When designing an accounting information system, the cost toacquire additional information should be incurred ________.
A) at all times so the operating manager has more information tomake decisions
B) when information overload does not occur
C) at all times because the benefit cannot be quantified
D) when the expected benefit of an improved decision exceeds thecost of the information
Answer:
Which of the following is a major factor causing changes inmanagement accounting today?
A) additional value chain functions
B) small advances in technology
C) shift to manufacturing-based economy
D) increased global competition
Answer:
Which statement is FALSE concerning Enterprise Resource Planning(ERP) systems?
A) Accounting is one part of an ERP system.
B) Accountants must work with operating managers throughout theorganization to ensure that the ERP system provides the financialinformation that managers need.
C) ERP systems support all functional areas of a company.
D) SAP is not a provider of ERP systems.
Answer:
Scott is a management accountant in a large company. Scottobserved unethical behavior by a coworker who is also a managementaccountant. The coworker is a relative of the company's presidentand he always receives preferential treatment. Scott observed thecoworker putting office supplies and small pieces of electronicequipment in his briefcase. The company does not have a code ofethics or a set of policies for ethical problems. According to theIMA, what course of action should Scott take?
A) He should report the observation to the police. The coworkeris stealing from the company.
B) He should report the observation to his immediatesupervisor.
C) He should report the observation to the Securities andExchange Commission.
D) He should do nothing.
Answer:
Generally Accepted Accounting Principles are most closelyconnected to ________.
A) management accounting
B) financial accounting
C) internal auditing
D) management auditing
When designing an accounting information system, the cost toacquire additional information should be incurred ________.
A) at all times so the operating manager has more information tomake decisions
B) when information overload does not occur
C) at all times because the benefit cannot be quantified
D) when the expected benefit of an improved decision exceeds thecost of the information
Answer:
Which of the following is a major factor causing changes inmanagement accounting today?
A) additional value chain functions
B) small advances in technology
C) shift to manufacturing-based economy
D) increased global competition
Answer:
Which statement is FALSE concerning Enterprise Resource Planning(ERP) systems?
A) Accounting is one part of an ERP system.
B) Accountants must work with operating managers throughout theorganization to ensure that the ERP system provides the financialinformation that managers need.
C) ERP systems support all functional areas of a company.
D) SAP is not a provider of ERP systems.
Answer:
Scott is a management accountant in a large company. Scottobserved unethical behavior by a coworker who is also a managementaccountant. The coworker is a relative of the company's presidentand he always receives preferential treatment. Scott observed thecoworker putting office supplies and small pieces of electronicequipment in his briefcase. The company does not have a code ofethics or a set of policies for ethical problems. According to theIMA, what course of action should Scott take?
A) He should report the observation to the police. The coworkeris stealing from the company.
B) He should report the observation to his immediatesupervisor.
C) He should report the observation to the Securities andExchange Commission.
D) He should do nothing.
Answer:
Generally Accepted Accounting Principles are most closelyconnected to ________.
A) management accounting
B) financial accounting
C) internal auditing
D) management auditing
Related questions
1.Which of the following is not a benefit ofcost allocation?
a.Instilling responsibility for all costs of the company indivision managers.
b.Constructing performance measures that may be more meaningfulthan contribution margins.
c.Relating indirect costs to contracts, jobs and products.
d.Additional bookkeeping costs incurred to provide costallocation information.
2.Cost pools are used with:
| Plantwide Rates | Department Rates | |
| A. | Yes | No |
| B. | No | Yes |
| C. | No | No |
| D. | Yes | Yes |
Option A
Option B
Option C
Option D
3.Product costs are computed by:
a.dividing the cost driver rate by the number of units of thecost driver in each product.
b.multiplying the cost driver rate by the number of units of thecost driver in each product.
c.adding the cost driver rates of all products.
d.averaging the plantwide cost driver rate with the cost driverfor each product.
4.When product costs are used for decision-making, whatassumption is most likely to distort the decisions?
a.There is a proportionality of overhead costs and output,regardless of whether a product is dropped or not.
b.Some overhead estimates can decrease when a product isdropped.
c.Some overhead costs could be fixed when a product isdropped.
d.The cost accounting system treats all overhead as if it werevariable with respect to the allocation base.
5. Dreamland University has 20 departments. Two of its bestdepartments are the (1) College of Innovation (COI) and (2) TestingServices. The College of Innovation (COI) attempts to teachstudents the difficult, but useful, skill of innovation. TestingServices grades examinations for professors. How would these twodepartments be classified?
| College of Innovation | Testing Services | |
| A. | Service | Service |
| B. | User | Service |
| C. | User | User |
| D. | Service | User |
Option A
Option B
Option C
Option D
