ACC 209 -MANAGERIAL ACCOUNTING

ASSIGNMENT 1

1) An important part of planning is to identify alternatives and then to select from among the alternatives the one that best meets the organization's objectives. ( 0.05)

true false

Answer -

2) Big Data refers to the information gathered from insider sources only.

true false

Answer -

3) Companies should identify foreseeable risks before they occur rather than react to unfortunate events that have already happened.

true false

Answer -

4) A value chain consists of the major business functions that add value to a company's products and services.

true false

Answer -

5) Managerial accounting places less emphasis on precision and more emphasis on timeliness of data than financial accounting does.

true false

6) Managerial accounting is NOT governed by generally accepted accounting principles (GAAP).

true false

7) In general, accounting data serve both financial accounting and managerial accounting purposes.

true false

8) Product harming customers is NOT a business risk.

true false

9) Managerial accounting plays a critical role in providing information to management to facilitate implementing and monitoring strategy.

true false

10) To reduce the likelihood that employees will engage in undesirable activities that may harm various stakeholders, many companies prepare a formal code of conduct to reflect their values and moral system.

true false

11) Emphasis on the future is given equal weight by both managerial accounting and financial accounting.

true false

12) Managerial accounting plays a critical role in providing information to management to facilitate strategy implementation and monitoring.

true false

13) Thorough testing of a product before launching in the mass market is a risk reduction strategy.

true false

14) A customer value proposition is essentially a reason for customers to choose a company's products over its competitors' products.

true false

15) Customer value propositions tend to fall into three broad categories--customer intimacy, operational excellence, and product leadership.

true false

16) 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."

true false

17) 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."

true false

18) Many organizations use extrinsic incentives to highlight important goals and to motivate employees to achieve them.

true false

19) Paying a bonus for exceeding the sales target is an example of extrinsic incentive.

true false

20) Managerial accounting is not mandatory.

true false

21) Many customers seek to purchase products and services from socially responsible companies.

true false

22) Professional organizations like CPA Canada can punish companies if they violate the code of ethics.

true false

23) Day-to-day decision making is most common to which of the following activities managers are expected to carry on in organizations?

A) Strategy formulation. B) Directing and motivating. C) Planning. D) Budgeting.

ANSWER -

24) Identifying alternatives and selecting the best among them is part of which of the following activities managers carry out in organizations?

A) Controlling. B) Directing. C) Decision making. D) Motivating.

25) Budgeting is part of which of the following activities managers perform in organizations?

A) Controlling. B) Directing. C) Planning. D) Motivating.

26) Obtaining feedback is generally identified most directly with which of these functions of management?

A) Planning. B) Directing and motivating. C) Controlling. D) Decision making.

27) Unstructured forms of big data include all of the following except:

A) videos. B) memos. C) pictures. D) audios.

28) Five V's of big data include all of the following except:

A) variety. B) value. C) volume. D) variable.

29) Which is the most common risk management tactic?

A) Accept the risk. B) Avoid the risk. C) Reduce the risk. D) Share the risk.

30) Which of the following best describes the function of managerial accounting within an organization?

A) It has its primary emphasis on the future. B) It is required by regulatory bodies such as the Ontario Securities Commission. C) It focuses on the organization as a whole, rather than on the organization's segments. D) It places more emphasis on precision of data than financial accounting does.

31) Upon which of the following does managerial accounting place considerable weight?

A) Generally accepted accounting principles. B) The financial history of the entity. C) Ensuring that all transactions are properly recorded. D) Detailed segment reports about departments, products, and customers.

32) For internal uses, managers are more concerned with receiving information that achieves which of the following standards?

A) Completely objective and verifiable. B) Completely accurate and precise. C) Relevant, flexible, and timely. D) Relevant, completely accurate, and precise.

33) Which of the following would be an example of a performance report?

A) An income statement reporting actual results for the past month. B) An income statement showing the amounts budgeted for the past month. C) A balance sheet showing the actual financial position at the end of the past month. D) A production report showing budgeted and actual production for the past month.

34) Which of the following is NOT a value propositions discussed in the text?

A) Customer intimacy B) Discount pricing C) Operational excellence D) Innovation

35) Which one of the following is NOT an example of corporate social responsibility?

A) Safe, high- quality products that are fairly priced. B) Full disclosure of product related risks. C) Opportunities for training, promotion, and personal development. D) Easy-to-use information systems for shopping and tracking orders.

36) Which one of the following is NOT an activity in the controlling stage?

A) Comparing actual to planned performance. B) Preparing an estimate for raw materials are released to production. C) Preparing performance reports D) Measuring performance

37) 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.

38) Professional accounting body in Canada (CPA) 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.

39) 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 to obtain higher reimbursements from the firm. 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.

40) 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 IFRS.

41) Ajit, the production manager at Guelph Manufacturing Company decided to choose a supplier with a proven track record instead of a new supplier that offers significant price incentives. This is an example of:

A) Risk avoiding B) Risk accepting C) Risk sharing D) Risk taking

42) Series of steps that are followed to carry out some task or activity in a business is called:

A) Business cycle. B) Business activity. C) Business process. D) Business strategy.

43) Which of the following groups should be the focal point of a company's strategy?

A) Employees B) Board of directors C) Shareholders D) Target customers

44) The purpose of IFRS is:

A) To encourage Strategic planning. B) To enhance the comparability and clarity of financial information on a global basis. C) To encourage disclosure of Non-Financial data. D) To change how management accountants prepare reports.

45) In Canada, CPA Code of Ethics is an instrument for enforcing professional conduct for its members and comprise the following:

A) Level of competence, confidentiality, integrity, due care and objectivity B) Level of competence, confidentiality and integrity C) Level of competence, confidentiality and objectivity D) Level of competence, integrity and objectivity

46) Which of the following is the stakeholder group whose interests are to be directly and formally protected by effective corporate social responsibility?

A) Customers B) Creditors C) All Stakeholders D) Suppliers

47) Compare financial and managerial accounting. ( 1.35)

48) Provide three examples of common business risks faced by companies and their solutions?