Question 1

Pete's Cola Company is investigating the possibility of adopting a lean thinking philosophy throughout their organization. Estimated costs to set up the computer system are $1,650,000; training employees in lean operations is estimated to cost $175,000; and the general expenses of establishing the program are estimated at $315,000. The estimated value of the potential savings is $1,975,000. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much?

Accepted Answer

A)  Costs outweigh benefits by $150,000.
B)  Benefits outweigh costs by $150,000.
C)  Costs outweigh benefits by $165,000.
D)  Benefits outweigh costs by $165,000.

Question 2

Which of the following was not a result of the Sarbanes-Oxley Act?

Accepted Answer

A)  The COO assumes financial statement responsibility.
B)  There are new requirements for CPA firms.
C)  There are stiffer consequences for white-collar crimes.
D)  Audit committees must be independent.

Question 3

Which of the following statements is false?

Accepted Answer

A)  Financial accounting helps investors make decisions.
B)  Financial accounting provides sufficient information for managers to effectively plan and control operations.
C)  Financial accounting reports help creditors make decisions.
D)  Financial accounting provides external reports.

Question 4

Managerial accountants may be responsible for

Accepted Answer

A)  providing decision support.
B)  communicating results.
C)  analyzing data.
D)  all of the above.

Question 5

The Sarbanes-Oxley Act requires companies to have their internal audit procedures assessed at least

Accepted Answer

A)  monthly.
B)  quarterly.
C)  annually.
D)  at any time they choose. C

Question 6

What factor has changed the way that we now view managerial accountants?

Accepted Answer

A)  Stricter GAAP standards
B)  Technology
C)  Stricter audit standards
D)  None of the above

Question 7

A company's budget information is most likely to be used by which of the following groups?

Accepted Answer

A)  Suppliers
B)  Creditors
C)  Customers
D)  Managers

Question 8

The American Institute of Certified Public Accountants was the first professional membership organization in the United States to earn the ISO 9001 certification.

Accepted Answer

A) True 
 B)False

Question 9

What are the three primary responsibilities of managers as described in the chapter? Give an example of each type of responsibility.

Accepted Answer

The following are managers' three primar...

Question 10

Which of the following statements about XBRL is false?

Accepted Answer

A)  XBRL is only required for publicly traded companies.
B)  XBRL will decrease the need for manual financial information searches.
C)  The US is the first country to mandate use of XBRL.
D)  XBRL should decrease the time companies spend converting their financial information into various government-prescribed formats.

Question 11

Directing means setting goals and objectives for the company and determining how to achieve them.

Accepted Answer

A) True 
 B)False

Question 12

The IMA suggests that members discuss ethical dilemmas with the company's board of directors.

Accepted Answer

A) True 
 B)False  False

Question 13

The ________ is a subgroup of the Board of Directors.

Accepted Answer

A)  managerial committee
B)  stockholders' committee
C)  audit committee
D)  financial committee

Question 14

Budgets are a way for managers to communicate their

Accepted Answer

A)  control.
B)  decision-making.
C)  hiring practices.
D)  plans.

Question 15

The COO is responsible for managing which of the following aspect(s) of the company?

Accepted Answer

A)  The annual audit
B)  Internal controls
C)  Research and development, production, and distribution
D)  Financial accounting, managerial accounting, and tax accounting

Question 16

Management accountants spend more time planning, analyzing and interpreting accounting data and less time recording routine accounting transactions than they have in the past.

Accepted Answer

A) True 
 B)False

Question 17

Budgets are the quantitative expression of management's plans.

Accepted Answer

A) True 
 B)False

Question 18

Torque Engine Company is considering opening a plant in China. It will cost $3,500,000 to set up the plant and $750,000 to train employees. An additional $100,000 will be spent to build relationships with the local suppliers. The company anticipates gross profit of $4,400,000 from this new plant. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much?

Accepted Answer

A)  Costs outweigh benefits by $150,000.
B)  Benefits outweigh costs by $150,000.
C)  Costs outweigh benefits by $50,000.
D)  Benefits outweigh costs by $50,000.

