrity, and credibility. Because of these specifications, consider the three cases in this article. Case A”Leston Corporation offers experienced critical financial issues in recent years. Ruben Young, the company’s chief financial officer, has just learned that a serious competitor was likely to file for bankruptcy; however , he failed to divulge this information for a table meeting kept later that day when a plant drawing a line under decision was being discussed.
The board evaluated several plans during the session that aimed at improving Leston’s financial position. Case B”QBX Firm manufactures fertilizer from several raw materials, together with a raw materials know while Felstar. Paul Kelly, the firm’s purchasing manager, purposely acquired a reduced grade of Felstar than normal because of a very attractive selling price. The lower-grade product triggered increased usage during the making process nevertheless had zero effect on the fertilizer’s general quality. A great end-of-period record showed that QBX profited from Kelly’s actions, with the overall savings in price more than offsetting the cost of added consumption. Case C”Central Distributing has a participative budgeting process, allowing personnel to have a claim in projected sales targets for the upcoming period. These focuses on are mirrored in a series of performance information that evaluate actual sales achieved against targeted quantities. Hillary Baxter submitted very low sales goals because, as she confided in a friend, “I usually want to look good in conditions of meetingtargets, even if expected sales and closures avoid materialize. Required:
Evaluate the three cases and identify the moral issues, if any, which have been involved. Cite the IMA’s standards in the event that appropriate.
Case A: Young had an obligation to inform the other plank members about the most likely bankruptcy, specifically in light in the company’s financial situation and the issues under discussion at the getting together with. The information would have affected the board’s pondering on a lot of matters. A pair of the IMA standards happen to be relevant below: competence and credibility. Proficiency notes, partly, that users provide decision-support information that may be accurate and timely. Additionally , credibility holds that users disclose all relevant information that could impact a user’s understanding of a great analysis. Young’s silence violates both of these honest standards.
Case B: Kelly did not violate any honest standards. The acquisition of sub-par material was obviously a sound business decision, particularly since QBX prospered financially and quality of the final product did not undergo. Case C: Baxter involved in a to some degree common practice known as extra padding the budget; on the other hand, one can consider that this kind of a practice is sporadic with the honest standards of credibility and competence. Baxter is not providing full knowledge of the sales situation by setting targets that are purposely low, thus perhaps misleading managers who try to analyze her performance. Additionally , competence can be involved as the information presented in placing the sales targets is definitely inaccurate.
AACSB: Ethics
AICPA BB: Industry
AICPA FN: Reporting
Bloom’s: N
Difficulty: Hard
Learning Objective: 01-09 Be familiar with ethical responsibilities of a managerial accountant.
67. Briefly distinguish between managerial accounting and economical accounting. Make sure you comment on the overall focus, users, and regulation related to the two fields.
Managerial accounting is concerned with offering information to personnel during an organization to enable them to plan, help to make decisions, examine performance, and control businesses. There are not any rules and regulations connected with this field since the details is intended solely for use inside the firm. Monetary accounting, as opposed, focuses on economic statements and also other financial reports. This area deals with reporting to an audience outside of a company (e. g., stockholders, loan providers, government agencies) so that several assessment of profitability and overall monetary health may be made. Offered the large range of firms inside our economy plus the varying standard of user elegance, the discipline is seriously regulated (by the Monetary Accounting Specifications Board and, to a reduced degree, by Securities and Exchange Commission).
AACSB: Reflecting Thinking
AICPA BB: Industry
AICPA FN: Reporting
Bloom’s: REMOTE CONTROL
Difficulty: Medium
Learning Target: 01-04 Clarify the major differences between managerial and financial accounting.
sixty-eight. Cross-functional groups and time-based competition will be two designs of contemporary managing accounting. Briefly explain the two of these concepts.
Cross-functional teams require bringing together individuals from numerous various fields (marketing, design, accounting, production, purchasing, human resources) for an “interdisciplinary approach to addressing management issues. Such an approach varies from that used in yesteryear when each one of the individual professions tended to stick to their personal turf.
Cross-functional teams add value to the organization simply by meeting the firm and customer’s needs in the most beneficial manner conceivable. Time-based competition relates to “doing things faster to gain a competitive edge. Bringing a brand new product to promote faster than a rival firm, responding to client concerns and problems more quickly than the competition, and lowering production outages are a few of its key elements.
AACSB: Reflective Considering
AICPA BB: Industry
AICPA FN: Risk Analysis
Bloom’s: RADIO CONTROLLED
Problems: Medium
Learning Target: 01-07 Briefly describe a number of the major modern-day themes in managerial accounting.
69. Empty or excess capacity is a key component of contemporary management accounting. Define the term “excess capacity and explain just how it would relate to a cafe.
Excess capability is the difference between your amount of your resource supplied and the quantity of a resource used in a given result activity level. A restaurant may possess excess capacity in terms of web servers, brewers, plus the amount of brewed beverages available to consumers.
AACSB: Refractive Thinking
AICPA BB: Industry
AICPA FN: Measurement
Bloom’s: A
Problems: Medium
Learning Objective: 01-07 In short , describe a few of the major contemporary themes in managerial accounting.
70. The worthiness chain is actually a key component of contemporary administration accounting. Determine the term “value chain and explain just how it would relate with an flight.
The value string is a pair of activities basically together to produce value for an organization. Using a manufacturer, for example, activities that range in scope coming from securing recycleables, to creation, to delivery of products can culminate in goods that boost a firm’s bottom-line profitability. Actions in a benefit chain for an airline would incorporate reservations and ticketing, routine service, baggage handling, marketing, customer support, frequent-flyer programs, and, naturally , flight procedures.
AACSB: Reflecting Thinking
AICPA BB: Industry
AICPA FN: Risk Evaluation
Bloom’s: RC
Difficulty: Medium
Learning Objective: 01-08 Understand and explain the concepts of strategic price management and the value chain.
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