Question 1

The IMA's ethical standard for integrity includes all of the following EXCEPT ________.

Accepted Answer

A)   each member has a responsibility to mitigate actual conflicts of interest
B)   each member has a responsibility to refrain from engaging in any conduct that would prejudice carrying out duties ethically
C)   each member has a responsibility to abstain from engaging in or supporting any activity that would discredit the profession
D)   each member has a responsibility to monitor subordinates' activities to ensure compliance with the ethical standard

Question 2

How is accounting information prepared by management accountants used within an organization?

Accepted Answer

A)   to help operating managers make decisions
B)   to plan an organization's operations
C)   to control an organization's operations
D)   all of the above

Question 3

When developing a price for a new product,the price must cover ________.

Accepted Answer

A)   costs in phase-out and product development cycles only
B)   costs in mature market and introduction to market cycles only
C)   costs in product development and phase-out cycles plus direct production costs
D)   costs incurred in all stages of the product life cycle

Question 4

The primary users of management accounting information are ________.

Accepted Answer

A)   bankers
B)   governmental regulatory bodies
C)   managers in organizations
D)   managerial accountants

Question 5

Which of the following is a major factor causing changes in management accounting today?

Accepted Answer

A)   additional value chain functions
B)   small advances in technology
C)   shift to manufacturing-based economy
D)   increased global competition

Question 6

A company is unsure whether it is more cost efficient to make or buy a component used in a manufactured product that is mass produced.What type of information is needed to make this decision?

Accepted Answer

A)   scorekeeping
B)   attention directing
C)   problem-solving
D)   management auditing

Question 7

The Sarbanes-Oxley Act requires companies to disclose whether the company has adopted a code of ethics for senior financial officers.

Accepted Answer

A) True 
 B)False

Question 8

What type of managers is directly involved with making and selling an organization's products?

Accepted Answer

A)   staff managers
B)   line managers
C)   management accountants
D)   accounting managers

Question 9

The maintenance department provides line support to the welding department in a factory.

Accepted Answer

A) True 
 B)False

Question 10

According to the IMA's Statement of Ethical Professional Practice,the standard of credibility includes ________.

Accepted Answer

A)   continually developing the accountant's knowledge and skills
B)   mitigating actual conflicts of interest
C)   disclosing all relevant information that could reasonably be expected to influence an intended user's understanding of the reports
D)   refraining from engaging in any conduct that would prejudice carrying out duties ethically

Question 11

Advertising is an example of the ________ function of the value chain.

Accepted Answer

A)   distribution
B)   selling
C)   marketing
D)   promotion

Question 12

The corporate culture is a larger influence on the ethical climate of an organization than a code of ethics.

Accepted Answer

A) True 
 B)False

Question 13

John is a management accountant at DAP Inc.John has reason to believe that his immediate supervisor (the controller) ,the chief financial officer and the company president are engaged in accounting fraud that involves overstating assets and understating liabilities.The company does not have a code of ethics or a set of policies for ethical problems.According to the guidelines offered by the IMA,what should John do?

Accepted Answer

A)   Report the suspected wrongdoings to the local police.
B)   Discuss the suspected wrongdoings with his immediate supervisor.
C)   Discuss the suspected wrongdoings with the company president.
D)   Report the suspected wrongdoings to the audit committee or the board of directors.

Question 14

In some countries outside the United States,independent auditors are called chartered accountants.

Accepted Answer

A) True 
 B)False

Question 15

Product life cycles may range from a few months to many years.

Accepted Answer

A) True 
 B)False

Question 16

The largest U.S.association of professional accountants whose major interest is management accounting is the ________.

Accepted Answer

A)   American Institute of Certified Public Accountants
B)   American Institute of Certified Management Accountants
C)   Institute of Management Accountants
D)   American Institute of Management Accountants

Question 17

________ information helps managers focus on operating problems,imperfections,inefficiencies and opportunities.

Accepted Answer

A)   Scorekeeping
B)   Attention directing
C)   Problem solving
D)   Performance

Question 18

Examples of business process reengineering do NOT include ________.