Question 19

Which of the following is a software system that integrates all of a company's departments?

Accepted Answer

A)  ERP
B)  Total Integrated Software
C)  JIT
D)  TQM A

Question 20

The IMA issues which of the following certifications?

Accepted Answer

A)  CMA
B)  CIA
C)  CFP
D)  CPA

Exam 1: Introduction to Managerial Accounting

Correct Answer
verified

Which of the following was not a result of the Sarbanes-Oxley Act?

Correct Answer
verified

Which of the following statements is false?

Correct Answer
verified

Managerial accountants may be responsible for

Correct Answer
verified

The Sarbanes-Oxley Act requires companies to have their internal audit procedures assessed at least

Correct Answer
verified
C

What factor has changed the way that we now view managerial accountants?

Correct Answer
verified

A company's budget information is most likely to be used by which of the following groups?

Correct Answer
verified

The American Institute of Certified Public Accountants was the first professional membership organization in the United States to earn the ISO 9001 certification.

Correct Answer
verified

What are the three primary responsibilities of managers as described in the chapter? Give an example of each type of responsibility.

Correct Answer
verified
The following are managers' three primar...
View Answer

Which of the following statements about XBRL is false?

Correct Answer
verified

Directing means setting goals and objectives for the company and determining how to achieve them.

Correct Answer
verified

The IMA suggests that members discuss ethical dilemmas with the company's board of directors.

Correct Answer
verified
False

The ________ is a subgroup of the Board of Directors.

Correct Answer
verified

Budgets are a way for managers to communicate their

Correct Answer
verified

The COO is responsible for managing which of the following aspect(s) of the company?

Correct Answer
verified

Management accountants spend more time planning, analyzing and interpreting accounting data and less time recording routine accounting transactions than they have in the past.

Correct Answer
verified

Budgets are the quantitative expression of management's plans.

Correct Answer
verified

Correct Answer
verified

Which of the following is a software system that integrates all of a company's departments?

Correct Answer
verified
A

The IMA issues which of the following certifications?

Correct Answer
verified

Exam 1: Introduction to Managerial Accounting

Correct AnswerverifiedShow Answer

Which of the following was not a result of the Sarbanes-Oxley Act?

Correct AnswerverifiedShow Answer

Which of the following statements is false?

Correct AnswerverifiedShow Answer

Managerial accountants may be responsible for

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act requires companies to have their internal audit procedures assessed at least

Correct AnswerverifiedC

What factor has changed the way that we now view managerial accountants?

Correct AnswerverifiedShow Answer

A company's budget information is most likely to be used by which of the following groups?

Correct AnswerverifiedShow Answer

The American Institute of Certified Public Accountants was the first professional membership organization in the United States to earn the ISO 9001 certification.

Correct AnswerverifiedShow Answer

What are the three primary responsibilities of managers as described in the chapter? Give an example of each type of responsibility.

Correct AnswerverifiedThe following are managers' three primar...View AnswerShow Answer

Which of the following statements about XBRL is false?

Correct AnswerverifiedShow Answer

Directing means setting goals and objectives for the company and determining how to achieve them.

Correct AnswerverifiedShow Answer

The IMA suggests that members discuss ethical dilemmas with the company's board of directors.

Correct AnswerverifiedFalse

The ________ is a subgroup of the Board of Directors.

Correct AnswerverifiedShow Answer

Budgets are a way for managers to communicate their

Correct AnswerverifiedShow Answer

The COO is responsible for managing which of the following aspect(s) of the company?

Correct AnswerverifiedShow Answer

Management accountants spend more time planning, analyzing and interpreting accounting data and less time recording routine accounting transactions than they have in the past.

Correct AnswerverifiedShow Answer

Budgets are the quantitative expression of management's plans.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a software system that integrates all of a company's departments?

Correct AnswerverifiedA

The IMA issues which of the following certifications?

Correct AnswerverifiedShow Answer

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C

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The following are managers' three primar...
View Answer

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False

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A

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