Professional Documents
Culture Documents
True/False
1.
F
Medium
Decision making is a distinct management activity that should be separated from planning,
directing and motivating, and controlling activities.
2.
T
Easy
When carrying out their directing and motivating activities, managers mobilize the
organization's human and other resources so that the organization's plans are carried out.
3.
F
Medium
When carrying out planning activities, managers rely on feedback to ensure that the plan is
actually carried out and is appropriately modified as circumstances change.
4.
F
Medium
When carrying out their controlling activities, managers select a course of action and specify
how the action will be implemented.
5.
T
Medium
6.
T
Easy
Persons occupying staff positions provide support and assistance to other parts of the
organization.
7.
T
Easy
Informal relationships and channels of communication often develop that do not appear on the
organization chart.
8.
T
Medium
Managerial accounting places less emphasis on precision and more emphasis on flexibility and
relevance of data than does financial accounting.
9.
T
Easy
10.
T
Easy
Just-in-time is a production system in which units are produced and materials are purchased
only as needed to meet actual customer demand.
11.
F
Medium
In a just-in-time system, the flow of goods is controlled by a push approach in which partially
completed units are "pushed" forward to the next workstation as soon as work is completed at
the prior workstation.
12.
There is a greater danger of undermining employee morale with Process Reengineering than
ManagerialAccounting,9/e
T
Medium
13.
T
Easy
Total Quality Management involves a focus on serving the customer and systematic problemsolving using teams made up of front-line workers.
14.
T
Easy
15.
T
Easy
16.
F
Easy
In JIT purchasing, as many suppliers as possible are used so as to avoid relying too much on a
few suppliers.
17.
F
Medium
Efforts designed to increase the rate of output should generally be applied to non-constraint
workstations.
18.
T
Easy
19.
F
Medium
20
T
Easy
Work in process inventories consist of units that are only partially complete and will require
further work before they are ready for sale to a customer.
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Multiple Choice
21.
C
Medium
Obtaining feedback is generally identified most directly with which of the functions of
management?
a. Planning
b. Directing and motivating
c. Controlling
d. Decision making
22.
D
Easy
23.
B
Easy
A staff position:
a. relates directly to the carrying out of the basic objectives
of the organization.
b. is supportive in nature, providing service and assistance to other parts of the organization.
c. is superior in authority to a line position.
d. none of these.
24.
B
Medium
Which of the following persons would occupy a line position in a department store?
I. Sales manager
II. Manager, furniture department
III. Manager, advertising department
IV. Manager, personnel department
a. Only I
b. Only I and II
c. Only I, II, III
d. I, II, III, IV
25.
B
Easy
26.
A
Easy
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department must be
organization's segments.
27.
D
Medium
Which of the following statements are true regarding financial and managerial accounting?
I. Both are mandatory.
II. Both rely on the same underlying financial data.
III. Both emphasize the segments of an organization, rather
than just looking at the organization as a whole.
IV. Both are geared to the future, rather than to the past.
a. I, II, III, and IV
b. Only II, III and IV
c. Only II and III
d. Only II
28.
D
Easy
29.
C
Easy
For internal uses, managers are more concerned with receiving information that is:
a. completely objective and verifiable.
b. completely accurate and precise.
c. relevant, flexible, and immediately available.
d. relevant, completely accurate, and precise.
30.
B
Medium
The benefits of a successful Just-In-Time system include all of the following except:
a. funds tied up in inventories are released for use elsewhere.
b. inventory buffers are increased.
c. throughput time is reduced.
d. defect rates are decreased.
31.
D
Medium
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32.
C
Easy
33.
D
Medium
34.
D
Medium
35.
B
Medium
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36.
C
Medium
37.
B
Medium
38.
B
Medium
39.
C
Easy
40.
C
Medium
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41.
C
Hard
The Standards of Ethical Conduct for Practitioners of Management Accounting and Financial
Management contains a policy regarding confidentiality that requires that management
accountants:
a. refrain from disclosing confidential information acquired in the course of their work except
when authorized by
management.
b. refrain from disclosing confidential information acquired in the course of their work in all
situations.
c. refrain from disclosing confidential information acquired in the course of their work except
when authorized by
management, unless legally obligated to do so.
d. refrain from disclosing confidential information acquired in the course of their work in all
cases since the law requires
them to do so.
42.
A
Medium
The Standards of Ethical Conduct for Practitioners of Management Accounting and Financial
Management states that significant ethical issues should be discussed first with an immediate
superior unless the superior is involved. If satisfactory resolution cannot be achieved when the
problem is initially presented, then the issues should be:
a. submitted to the next higher managerial level.
b. submitted to the chief executive officer of the firm.
c. submitted to the audit committee, executive committee, board
of directors, or owners.
d. submitted to outside legal counsel.
43.
B
Medium
44.
D
Medium
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Essay
45.
Medium
You have recently been hired by a manufacturing company. Two days ago, you met with the
top management of the your company to discuss future strategies for the firm. During the
meeting the president of the company expressed concern about the profitability of the company
and the company's ability to compete effectively in the future. You responded to the president's
concerns by mentioning some articles you had read in professional accounting journals
regarding JIT. The president responded to your comments by saying that although the JIT
concept sounded interesting, no one in the company was knowledgeable about JIT. The
president then requested that you prepare a brief summary of JIT for the next strategic
planning meeting.
Required:
a. List the five key elements involved in the successful
b. List at least five benefits cited as coming from a JIT
Answer:
a. The five key elements involved in the successful operation
of JIT system are:
1. A company must learn to rely on a few suppliers who are
willing to
make frequent deliveries in small lots of
defect-free material.
2. A company must improve the manufacturing flow lines in
its
plants by physically locating together all of the
machines needed in the
production of a particular
product.
3. A company must reduce setup times by creating flow lines
that are
dedicated to a single product so that production
occurs in smaller batches
resulting in reduced levels of
work in process and finished goods inventories.
4. A company must develop a system of total quality control
over its part
and materials, such quality being monitored
by both suppliers and employees so as to
avoid
interruptions in production.
5. A company must develop a flexible work force of multiskilled workers capable of operating the various machines
in the
manufacturing flow lines as well as performing
minor repairs and maintenance
work when no demands are
made by the next work station.
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