1: MULTIPLE CHOICE QUESTIONS (20 POINTS) 1. Which of the following is NOT one of the three major customer value propositions discussed in the text? A. Customer intimacy B. Discount pricing C. Operational excellence D. Product leadership 2. Which of the following is NOT a topic relating to managing and improving business processes? A. Lean Production. B. Corporate Governance. C. Enterprise Systems. D. Risk Management. 3. The delegation of decision making throughout an organization by providing managers at various operating levels with the authority to make key decisions relating to their area of responsibility is which of the following? A. Risk management. B. Corporate social responsibility. C. Decentralization. D. A staff position. 4. Which one of the following is NOT an activity in the planning and control cycle? A. Comparing actual to planned performance. B. Raw materials are released to production far in advance of being needed to ensure no interruptions in work flows due to shortages of raw materials. C. Formulating long and short-term plans. D. Measuring performance. 5. Which of the following is NOT an example of a business risk? A. Products harming customers. B. A website malfunctioning. C. A customer value proposition. D. An employee accessing unauthorized information. 6. All three major professional accounting groups in Canada require their members to undertake professional development and/or continuing education. This practice is intended to directly satisfy which of these rules of ethical conduct in line with other code of ethics? A. Integrity. B. Objectivity. C. Competence. D. Confidentiality. 7. Samantha Galloway is a managerial accountant in the accounting department of Mustang Industries, Inc. Samantha has just discovered evidence that some of the corporation's marketing managers have been wrongfully inflating their expense reports in order to obtain higher reimbursements from the firm. According to the Institute of Management Accountants' Standards of Ethical Conduct, what should Samantha do upon discovering this evidence? A. Notify the controller. B. Notify the marketing managers involved. C. Notify the president of the corporation. D. Ignore the evidence because she is not part of the Marketing Department. 8. Both financial and managerial accounting rely on the same underlying financial data but there are major differences. Managerial Accounting: A. emphasizes financial consequences of past activities. B. emphasizes precision. C. emphasizes relevance. D. must follow GAAP. 9. After careful planning, Jammu Manufacturing Corporation has decided to switch to a just-in-time inventory system as a component of the lean thinking model. At the beginning of this switch, Jammu has 30 units of product in inventory. Jammu has 2,000 labour hours available in the first month of this switch. These hours could produce 500 units of product. Customer demand for this first month is 400 units. If just-in-time principles are correctly followed, how many units should Jammu plan to produce in the first month of the switch? A. 370 B. 400 C. 430 D. 470 10. Which of the following facets of the lean thinking model is often called just-in-time production? A. Identify value in specific products/services. B. Identify the business process that delivers value. C. Create a pull system that responds to customer orders. D. Organize work arrangements around the flow of the business process. SECTION 2: TRUE OR FALSE QUESTIONS (20 POINTS) Indicate whether the statement is TRUE or FALSE. 1. Emphasis on the future is given equal weight by both managerial accounting and financial accounting. 2. A strategy is a game plan that enables a company to attract customers by distinguishing itself from competitors. 3. Both the controller and CFO are staff positions. 4. A customer value proposition is essentially a reason for customers to choose a company's products over its competitors' products. 5. Customer value propositions tend to fall into three broad categories--customer intimacy, operational excellence, and product leadership. 6. Companies that adopt a customer intimacy strategy are in essence saying to their target customers, "The reason you should choose us is because we understand and respond to your individual needs better than our competitors." 7. Companies that choose an operational excellence strategy are in essence saying to their customers, "Choose us rather than our competitors because we strive for zero defects." 8. Corporate governance is the legal framework that allows managers to control and direct lower-level workers on the job. 9. A value chain consists of the major business functions that add value to the company's products and services. 10. Managerial accounting is not mandatory. SECTION 3: BUSINESS RISKS (26 POINTS) Choose any company you like (mention the company's full name). Provide the company's website link. In one short paragraph, briefly state what business the company does. (1 mark) (2 marks) (3 marks) In a two-sided tabular format, identify ten examples of common business risks likely faced by the company and what control measures should be taken to minimize each business risk. Your points should be very brief. (20 marks) SECTION 4: WORK OF MANAGEMENT (20 POINTS) The work of management in any organization consists of four main activities. List these four activities and briefly explain each of them. Illustrate each of them with an example. SECTION 5: COMPARISON OF FINANCIAL AND MANAGERIAL ACCOUNTING (14 POINTS) In a two-sided tabular format, compare seven ways in which Financial Accounting differs from Management Accounting