Accepted Answer

A)   computer-aided design
B)   computer-aided manufacturing
C)   robots
D)   labor-intensive machines

Question 19

Paul Satorius is the controller at ANEW Corporation.The company is not publicly traded.ANEW Corporation just received a patent on a new product that is supposed to revolutionize the music industry.As the moment,however,ANEW Corporation is experiencing financial difficulties and is on the verge of defaulting on a note held by the bank.
At the end of the most recent fiscal year,the company's president instructed Paul to ignore recording some invoices.Paul objected because the invoices represented true liabilities at fiscal year end.However,the president insisted that the invoices should be recorded next year so that current liabilities reported on the balance sheet at the end of the current year are lower.The bank is closely following the amount of current liabilities reported by ANEW Corporation as an indicator of solvency.
Required:
What should Paul do? Follow the guidelines offered by the IMA.

Accepted Answer

Paul should follow the company's policie...

Question 20

Behavioral considerations are of primary importance in financial accounting.

Accepted Answer

A) True 
 B)False

Exam 1: Managerial Accounting,the Business Organization,and Professional Ethics

Advertising is an example of the ________ function of the value chain.

Correct Answer
verified

Correct Answer
verified

How is accounting information prepared by management accountants used within an organization?

Correct Answer
verified

The maintenance department provides line support to the welding department in a factory.

Correct Answer
verified

The corporate culture is a larger influence on the ethical climate of an organization than a code of ethics.

Correct Answer
verified

Examples of business process reengineering do NOT include ________.

Correct Answer
verified

In some countries outside the United States,independent auditors are called chartered accountants.

Correct Answer
verified

Product life cycles may range from a few months to many years.

Correct Answer
verified

When developing a price for a new product,the price must cover ________.

Correct Answer
verified

Behavioral considerations are of primary importance in financial accounting.

Correct Answer
verified

The largest U.S.association of professional accountants whose major interest is management accounting is the ________.

Correct Answer
verified

Which of the following is a major factor causing changes in management accounting today?

Correct Answer
verified

________ information helps managers focus on operating problems,imperfections,inefficiencies and opportunities.

Correct Answer
verified

According to the IMA's Statement of Ethical Professional Practice,the standard of credibility includes ________.

Correct Answer
verified

The primary users of management accounting information are ________.

Correct Answer
verified

A company is unsure whether it is more cost efficient to make or buy a component used in a manufactured product that is mass produced.What type of information is needed to make this decision?

Correct Answer
verified

The IMA's ethical standard for integrity includes all of the following EXCEPT ________.

Correct Answer
verified

The Sarbanes-Oxley Act requires companies to disclose whether the company has adopted a code of ethics for senior financial officers.

Correct Answer
verified

What type of managers is directly involved with making and selling an organization's products?

Correct Answer
verified

Correct Answer
verified
Paul should follow the company's policie...
View Answer

Exam 1: Managerial Accounting,the Business Organization,and Professional Ethics

Advertising is an example of the ________ function of the value chain.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

How is accounting information prepared by management accountants used within an organization?

Correct AnswerverifiedShow Answer

The maintenance department provides line support to the welding department in a factory.

Correct AnswerverifiedShow Answer

The corporate culture is a larger influence on the ethical climate of an organization than a code of ethics.

Correct AnswerverifiedShow Answer

Examples of business process reengineering do NOT include ________.

Correct AnswerverifiedShow Answer

In some countries outside the United States,independent auditors are called chartered accountants.

Correct AnswerverifiedShow Answer

Product life cycles may range from a few months to many years.

Correct AnswerverifiedShow Answer

When developing a price for a new product,the price must cover ________.

Correct AnswerverifiedShow Answer

Behavioral considerations are of primary importance in financial accounting.

Correct AnswerverifiedShow Answer

The largest U.S.association of professional accountants whose major interest is management accounting is the ________.

Correct AnswerverifiedShow Answer

Which of the following is a major factor causing changes in management accounting today?

Correct AnswerverifiedShow Answer

________ information helps managers focus on operating problems,imperfections,inefficiencies and opportunities.

Correct AnswerverifiedShow Answer

According to the IMA's Statement of Ethical Professional Practice,the standard of credibility includes ________.

Correct AnswerverifiedShow Answer

The primary users of management accounting information are ________.

Correct AnswerverifiedShow Answer

A company is unsure whether it is more cost efficient to make or buy a component used in a manufactured product that is mass produced.What type of information is needed to make this decision?

Correct AnswerverifiedShow Answer

The IMA's ethical standard for integrity includes all of the following EXCEPT ________.

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act requires companies to disclose whether the company has adopted a code of ethics for senior financial officers.

Correct AnswerverifiedShow Answer

What type of managers is directly involved with making and selling an organization's products?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedPaul should follow the company's policie...View AnswerShow Answer

Correct Answer
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Correct Answer
verified
Paul should follow the company's policie...
View Answer